Project import compliance for moulds turned on registration timing, duty payment and supporting installation records.

Import of 18 moulds under the Project Import Regulations was examined by reference to the timing of registration and the manner of clearance. The 10 moulds imported before registration of the project contract were cleared on payment of normal customs duty without claiming project import benefits, so no contravention could be attributed to them. The remaining 8 moulds were imported after registration, cleared under the registered project import arrangement, and supported by the installation report and reconciliation statement. On that basis, the commentary states there was no foundation for differential duty demand or confiscation under the Customs Act.

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Issues: Whether the appellant had contravened the Project Import Regulations, 1986 in respect of 18 moulds imported in two batches, and whether the duty demand and confiscation ordered under the Customs Act were sustainable.

Analysis: The 10 moulds imported before registration of the project contract were cleared on merit by payment of applicable customs duty without claiming project import benefit, and therefore no violation of the Project Import Regulations could be attributed to them. The remaining 8 moulds were imported after registration of the contract, cleared under the registered project import arrangement, and supported by the installation report and reconciliation statement. In those circumstances, there was no basis to allege contravention, levy differential duty, or order confiscation.

Conclusion: The duty demand and confiscation were unsustainable, and the appellant succeeded.

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