Commonwealth Consolidated Acts Commonwealth Consolidated ActsPart 1 —
1 After Division 1B of Part VIII
Insert:
The following is a simplified outline of this Division:
•
This Division defines US originating goods .
Preferential rates of customs duty under the Customs Tariff Act 1995 apply to
US originating goods that are imported into
•
Subdivision B provides that goods are US
originating goods if they are wholly obtained or produced entirely in the
• Subdivision C provides that goods are
US originating goods if they are produced entirely in the
•
Subdivision D sets out when goods (except
clothing and textiles) that are produced entirely in the
• Subdivision E sets out when
goods that are clothing or textiles that are produced entirely in the
• Subdivision F sets out when accessories, spare parts or tools (imported with other goods) are US originating goods.
• Subdivision G deals with how the packaging materials or containers in which goods are packaged affects whether the goods are US originating goods.
• Subdivision H deals with how the consignment of goods affects whether the goods are US originating goods.
Definitions
(1) In this Division:
"Agreement" means the Australia-United States Free
Trade Agreement done at
Note: In 2004 the text of the Agreement was accessible on the Internet through the web site of the Department of Foreign Affairs and Trade.
"Australian originating
goods" means goods that are Australian originating goods under a law of the
"Convention" means the International
Convention on the Harmonized Commodity Description and Coding System done at
Note: The text of the Convention is set out in Australian Treaty Series 1988 No. 30. In 2004 this was available in the Australian Treaties Library of the Department of Foreign Affairs and Trade, accessible on the Internet through that Department’s world‑wide web site.
"customs value" , in relation
to goods, has the meaning given by section 159.
"fuel" has its ordinary meaning.
"Harmonized System" means the Harmonized Commodity Description and Coding System (as in force from time to time) that is established by or under the Convention.
"Harmonized US Tariff Schedule" means the Harmonized Tariff
Schedule of the
"indirect materials" means:
(a) goods used in the production, testing or inspection of other goods, but that are not physically incorporated in the other goods; or
(b) goods used in the operation or maintenance of buildings or equipment associated with the production of other goods;
including:
(c) fuel; and
(d) tools, dies and moulds; and
(e) lubricants, greases, compounding materials and other similar goods; and
(f) gloves, glasses, footwear, clothing, safety equipment and supplies for any of these things; and
(g) catalysts and solvents.
"Interpretation Rules" means the General Rules for the Interpretation of the Harmonized System provided for by the Convention.
"national" of the
"non-originating materials" means goods that are not originating materials.
"originating materials" means:
(a) goods that are used in the production of other goods and that are US originating goods; or
(b) goods that are used in the production of other goods and that are Australian originating goods; or
(c) indirect materials.
Example: This example illustrates goods produced from originating materials and non‑originating materials.
Pork sausages are produced in the
The
The Hungarian frozen pork meat and Brazilian spices are non‑originating
materials since they are produced in countries other than the
"produce" means grow, raise, mine, harvest, fish, trap, hunt, manufacture, process, assemble or disassemble. Producer and production have corresponding meanings.
"recovered goods" means goods in the form of individual parts that:
(a) have resulted from the complete disassembly of goods which have passed their useful life or which are no longer useable due to defects; and
(b) have been cleaned, inspected or tested (as necessary) to bring them into reliable working condition.
"remanufactured goods" means goods that:
(a) are produced entirely in the
(b) are classified to:
(i) Chapter 84, 85 or 87 (other than heading 8418, 8516 or 8701 to 8706), or to heading 9026, 9031 or 9032 of Chapter 90, of the Harmonized System; or
(ii) any other tariff classification prescribed by the regulations; and
(c) are entirely or partially comprised of recovered goods; and
(d) have a similar useful life, and meet the same performance standards, as new goods:
(i) that are so classified; and
(ii) that are not comprised of any recovered goods; and
(e) have a producer’s warranty similar to such new goods.
Schedule 1 tariff table means the table in Schedule 1 to the Customs (Australia-United States Free Trade Agreement) Regulations 2004 .
Schedule 2 tariff table means the table in Schedule 2 to the Customs (Australia-United States Free Trade Agreement) Regulations 2004 .
"US" means
the
"used" means used or consumed in the production of goods.
"US originating goods" means goods that, under this Division, are US originating goods.
