Customs (United Arab Emirates Rules of Origin) Regulations 2025

EXPLANATORY STATEMENT

Issued by the Assistant Minister for Citizenship, Customs and Multicultural Affairs

Customs Act 1901

The Customs Act 1901 (the Customs Act) concerns customs-related functions and is the legislative authority that sets out the customs requirements for the importation of goods into, and the exportation of goods from, Australia.

Subsection 270(1) of the Customs Act provides, in part, that the Governor-General may make regulations, not inconsistent with the Customs Act, prescribing all matters which by the Customs Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for giving effect to the Customs Act.

Conclusion of the Australia-United Arab Emirates Comprehensive Economic Partnership Agreement (the Agreement) negotiations was announced by the Minister for Trade and Tourism on 17 September 2024, and the Agreement was signed on 6 November 2024. The Agreement, among other things, delivers outcomes for trade in goods and services and sets out related customs procedures and rules of origin for claiming preferential rates of customs duty. These rules determine whether goods imported into Australia from the United Arab Emirates are eligible goods in accordance with the Agreement (hereon referred to as “UAE originating goods”), and thereby eligible for preferential rates of customs duty.

The Customs Amendment (Australia-United Arab Emirates Comprehensive Economic Partnership Agreement Implementation) Act 2025 (the Customs Implementation Act) amends the Customs Act to, among other things, insert new Division 1Q into Part VIII of the Customs Act. Division 1Q implements the provisions under the Agreement dealing with trade in goods, and rules of origin to determine if goods imported into Australia from the United Arab Emirates are UAE originating goods that are eligible for preferential tariff treatment in accordance with the Agreement.

The Customs Implementation Act also inserts Division 4N into Part VI of the Customs Act to implement obligations relating to record keeping and verification under the Agreement.

The purpose of the Customs (United Arab Emirates Rules of Origin) Regulations 2025 (the Regulations) is to prescribe matters that are required or permitted to be prescribed under the new Division 4N of Part VI and Division 1Q of Part VIII of the Customs Act to give effect to the new rules in respect of originating goods under the Agreement.

The Regulations prescribe the rules used to determine whether goods are UAE originating goods, including the methods used to determine the qualifying value content of goods (a calculation used in determining whether a good made from originating and non‑originating materials is a UAE originating good) for the purposes of some of the product-specific rules requirements under the Agreement.

The Regulations also prescribe the valuation rules for different kinds of goods, and set out the classes of records that must be retained by Australian exporters and producers of Australian originating goods.

Details of the Regulations are set out in Attachment A.

A Statement of Compatibility with Human Rights has been prepared in accordance with the Human Rights (Parliamentary Scrutiny) Act 2011, and is at Attachment B.

The Department of Foreign Affairs and Trade (DFAT) led Australia’s negotiations for the Agreement in consultation with Treasury; the Department of Agriculture, Fisheries and Forestry; the Department of Finance; the Attorney-General’s Department; IP Australia; the Department of Health; the Department of Industry, Science and Resources; Austrade; the Department of Home Affairs; and State and Territory governments. Australia’s negotiating positions for the Agreement were informed by the views and information provided by stakeholders through both formal and informal consultation.

DFAT undertook regular stakeholder engagement on the Agreement once negotiations commenced in 2023. DFAT consulted extensively across business, civil society, industry and worker organisations, meeting separately with over 97 public, private and civil society stakeholders both virtually and in person. In addition to a call for public submissions from March 2022, negotiators regularly engaged with representatives of the business sector, academia, civil society organisations, and First Nations stakeholders to provide an opportunity to share their views and expectations of the negotiations. Throughout the negotiations, DFAT’s Chief Negotiator held regular open forums to provide updates for all interested stakeholders on the status of negotiations. These consultations were conducted via a range of channels including virtual and in-person meetings. DFAT held virtual consultations with peak bodies on the Agreement in January 2024 and engaged regularly with peak bodies during the negotiations.

An Impact Analysis for the Agreement is contained in the Explanatory Memorandum for the Customs Amendment (Australia-United Arab Emirates Comprehensive Economic Partnership Agreement Implementation) Bill 2025. The Explanatory Memorandum is available, together with the Bill, on the Australian Parliament House website.[1]

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003.

