ATO ID 2006/324: Shipping of excisable goods to the Joint Petroleum Development Area
Date of decision: 21 November 2006
Business line: Indirect Tax

Issue
Can excisable goods be delivered for exportation to a 'place outside Australia' for the purposes of section 61 of the Excise Act 1901 , if they are intended to be shipped to an installation in the Joint Petroleum Development Area (JPDA)?

Decision
No. An installation outside Australia, located within the JPDA, is not a 'place outside Australia' for the purposes of section 61 of the Excise Act. Therefore excisable goods cannot be delivered for exportation to a place outside Australia for the purposes of section 61 if they are intended to be shipped to an installation in the JPDA.

Facts
A licensed manufacturer intends to have excisable goods transported to an installation located in the JPDA. The JPDA is a specified area in the Timor Sea. Australia and East Timor signed a treaty, in relation to the JPDA, to jointly control, manage and facilitate the exploration, development and exploitation of the petroleum resources of the specified area. The JPDA is located outside Australia.

Reasons for decision
Summary: Subsection 61(1) of the Excise Act provides that all excisable goods are subject to the CEO's control until delivered for home consumption or for exportation to a place outside Australia, whichever occurs first. Subsection 4(1) of the Excise Act defines 'place outside Australia' to not include: As the above definition excludes an installation outside Australia from being a place outside Australia, an installation in the JPDA, while it is not in Australia, is not a 'place outside Australia' for the purposes of the Excise Act. As an installation in the JPDA is not a place outside Australia, excisable goods cannot be delivered for exportation to a place outside Australia when they are intended to be transported to an installation in the JPDA.

Legislative references: Excise Act 1901 subsection 4(1) section 61 subsection 61(1)
Related ATO interpretative decisions: ATO ID 2004/100
Subject references: Excisable goods