Today we wanted to shine the light on a little known Scheme known as Tradex.
The Tradex Scheme allows an importer to gain an up-front exemption from Customs duty and GST on eligible imported goods that are intended for export. The goods may be exported in the same condition as imported, subjected to a process or treatment after importation, then exported or incorporated in other goods which are exported. Export may be carried out by the importer or a third party.
Tradex provides an alternative to the Customs Drawback Scheme which requires an up-front payment of Customs duty and GST and then the subsequent recovery of these taxes when the goods have been exported. The Tradex Scheme can, therefore, provide a significant cash-flow benefit.
The goods must be exported within 12 months of importation, although approval can be sought to extend this period.
Customers are required to complete an application form for entrance into the Scheme.
For further information on the Tradex Scheme, head to this website or contact us directly. This Tradex Scheme Factsheet is also very informative.