The Regulations commence on the later of the day after the Regulations are registered, and the day on which Schedule 1 to the Customs Implementation Act commences. Schedule 1 to the Customs Implementation Act commences on the later of the day after that Act receives the Royal Assent, and the day the Agreement enters into force for Australia.

ATTACHMENT A

Details of the Customs (United Arab Emirates Rules of Origin) Regulations 2025

Part 1—Preliminary

Section 1 Name

This section provides that the title of the instrument is the Customs (United Arab Emirates Rules of Origin) Regulations 2025 (the Regulations).

Section 2 Commencement

This section sets out, in a table, the date on which each of the provisions contained in the Regulations commence.

Table item 1 provides for the whole instrument to commence on the later of the day after the Regulations are registered, and the day on which Schedule 1 to the Customs Amendment (Australia-United Arab Emirates Comprehensive Economic Partnership Agreement Implementation) Act 2025 (the Customs Implementation Act) commences. Schedule 1 to the Customs Implementation Act commences on the later of the day after that Act receives the Royal Assent, and the day the Australia-United Arab Emirates Comprehensive Economic Partnership Agreement (the Agreement) enters into force for Australia.

Section 3 Authority

This section sets out the authority under which the Regulations are made, which is the Customs Act 1901 (the Customs Act).

Section 4 Definitions

This section sets out the definitions for the purpose of the Regulations:

Act means the Customs 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; and
as in force for Australia from time to time.

The note to the definition of Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 indicates that, as at 2025, the text of this Agreement is accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au). The access of this document on the AustLII website is free of charge.

The meaning of “Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994” is required under subparagraph 8(1)(a)(ii) of the Regulations for the purpose of determining the value of material. See the notes for paragraph 8(1)(a) for additional information.

The following words and expressions have the meanings given by subsection 153ZSB(1) of the Customs Act:

Agreement;
Australian originating goods;
certificate of origin;
Harmonized System;
non-originating materials;
originating materials;
production;
territory of Australia;
territory of the United Arab Emirates.

Agreement

Under subsection 153ZSB(1) of the Customs Act, the term “Agreement” is defined to mean the Comprehensive Economic Partnership Agreement between Australia and the United Arab Emirates, done at Canberra on 6 November 2024, as amended from time to time. The note to this definition indicates that, as at 2025, the text of the Agreement is accessible through the Australian Treaties Library on the AustLII website. The access of this document on the AustLII website is free of charge.

Australian originating goods

Under subsection 153ZSB(1) of the Customs Act, the term “Australian originating goods” is defined to mean goods that are Australian originating goods under a law of the United Arab Emirates that implements the Agreement.

certificate of origin

Under subsection 153ZSB(1) of the Customs Act, the term “certificate of origin” is defined to mean a certificate that is in force and that complies with the requirements of Article 3.22 of Chapter 3 of the Agreement. In accordance with Article 3.22, this document must also contain the information described in Annex 3B of the Agreement.

Harmonized system

Under subsection 153ZSB(1) of the Customs Act, the term “certificate of origin” is defined to mean:

the Harmonized Commodity Description and Coding System (the HCDC System) as in force on 1 January 2022; or
if the table in Annex 3A to Chapter 3 of the Agreement is amended or replaced to refer to Chapters, headings and subheadings of a later version of the HCDC System—the later version of the HCDC System.

The Harmonized System is a structure for classifying goods based on internationally agreed descriptors for goods and related six-digit codes administered by the World Customs Organization (the WCO). This six-digit classification system uniquely identifies all traded goods and commodities and is uniform across all countries that have adopted the Harmonized System. The WCO, and member countries, review the system every five years to reflect changes in industry practice, technological developments and evolving international trade patterns.

The current version of the Harmonized System is the version as in force on 1 January 2022, which is available for access free of charge on webpages administered by the WCO (www.wcoomd.org). The version of Harmonized System for which the tariff classification codes are used to identify goods for the purpose of Annex 3A of Chapter 3 of the Agreement, and for section 153ZSE of the Customs Act, is the version as in force on 1 January 2022 (being the current version).

The version of Annex 3A of Chapter 3 of the Agreement that is incorporated by reference under Division 1Q of Part VIII of the Customs Act for the purpose of section 153ZSE is the version that forms part of the Agreement signed on 6 November 2024.

That version of Annex 3A to Chapter 3 of the Agreement is available free of charge on the Australian Treaties Library on the AustLII website (www.austlii.edu.au). Any agreed revisions to Annex 3A to Chapter 3 of the Agreement will also be made available free of charge on the Australian Treaties Library.

