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1985 No. 306 CUSTOMS REGULATIONS (AMENDMENT) - REG 2

2. After regulation 92 of the Customs Regulations the following regulation is
inserted: Duty free shops

"93. (1) In this regulation, unless the contrary intention appears-
'airport departure area' means a part of an airport set aside for the
reception of relevant travellers-

   (a)  after the completion by such travellers of such formalities as, under
        the laws of the Commonwealth, those travellers are required to comply
        with before departing to places outside Australia; and

   (b)  before the embarkation of such travellers in respect of relevant
        flights;
'off-airport duty free shop' means a duty free shop that is not an on-airport
duty free shop;
'on-airport duty free shop' means a duty free shop that is located in an
airport departure area;
'relevant flight', in relation to a person who is a relevant traveller, means
the international flight in relation to which the person is a relevant
traveller.



"(2) Words and phrases that are used in this regulation and in section 96A of
the Act have, in this regulation, unless the contrary intention appears, the
same respective meanings as in that section.

"(3) A Collector shall not give permission under sub-section 96A (2) of the
Act otherwise than upon the making, in accordance with this regulation, of an
application for such permission.

"(4) An application for permission under sub-section 96A (2) of the Act-

   (a)  shall be made in writing;

   (b)  shall relate to a single duty free shop;

   (c)  shall specify-

        (i)    the name of the proprietor of the duty free shop;

        (ii)   the name of the duty free shop; and

        (iii)  the address at which the duty free shop is situated; and

   (d)  shall be lodged with a Collector for the place at which the duty free
        shop is situated.



"(5) The following matter is prescribed to be taken into account by a
Collector when deciding whether to give permission under sub-section 96A (2)
of the Act, namely, whether the proprietor of the duty free shop in respect of
which the permission is sought is likely to be able, in the event of
permission being given, to comply with the conditions set out in paragraphs
(7) (g), (h) and (j).

"(6) Permission under sub-section 96A (2) of the Act shall have effect for
such period, commencing on the day on which the permission is given, as the
permission specifies.

"(7) Permission under sub-section 96A (2) of the Act in relation to an
off-airport duty free shop is subject to the following conditions:

   (a)  that goods shall not be sold in the shop to a person unless that
        person is a relevant traveller and produces to the proprietor a
        ticket, or other document approved by a Collector for the purposes of
        paragraph 96A (7) (b) of the Act, that is evidence that the person is
        entitled to make the international flight in relation to which that
        person is a relevant traveller;

   (b)  that the proprietor shall make and retain a copy of the ticket or
        other document;

   (c)  that goods shall not be delivered from the duty free shop to a
        relevant traveller earlier than the commencement of the second to last
        day on which the duty free shop is open for business before the day on
        which, according to the ticket or other document, the relevant flight
        is to depart;

   (d)  that goods shall not be delivered from the duty free shop to a
        relevant traveller unless they are enclosed in a package-

        (i)    that is sealed in such a manner that the goods cannot be
               removed from it without the seal being broken;

        (ii)   the outside of which is clearly marked to show-

                (A)  that it contains goods that were sold in a duty free
                     shop;

                (B)  the name of that shop; and

                (C)  the name of the relevant traveller; and

        (iii)  where the package is of such a size that it may, in accordance
               with the conditions applicable to the carriage of the relevant
               traveller on the relevant flight, be carried in the cabin-that
               is transparent;

   (e)  that, at the time of each sale of goods at the duty free shop, the
        proprietor shall prepare, in triplicate, an invoice, being one of a
        series of sequentially numbered invoices, specifying-

        (i)    the name and usual residential address of the relevant
               traveller;

        (ii)   the following particulars of the intended exportation of the
               goods by the relevant traveller:

                (A)  the day and time of departure;

                (B)  the airport of departure;

                (C)  the flight number or, where inapplicable, other
                     designation,
in respect of the relevant flight;

        (iii)  a precise description of the goods, including-

                (A)  the quantity, in words and figures, of each item of the
                     goods; and

                (B)  the sale value, in figures, of each item or quantity of
                     items,
being a description prepared in such a way as to make it impracticable to add
other items to the description;

