Unit of competency details

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to assess the applicability of the relevant taxes and duties for international trade transactions, and to prepare business advice based on the assessments and calculations undertaken.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

Application of the unit 

This unit applies to individuals with a broad knowledge of taxes and duties who contribute well developed skills and knowledge to preparing business advice for a client. This unit addresses the application of relevant legislation, determinations, decisions and guidelines pertaining to the Australian Taxation System and Australian Customs regulations to assess the applicability of the GST, Australian Harmonized Export Commodity Codes for tax and duty related to export transactions, and to accurately calculate relevant taxes and duty and to prepare appropriate business advice for a client.

Prerequisite units 

Employability skills 

This unit contains employability skills.

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

ELEMENT 

PERFORMANCE CRITERIA 

1. Assess applicability of relevant taxes and duties to international trade transactions

1.1. Research applicability of relevant taxes  and duty to international trade transactions

1.2. Research allowable exemptions and specialised schemes  relating to international taxes or applicability to enterprise operations and specific international trade transactions

1.3. Apply allowable exemptions to trade transactions

1.4. Check accuracy of assessments

2. Calculate taxes and duty

2.1. Identify components of international trade transactions to be included in calculations

2.2. Calculate taxes and duty on international trade transactions

2.3. Check accuracy of calculations

3. Prepare business advice on applicable taxes and duty

3.1. Prepare results of calculations and business advice in the required format

3.2. Check calculations for accuracy, and seek and obtain verification from relevant personnel  as required

3.3. Pass completed business advice on to client and other relevant personnel as required

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

Required skills 

• numeracy skills to perform calculations
• learning skills to maintain relevant knowledge of client products and services to be exported.

Required knowledge 

• identification and overview knowledge of key provisions of relevant legislation from all levels of government that affects business operations, codes of practice and national standards, such as:

• Customs Act
• Goods and Services legislation
• other taxation legislation and relevant determinations, decisions and guidelines
• trade modernisation legislation: Customs Legislation Amendment and Repeal Act, Import Processing Charges Act, Customs Depot Licensing Charges Amendment Act
• other applicable legislation

• allowable exemptions and specialised schemes affecting taxes/duty payable on imports/exports.
• exclusions allowable for GST, related taxes and duty
• organisation's policies and procedures relating to import, export and customs brokerage/freight forwarding activity
• penalties for incorrect calculation of taxes/duty payable

EVIDENCE GUIDE 

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment 

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

Evidence of the following is essential:

• at least two examples of accurate calculation of GST, other taxes and duty payable across a range of international trade transactions
• at least two examples of situations where an assessment of allowable exemptions and/or incentives has been made
• records of relevant documentation used in the workplace including examples of completed business advice
• knowledge of legislation, codes of practice and national standards relevant to the work role.

Context of and specific resources for assessment 

Assessment must ensure:

• access to workplace documentation
• access to information about applicable taxes and exemptions
• access to an actual workplace or simulated environment
• access to office equipment and resources.

Method of assessment 

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

• direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
• oral or written questioning to assess knowledge of allowable exemptions and specialised schemes affecting taxes/duty payable on imports/exports
• assessment of research into applicability of GST and related taxes and duty to trade transactions
• assessment of accuracy of calculations
• review of results of calculations and business advice prepared in the required format.

Guidance information for assessment 

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

• BSBINT407B Prepare business advice on export Free on Board Value.

RANGE STATEMENT 

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Relevant taxes  may include:

• goods and services tax (GST)
• luxury car tax (LCT)
• wine equalisation tax (WET)
• other taxes, duties and tariffs on supplies and importations

Allowable exemptions and specialised schemes  may include:

• government initiatives and schemes to promote exports of Australian goods and commodities
• Tradex Scheme and other duty drawback schemes which provide for an upfront exemption from customs duty and taxes on imported goods intended for re-export or to be used as inputs to exports

Relevant personnel  may include:

• colleagues, for further processing
• customs broker
• manager, for checking and verification

Unit sector 

Competency field 

Business Development - International Business

Co-requisite units