The expression “Harmonized System” is used in the record‑keeping obligations in sections 11 and 12 of the Regulations to require records be kept of the classification of goods or materials under the Harmonized System. This in turn implements the record keeping obligations under the Agreement.

non-originating materials

Under subsection 153ZSB(1) of the Customs Act, the term “non-originating material” is defined to mean goods that are not originating materials. Non-originating materials are goods that are not originating materials because they do not satisfy the requirements of new Division 1Q of Part VIII of the Customs Act in their own right. An example of a non-originating good (and therefore material which could be used in the production of another good) is a good that is grown and harvested from a country that is neither Australia nor the United Arab Emirates. It is non-originating because that good, in its harvested form, is not from a country to which the Agreement applies.

originating materials

Under subsection 153ZSB(1) of the Customs Act, the term “originating material” is defined to mean:

UAE originating goods that are used in the production of other goods and physically incorporated into those goods; or
Australian originating goods that are used in the production of other goods and physically incorporated into those goods; or
indirect materials.

For the definition of “originating material”, the term “indirect material” is defined to mean:

goods used in the production, testing or inspection of goods, but not physically incorporated in the goods; or
goods or energy used in the maintenance or operation of equipment or buildings associated with the production of goods;

including:

fuel (within its ordinary meaning), catalysts and solvents; and
gloves, glasses, footwear, clothing, safety equipment and supplies; and
tools, dies and moulds; and
spare parts and materials; and
lubricants, greases, compounding materials and other similar goods.

production

Under subsection 153ZSB(1) of the Customs Act, the term “production” is defined to have the meaning given by Article 3.1 of Chapter 3 of the Agreement. Under Article 3.1, “production” is defined as operations including growing, cultivating, raising, mining, harvesting, fishing, aquaculture, trapping, hunting, capturing, collecting, breeding, extracting, gathering, manufacturing, working, processing, and other specific operations, including assembling a good. This list is non‑exhaustive, and the term “production” is capable of capturing any other process that falls within the meaning of operations, including any currently existing methods that have not been listed, and any new methods which may arise in the future.

territory of Australia

Under subsection 153ZSB(1) of the Customs Act, the term “territory of Australia” is defined to mean territory within the meaning, so far as it relates to Australia, of Article 1.2 of Chapter 1 of the Agreement. That is, the territory:

excluding all external territories other than the Territory of Norfolk Island, the Territory of Christmas Island, the Territory of Cocos (Keeling) Islands, the Territory of Ashmore and Cartier Islands, the Territory of Heard Island and McDonald Islands, and the Coral Sea Islands Territory; and
including Australia’s territorial sea, contiguous zone, exclusive economic zone and continental shelf over which Australia exercises sovereignty, sovereign rights or jurisdiction in accordance with international law, particularly the United Nations Convention on the Law of the Sea, done at Montego Bay on 10 December 1982.

territory of the United Arab Emirates

Under subsection 153ZSB(1) of the Customs Act, the term “territory of the United Arab Emirates” is defined to mean territory within the meaning, so far as it relates to the United Arab Emirates, of Article 1.2 of Chapter 1 of the Agreement. That is, the United Arab Emirates’ land territories and internal waters, including its Free Zones, territorial sea, including the seabed, and subsoil thereof, and airspace over such territories and waters, as well as the contiguous zone, the continental shelf and exclusive economic zone, over which the United Arab Emirates has sovereignty, sovereign rights or jurisdiction as defined in its laws, and in accordance with international law.

Part 2—Tariff change requirement

Annex 3A to Chapter 3 of the Agreement, amongst other matters, sets out the product specific rules of origin and related requirements that may need to be satisfied in order for goods to be eligible for preferential tariff treatment. Regulations may be required to specify or provide for related requirements.

One of the requirements under Annex 3A that may apply to goods is the change in tariff classification requirement. This may be at the two digit level corresponding to chapters of the Harmonized System, the four digit level corresponding to headings of the Harmonized System, or the six digit level corresponding to subheadings of the Harmonized System. Where a requirement that applies in relation to goods is that all non-originating materials used in the production of the goods must have undergone a particular change in tariff classification, the regulations may prescribe when a non-originating material used in the production of the goods is taken to satisfy the change in tariff classification (subsection 153ZSE(3) of the Customs Act refers).