   (f)  that, upon preparing an invoice in accordance with paragraph (e), the
        proprietor shall-

        (i)    place one copy with the goods inside the package referred to in
               paragraph (d) and, where the package complies with
               sub-paragraph (d) (iii), position the copy so that the invoice
               may be read without the seal of the package being broken;

        (ii)   place one copy in a waterproof envelope and attach that
               envelope securely to the outside of the package; and

        (iii)  retain one copy in his own records;

   (g)  that, not less than 2 hours before the time of departure referred to
        in sub-sub-regulation (e) (ii) (A), the proprietor shall, by telex or
        by such other means as are approved by a Collector, provide a
        Collector at the relevant airport of departure with the following
        information in relation to a sale from the duty free shop;

        (i)    the name of the shop;

        (ii)   the name of the relevant traveller;

        (iii)  in relation to the relevant flight-

                (A)  the day and time of departure; and

                (B)  the flight number or, where inapplicable, other
                     designation in respect of the flight;

        (iv)   a full description of any item of the goods included in the
               sale having a sale value of $200 or more;

        (v)    the total number of items of the goods included in the sale;

        (vi)   the total number of packages of the kind referred to in
               paragraph (d) in which the goods included in the sale are
               packed;

        (vii)  the total number of those packages that are, respectively-

                (A)  packages to which sub-paragraph (d) (iii) applies; and

                (B)  packages to which that sub-paragraph does not apply;

        (viii) the invoice numbers in respect of all invoices relating to the
               sale;

   (h)  that the proprietor shall, in relation to each package referred to in
        paragraph (d) that is surrendered by the relevant traveller for
        carriage otherwise than in the cabin of the aircraft, at the point of
        surrender-

        (i)    cause the package to be examined with a view to ascertaining
               whether it remains sealed as specified in sub-paragraph (d) (i)
               and has not been tampered with; and

        (ii)   where the package remains so sealed and has not been tampered
               with, cause the copy invoice referred to in sub-paragraph (f)
               (ii) to be removed from the package;

   (j)  that the proprietor shall, in relation to each package referred to in
        paragraph (d) that is taken by the relevant traveller into an airport
        departure area, within that area-

        (i)    cause the package to be examined with a view to ascertaining
               whether it remains sealed as specified in sub-paragraph (d) (i)
               and has not been tampered with;

        (ii)   where the package remains so sealed and has not been tampered
               with, cause the copy invoice referred to in sub-paragraph (f)
               (ii) to be removed from the package; and

        (iii)  without causing the package to be opened-

                (A)  cause that copy invoice to be compared with the invoice
                     enclosed in the package; and

                (B)  cause the goods enclosed in the package to be checked
                     against the specification of the goods in those invoices;

   (k)  that, where, upon the carrying out of the operations specified in
        paragraph (h) or (j), a discrepancy is detected, in that-

        (i)    a package is no longer sealed as specified in sub-paragraph (d)
               (i) or has been otherwise tampered with;

        (ii)   the invoice enclosed in the package does not correspond with
               the copy invoice (if any) that was attached to the package;

        (iii)  an invoice required to be enclosed in, or a copy invoice
               required to be attached to, a package is not so enclosed or
               attached; or

        (iv)   the goods enclosed in a package are not as specified in the
               invoice enclosed in, or the copy invoice (if any) that was
               attached to, the package,
the proprietor shall cause to be given immediately to a Collector notice
specifying-

        (v)    the name of the relevant traveller;

        (vi)   the flight number or other designation in respect of the
               relevant flight;

        (vii)  the day and time of that flight; and

        (viii) the nature of the discrepancy;

   (m)  that a relevant traveller to whom goods are sold in a duty free shop-

        (i)    shall not remove, alter or otherwise interfere with, or suffer
               to be removed, altered or interfered with (except as required
               by this regulation), an invoice attached to the outside of a
               package pursuant to sub-paragraph (f) (ii);

