Excise duty credit or drawback

You may be able to claim a duty credit when you:

• use goods or materials that have previously had duty paid on them
• repurchase manufactured goods.

Using goods or materials that have previously had duty paid on them

You may be eligible for a duty credit if both of the following apply:

• You purchase goods or materials that already had excise duty or excise-equivalent duty paid.
• You use those goods or materials to manufacture new excisable goods.

Repurchasing manufactured goods

You may be eligible for a duty credit if the following apply:

• You sell goods manufactured in your licensed manufacturing area.
• You later repurchase those goods at the same price they were originally sold for.
• The goods are returned to the same licensed manufacturing area.
• The repurchased goods are either of the following:
  • resold for home consumption or export
  • reworked into new goods that are entered for home consumption or export.

You can claim the amount of excise or excise-equivalent duty that was originally paid on the goods or materials.

You cannot claim duty credits for additional charges under Section 87 of the Customs and Excise Act 2018, such as:

• penalties for late submission of entries
• late payments.

Duty credits are claimed on the excise entry (also referred to as a declaration in TSW). The entry includes the new, resold, or reworked goods. To apply the credit in an entry:

1. Insert the credit amount in the “Duty credit” field of your excise entry.
2. Keep clear and accurate records supporting your claim.

Your documentation must be auditable and verifiable if reviewed by Customs.

If your duty credit exceeds the amount of duty payable, Customs will decide whether the excess amount will be applied to other excise duty owed or refunded to you.