Section 5 Change in tariff classification requirement for non-originating materials

For the purposes of subsection 153ZSE(3) of the Customs Act, section 5 of the Regulations provides that 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:

it was produced entirely in the territory of the United Arab Emirates, or entirely in the territory of the United Arab Emirates and the territory of Australia, from other non-originating materials; and
each of those other non-originating materials satisfies the change in tariff classification, including by one or more applications of this section.

Section 5 of the Regulations applies where the non-originating materials that are used to directly produce the final good do not satisfy the change in tariff classification.

In practice, in producing a final good, a producer may use non-originating materials that are produced in one or both the territory of the United Arab Emirates and the territory of Australia. The components of these materials may be produced by yet another producer in the territory of the United Arab Emirates or the territory of Australia, or may have been imported by another importer. It is possible that one or more of the non-originating materials from which the final good is produced do not meet the applicable change in tariff classification requirement in Annex 3A to the Agreement, thus failing to meet the requirements necessary for a good to be a UAE originating good produced from non-originating materials under subsection 153ZSE(1) of the Customs Act. This in turn may mean that the final good is non‑originating.

However, section 5 of the Regulations allows the examination of each constituent component of a non‑originating material that does not meet the change in tariff classification requirement in Annex 3A to Chapter 3 of the Agreement applicable to the final good. This enables the determination of whether those constituent components used in production satisfy the change in tariff classification requirement that applies to the final good.

If each component of a non-originating material was produced entirely in the territory of the United Arab Emirates or the territory of Australia, and following production satisfies the change in tariff classification requirement applicable to the final good, then the non-originating material will be taken to have met the change in tariff classification requirement, and the final good will be a UAE originating good (subject to satisfying all other requirements of Division 1Q of the Customs Act).

This section may be applied more than once where the constituent components of a non-originating material do not satisfy the change in tariff requirement. Where this occurs, section 5 may be applied to progressively deconstruct each constituent component of a good in order to determine whether any non-originating material in those components satisfy the relevant change in tariff classification requirement. Where they do, the non-originating material used in production of the final good may be taken to satisfy the change in tariff classification requirement, and the final good will be a UAE originating good.

Section 5 therefore allows a primary non-originating material used in the production of a final good to be examined for the purposes of determining whether the primary non-originating material may be taken to satisfy a change in tariff classification requirement under Annex 3A to Chapter 3 of the Agreement, provided its constituent non-originating materials were produced in the territory of the United Arab Emirates, or the territory of the United Arab Emirates and the territory of Australia.

Part 3—Qualifying value content requirement

Under subsection 153ZSE(5) of the Customs Act, if a requirement that applies in relation to the goods is that the goods must have a qualifying value content (QVC) of not less than a particular percentage worked out in a particular way:

the QVC of the goods is to be worked out in accordance with the Agreement; or
if the regulations prescribe how to work out the QVC of the goods—the QVC of the goods is to be worked out in accordance with the regulations.

For the purpose of paragraph 153ZSE(5)(b) of the Customs Act, Part 3 of the Regulations specifies different methods by which the QVC of goods can be calculated. These methods are the indirect (build-down) method (section 6 of the Regulations) and the direct (build-up) method (section 7 of the Regulations). These methods are specified in Article 3.4 of Chapter 3 of the Agreement.

If it is a requirement in column 4 of the table in Annex 3A (Product Specific Rule Schedule) to Chapter 3 of the Agreement that relevant goods are required to have a QVC of not less than a particular percentage worked out in a particular way, then the QVC is calculated using either of the methods in section 6 or section 7 of the Regulations.

The purpose of the provisions under this Part is to complement section 153ZSE of the Customs Act and together give effect to Article 3.4 of Chapter 3 of the Agreement.

Section 6 Indirect (build-down) method

Section 6 of the Regulations prescribes the indirect, or “build-down method” for calculating the QVC of goods.

Subsection 6(1) of the Regulations provides that the QVC of goods under the build-down method is worked out using either the formula in subsection (2) or the formula in subsection (3). Which formula is used is dependent on whether an importer chooses to rely on the customs value or ex-works price of the goods.