        (ii)   shall not, before the exportation of those goods, break the
               seals on, or otherwise tamper with the integrity of, the
               package in which those goods are enclosed or (except as
               authorized by or under the Act) suffer those seals to be broken
               or the integrity of the package to be otherwise tampered with;

        (iii)  shall-

                (A)  upon surrendering a package containing those goods for
                     carriage otherwise than in the cabin of an aircraft; or

                (B)  upon taking a package containing those goods into an
                     airport departure area,
present the package, sealed as specified in sub-paragraph (d) (i) and with the
invoice attached as specified in sub-paragraph (f) (ii), to the proprietor or
a servant or agent of the proprietor and permit the proprietor, or the servant
or agent of the proprietor, as the case may be, to examine the package and to
remove that invoice from it;

        (iv)   if the relevant traveller does not export the goods on the
               relevant flight, shall, not later than noon on the next working
               day of the duty free shop after the day specified in the
               invoice relating to the goods as the time for the departure of
               that flight (in this sub-paragraph referred to as the
               'scheduled departure time'), notify the proprietor accordingly
               and-

                (A)  where the relevant traveller intends to export the goods
                     on a subsequent flight, being a flight departing not more
                     than 48 hours after the scheduled departure time, notify
                     the proprietor of that intention and, at the same time,
                     provide the proprietor with the flight number or other
                     designation, and particulars of the intended day and time
                     of departure, of that flight; or

                (B)  where the relevant traveller does not intend to export
                     the goods as referred to in sub-sub-paragraph (A), at the
                     same time, notify the proprietor accordingly and, not
                     later than the close of business of the duty free shop on
                     the second working day of the shop after the scheduled
                     departure time, return the goods to the shop; and

        (v)    where, having notified the proprietor, pursuant to sub-
               sub-paragraph (iv) (A), of his or her intention to export the
               goods on a flight subsequent to the relevant flight, the
               relevant traveller does not so export the goods-

                (A)  not later than noon on the next working day of the duty
                     free shop after the day of departure specified in the
                     notification of intention, notify the proprietor that the
                     goods have not been so exported; and

                (B)  not later than the close of business of the duty free
                     shop on the second working day after that specified day
                     of departure, return the goods to the shop;

   (n)  that the proprietor shall, not later than the expiration of 10 working
        days of the duty free shop after the end of each month, lodge with a
        Collector a return setting out-

        (i)    the name of the duty free shop;

        (ii)   the number of such of the invoices that were prepared in
               respect of goods that were delivered from the duty free shop
               and intended to be exported during that month, as are invoices
               copies of which have not been retrieved by or on behalf of the
               proprietor in accordance with sub-paragraph (h) (ii) or (j)
               (ii); and

        (iii)  in relation to each such invoice-

                (A)  the particulars required to be set out in that invoice;
                     and

                (B)  the amount of customs duty payable in respect of the
                     goods to which the invoice relates,
and shall pay to a Collector an amount equal to the aggregate of the amounts
of customs duty specified in the return.



"(8) Permission under sub-section 96A (2) of the Act in relation to an
on-airport duty free shop is subject to the following conditions:

   (a)  that goods shall not be sold in the shop to a person unless that
        person is a relevant traveller;

   (b)  that, at the time of each sale of goods at the duty free shop, where
        the purchaser is a relevant traveller who is the pilot or a member of
        the crew of an aircraft, the proprietor shall prepare, in triplicate,
        an invoice, being one of a series of sequentially numbered invoices,
        specifying-

        (i)    the name and usual residential address of the relevant
               traveller;

        (ii)   the following particulars of the intended exportation of the
               goods by the relevant traveller:

                (A)  the day and time of departure;

                (B)  the airport of departure;

                (C)  the flight number or, where inapplicable, other
                     designation,
in respect of the relevant flight; and

        (iii)  a precise description of the goods, including-

                (A)  the quantity, in words and figures, of each item of the
                     goods; and

                (B)  the sale value, in figures, of each item or quantity of
                     items,
being a description prepared in such a way as to make it impracticable to add
other items to the description;