Value of goods
(2) The value of goods for the purposes of this Division is to be worked out in accordance with the regulations. The regulations may prescribe different valuation rules for different kinds of goods.
Tariff classifications
(3) In specifying tariff classifications for the purposes of this Division, the regulations may refer to the following:
(a) the Harmonized System;
(b) the Harmonized
(4) Subsection 4(3A) does not apply for the purposes of this Division.
Regulations
(5) For the purposes of this Division, the regulations may apply, adopt or incorporate any matter contained in any instrument or other writing as in force or existing from time to time.
(1)
Goods are US originating goods if they are wholly obtained or produced
entirely in the
(2)
Goods are wholly obtained or produced entirely in the
(a) minerals extracted in the
(b) plants grown in the
(c) live animals born and raised in the
(d) goods obtained from hunting, trapping, fishing or aquaculture
conducted in the
(e) fish, shellfish or other marine life taken from the sea by ships
registered or recorded in the
(f) goods produced exclusively from goods referred to in paragraph (e) on board factory ships registered or recorded in the US and flying the flag of the US; or
(g) goods taken from the seabed, or beneath the seabed, outside the
territorial waters of the
(h) goods taken from outer space by the
(i) waste and scrap that:
(i) has been derived from production operations in the
(ii) has been derived from used goods that are collected in the
(j) recovered goods derived in the
(k) goods produced entirely in the
Goods are US originating goods if they are produced entirely in the
The following is a simplified outline of this Subdivision:
•
This Subdivision sets out when goods (except
clothing and textiles) that are produced entirely in the
• The goods may be US originating goods under section 153YE (which applies to all goods except clothing and textiles).
• The goods may also be US originating goods under section 153YF (which applies only to goods that are chemicals, plastics or rubber).
(1) Goods are US originating goods if:
(a) a tariff classification (the final classification ) that is specified in column 2 of the Schedule 1 tariff table applies to the goods; and
(b) they are produced entirely in the
(c) if any of the following 3 requirements apply in relation to the goods—that requirement is satisfied.
First requirement
(2) Subject to subsection (3), the first requirement applies only if a change in tariff classification is specified in column 3 of the Schedule 1 tariff table opposite the final classification for the goods. The first requirement is that:
(a) each of the non‑originating materials satisfies the transformation test (see subsection (8)); or
(b) the following are satisfied:
(i) the total value of all the non‑originating materials does not exceed 10% of the customs value of the goods;
(ii) if one or more of the non‑originating materials are prescribed for the purposes of this paragraph—each of those non‑originating materials satisfies the transformation test (see subsection (8)).
Note 1: Paragraph (2)(b) relates to Article 5.2 (De Minimis) of the Agreement.
Note 2: The value of the non‑originating materials is to be worked out in accordance with the regulations: see subsection 153YA(2).
(3) However, the first requirement does not apply if:
(a) an alternative requirement to the change in tariff classification is also specified in column 3 of the Schedule 1 tariff table opposite the final classification for the goods; and
(b) that alternative requirement is satisfied.
Second requirement
(4) Subject to subsection (5), the second requirement applies only if a regional value content requirement is specified in column 3 of the Schedule 1 tariff table opposite the final classification for the goods. The second requirement is that the goods satisfy that regional value content requirement.
(5) However, the second requirement does not apply if:
(a) an alternative requirement to the regional value content requirement is also specified in column 3 of the Schedule 1 tariff table opposite the final classification for the goods; and
(b) that alternative requirement is satisfied.
(6) The regulations may prescribe different regional value content requirements for different kinds of goods.
Third requirement
(7) The third requirement is that the goods satisfy any other requirement that is specified in, or referred to in, column 3 of the Schedule 1 tariff table opposite the final classification for the goods.
Transformation test
(8) A non‑originating material satisfies the transformation test if:
(a) it satisfies the change in tariff classification that is specified in column 3 of the Schedule 1 tariff table opposite the final classification for the goods; or
(b) it does not satisfy the change in tariff classification mentioned
in paragraph (a), but it was produced entirely in the
Note 1: Paragraph (8)(b) relates to paragraph 2 of Article 5.3 (Accumulation) of the Agreement.
