Customs (Chinese Rules of Origin) Regulation 2015

Customs (Chinese Rules of Origin) Regulation 2015

Select Legislative Instrument No. 209, 2015

made under the

Customs Act 1901

Compilation No. 1

Compilation date:    14 December 2018

Includes amendments up to: F2018L01755

Registered:    15 January 2019

About this compilation

This compilation

This is a compilation of the Customs (Chinese Rules of Origin) Regulation 2015 that shows the text of the law as amended and in force on 14 December 2018 (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If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.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—Preliminary

1 Name

3 Authority

4 Definitions

Part 2—Tariff change requirement

5 Change in tariff classification requirement for non‑originating materials

Part 3—Regional value content

6 Regional value content

Part 4—Determination of value

7 Value of goods that are non‑originating materials

8 Value of accessories, spare parts or tools

9 Value of packaging material and container

Part 7—Consignment

12 Consignment

Part 8—Record keeping obligations

13 Exportation of goods to China—record keeping by exporter who is not the producer of the goods

14 Exportation of goods to China—record keeping by the producer of the goods

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Part 1—Preliminary

1  Name

  This is the Customs (Chinese Rules of Origin) Regulation 2015.

3  Authority

  This instrument is made under the Customs Act 1901.

4  Definitions

  In this instrument:

Act means the Customs Act 1901.

Agreement has the meaning given by section 153ZOB 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 2015 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

Australian originating goods has the meaning given by section 153ZOB of the Act.

Certificate of Origin has the meaning given by section 153ZOB of the Act.

Declaration of Origin has the meaning given by section 153ZOB of the Act.

Harmonized System has the meaning given by section 153ZOB of the Act.

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

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

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

territory of Australia has the meaning given by section 153ZOB of the Act.

territory of China has the meaning given by section 153ZOB of the Act.

Part 2—Tariff change requirement

5  Change in tariff classification requirement for non‑originating materials

  For the purposes of subsection 153ZOE(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 territory of China, or entirely in the territory of China and the territory of 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 section.

Part 3—Regional value content

6  Regional value content

 (1) For the purposes of subsection 153ZOE(5) of the Act, the regional value content of goods 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 used in the production of the goods.

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

Part 4—Determination of value

7  Value of goods that are non‑originating materials

 (1) For the purposes of subsection 153ZOB(3) of the Act, the value of non‑originating materials used in the production of goods is:

 (a) for non‑originating materials imported into the territory of China—the value of those materials worked out in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994; or

 (b) for non‑originating materials acquired in the territory of China—the value of those materials worked out under paragraph (a) on the assumption that those materials had been imported into the territory of China.

 (2) For the purposes of paragraph (1)(a), in working out the value of particular non‑originating materials, the following must be included:

 (a) the cost of freight and all other costs incurred in transporting the non‑originating materials to the port or place of entry in the territory of China;

 (b) the cost of insurance related to that freight.

 (3) For the purposes of paragraph (1)(b), in working out the value of particular non‑originating materials, the following are to be deducted:

 (a) the cost of freight and packing and all other costs incurred in transporting the non‑originating materials within the territory of China to the location of the producer of the goods;

 (b) the cost of insurance related to that freight.

8  Value of accessories, spare parts or tools

  If paragraphs 153ZOE(6)(a), (b), (c), (d), (e) and (f) of the Act are satisfied in relation to goods:

 (a) the value of the accessories, spare parts or tools covered by paragraph 153ZOE(6)(f) of the Act must be taken into account for the purposes of working out the regional value content of the goods under section 6 of this instrument; and

 (b) for the purposes of sections 6 and 7 of this instrument, those accessories, spare parts or tools are taken to be non‑originating materials used in the production of the goods.

9  Value of packaging material and container

  If paragraphs 153ZOF(2)(a) and (b) of the Act are satisfied in relation to goods:

 (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 section 6 of this instrument; and

 (b) for the purposes of sections 6 and 7 of this instrument, that packaging material or container is taken to be a non‑originating material used in the production of the goods.

Part 7—Consignment

12  Consignment

  For subsection 153ZOI(2) of the Act, for goods transported through the customs territory of Hong Kong, China, the goods are under customs control at all times while the goods are in that customs territory.

Note 1: This section ensures that paragraph 153ZOI(1)(c) of the Act does not prevent the goods from being Chinese originating goods. However, if paragraph 153ZOI(1)(a) or (b) of the Act applies while the goods are in the customs territory of Hong Kong, China, the goods will not be Chinese originating goods.

