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The EOAP scheme enables companies who assemble Clothing and Footwear products overseas, and who use Australian made fabric or leather, to only pay import duty on the cost of the overseas content.
Benefits
The scheme is designed to encourage the ongoing use of locally produced fabric and leather, while allowing local importers to access the lower cost of conversion available in developing countries, without the cost of import duty on the Australian content. The scheme enables local producers to maintain high value added activities such as design, marketing and distribution in Australia.
Who is eligible to apply?
Any Australian clothing and footwear manufacturer or designer is eligible to apply for participation in the scheme for the overseas make up of clothing and footwear products predominantly containing locally produced fabrics and/or leather for which the final product is classified to Customs Tariff chapters 42, 43, 61, 62 and 64 upon importation. Upon registration, applicants are required to demonstrate, through the provision of a Business Plan, how the scheme will generate net benefits for the Australian TCF community.
Allowable activities
Certain limitations apply. These are:
- The registered participant must be both the exporter of the fabric/leather and the importer of the clothing and footwear product;
- The value of any non Australian content cannot be greater than 20% of the total value of the fabric/ leather used in the overseas manufacture of the end product;
- Dyeing, finishing, printing and embossing of fabric/leather are considered to be ineligible overseas activities and negate any concession under the scheme; and
- Embroidery and post assembly activities such as laundering, stone or acid washing, pressing, labelling, ticketing and packaging are considered eligible off-shore activities.
The TCF Way
TCF Services, a team of industry specialists celebrating 25 experience in delivering the benefits of successive Commonwealth industry assistance programs, is the leading national service provider to companies participating in EOAP.
This experience has helped us develop an integrated approach to firms involved in EOAP.
This begins with the inputs required for successful registration, right through to Customs documentation and reporting processes required to maintain a valid registration to the scheme.
We describe this approach as the TCF Way.
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