| If you import goods that are to be exported, you may be entitled to an up-front exemption from customs duty and GST. The imported goods can be exported in the same condition, or incorporated into other goods that will be exported.
These duty and tax exemptions are available through AusIndustry's Tradex Scheme. Tradex aims to make your exports more competitive by allowing you to strip out costs at the time of import, providing immediate cash flow benefits and minimising red tape.
In 2009/10 the Tradex Scheme provided $170 million in duty and GST cash flow benefits to more than 700 customers. It costs nothing to apply, and there are no ongoing fees or costs.
Under the scheme, duty and GST are exempted up-front - and this can deliver significant cash flow advantages. The savings can then flow through the entire supply chain to the final exporter. For example, if goods normally attract five per cent customs duty and 10 per cent GST, this means an up-front saving of 15 per cent on the value of the imported goods.
Cake Lingerie is a Tradex order holder who designs, manufactures and distributes fashion maternity and nursing lingerie to department and speciality stores in over 25 countries. Cake Lingerie's Keith Hyams said Tradex means no extra paperwork for better cash flow.
"Cake Lingerie exports 70-80 per cent of its products. Tradex support is vital in our decision to maintain an Australian central hub for world-wide ditribution.
"The Tradex experience has been pleasing and a lot easier than we thought. My advice would be to sit down with a representative from Tradex prior to starting, so they can guide you through the process,'' Keith said.
Call the AusIndustry hotline on 13 28 46 or read the Tradex Fact Sheet for more information, including eligibility criteria, how to apply, who can apply and eligible goods.
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