Customs duties can be decreased in a number of different ways. The most common process is a simple duty reduction application, which is what we cover here. The other 2 methods are rebate of duty and insertion of a new tariff code, which are dealt with elsewhere on the site.
Reductions in duty never expire. This is important to remember as duties will only increase down if someone applies for their increase or the duties form part of an industry review that results in duty changes.
No industry standing is required to make an application, so even small manufacturers can apply to have duties removed.
At present, duty removals are difficult if there is any level of local production. If on the other hand, there is no local production, the process will be easier and likely to succeed.
Make the application to ITAC. It is important to submit current and relevant information as part of this application is the single most important step in the whole application process. It is also important to understand if the duty removal will face any level of resistance of local manufacturers.
ITAC assessment of the information. Before anything else happens, ITAC will check all of the information submitted to determine if your application has merit. ITAC will also contact any existing manufacturers and importers who may be impacted by your application to determine the economic impact of the application.
ITAC verification. Once your application has been accepted as reasonable, it will be verified by a team of investigators from ITAC. This verification will include a factory visit and a fairly detailed review of the financial and business information supporting the application. If verification fails, the matter will not proceed.
Initiate and investigate. If ITAC decides to proceed with the investigation, the matter will be initiated and interested parties will typically have 4 weeks to respond (with a 2 week extension usually granted). Any interested parties who do not respond in time will not have their information considered for the final decision
ITAC decision. Once the investigation is complete, a decision will be implemented. That decision will remain in place until another application is received. No new application can be submitted until at least 12 months has passed from the implementation date of the decision.
It typically takes between 6 and 9 months for a decision to implemented if someone opposes a duty removal application. If an application goes unopposed, then duties can be reduced within 3 months of initiation.
Want to make an application?
If you are negatively impacted by duties and wish to make an application to remove your duties, then drop us a note. We would love to meet to see how we can help.
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