The Enhanced Project By-Law Scheme
The Australian Government’s Enhanced Project By-law Scheme (EPBS) allows Australian industry to access tariff duty concessions on eligible goods for significant projects in certain industries, under specific conditions.
The scheme allows eligible goods to be imported in separate shipments and from multiple locations. However, a complete application must be lodged before eligible goods are imported.
Once applicants have satisfied all requirements of the application process, AusIndustry will issue a determination to allow duty concessions on eligible goods not made in Australia or that are technologically more advanced, more efficient or more productive than Australian made goods.
Eligible goods include:
- functional units consisting of one or more pieces of machinery integrally connected to perform a discrete function
- components of Australian procured or duty free functional units
- procurement or equipment packages which consist of a quantity of the same type of machinery, equipment or their components to be used across the project
- pipes, pipelines conveyors, power transmission lines, flexible flow lines integral to the project
- articles auxiliary to and designed to be permanently attached to goods identified above
- stainless steel materials to be directly incorporated into the goods identified above.
What conditions apply?
In applying for EPBS concessions, projects must satisfy each of the following five criteria:
1. Fall within one of the following eligible industries:
- resource processing
- food processing
- food packaging
- gas supply
- power supply
- water supply.
2. Meet the capital goods expenditure threshold of $A10 million or more.
3. Demonstrate eligible goods for the project fall within those permitted under the EPBS Policy and Administrative Guidelines.
4. Demonstrate eligible goods are not produced in Australia in the ordinary course of business or are technologically more advanced, more efficient or more productive than all goods currently available from Australian production.
5. Develop and implement an AusIndustry delegate approved Australian Industry Participation plan (AIP plan) which provides Australian industry full, fair and reasonable opportunity to participate in all aspects of the project. The AIP plan must address Australian industry participation across the entire project and not just during the selection process for each eligible good.
The AIP plan is an important element of the application process. The plan requires applicants to demonstrate their commitment to providing Australian industry with full, fair and reasonable opportunity to participate in their project.
The application process has two consecutive stages which must gain the AusIndustry delegate’s approval before an AusIndustry determination is issued. The stages are:
- the project acceptance application stage, and
- the implementation report stage.
Project Acceptance Application Stage
The project acceptance application should provide full details including that it:
- is in an eligible industry sector;
- meets the eligible goods expenditure threshold;
- contains a satisfactory AIP Plan which will guide all procurement processes; and
- has an indicative eligible goods list.
A complete project acceptance application must be lodged at the very early stages of the project, that is, the engineering and design stage, to allow for adequate implementation of an AIP plan. Saving Point will provide assistance and feedback on completing an application prior to lodgement to AusIndustry for a decision.
Only after the AusIndustry delegate approves the project acceptance application may an applicant proceed to the implementation report stage. Implementation reports may only be lodged after a project acceptance application is approved.
Implementation Report Stage
A complete implementation report must be lodged before goods are imported in order to establish the earliest date from which a concession can be made. The implementation report should:
- document and supply evidence of actions and activities as agreed in the approved AIP Plan;
- detail the overall progress of the AIP Plan;
- demonstrate that any eligible goods for the project fall within those permitted under the EPBS guidelines;
- demonstrate eligible goods are not produced in Australia in the ordinary course of business or are technologically more advanced, efficient or productive than goods currently available from Australian production;
- provide sufficient detail on eligible goods to be imported in order to allow an AusIndustry determination to be written.
A complete implementation report must satisfy the AusIndustry delegate that Australian industry was given full, fair and reasonable opportunity to participate in the project. Failure to do this will result in a rejection of the implementation report and denial of an EPBS duty concession.
Only one implementation report is required to be submitted. However, where a project incorporates a number of distinct procurement phases, an applicant may submit progressive implementation reports throughout the life of the project.
How to apply?
Saving Point can advise on the eligibility of a prospective project, and support you in the application and implementation process of Enhanced Project By-law Scheme.
This program is currently closed for applications.