Tougher test for imported capital

Major resources projects that import capital equipment will have to pass a tougher 'local content' test before they qualify for customs duty concessions on the imported goods.

Under the Enhanced Project By-law Scheme and the tariff concession system, project developers can obtain customs duty concessions but only if the imported capital equipment cannot be produced locally at a competitive rate or in a reasonable time-frame.

The announcement is below:

The Australian Government is seeking comments on proposed new guidelines for import duty concession schemes to encourage a fair go for Australian industry and reduce costs for major projects, businesses and consumers.

Senator Kim Carr, Minister for Innovation, Industry, Science and Research, said tighter guidelines for the Enhanced Project By-law Scheme (EPBS) and Tariff Concession System (TCS) were among measures to get better results for Australian firms that were announced in July.

"The changes to the guidelines are aimed at ensuring early and effective engagement with Australian producers," Senator Carr said.

"The proposed changes to the EPBS will encourage greater interaction between major project proponents and Australian businesses by ensuring clearer Australian Industry Participation Plans are in place up-front when projects are being designed.

"Implementing an Australian Industry Participation Plan can help to save projects time and money, while giving Australian industry and workers a fairer chance at winning contracts."

Early establishment and publication of Australian Industry Participation Plans will also promote greater transparency and accountability for projects approved under the EPBS.

Minister for Home Affairs, Brendan O'Connor said tightening the TCS guidelines would clarify everyone's obligations to assess Australian industry capabilities before they applied for tariff concessions.

"With these changes, I expect TCS applications to be lodged only after genuine attempts have been made to establish that no Australian manufacturers are able to produce substitutable goods," Mr O'Connor said.

"We encourage anyone interested in the effective operation of these programs to comment on these proposals so that everyone's views may be considered."

For more information on the proposed TCS documentary changes, visit www.customs.gov.au. For more information on proposed changes to the EPBS and how to comment on both proposals, visit www.ausindustry.gov.au.