Note 2: Sections 240 to 240AC of the Act contain requirements relating to the keeping and production of commercial documents and other records. These provisions may be used to verify that goods are Chinese originating goods.

Part 8—Record keeping obligations

13  Exportation of goods to China—record keeping by exporter who is not the producer of the goods

 (1) For subsection 126AOB(1) of the Act, an exporter of goods mentioned in that subsection, who is not also the producer of the goods, must keep the following records:

 (a) records of the purchase of the goods by the exporter;

 (b) records of the purchase of the goods by the person to whom the goods are exported;

 (c) evidence that payment has been made for the goods;

 (d) evidence of the classification of the goods under the Harmonized System;

 (e) if the goods include any accessories, spare parts or tools that were purchased by the exporter:

 (i) records of the purchase of the accessories, spare parts or tools; and

 (ii) evidence of the value of the accessories, spare parts or tools;

 (f) if the goods include any accessories, spare parts or tools that were produced by the exporter:

 (i) records of the purchase of all materials that were purchased for use or consumption in the production of the accessories, spare parts or tools; and

 (ii) evidence of the value of the materials; and

 (iii) records of the production of the accessories, spare parts or tools;

 (g) if the goods are packaged for retail sale in packaging material or a container that was purchased by the exporter:

 (i) records of the purchase of the packaging material or container; and

 (ii) evidence of the value of the packaging material or container;

 (h) if the goods are packaged for retail sale in packaging material or a container that was produced by the exporter:

 (i) records of the purchase of all materials that were purchased for use or consumption in the production of the packaging material or container; and

 (ii) evidence of the value of the materials; and

 (iii) records of the production of the packaging material or container;

 (i) a copy of the Certificate of Origin, or Declaration of Origin, for the goods.

 (2) The records must be kept for at least 5 years starting on the date the Certificate of Origin, or Declaration of Origin, for the goods is issued.

 (3) The exporter:

 (a) may keep the records at any place (whether or not in Australia); and

 (b) must ensure that:

 (i) the records are kept in a form that would enable a determination of whether the goods are Australian originating goods in accordance with the Agreement; and

 (ii) if the records are not in English—the records are kept in a place and form that would enable an English translation to be readily made; and

 (iii) if the records are kept by mechanical or electronic means—the records are readily convertible into a hard copy in English.

14  Exportation of goods to China—record keeping by the producer of the goods

 (1) For subsection 126AOB(1) of the Act, a producer of goods mentioned in that subsection, whether or not the producer is the exporter of the goods, must keep the following records:

 (a) records of the purchase of the goods;

 (b) if the producer is the exporter of the goods—evidence of the classification of the goods under the Harmonized System;

 (c) evidence that payment has been made for the goods;

 (d) evidence of the value of the goods;

 (e) records of the purchase of all materials that were purchased for use or consumption in the production of the goods and evidence of the classification of the materials under the Harmonized System;

 (f) evidence of the value of those materials;

 (g) records of the production of the goods;

 (h) if the goods include any accessories, spare parts or tools that were purchased by the producer:

 (i) records of the purchase of the accessories, spare parts or tools; and

 (ii) evidence of the value of the accessories, spare parts or tools;

 (i) if the goods include any accessories, spare parts or tools that were produced by the producer:

 (i) records of the purchase of all materials that were purchased for use or consumption in the production of the accessories, spare parts or tools; and

 (ii) evidence of the value of the materials; and

 (iii) records of the production of the accessories, spare parts or tools;

 (j) if the goods are packaged for retail sale in packaging material or a container that was purchased by the producer:

 (i) records of the purchase of the packaging material or container; and

 (ii) evidence of the value of the packaging material or container;

 (k) if the goods are packaged for retail sale in packaging material or a container that was produced by the producer:

 (i) records of the purchase of all materials that were purchased for use or consumption in the production of the packaging material or container; and

 (ii) evidence of the value of the materials; and

 (iii) records of the production of the packaging material or container;

 (l) a copy of the Certificate of Origin, or Declaration of Origin, for the goods.

 (2) The records must be kept for at least 5 years starting on the date the Certificate of Origin, or Declaration of Origin, for the goods is issued.

 (3) The producer:

 (a) may keep the records at any place (whether or not in Australia); and

 (b) must ensure that:

 (i) the records are kept in a form that would enable a determination of whether the goods are Australian originating goods in accordance with the Agreement; and

 (ii) if the records are not in English—the records are kept in a place and form that would enable an English translation to be readily made; and

 (iii) if the records are kept by mechanical or electronic means—the records are readily convertible into a hard copy in English.

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