Enhanced Project By-law Scheme can save mining companies millions in procurement

Mining companies can save million of dollars on their expansion plans through the Enhanced Project By-law Scheme, which allows companies to access customs duty on eligible equipment not manufactured in Australia.

BDO Brisbane's natural resources lead partner David Wilson said some miners were unnecessarily paying 5 per cent customs duty calculated on the value of imported equipment, without even realising.

"As it is generally contractors managing all the engineering, procurement and construction of a mining project, there isn't usually much incentive for them to actively look to save money throughout the planning stages," Wilson said.

"As with most project costs, the 5 per cent customs duty on imported equipment is simply added into the final bill and paid by the miner without question,” he said.

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