Note 2: Subsection (8) operates in a recursive manner: a non‑originating material may satisfy the transformation test in its own right, or it may satisfy it because each non‑originating material used to produce it satisfies the transformation test (whether because each of those materials does so in its own right, or because each non‑originating material used to produce the material does so), and so on.
Goods are US originating goods if:
(a) they are produced entirely in the
(b) they are goods that are classified to any of Chapters 28 to 40 of the Harmonized System; and
(c) a tariff classification (the final classification ) that is specified in column 2 of the Schedule 1 tariff table applies to the goods; and
(d) before the tariff classifications in column 2 of that table in relation to Chapter 28 or 39 of the Harmonized System, the regulations specify particular rules in column 3 of that table; and
(e) those rules apply in relation to the final classification for the goods; and
(f) the goods satisfy those rules.
The following is a simplified outline of this Subdivision:
•
This Subdivision sets out when goods that are
clothing or textiles that are produced entirely in the
• The goods may be US originating goods under section 153YH (which applies to all clothing and textiles).
• The goods may also be US originating goods under section 153YI (which applies only to clothing and textiles classified to Chapter 62 of the Harmonized System).
(1) Subject to subsection (5), goods are US originating goods if:
(a) a tariff classification (the final classification ) that is specified in column 2 of the Schedule 2 tariff table applies to the goods; and
(b) they are produced entirely in the
(c) if any of the following 2 requirements apply in relation to the goods—that requirement is satisfied.
Note: Subsection (5) sets out a qualification for goods put up in a set for retail sale.
First requirement
(2) The first requirement applies only if a change in tariff classification is specified in column 3 of the Schedule 2 tariff table opposite the final classification for the goods. The first requirement is that:
(a) subject to subsection (3), each of the non‑originating materials satisfies the transformation test (see subsection (7)); or
(b) the following are satisfied:
(i) the total weight of all the non‑originating materials does not exceed 7% of the total weight of the goods;
(ii) if one or more of the non‑originating materials are prescribed for the purposes of this paragraph—each of those non‑originating materials satisfies the transformation test (see subsection (7)).
Note: Paragraph (2)(b) relates to paragraphs 6 and 7 (De Minimis) of Article 4.2 of the Agreement.
(3) In relation to goods classified to Chapter 61, 62 or 63 of the Harmonized System, paragraph (2)(a) is to be applied by applying:
(a) for goods covered by Chapter 61 of the Harmonized System—Chapter Rule 2 for Chapter 61 that is set out in the Schedule 2 tariff table; and
(b) for goods covered by Chapter 62 of the Harmonized System—Chapter Rule 3 for Chapter 62 that is set out in the Schedule 2 tariff table; and
(c) for goods covered by Chapter 63 of the Harmonized System—Chapter Rule 1 for Chapter 63 that is set out in the Schedule 2 tariff table.
Second requirement
(4) The second requirement is that the goods satisfy any other requirement that is specified in, or referred to in, column 3 of the Schedule 2 tariff table opposite the final classification for the goods.
Goods put up in a set for retail sale
(5) However, if:
(a) the goods are put up in a set for retail sale; and
(b) the goods are classified in accordance with Rule 3 of the Interpretation Rules;
the goods are US originating goods only if:
(c) all of the goods in the set are US originating goods under this Division; or
(d) the total value of the goods in the set that are not US originating goods under this Division does not exceed 10% of the customs value of the set of goods.
Note: The value of the goods in the set is to be worked out in accordance with the regulations: see subsection 153YA(2).
(6) In applying paragraph (5)(c), assume the goods were not part of a set.
Example: A skirt and a belt are put up in a set for retail sale. The skirt and the belt have been classified under Rule 3 of the Interpretation Rules according to the tariff classification applicable to skirts.
The effect of subsection (6) is that the origin of the belt must now be determined according to the tariff classification applicable to belts.
Transformation test
(7) A non‑originating material satisfies the transformation test if:
(a) it satisfies the change in tariff classification that is specified in column 3 of the Schedule 2 tariff table opposite the final classification for the goods; or
(b) it does not satisfy the change in tariff classification mentioned
in paragraph (a), but it was produced entirely in the
Note 1: Paragraph (7)(b) relates to paragraph 2 of Article 5.3 (Accumulation) of the Agreement.
