Basic information
Outline of the system
The importation of unmanufactured tobacco leaf is prohibited under provisions of the Customs Act 1901 (Customs Act) and the Customs (Prohibited Imports) Regulations 1956 (PI Regulations) unless the permission of the Commissioner of Taxation, or an authorised person, has been obtained. Permission from the Commissioner requires an Excise licence to manufacture tobacco or a licence to deal in tobacco products, granted under the Excise Act 1901 (Excise Act) . In addition, the site where imported tobacco leaf is to be dealt with must be licensed under the Customs Act.
Product coverage
The goods covered include tobacco that is not stemmed or stripped and includes whole tobacco plants or leaves in the natural state, or as cured or fermented leaves. Licensed tobacco manufacturers and dealers who also hold a permission to import unmanufactured tobacco leaf (permission) are able to import these goods as an input to manufacture or more generally deal in tobacco seed, plant or leaf.
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
The PI Regulations are not intended to restrict the quantity or volume of imports. The importation of unmanufactured tobacco leaf is regulated to limit access to those licensed as manufacturers or dealers and therefore reduce illicit production.
Questions for products under restriction as to the quantity or value of imports
Not applicable.
The system applies to products originating from which country?
The system applies to unmanufactured tobacco leaf originating from all countries.
Expected duration of licensing procedure
Legal requirements
Is the licensing statutorily required?
The control on the specified goods is a statutory requirement under Regulation 4D of the PI Regulations made under the Customs Act 1901.
An Excise licence for tobacco is a legislative requirement under Sections 25 (Manufacturers) and 33 (Dealers) of the Excise Act. There is no administrative discretion – manufacturers or dealers in tobacco leaf must be licensed under the Excise Act.
A Customs warehouse licence is issued under Section 79 of the Customs Act. Anyone intending to use imported goods in excise manufacture must enter those goods for warehousing in a Customs licensed warehouse. Those goods must then be administratively transferred to an entity holding a tobacco manufacture or dealers licence issued by the Australian Tax Office (ATO) under the Excise Act.
Links to legislation:
• Excise Act 1901: https://www.legislation.gov.au/Details/C2021C00593
• Customs Act 1901: https://www.legislation.gov.au/Series/C1901A00006
• Customs (Prohibited Imports) Regulations 1956: https://www.legislation.gov.au/Details/F2022C00511
• Taxation Administration Act 1953: https://www.legislation.gov.au/Series/C1953A00001
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
There is no administrative discretion – imported tobacco leaf must be entered for warehousing.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
As long as the person or business has a site to be licensed in Australia they can apply. Excise and Customs licences are linked to sites as well as the individual or company applying. Each site operated by a single entity must be licensed separately so that the licence application can be assessed in terms of appropriateness of site security, plant and equipment, and stock recording for each site.
In relation to the permission, the entity must hold either an Excise manufacturer or dealer licence, and the site where imported tobacco is to be dealt with must be licensed under the Customs Act.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Address
Telephone
Fax
E-mail address
Website
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Documentation requirements
What information is required in applications?
An application for a Licence to Manufacture or deal in Tobacco must be made in writing to the ATO. Information can be found at: Types of excise licences - tobacco | Australian Taxation Office (ato.gov.au)
If an applicant is applying for the first time, that applicant will be required to complete a Consent to a Criminal Record History Check and a Declaration of criminal history.
Applicants are also required to supply the following information:
• Name, address, ABN and other contact details
• Details of the premises where the activity will occur including certified copies of the floor plan of the proposed licence site
• Supplier's name and address
• Quantity of product
What documents is the importer required to supply with the application?
Finally, during the review process the applicant may be required to send additional documents in support of their claims - for example, a business plan, evidence of a market, details of security arrangements or insurance policy details.
There is no specified application form for the import permission, although a written application must be lodged providing the Commissioner with any information they require to make his decision.
Window of submission of an application
How far in advance of importation must application for a licence be made?
