Document ID: chunk:federal_register_of_legislation:C2004A01148:clause:2_153wa
Version: federal_register_of_legislation:C2004A01148
Segment Type: clause
Provision Reference: sch 2 cl 153WA
Character Range: 21211–23454

153WA  Allowable expenditure by principal manufacturer on materials

General rule

 (1) The allowable expenditure by the principal manufacturer on materials in respect of goods is the amount incurred, directly or indirectly, by the principal manufacturer for all materials, in the form purchased by the principal manufacturer, that were manufactured or produced in Singapore or Australia.

Particular matters included in allowable expenditure on materials

 (2) The allowable expenditure by the principal manufacturer on materials in respect of goods includes:
 (a) freight, insurance, shipping and packing costs and all other costs, incurred directly or indirectly by the principal manufacturer, in transporting the materials to the first place in Singapore or Australia at which a process is performed on those materials by or on behalf of the principal manufacturer; and
 (b) customs brokerage fees, incurred directly or indirectly by the principal manufacturer on the materials paid in Singapore or Australia or both.

What is not included in allowable expenditure on materials

 (3) The allowable expenditure by the principal manufacturer on materials in respect of goods does not include the following:
 (a) a customs or excise duty imposed on the materials by or under a law of Singapore or Australia;
 (b) a tax in the nature of a sales tax, a goods and services tax, an anti‑dumping duty or a countervailing duty, imposed on the materials by or under a law of Singapore or Australia;
 (c) the cost of any input that, in the form it was received by the manufacturer or producer of the materials, was not manufactured or produced in Singapore or Australia.

Total cost of inputs may be included in allowable expenditure on materials

 (4) Despite paragraph (3)(c), the total cost of those inputs that would, because of that paragraph, not have been included in the allowable expenditure on a material by the principal manufacturer may be included in that allowable expenditure if the total cost does not exceed 50% of the total expenditure by the principal manufacturer on that material.

 (5) Subsection (4) does not apply in relation to materials that are provided for processing in a country other than Singapore or Australia.