Note 2: Subsection (7) operates in a recursive manner: a non‑originating material may satisfy the transformation test in its own right, or it may satisfy it because each non‑originating material used to produce it satisfies the transformation test (whether because each of those materials does so in its own right, or because each non‑originating material used to produce the material does so), and so on.
Goods are US originating goods if:
(a) they are produced entirely in the
(b) they are goods that are classified to Chapter 62 of the Harmonized System; and
(c) either:
(i) in any case—the goods satisfy Chapter Rule 2 for Chapter 62 that is set out in the Schedule 2 tariff table; or
(ii) in the case of goods that are classified to subheading 6205.20 or 6205.30 of Chapter 62 of the Harmonized System—the goods satisfy the subheading rule for that subheading that is set out in the Schedule 2 tariff table.
(1) If goods (the underlying goods ) are imported into Australia with standard accessories, standard spare parts or standard tools, then the accessories, spare parts or tools are US originating goods if:
(a) the underlying goods are US originating goods; and
(b) the accessories, spare parts or tools are not invoiced separately from the underlying goods; and
(c) the quantities and value of the accessories, spare parts or tools are the usual quantities and value in relation to the underlying goods.
(2) In working out if the underlying goods are US originating goods, if the goods must satisfy a regional value content requirement under Subdivision D, the regulations must require the value of the accessories, spare parts or tools to be taken into account for the purposes of that requirement.
Note: The value of the accessories, spare parts or tools is to be worked out in accordance with the regulations: see subsection 153YA(2).
(1) If:
(a) goods are packaged for retail sale in packaging material or a container; and
(b) the packaging material or container is classified with the goods in accordance with Rule 5 of the Interpretation Rules;
then the packaging material or container is to be disregarded for the purposes of this Division (with 1 exception).
(2) The exception is that in working out if the goods are US originating goods, if the goods must satisfy a regional value content requirement under Subdivision D, the regulations must require the value of the packaging material or container to be taken into account for the purposes of that requirement.
Note: The value of the packaging material or container is to be worked out in accordance with the regulations: see subsection 153YA(2).
(1) Goods are not US originating goods under this Division if:
(a) they are transported through a country or place other than the
(b) they undergo any process of production in that country or place
(other than unloading, reloading, any operation to preserve them in good
condition or any operation that is necessary for them to be transported to
(2) This section applies despite any other provision of this Division.
2 At the end of subsection 4C(1)
Add “or is a verification officer for the purposes of Subdivision JA of Division 1 of Part XII”.
3 Paragraph 4C(2)(b)
Omit “or monitoring officer”, substitute “, monitoring officer or verification officer”.
4 Subsection 4C(3)
Omit “or monitoring officer”, substitute “, monitoring officer or verification officer”.
5 Subsection 4C(5)
Omit “or monitoring officer”, substitute “, monitoring officer or verification officer”.
6 After Division 4A of Part VI
Insert:
(1)
If textile and clothing goods are exported to the
(a) is the exporter or producer of the goods; or
(b) is involved in the transportation of the goods from
to produce particular records, or to answer questions put by the officer, in relation to the export, production or transportation of the goods.
(2) The person is not obliged to comply with the request.
Disclosing records or answers to US
(3)
An authorised officer may disclose any records so produced, or disclose
any answers to such questions, to a
Definitions
(4) In this section:
"Agreement" means the Australia-United States Free
Trade Agreement done at
Note: In 2004 the text of the Agreement was accessible on the Internet through the web site of the Department of Foreign Affairs and Trade.
"Harmonized System" has the same meaning as in section 153YA.
"textile and clothing goods" means goods that are classified to:
(a) subheading 4202.12, 4202.22, 4202.32 or 4202.92 of Chapter 42 of the Harmonized System; or
(b) any of Chapters 50 to 63 of the Harmonized System; or
(c) heading 7019 of Chapter 70 of the Harmonized System; or
(d) subheading 9409.90 of Chapter 94 of the Harmonized System.
"US" means the
7 Subdivision J of Division 1 of Part XII (heading)
Repeal the heading, substitute:
8 After Subdivision J of Division 1 of Part XII
Insert:
The following is a simplified outline of this Subdivision:
•
This Subdivision allows certain officers (
verification officers ) to enter premises, and to exercise certain powers (
AUSFTA verification powers ) in or on the premises, for the purpose of
verifying information relating to the export, production or transportation of
textile and clothing goods that are exported to the
• However, verification officers may only enter premises under this Subdivision with the occupier’s consent.
