Duty Deferral Plus extends benefits for Trusted Traders

The Australian Border Force (ABF) will be extending the Duty Deferral benefit for Australian Trusted Traders (Trusted Traders) to include further taxes and charges imposed on imported goods.

The extended scope of the benefit, known as Duty Deferral Plus, came into effect on 1 July 2021, and is part of the Federal Budget 2020-21 measures to support a Simplified Trade System. The benefit enables Trusted Traders to consolidate the payment of most taxes and charges collected by the ABF into a single monthly payment.

In addition to the customs duties Trusted Trader can already defer, the taxes and charges included in Duty Deferral Plus include: Import Processing Charge Wine Equalisation Tax, Luxury Car Tax, the Wood Levy and Agricultural Processing Charge.

The Assistant Minister for Customs, Community Safety and Multicultural Affairs, the Hon Jason Wood MP, said the change recognises the way modern businesses operate.

“Consolidating payments will free up more money for trusted Australian companies to do business and will further help businesses and the economy recover from the COVID-19 pandemic,” Assistant Minister Wood said.

“The Department of Home Affairs continues to make significant contributions to the Government’s Simplified Trade System agenda, which will help simplify Australia’s trade regulations, modernise outdated ICT systems and ensure more effective management of risk across supply chains.”

Duty Deferral Plus will benefit businesses importing multiple consignments each month. By deferring the applicable taxes and charges into a consolidated monthly payment businesses can eliminate hundreds of transactions, increasing cash flows and simplifying processes.

The benefit will be available to Trusted Traders who defer the payment of Goods and Services Tax through the Australian Taxation Office (ATO) Deferred Goods and Services Tax Scheme.

The Australian Trusted Trader program recognises businesses with secure supply chains and compliant trade practices, rewarding these businesses with a range of exclusive trade facilitation benefits.

Eligible Australian businesses who are not yet part of the Australian Trusted Trader program are encouraged to visit the ABF website to find out more, and to join www.abf.gov.au/trustedtrader.

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