temporary importations

Introduction

Certain goods may be brought into Australia on a temporary basis for a period of up to 12 months without the payment of duty or taxes.  These goods are referred to as temporary imports.  Approval for temporary imports is granted under Section 162 or Section 162A of the Customs Act 1901.

Goods that qualify as temporary imports may also be imported under carnet, where a security is lodged with a carnet issuing body overseas, or under security, where a security is lodged with the Australian Customs Service (Customs) at the time of import.  The nature of the goods, what they will be used for while they are in Australia and who is importing the goods will determine whether or not the goods will qualify.

There are conditions placed on temporary imports.   The most important condition is that you export the goods within the time limits approved.  If the goods are not exported within the time limit you will have to pay to Customs an amount equal to the duty and taxes that would have been payable if when you first imported the goods, the goods had not been treated as temporary imports.

Further information for Temporary Imports can be found on the Temporary Imports Fact Sheet

Carnets

A carnet is an international 'passport for goods' under which the payment of duties and taxes is guaranteed by an overseas issuing body.  These bodies are typically automobile associations (for private motor vehicles under CPD carnets) or chambers of commerce (for general goods under ATA carnets).  The bodies must be members of the Federations Internationale d'Automobile/Alliance Internationale de Tourism (FIA/AIT) or World Chambers Federation (WCF).

Carnet goods are imported under Section 162A and must be eligible under one of the international temporary import conventions to which Australia is a signatory.  There are two types of carnets:

• CPD carnet (Carnet de Passages en Douane) - covers private touring vehicles. 
• ATA carnet (Admission Temporaire/ Temporary Admission) - covers goods such as commercial samples, professional equipment, scientific equipment and goods for display or use at events, fairs and exhibitions. 

The use of a carnet to cover the temporary importation of goods considerably simplifies and speeds up the clearance process for both the importer and Customs.

The carnet must be obtained prior to coming to Australia. When the goods arrive in Australia, the carnet holder will need to present the carnet to Customs for processing.  The carnet must also be produced to Customs when exporting the goods.  Customs will often examine goods on both import and export and therefore they must be contacted at import and prior to arranging export.  Any permits that would normally be required for these goods must also be obtained, with the exception of a Vehicle Import Approval (VIA).  These are issued by Department of Infrastructure, Transport, Regional Development and Local Government (Infrastructure) and are otherwise required for all imported vehicles.

Carnets can also be used to export Australian goods.  Queries regarding the temporary export of eligible Australian goods should be made to the Australian Automobile Association (AAA) or one of their state representatives (NRMA, RACV, etc) for private motor vehicles or to the Victorian Employers' Chamber of Commerce and Industry (VECCI) for other goods.

These Australian bodies may also be able to assist you with obtaining an overseas carnet.  If a carnet is not appropriate to your circumstances or you do not qualify for these provisions, then a security may be another option.

Returning Australian Goods

For goods that leave Australia under an Australian issued carnet, Customs and Border Protection may require export declarations as for other exported goods. When those goods return to Australia, Customs and Border Protection may require import declarations.

When returning Australian goods are entered for home consumption a concession is available - Item 17 of Schedule 4 to the Customs Tariff Act 1995 gives returning Australian goods a duty rate of free and the importation is non-taxable (no GST is payable).

 Frequently asked questions on temporary importation of goods  (47 kb PDF) 

More information on international temporary import conventions can be found at www.austlii.edu.au/au/other/dfat/

Further information for Carnet holders can be found on the Information for Carnet Holders Factsheet.

Securities

Securities can also be used for the temporary import of goods.  A Customs Officer with the appropriate delegation will decide if the intended use and ownership of the goods satisfies the temporary import requirements.  The security may be in the form of cash or a bank guarantee.  In some circumstances Customs may accept an undertaking from a suitable client.  The security is an amount equal to the duty and taxes that would have been payable at import.

Goods that may be imported under security include any goods that may be accepted under carnet, plus goods owned by tourists or temporary residents, or goods that are coming to Australia to be tested and evaluated or to be used in testing and evaluation.

To import goods using a security you apply using a  Form 46 (for goods under Section 162) or  Form 46aa (for goods under Section 162A).

Another provision for the temporary import of goods exists for goods that are brought into Australia for repair or alteration, not including industrial processing.  This is covered by Schedule Four of the Customs Tariff Act 1995 (by-law 9640055) and goods are entered under a Section 42 security.

For entry under any of these types of securities, copies of normal commercial import documents such as invoices, packing lists, bills of lading or air waybills, quarantine certificates and other documents that verify eligibility should be lodged with the application.  Any permits that would normally be required for these goods must also be obtained.  If your goods qualify and if an acceptable security or undertaking has been given to Customs we will grant permission for the goods to be delivered. You will also need to lodge a Customs declaration for the goods.

Customs must be contacted prior to arranging export of the goods in order to verify export and acquit the security.

To discuss eligibility for entry under security you can contact Customs through the Customs Information and Support Centre on 1300 363 263 or email information@customs.gov.au

Extensions

Initial approval for a temporary import can only be granted for a maximum of twelve months and in the case of a carnet no later than the carnet expiry date.  Applications may be made to extend this period but any extensions must be approved prior to the expiry of the original approval.
In the case of a security, applications should be directed to the region that approved the initial security application.
For a carnet, approval is required from:

• Australian Customs Service,
• The Australian guaranteeing body (VECCI or AAA), and
• The carnet issuing body overseas.

Applications for extensions (including replacement carnets) need to be made to the Australian guaranteeing body and they will forward their approval to Customs for consideration.  Approval must be obtained from Customs prior to expiry of the original carnet.  If a replacement carnet has been received from the issuing body you need to present both the original and replacement carnets to Customs for endorsement.  In the case of an extension to a CPD carnet, once the details of the extension have been completed by the guaranteeing body it then needs to be endorsed by Customs.  An extension or a replacement carnet is not valid until it has been endorsed by Customs.

Non-compliance with conditions of temporary import

If the conditions of the temporary import are not complied with, for example if the goods are not exported within the approved timeframes or are to remain in Australia permanently, then the total amount of the duty and taxes that would have been payable at the time of import must be paid.

• If your security is held by Customs as cash, then this amount will be used to pay your debt.
• If the security is a bank guarantee or an undertaking, then an invoice will be issued for the amount due.
• In the case of goods imported under carnet, the carnet holder or their representative may approach Customs and ask for an invoice to be issued.  Once paid the carnet can be acquitted.  If payment is not volunteered to Customs, or no evidence is given to Customs showing that the goods have been exported within the approved time or proper discharge of the carnet has otherwise occurred, then a claim will be lodged by Customs.  This claim is lodged on the relevant Australian carnet guaranteeing body who in turn will claim from the overseas body who issued the carnet. Ultimately the carnet holder will pay.

For more information