Leonie Ferretter, Customs & Excise Specialist in KPMG's Transfer Pricing group, welcomes the Government's announcement that the Australian Trusted Trader Programme (ATTP) will include customs duty deferral.
Today’s pre-budget announcement that the Australian Trusted Trader Programme (ATTP) will include customs duty deferral will be welcome news to the importing community. To date the ATTP has been seen as providing only limited additional benefits to importers current customs arrangements.
The ATTP pilot programme will be completed on 30 June 2016 and be implemented from 1 July 2016. Current proposed benefits include faster cargo clearance, prioritised ruling application and a dedicated account manager. However, one of the key sticking points of the ATTP has been no customs import duty deferral. Notwithstanding, the large number of free trade agreements Australia is entering into, many importers still face substantial customs duty bills prior to the release of cargo from customs control. Whilst the details of the deferral program are yet to be legislated, we hope that it will be as administratively simple as the deferral of import GST which is then accounted for on an importers Business Activity Statement.
The Minister for Immigration and Border Protection, Peter Dutton also announced pre-budget funding of $69.9 million over four years to implement the ATTP and confirmed Mutual Recognition Arrangements with key trading partners.
Today’s announcement is certainly a step forward for the ATTP and we look forward to assisting our clients access the true benefits of the programme once full details are known.