For subsection (2), the formula to determine the QVC of goods is:

For subsection (3), the formula to determine the QVC of goods is:

Section 6 includes definitions for the following terms applicable to either or both subsections (2) and (3):

Customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Customs Act. In practice this is typically the transaction value as described in section 161 of the Customs Act. Importers can choose to use either the customs value or the ex-works price of goods to determine their QVC. The customs value of goods equates to the Free On Board (FOB) value as defined in the Agreement;
ex-works price means the ex-works price of the goods within the meaning of subsection 153ZSB(1) of the Customs Act. Importers can choose to use either the customs value or the ex-works price of goods to determine their QVC.
value of non-originating materials means the value, worked out under Part 4 of the Regulations, of the non-originating materials used in the production of the goods.

Subsection 6(4) of the Regulations provides that QVC must be expressed as a percentage.

The following is an example using the indirect (build-down) method to calculate the QVC for transmitters produced in the territory of the United Arab Emirates (tariff classification code 8517.62 in Annex 3A to Chapter 3 of the Agreement), that are made from originating and imported materials. The customs value of each transmitter is $150.00 and the value of the non‑originating materials (calculated as set out under Part 4 – Determination of Value) is $83.50. Applying the formula set out in section 6, the QVC is calculated as follows:

Therefore, the QVC for the transmitters is 44.33 per cent, which means the build-down method has established that 44.33 per cent of the good originates from within the territory of the United Arab Emirates. Annex 3A to Chapter 3 of the Agreement stipulates that the QVC of transmitters must be at least 40 per cent if using customs value, hence the transmitters are UAE originating goods.

Section 7 Direct (build-up) method

Subsection 7(1) of the Regulations provides that the QVC of goods under the direct, or “build-up” method is worked out using either the formula in subsection (2), or the formula in subsection (3). Which formula is used will depend on whether an importer chooses to rely on the customs value or ex-works price of the goods.

For subsection (2), the formula to determine the QVC of goods is:

For subsection (3), the formula to determine the QVC of goods is:

Section 7 includes definitions for the following terms applicable to either or both subsections (2) and (3):

Customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Customs Act. Importers can use either the customs value or the ex-works price of goods to determine their QVC. In practice, the customs value of goods typically equates to the FOB value as defined in Article 3.4 of Chapter 3 of the Agreement.
direct labour costs includes wages, remuneration and other employee benefits.
direct overhead costs means the total overhead expense.
ex-works price means the ex-works price of the goods within the meaning of subsection 153ZSB(1) of the Customs Act. Importers can choose to use either the ex-works price or the customs value of goods to determine their QVC.
other costs has the same meaning as it has in Article 3.4 of Chapter 3 of the Agreement.
profit has the same meaning as it has in Article 3.4 of Chapter 3 of the Agreement.
value of originating materials means the value, worked out under Part 4 of the Regulations, of the originating materials, parts or produce that are acquired by the producer or produced by the producer, and are used in the production of the goods.

Subsection 7(4) of the Regulations provides that QVC must be expressed as a percentage.

The following is an example using the direct (build-up) method to calculate the QVC for transmitters produced in the territory of the United Arab Emirates (tariff classification code 8517.62 in Annex 3A to Chapter 3 of the Agreement), where the sum of the value of originating materials, direct labour costs, direct overhead costs, profits and other costs for each transmitter is $AU66.50. The customs value of each transmitter is $AU150.00. Applying the formula set out in section 7, the QVC is calculated as follows:

Therefore, the QVC for the transmitters is 44.33 per cent, which means the direct/build-up method has established that 44.33 per cent of the good originates from within the territory of the United Arab Emirates. Annex 3A to Chapter 3 of the Agreement stipulates that the QVC of transmitters must be at least 40 per cent where the importer chooses to use the customs value, hence the transmitters are UAE originating goods.

Part 4—Determination of value

For the purposes of new Division 1Q of Part VIII of the Customs Act, new subsection 153ZSB(2) of that Act provides that the value of goods is to be worked out in accordance with the regulations, and the regulations may prescribe different valuation rules for different kinds of goods.

Part 4 of the Regulations sets out the rules for the determination of the values of different kinds of goods and materials that are required to be applied for the purposes of new Division 1Q of Part VIII of the Customs Act.

Part 4 of the Regulations contains sections 8 (Value of goods that are originating materials or non-originating materials), 9 (Value of accessories, spare parts, tools or instructional or other information materials) and 10 (Value of packaging material and containers).