The ATO standard for issuing manufacturer licences, dealers' licences or permissions is 28 days from receipt of all required information. The same standard is applied to the issuing of ATO issued warehouse licences under S79 of the Customs Act.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
No.
Issuing the license
Can a licence be granted immediately on request?
No.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Which administrative body is responsible for approving application of licences?
Yes, the application for an Excise licence and a permission is considered in its entirety by the ATO. From 1 July 2010, the ATO took over the administration of excise equivalent goods (EEGs) under delegation from the Department of Home Affairs (Home Affairs). As imported tobacco leaf can only be imported into Australia by entering it into a warehouse licensed under the Customs Act, the ATO has responsibility for licensing any warehouse that would store this product.
Must the applications be passed on to other organs for visa, note or approval?
Are there any other conditions attached to the issue of a licence?
Section 39D of the Excise Act and section 82 of the Customs Act allow the ATO to apply conditions to a licence to protect the revenue or to facilitate compliance with the relevant Acts. There are no limitations on the conditions that can be applied on a permission under Regulation of the Customs PI Regulations.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
There are no fees associated with the Excise licences or the permission. There are fees associated with the customs warehouse licence.
What is the amount of the fee or charge?
The initial application fee is A$3000 and the grant charge is A$4,000. There is an annual renewal fee of A$4000.
Is there any deposit or advance payment required associated with the issue of licences?
No.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
Failure to meet the ordinary criteria, as described in sections 39, 39A, 39B & 39C of the Excise Act, are grounds for refusing to grant a manufacturer or dealer licence. These grounds include where the applicant is not deemed fit and proper, the applicant does not have the skills and experience to carry out the activity, or the applicant does not have a market for the goods.
Sections 80 and 81 of the Customs Act are the key requirements that are considered when assessing an application for a Customs warehouse licence. These grounds are similar to those listed in the Excise Act.
Regulation 4D of the Customs PI Regulations states that consideration must be given to the applicant's compliance with the Excise Act and any other relevant matters when assessing a permission to import unmanufactured tobacco leaf.
Are the reasons for any refusal given to applicants?
In sections 39, 39A, 39B & 39C of the Excise Act, when a licence is refused, the applicant is provided with reasons for the decision in writing.
In sections 80 and 81 of the Customs Act, when a licence is refused, the applicant is provided with reasons for the decision in writing.
Have applicants a right of appeal in the event of refusal to issue a licence?
Applicants have a right to object under section 39Q of the Excise Act.
Regulation 4D of the PI Regulations allow a person who is dissatisfied with a decision to object to it in the manner set out in Part IVC of the Taxation Administration Act 1953.
If so, to what bodies and under what procedures?
Applicants have a right to object to the Administrative Appeals Tribunal under section 273GA(1)(b) of the Customs Act.
Importation
Are there any limitations as to the period of year during which importation may be made?
No.
What documents are required upon actual importation?
The original permission from the Commissioner or authorised person must be produced upon importation in addition to the normal importation documentation required by DIBP.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
A licence to manufacture or deal in tobacco is valid for three years and must be renewed before the end of the three year period. The validity of a licence can be extended if it is approved for renewal by the ATO. The associated permission is valid for the same period as the licence although, rather than being renewed, it must be re-issued. This is an administrative requirement only.
In contrast, a warehouse licence is valid for one year only and must be renewed annually. The validity of a licence can be extended if it is approved for renewal by ATO staff operating under Customs delegation.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
No.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Excise manufacturer, dealer or customs warehouse licences are not transferable. Although the ATO licenses the site, the licence cannot be transferred and any change in ownership would require a new licence application. The permission also is not transferable.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Not applicable.
Is a licence required as a condition to obtaining foreign exchange?
Not applicable.
Is foreign exchange always available to cover licences issued?
Not applicable.
What formalities must be fulfilled for obtaining the foreign exchange?
Not applicable.