The Australian Government has extended the additional duty on goods that are the produce or manufacture of the Russian Federation (Russia) or Belarus for twenty-four months to 24 October 2027.

The measure is temporary and the extension is a response to Russia’s continued illegal invasion of Ukraine and the continued support provided by Belarus for this invasion. The measure is necessary for the protection of Australia’s essential security interests. Russia’s actions, supported by Belarus, are a gross violation of international law, including the Charter of the United Nations. They violate Ukraine’s sovereignty and territorial integrity and undermine the rules-based international order. Australia is committed to upholding these principles, which are essential to international, regional and domestic stability and security.

The removal of Most Favoured Nation (MFN) treatment previously accorded to goods imported from Russia and the increase in duty is in line with the increases imposed and maintained by the United Kingdom, New Zealand and Canada.

Applicable duty and concessional treatment

An additional duty of 35% of the customs value of goods, as determined in accordance with section 159 of the Customs Act 1901, will continue to apply in addition to the general rate of customs duty, excise-equivalent duty, or customs duty in dollar amount listed for the goods in Schedule 3 of the Customs Tariff Act 1995.

The additional duty applies to goods that are the produce or manufacture of Russia or Belarus and left for shipment to Australia on or after 25 April 2022 and are entered for home consumption in Australia between 25 April 2022 and 24 October 2027 (inclusive). The additional duty on these goods is payable when goods are entered for home consumption.

The goods continue to only be eligible for concessional treatment under concessional items 9, 10, 14, 15, 16, 17, 18, 19, 20 and 25 of Schedule 4 of the Customs Tariff Act 1995. Tariff concession orders cannot be claimed for these goods.

Accessing the correct duty rate in the Integrated Cargo system

Where goods are the produce or manufacture of Russia or Belarus, this must be declared.

Where the goods have a customs value of 1000AUD or less, a full declaration format Self Assessed Clearance should be completed.

Preference Scheme Type ADC and Preference Rule type URP (Unmanufactured raw products) or LPM (Last process of manufacture) must be recorded on the import declaration.

Further information

No changes will be made to the Online Tariff or Customs Tariff Working Pages.

Any queries related to this issue can be directed to tradepolicy1@abf.gov.au

The DDWL Team

Story courtesy of ABF & IFCBAA

Photo coutesy of ABF