Section 8 Value of goods that are originating materials or non-originating materials

The purpose of section 8 is to complement Division 1Q (including subsection 153ZSB(2)) of Part VIII of the Customs Act and together give effect to Articles 3.16 and 3.17 of Chapter 3 of the Agreement.

For the purposes of subsection 153ZSB(2) of the Customs Act, section 8 of the Regulations explains how to work out the value of originating materials and non-originating materials used in the production of goods (subsection 8(1) of the Regulations refers).

Subsection 8(2) of the Regulations provides that the value of the materials is as follows:

for materials imported into the territory of the United Arab Emirates by the producer of the goods:
1. the price paid or payable for the materials at the time of importation; or
2. if the value of the materials cannot be determined under subparagraph (i)—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;
for materials acquired in the territory of the United Arab Emirates—one of the following chosen by the importer of the goods:

the price paid or payable for the materials by the producer of the goods;
the value of those materials worked out under paragraph (a) on the assumption that those materials had been imported into the territory of the United Arab Emirates by the producer of the goods;
the earliest ascertainable price paid or payable for the materials in the territory of the United Arab Emirates;

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

all the costs incurred in the production of the materials, including general expenses; and
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 or of the amount of profit that is usually reflected in the sale of goods of the same class or kind as the materials.

Paragraph 8(2)(a) of the Regulations incorporates the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (the GATT). The GATT is not a disallowable legislative instrument and as such, in accordance with paragraph 14(1)(b) and subsection 14(2) of the Legislation Act 2003 (the Legislation Act), the application, adoption or incorporation of this document would normally be the version of this document in force at the time the Regulations commence.

Subsection 153ZSB(5) of the Customs Act overrides subsection 14(2) of the Legislation Act by providing that, despite subsection 14(2) of the Legislation Act, regulations made for the purposes of Division 1Q of Part VIII of the Customs Act may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time.

The term “Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994”, as defined under section 4 of the Regulations, is the version of the GATT as in force for Australia from time to time. This means that should the relevant provisions of the GATT be changed, the current version of the GATT would also be captured by the Regulations without the need for further amendments.

A note under section 4 of the Regulations provides that the GATT is available to be viewed for free on the Australian Treaties Library on the AustLII website, making clear that the document is accessible to any member of the public who is interested in the content of the law.

For the purposes of paragraph 8(2)(a) of the Regulations, in working out the value of particular materials, subsection 8(3) of the Regulations requires that the cost incurred in the international shipment of the materials must be included.

In addition, for the purposes of subsection 8(2) of the Regulations, in working out the value of particular originating materials, subsection 8(4) of the Regulations allows for the following amounts to be included, to the extent that they have not already been taken into account:

the costs of freight, insurance, packing and other transport related costs incurred in transporting the originating materials to the producer of the goods;
duties, taxes and customs brokerage fees on the materials that:
1. have been paid in either the territory of the United Arab Emirates or the territory of Australia; and
2. have not been waived or refunded; and
3. are not refundable or otherwise recoverable;

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

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

The purpose of this subsection is to ensure that the costs mentioned are included in the value of originating materials produced in the territory of the United Arab Emirates. It provides a more accurate representation of the actual cost of the material used in the production of a good where those costs have not been factored into the initial transaction value of the material.

Conversely, subsection 8(5) of the Regulations allows for the costs mentioned in subsection 8(4) set out above to be deducted when working out the value of particular non-originating materials used in the production of goods.

In both cases, the costs may only be included or deducted if those costs have not already been taken into account in working out the value of particular originating or non-originating goods.

Section 9 Value of accessories, spare parts, tools or instructional or other information materials

The purpose of section 9 is to complement Division 1Q (including subsection 153ZSE(2)) of Part VIII of the Customs Act and together give effect to Article 3.9 of Chapter 3 of the Agreement.

Section 153ZSF of the Customs Act deals with accessories, spare parts, tools or instructional or other information materials. That section provides for those goods to be UAE originating goods when they are imported with other UAE originating goods, not invoiced separately from those goods, and their quantity, value and type is customary for the other UAE originating goods. In effect, the origins of these goods are disregarded when imported in this way with other UAE originating goods, unless the goods they are imported with are subject to a QVC requirement in Annex 3A (Product Specific Rules Schedule) to Chapter 3 of the Agreement.

