Changes to Import Duty Rates

The Federal Budget announced on the 10th May 2005 finally had some good news for Importers with the removal of the 3% customs duty that applied to business imputs imported under a Tariff Concession Order (TCO).

The tariff which added to the cost of domestically manufactured goods and reduced their competitiveness, was designed as a short-term revenue raising measure but still managed to survive nine budgets despite sustained industry opposition.

The measure takes effect from 11 May 2005 and applies to all imported goods, subject to a TCO, for home consumption on, or after, 11 May 2005. The three percent customs duty will apply to all goods subject to a TCO, if they are entered for home consumption before 11 May 2005. Goods, subject to a TCO and entered for home consumption on, or after, 11 May 2005, will attract a free rate of duty.