Sealed Bag System.
Sealed Bag Process
The Australian Taxation Office (ATO) provides guidance on the sealed bag method and the process retailers must follow when selling goods GST free to eligible travellers departing Australia.
The sealed bag process is designed to help verify that goods purchased duty free or tax free are exported from Australia. To support this, goods must be placed in an approved sealed bag or package that prevents the goods from being removed without the seal being broken.
Retailers using the Sealed Bag System must ensure the sale is processed correctly, the required documentation is completed, and the sealed bag remains secure until the traveller departs Australia and the invoice or docket is collected.
How to Make a Sealed Bag Sale
Duty Free Security Co. Ltd has prepared a video guide explaining how to prepare a sealed bag when making a tax free or duty free sale to an eligible traveller.
This guide helps retailers understand the key steps involved, including preparing the sealed bag, attaching the invoice, using tamper-evident seals and ensuring the traveller understands their obligations before departure.
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Sealed Bag Declaration Form
All travellers purchasing goods duty free or tax free through the Sealed Bag System must complete and sign the Sealed Bag Declaration Form.
This declaration confirms that the traveller understands their obligations, including that the goods must be taken out of Australia within the required timeframe and that the sealed bag must not be opened, altered or tampered with before the invoice has been collected.
Sealed Bag & Package Warnings
Sealed bags play an important role in helping travellers understand their responsibilities before leaving Australia. The warning printed on, or attached to, sealed bags should clearly remind travellers of their obligations.
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The traveller must take the sealed bag or package with them when they leave Australia. It is not to be left at home or given it to anyone else.
The traveller must carry the bag or package by hand in full view at the airport or seaport. It must not be packed in a suitcase or in hand luggage.
The traveller must ensure that authorised collection officers collect the invoice attached to the bag or package after they have passed through the ABF border clearance area.
The bag or package must not be tampered with or opened. It must remain sealed until the invoice has been collected.
If the traveller does not take the goods out of Australia within 60 days of obtaining them, they must immediately return the sealed bag or package containing the unused goods to the store where they purchased them.
If the traveller fails to observe these rules, they may be liable to a penalty.
Liquids, Aerosols, Gels & Powders
On 31 March 2007, the Australian Government introduced enhanced security measures limiting the amount of powders, liquids, aerosols and gels (PLAGs) airline passengers can take through international screening points.
Since then, further restrictions have also been introduced for inorganic powders carried in hand luggage, including items such as salt, talcum powder and sand.
For duty free and tax free liquids, aerosols, gels and powders purchased using the Sealed Bag System, travellers should remove the sales invoice, or docket, from the outside of the sealed bag and place the goods in their hold, or check-in, luggage.
Travellers should then present the LAGs or powder-related docket to our Duty Free Security staff located at the point of departure after the customs barrier.