Free Trade Zones

The Darwin Trade Development Zone (TDZ) is located in Darwin, Northern Territory. The Darwin TDZ is concentrating on developing Australia's trading relationships with its Asian neighbors to the north and west. Since 1986, the TDZ has fostered close working relationships with other Industrial Estates and Export Processing Zones within Asia, particularly Indonesia, Malaysia and China. Industries established include manufacturing of knitted textiles; cardboard and packaging; color repro-graphics; computer software; fish emulsion and plant food; plastics extrusion injection blow molding; and engineering-based manufactures. The Zone also has access to the services of international financial consultants and customs agents.

In December 1997, the Australian Government adopted Manufacturing-in-Bond (MiB), Trade Zone-style benefits to manufacturers located in Australia. A firm with MiB approval is able to import dutiable goods into a licensed/ bonded warehouse, free of duty and tax. If these goods are subsequently re-exported, either in their original or manufactured form, no duty or Goods and Services Tax liability is incurred. Imports brought into the warehouse and subsequently "entered for home consumption" incur duty and GST liability at the time they leave the warehouse.

To obtain a MiB license, applicants must demonstrate a clear intent to use Australia as an export manufacturing base and that MiB is important in achieving those manufacturing aims. The decision to grant a MiB license is solely with the Australian Government and is dealt with on its merits. The first site selected was the Steel River Facility (Newcastle), near Sydney.