Customs (Australia–US Free Trade Agreement) Regulations 2004

Customs (Australia–US Free Trade Agreement) Regulations 2004

Statutory Rules No. 288, 2004

made under the

Customs Act 1901

Compilation No. 3

Compilation date: 9 April 2021

Includes amendments up to: F2021L00418

Registered: 6 May 2021

About this compilation

This compilation

This is a compilation of the Customs (Australia–US Free Trade Agreement) Regulations 2004 that shows the text of the law as amended and in force on 9 April 2021 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

Part 1—Introductory

1.1 Name of Regulations

1.3 Authority

1.4 Definitions

Part 2—Tariff change requirement

2.1 Change in tariff classification requirement for non‑originating materials

Part 3—Regional value content requirement

3.1 Build‑down method

3.2 Build‑up method

3.3 Net cost method

Part 4—Determination of value

4.1 Value of goods that are originating materials or non‑originating materials

4.2 Value of accessories, spare parts or tools

4.3 Value of packaging material and container

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Part 1—Introductory

1.1  Name of Regulations

  These Regulations are the Customs (Australia–US Free Trade Agreement) Regulations 2004.

1.3  Authority

  These Regulations are made under the Customs Act 1901.

1.4  Definitions

  In these Regulations:

Act means the Customs Act 1901.

Agreement has the meaning given by section 153YA of the Act.

Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 means the Agreement of that name set out in Annex 1A of the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994.

Note: The Marrakesh Agreement Establishing the World Trade Organization is in Australian Treaty Series 1995 No. 8 ([1995] ATS 8) and could in 2021 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

non‑originating materials has the meaning given by section 153YA of the Act.

originating materials has the meaning given by section 153YA of the Act.

produce has the meaning given by section 153YA of the Act.

US means the United States of America.

used has the meaning given by section 153YA of the Act.

Part 2—Tariff change requirement

2.1  Change in tariff classification requirement for non‑originating materials

  For the purposes of subsection 153YD(3) of the Act, a non‑originating material used in the production of goods that does not satisfy a particular change in tariff classification is taken to satisfy the change in tariff classification if:

 (a) it was produced entirely in the US, or entirely in the US and Australia, from other non‑originating materials; and

 (b) each of those other non‑originating materials satisfies the change in tariff classification, including by one or more applications of this regulation.

Part 3—Regional value content requirement

3.1  Build‑down method

 (1) For the purposes of subsection 153YD(7) of the Act, the regional value content of goods under the build‑down method is worked out using the formula:

where:

customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.

value of non‑originating materials means the value, worked out under Part 4, of the non‑originating materials that are acquired by the producer and are used by the producer in the production of the goods, other than non‑originating materials produced by the producer.

 (2) Regional value content must be expressed as a percentage.

3.2  Build‑up method

 (1) For the purposes of subsection 153YD(7) of the Act, the regional value content of goods under the build‑up method is worked out using the formula:

where:

customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.

value of originating materials means the value, worked out under Part 4, of the originating materials that are acquired by the producer, or produced by the producer, and are used by the producer in the production of the goods.

 (2) Regional value content must be expressed as a percentage.

3.3  Net cost method

 (1) For the purposes of subsection 153YD(7) of the Act, the regional value content of goods under the net cost method is worked out using the formula:

where:

net cost means the net cost of the goods worked out in accordance with Articles 5.4 and 5.18 of the Agreement.

value of non‑originating materials means the value, worked out under Part 4, of the non‑originating materials that are acquired by the producer and are used by the producer in the production of the goods, other than non‑originating materials produced by the producer.

 (2) Regional value content must be expressed as a percentage.

Part 4—Determination of value

4.1  Value of goods that are originating materials or non‑originating materials

 (1) For the purposes of subsection 153YA(2) of the Act, this regulation explains how to work out the value of originating materials or non‑originating materials used in the production of goods.

 (2) The value of the materials is as follows:

 (a) for materials imported into the US by the producer of the goods—the value of the materials worked out in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994;

 (b) for materials acquired in the US—the value of those materials worked out under paragraph (a) on the assumption that those materials had been imported into the US;

 (c) for materials that are produced by the producer of the goods—the sum of:

 (i) all the costs incurred in the production of the materials, including general expenses; and

 (ii) an amount that is the equivalent of the amount of profit that the producer would make for the materials in the normal course of trade.

 (3) In working out the value of particular originating materials under subregulation (2), the following may be included, to the extent that they have not been taken into account under that subregulation:

 (a) the costs of freight, insurance, packing and all other costs incurred to transport the materials within the US, or between Australia and the US, to the location of the producer of the goods;

 (b) duties, taxes and customs brokerage fees on the materials that:

 (i) have been paid in either or both of the US and Australia; and

 (ii) have not been waived or refunded; and

 (iii) are not refundable or otherwise recoverable;

  including any credit against duties or taxes that have been paid or that are payable;

 (c) the costs of waste and spoilage resulting from the use of the materials in the production of the goods, reduced by the value of renewable scrap or by‑products.

 (4) In working out the value of particular non‑originating materials under subregulation (2), the following may be deducted if they were included under that subregulation:

 (a) the costs of freight, insurance, packing and all other costs incurred to transport the non‑originating materials within the US, or between Australia and the US, to the location of the producer of the goods;

 (b) duties, taxes and customs brokerage fees on the non‑originating materials that:

 (i) have been paid in either or both of the US and Australia; and

 (ii) have not been waived or refunded; and

 (iii) are not refundable or otherwise recoverable;

  including any credit against duties or taxes that have been paid or that are payable;

 (c) the costs of waste and spoilage resulting from the use of the non‑originating materials in the production of the goods, reduced by the value of renewable scrap or by‑products;

 (d) the costs of processing incurred in either or both of the US and Australia in the production of the non‑originating materials;

 (e) the costs of originating materials used in the production of the non‑originating materials in either or both of the US and Australia.

4.2  Value of accessories, spare parts or tools

  If paragraphs 153YD(8)(a), (b), (c) and (d) of the Act are satisfied in relation to goods:

 (a) the value of the accessories, spare parts or tools must be taken into account for the purposes of working out the regional value content of the goods under Part 3 of these Regulations; and

 (b) if the accessories, spare parts or tools are non‑originating materials—for the purposes of Part 3 of these Regulations and regulation 4.1, those accessories, spare parts or tools are taken to be non‑originating materials used in the production of the goods; and

 (c) if the accessories, spare parts or tools are originating materials—for the purposes of Part 3 of these Regulations and regulation 4.1, those accessories, spare parts or tools are taken to be originating materials used in the production of the goods.

4.3  Value of packaging material and container

  If paragraphs 153YK(1)(a) and (b) of the Act are satisfied in relation to goods and the goods must have a regional value content of not less than a particular percentage worked out in a particular way:

 (a) the value of the packaging material or container in which the goods are packaged must be taken into account for the purposes of working out the regional value content of the goods under Part 3 of these Regulations; and

 (b) if that packaging material or container is a non‑originating material—for the purposes of Part 3 of these Regulations and regulation 4.1, that packaging material or container is taken to be a non‑originating material used in the production of the goods; and

 (c) if that packaging material or container is an originating material—for the purposes of Part 3 of these Regulations and regulation 4.1, that packaging material or container is taken to be an originating material used in the production of the goods.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.

If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history.

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history