   (c)  that, at the time of each sale of goods at the duty free shop, where
        the purchaser is a relevant traveller who is a passenger on an
        aircraft, the proprietor shall prepare, in duplicate, an invoice,
        being one of a series of sequentially numbered invoices, specifying-

        (i)    the following particulars of the intended exportation of the
               goods by the relevant traveller:

                (A)  the day and time of departure;

                (B)  the flight number or, where inapplicable, other
                     designation,
in respect of the relevant flight; and

        (ii)   a precise description of the goods, including-

                (A)  the serial number (if any) of each item of the goods;

                (B)  the quantity, in words and figures, of each item; and

                (C)  the sale value, in figures, of each such item or quantity
                     of items,
being a description prepared in such a way as to make it impracticable to add
other items to the description;

   (d)  that, upon preparing an invoice pursuant to paragraph (b) or (c), the
        proprietor shall-

        (i)    deliver one copy, with the goods, to the relevant traveller;
               and

        (ii)   subject to paragraph (f), retain the other copy or copies, as
               the case requires, in his own records;

   (e)  that the proprietor shall, in relation to each successive period of 7
        days (each such period commencing on whichever day of the week is
        nominated for the purpose by the proprietor and approved by a
        Collector), lodge with a Collector a return setting out-

        (i)    the name of the duty free shop; and

        (ii)   a full inventory of all goods sold from the shop during the
               relevant period of 7 days;

   (f)  that the proprietor shall attach to a return lodged in pursuance of
        paragraph (e) copies of all invoices prepared pursuant to paragraph
        (b) or (c) in relation to goods sold in the duty free shop during the
        week to which that return relates.



"(9) For the purposes of paragraph 96A (10) (b) of the Act-

   (a)  in relation to the proprietor of an off-airport duty free shop-

        (i)    the prescribed way is the production by or on behalf of the
               proprietor to a Collector of the copy invoice removed, in
               accordance with sub-paragraph (7) (h) (ii) or (7) (j) (ii),
               from the outside of the package containing those goods; and

        (ii)   the prescribed time is a time not later than one hour after the
               departure of the relevant flight; and

   (b)  in relation to the proprietor of an on-airport duty free shop-

        (i)    the prescribed way is the completion and lodgement with a
               Collector of the return referred to in paragraphs (8) (e) and
               (f) in accordance with those paragraphs; and

        (ii)   the prescribed time is a time not later than the expiration of
               each successive period referred to in the first-mentioned of
               those paragraphs.



"(10) In sub-regulation (9)-
'prescribed way' means the way prescribed under paragraph 96A (10) (b) of the
Act in which the proprietor of a duty free shop is to provide a Collector with
proof of the export of goods delivered to a relevant traveller in accordance
with a permission under sub-section 96A (2) of the Act;
'prescribed time' means the time prescribed under that paragraph within which
the proprietor of a duty free shop is to provide a Collector with such proof.



"(11) Permission under sub-section 96A (2) of the Act in relation to a duty
free shop, being either an off-airport duty free shop or an on-airport duty
free shop, is subject to the condition that the proprietor, and servants and
agents of the proprietor, shall not enter into an arrangement with a relevant
traveller pursuant to which goods delivered to that relevant traveller under
that permission are-

   (a)  to be transferred to the proprietor, or any servant or agent of the
        proprietor, upon the return of the relevant traveller to Australia; or

   (b)  to remain with the proprietor or any servant or agent of the
        proprietor.



"(12) The grounds on which a Collector may, under sub-section 96A (13) of the
Act, revoke a permission given under sub-section 96A (2) of the Act are the
following grounds:

   (a)  that a condition to which the permission is subject, being a condition
        required to be complied with by the proprietor of the duty free shop
        to which the permission relates or by his servants or agents, has not
        been so complied with;

   (b)  that revocation of the permission is, for any other reason, necessary
        for the protection of the revenue or otherwise to ensure compliance
        with the Customs Acts.



"(13) The revocation by a Collector, under sub-section 96A (13) of the Act, of
a permission given under sub-section 96A (2) of the Act shall be effected by
notice in writing, which shall include the notice referred to in sub-section
96A (14) of the Act, served on the person to whom the permission was given.". 


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