The Australian Border Force (ABF) has issued two notices this week concerning the importation of tobacco into Australia – both legally and illegally.
Firstly, they have issue Australian Customs Notice No. 2022/08: Customs duty rates for tobacco and tobacco products – March 2022.
This notice sets out the arrangements for the excise-equivalent customs duty rates on tobacco and tobacco products, as a result of the Average Weekly Ordinary Time Earnings (AWOTE) number released by the Australian Bureau of Statistics on 24 February 2022.
Provisions for tobacco products subject to a ‘per stick’ rate.
Sections 19AB and 19AC of the Customs Tariff Act 1995 (Customs Tariff Act) provide for customs duty rates on tobacco products, where the amount of customs duty is determined on a ‘per stick’ basis, to be indexed to the AWOTE by application of an indexation factor.
Using a similar formula for determining indexation as the one we described in our article last month, the amount of customs duty is determined on a ‘per kilogram’ or a ‘per kilogram of tobacco content’ basis. The new rate is determined by dividing the indexed ‘per stick’ rate by the applicable weight conversion factor. The current rate is determined by dividing the indexed ‘per stick’ rate by the weight conversion factor, 0.0007.
The full document may be viewed here, although we recommend you call us here at Colless Young for practical information.
Secondly, they have issued a media release: Illegal tobacco and cigarette imports surge. (Border Operations 21/02/2022).
The ABF is seeing a significant increase in attempted illicit tobacco imports at the Australian border.
Between 01 January and 31 December 2021, the ABF detected 878.8 tonnes of undeclared loose-leaf tobacco and 712.7 million undeclared cigarette sticks, a 45 per cent increase on the previous year. The combined weight of the detections in 2021 is over 1,377.7 tonnes, which is equivalent to approximately seven and a half Boeing 747’s.
The majority of the illicit tobacco consignments are arriving from the Middle East and Asian regions. Once the detections are made at air cargo or container customs examination facilities, the illicit tobacco products are either kept for further investigation or incinerated.
Where illicit tobacco importations are linked to serious and organised crime syndicates, it will be referred to the Illicit Tobacco Taskforce (ITTF), which combines the operational, investigative, and intelligence capabilities of the ABF, Australian Taxation Office, Department of Home Affairs, Australian Criminal Intelligence Commission, AUSTRAC and Commonwealth Director of Public Prosecutions.
The penalties for smuggling tobacco are severe and can include up to 10 years’ imprisonment and/or a fine of up to five times the amount of duty evaded.
The ABF says that anyone with information about the importation and export of illicit tobacco or cigarettes should contact Border Watch. By reporting suspicious activities, you help protect Australia’s border and the community. Information can be provided anonymously.
As licensed Customs Brokers and International Freight Forwarders, Colless Young offers you professional advice on your customs clearance and shipping activities. We provide a complete range of logistics services, both air and sea cargo, for your imports and exports at all Australian ports and airports. We handle trucking, warehousing and fumigation treatment.
