Refunds for reinstated bed linen TCOs

The Administrative Appeals Tribunal (AAT) announced on 23 December 2009 it has set aside a number of decisions on Tariff Concession Orders (TCOs) made by Customs and Border Protection. The relevant TCOs relate to bed linen.

The effect of the decisions is to reinstate a number of TCOs, that had previously been revoked, for certain periods between 2006 and to 3 October 2007. As a result, importers of eligible goods during those periods that the TCOs were revoked may now be eligible to claim a tariff concession and seek refunds of duty and indirect tax.

Click here for details of each relevant TCO, and of the relevant AAT decision, are attached to allow importers to assess whether any shipments may qualify for a refund.

Details of the refund process are contained in the Fact Sheet headed Refund of Customs Import Duty contained on the Customs and Border Protection website.

An application for a refund may be made in two ways:

1. Electronically through the ICS on an approved statement (e.g. amendment of an import declaration); or
2. By paper document on approved form B653.

Electronic lodgement is generally the fastest method to obtain a refund. Note that refund applications may be subject to requests for further information because Customs and Border Protection must verify the particulars of the application.

Claimants seeking refunds against the “bed linen TCOs” should quote Prescribed Circumstance R, which refers to Customs Regulation 1926, Reg 126(1)(r) when they amend their import declaration. This circumstance allows for the refund of duty which has been paid on goods that were first entered for home consumption at a time when a TCO, made in respect of those goods under Part XVA of the Act, was in force or was taken to have come into force.

Claimants should be aware that the usual period to apply for a refund is a maximum of four years from when the duty was paid, Reg 128A(4). However an extended period of 12 months from the date of the AAT decision (23 December 2009) applies under Reg 128A(5)(c)(v) if that decision is made more than three years after the duty was paid. Claimants should be aware that, as the Integrated Cargo System (ICS) is designed to allow a maximum period of four years to claim duty, all applications outside of this time will be accepted by ICS but processing may take longer than usual as they will be examined by Customs and Border Protection.

Customs and Border Protection will, in keeping with normal service standards, seek to process any refund applications within 30 calendar days of receipt of all necessary information.

For information about the refund process: nationalrefunds@customs.gov.au
For information about tariff concessions: TARCON@customs.gov.au