• In entering premises and exercising AUSFTA verification powers, verification officers may be accompanied by US customs officials, but only with the occupier’s consent.
In this Subdivision:
"Agreement" means the Australia-United States Free
Trade Agreement done at
Note: In 2004 the text of the Agreement was accessible on the Internet through the web site of the Department of Foreign Affairs and Trade.
"AUSFTA verification powers" has the meaning given by section 214BAC.
"Harmonized System" has the same meaning as in section 153YA.
"occupier" of premises includes a person who is apparently in charge of the premises.
"textile and clothing goods" means goods that are classified to:
(a) subheading 4202.12, 4202.22, 4202.32 or 4202.92 of Chapter 42 of the Harmonized System; or
(b) any of Chapters 50 to 63 of the Harmonized System; or
(c) heading 7019 of Chapter 70 of the Harmonized System; or
(d) subheading 9409.90 of Chapter 94 of the Harmonized System.
"US" means the
"verification officer" means a person authorised under section 214BAD to enter premises and to exercise AUSFTA verification powers.
(1) For the purposes of this Subdivision, the following are the AUSFTA verification powers :
(a) the power to search premises;
(b) the power to take photographs (including a video recording), or make sketches, of premises or anything at premises;
(c) the power to inspect, examine, count, measure, weigh, gauge, test or analyse, and take samples of, anything in or on premises;
(d) the power to inspect any document or record in or on premises;
(e) the power to take extracts from, or make copies of, any document or record in or on premises;
(f) the power to take into or onto premises any equipment or material reasonably necessary for the purpose of exercising a power under paragraph (a), (b), (c), (d) or (e);
(g) the power to test and operate record‑keeping, accounting, computing or other operating systems of any kind that are at premises and may be used to generate or record information or documents of a kind that may be communicated to Customs;
(h) the powers in subsections (2) and (3).
Operation of equipment
(2) For the purposes of this Subdivision, the AUSFTA verification powers include the power to operate equipment at premises to see whether:
(a) the equipment; or
(b) a disk, tape or other storage device that:
(i) is at the premises; and
(ii) can be used with the equipment or is associated with it;
contains
information that is relevant to the verification of information relating to
the export, production or transportation of textile and clothing goods that
are exported to the
Removing documents and disks etc.
(3) For the purposes of this Subdivision, the AUSFTA verification powers include the following powers in relation to information described in subsection (2) that is found in the exercise of the power under that subsection:
(a) the power to operate equipment or other facilities at the premises to put the information in documentary form and remove the documents so produced;
(b) the power to operate equipment or other facilities at the premises to transfer the information to a disk, tape or other storage device:
(i) that is brought to the premises for the exercise of the power; or
(ii) that is at the premises and the use of which for the purpose has been agreed in writing by the occupier of the premises;
and to remove the disk, tape or other storage device from the premises.
(1) The CEO may, by writing, authorise an officer to enter premises, and to exercise AUSFTA verification powers in or on premises, for the purposes of this Subdivision.
Who may be authorised to be a verification officer
(2) The CEO must not do so unless the CEO is satisfied that the officer is suitably qualified, because of the officer’s abilities and experience, to exercise AUSFTA verification powers.
Form of authorisation
(3) An authorisation may apply:
(a) generally; or
(b) during a specified period; or
(c) in or on specified premises; or
(d) during a specified period in or on specified premises.
AUSFTA verification powers to be used only as authorised
(4) This Subdivision does not allow:
(a) an officer who is authorised to enter premises and exercise AUSFTA verification powers during a specified period to enter the premises or exercise the powers at a time outside that period; or
(b) an officer who is authorised to enter specified premises and to exercise AUSFTA verification powers in or on the premises to enter other premises or to exercise the powers in or on the other premises.
(1)
A verification officer may enter premises, and exercise AUSFTA
verification powers in or on the premises, to the extent that it is reasonably
necessary for the purpose of verifying information relating to the export,
production or transportation of textile and clothing goods that are exported
to the
Occupier’s consent required
(2) However, a verification officer must not enter premises under this section unless the occupier of the premises consents to the officer entering the premises and exercising AUSFTA verification powers in or on the premises.
