‘Goodbye to Christmas pud, tiramisu’: importers lash ‘job-destroying’ tariff decision
Love a little booze in your sweet treat, be it tiramisu, liqueur chocolates or rum and raisin ice-cream? There’s bad news from a recent tariff decision, say angry importers.
Some of Australia’s favourite locally made, alcohol-infused treats – from rum and raisin ice-cream and liqueur chocolates to tiramisu and even Christmas pudding – are at risk from a “cash-grabbing” and “unfair” tariff change, importers say.
Importers of European cooking alcohol used by Australian restaurants, bakeries and food manufacturers for gourmet products are reeling at what they say is a sudden Australian Border Force tariff shift.
They believe the decision upturns decades of trade overnight by attaching to cooking alcohol the same tariff as fine French tipples such as Cognac.
Importers say this means that instead of paying a flat 5 per cent import duty as they have for 35 years, they must now pay $100 per alcohol litre, plus 5 per cent, and GST.
This “devastating” and “unjustified” change happened suddenly, with no consultation, and will result in locally made foods disappearing from restaurants and stores – or else replaced with 100 per cent foreign-made products, they claim.
“It removes cooking alcohol from Australia,” said Rene Puechberty, co-owner of Sydney-based importer GJ Food & Services. “It basically destroys the industry – no one will bring this in if they are charged $100 a litre.
“Restaurants will no longer be able to use these in their sauces, in their dishes. Manufacturers will have to remove products from their range, which for some people will affect their livelihoods because it’s a core product.
“It will affect everyone from a mum-and-dad bakery through to your multinational manufacturer. It affects jobs. It affects livelihoods. It will destroy importers and by association those who rely on those products.”
The change of policy occurred a few weeks ago with the company’s latest shipment of cooking brandy, Madeira, pastis, calvados and alcoholic strawberry extract, Mr Puechberty said.
ABF was refusing to meet to discuss the sudden change, forcing the family business, based in Anthony Albanese’s seat of Grayndler, to appeal to the Prime Minister and other ministers for intervention.
“ABF haven’t answered most of our questions about why now, what’s changed in the law,” Mr Puechberty said. “It is a clear cash grab – with one email they have destroyed 35 years of a business that has survived recessions, the GFC and Covid.
ABF said it “cannot comment on individual importers due to privacy considerations” but rejected any sudden about-face on cooking alcohol tariffs.
“There has been no change in the way ABF administers revenue collection and tariff classification in relation to imported alcohol products,” a spokeswoman said.
However, Mr Puechberty insisted there had been a clear change of policy and that imports of cooking alcohol would now be unviable. The current shipment, for example, contained 660 litres of cooking alcohol which, if levied as ABF had directed, would attract $80,000 in duties – four times the purchase value.
“Over 35 years, we’ve had probably 130 to 150 shipments (of cooking alcohol) all levied at 5 per cent,” he said.
It was understood the French embassy had raised the issue with Australian authorities, given that France was the source of most of the cooking alcohol.
ABF has suggested the old tariff would still apply if additives such as salt or pepper were added to the cooking alcohol to make it undrinkable. But Mr Puechberty said this would be unacceptable to restaurants and manufacturers, as well as consumers.
Mr Albanese, Trade Minister Don Farrell and Home Affairs Minister Tony Burke did not respond to requests for comment.
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