(3) Before obtaining a consent under subsection (2), a verification officer must give to the occupier of the premises a written notice stating:
(a) that the officer wishes to enter the premises and exercise AUSFTA verification powers in or on the premises; and
(b) the period during which the officer wishes to exercise the powers; and
(c) the name of any
(4) Before obtaining a consent under subsection (2), a verification officer must tell the occupier of the premises that the occupier may refuse consent.
(5) An occupier of premises may express a consent to be limited to entry to the premises, and to the exercise of AUSFTA verification powers in or on the premises, during a particular period unless the occupier withdraws the consent before the end of that period.
(6) An occupier’s consent that is not so limited has effect in relation to any entry to the premises, and to any exercise of AUSFTA verification powers in or on the premises, until the occupier withdraws the consent.
Verification officer must leave premises if consent withdrawn
(7) A verification officer must leave the premises if the occupier withdraws the consent.
Consent to be voluntary
(8) A consent of a person does not have effect for the purposes of this section unless it is voluntary.
Consent, or withdrawal of consent, to be in writing
(9) A consent of a person, or a withdrawal of consent by a person, does not have effect for the purposes of this section unless it is in writing.
Notice setting out the occupier’s rights and obligations
(10) Before exercising AUSFTA verification powers in respect of premises, a verification officer must give to the occupier of the premises a written notice setting out the occupier’s rights and obligations under this Subdivision.
Production of identity card
(11) Before a verification officer enters premises or exercises any AUSFTA verification powers, he or she must produce his or her identity card to the occupier.
Occupier’s consent required
(1)
In entering premises and exercising AUSFTA verification powers, a
verification officer may be accompanied by one or more
(2) Before obtaining such a consent, a verification officer must tell the occupier of the premises that the occupier may refuse consent.
US customs officials must leave premises if consent withdrawn
(3)
The
Consent to be voluntary
(4) A consent of a person does not have effect for the purposes of this section unless it is voluntary.
Consent, or withdrawal of consent, to be in writing
(5) A consent of a person, or a withdrawal of consent by a person, does not have effect for the purposes of this section unless it is in writing.
In entering premises and exercising AUSFTA verification powers, a verification officer may obtain such assistance as is necessary and reasonable in the circumstances.
(1) If a verification officer is in or on premises that he or she entered under this Subdivision, the officer may request the occupier to answer any questions put by the officer.
(2) The occupier is not obliged to comply with the request.
(1) If a verification officer is in or on premises that he or she entered under this Subdivision, then, while the officer is entitled to remain in or on the premises, the officer may request the occupier to provide reasonable assistance to the officer for the purpose of the officer’s exercise of AUSFTA verification powers in or on the premises.
(2) The occupier is not obliged to comply with the request.
A verification officer may disclose any information obtained in exercising
AUSFTA verification powers to a
A person may operate electronic equipment at premises in order to exercise a
power under this Subdivision only if he or she believes on reasonable grounds
that the operation of the equipment can be carried out without damage to the
equipment.
(1) This section applies if:
(a) as a result of equipment being operated as mentioned in section 214BAC:
(i) damage is caused to the equipment; or
(ii) the data recorded on the equipment is damaged; or
(iii) programs associated with the use of the equipment, or with the use of the data, are damaged or corrupted; and
(b) the damage or corruption occurs because:
(i) insufficient care was exercised in selecting the person who was to operate the equipment; or
(ii) insufficient care was exercised by the person operating the equipment.
(2) The Commonwealth must pay the owner of the equipment, or the user of the data or programs, such reasonable compensation for the damage or corruption as the Commonwealth and the owner or user agree on.
(3) However, if the owner or user and the Commonwealth fail to agree, the owner or user may institute proceedings in the Federal Court of Australia for such reasonable amount of compensation as the Court determines.
(4) In determining the amount of compensation payable, regard is to be had to whether the occupier of the premises, or the occupier’s employees and agents, if they were available at the time, provided any appropriate warning or guidance on the operation of the equipment.
(5) Compensation is payable out of money appropriated by the Parliament.
(6) For the purposes of subsection (1):
"damage" , in relation to data, includes damage by erasure of data or addition of other data.