Subsection 153ZSF(2) of the Customs Act deals with this situation. Consequently, if paragraphs 153ZSF(1)(a), (b), and (c) of the Customs Act are satisfied in relation to goods, subsection 153ZSF(2) requires the regulations to provide for the value of the accessories, spare parts, tools or instructional or other information materials to be taken into account for the purposes of working out the QVC of the goods. The accessories, spare parts, tools or instructional or other information materials are to be taken into account as originating materials or non‑originating materials, as the case may be.

In the aforementioned circumstance, section 9 of the Regulations has the effect that:

the value of the accessories, spare parts, tools or instructional or other information materials must be taken into account for the purposes of working out the QVC of the goods under Part 3 of the Regulations; and
if the accessories, spare parts, tools or instructional or other information materials are originating materials—for the purposes of sections 7 and 8 of the Regulations, those accessories, spare parts, tools or instructional or other information materials must be taken into account as originating materials used in the production of the goods; and
if the accessories, spare parts, tools or instructional or other information materials are non-originating materials—for the purposes of sections 6 and 8 of the Regulations, those accessories, spare parts, tools or instructional or other information materials must be taken into account as non-originating materials used in the production of the goods.

Determination of the value of accessories, spare parts, tools or instructional or other information materials imported with goods for the purpose of section 9 is undertaken in accordance with section 8 of the Regulations, hence the reference to section 8 in paragraphs 9(b) and (c).

Where goods imported into Australia from the United Arab Emirates are subject to a QVC requirement under the Agreement and subsection 153ZSF(1) of the Customs Act is otherwise satisfied, the purpose of section 9 of the Regulations is to enable importers to include or deduct the value of the accessories, spare parts, tools or instructional or other information materials imported with the goods when calculating QVC, depending on whether those items are originating materials or non-originating materials.

Paragraph 9(b) refers to section 7 because that section sets out the formulae to be used to calculate the QVC using the direct method in respect of originating materials. Paragraph 9(c) refers to section 6 because that section sets out the formulae to be used to calculate the QVC using the indirect method in respect of non-originating material.

Section 10 Value of packaging material and containers

The purpose of section 10 is to complement Division 1Q (including subsection 153ZSH(2)) of Part VIII of the Customs Act and together give effect to Article 3.10 of Chapter 3 of the Agreement. Section 153ZSH of the Customs Act deals with packaging materials and containers.

Subsection 153ZSH(1) of the Customs Act provides that, if:

goods are packaged for retail sale in packaging material or a container; and
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 Subdivision.

However, if a requirement that applies in relation to the goods is that the goods must have a QVC of not less than a particular percentage worked out in a particular way, subsection 153ZSH(2) of the Customs Act provides that the regulations must provide for the following:

the value of the packaging material or container to be taken into account for the purposes of working out the QVC of the goods;
the packaging material or container to be taken into account as an originating material or non-originating material, as the case may be.

For the purpose of subsection 153ZSH(2) of the Customs Act, section 10 of the Regulations provides that if paragraphs 153ZSH(1)(a) and (b) of the Customs Act are satisfied in relation to goods, and the goods must have a QVC of not less than a particular percentage worked out in a particular way:

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 QVC of the goods under Part 3 of these Regulations; and
if that packaging material or container is an originating material—for the purposes of sections 7 and 8 of the Regulations, that packaging material or container must be taken into account as an originating material used in the production of the goods; and
if that packaging material or container is a non‑originating material—for the purposes of sections 6 and 8 of the Regulations, that packaging material or container must be taken into account as a non‑originating material used in the production of the goods.

Determination of the value of packaging materials and containers for the purpose of section 10 is undertaken in accordance with section 8 of the Regulations, hence the reference to that section in paragraphs 10(b) and (c).

Where goods imported into Australia from the United Arab Emirates are subject to a QVC requirement under the Agreement and subsection 153ZSH(1) is otherwise satisfied, the purpose of section 10 of the Regulations is to enable importers to include or deduct the value of the packaging material or container for the goods when calculating QVC, depending on whether the packaging material or container is originating or non-originating respectively.

Paragraph 10(b) refers to section 7 because that section sets out the formulae to be used to calculate the QVC in respect of originating material. Paragraph 10(c) refers to section 6 because that section sets out the formulae to be used to calculate the QVC in respect of non-originating material.

Part 5—Record keeping obligations

Part 5 of the Regulations specifies the records that must be kept for goods that are exported from Australia to the United Arab Emirates, and the goods are claimed to be Australian originating goods for the purpose of obtaining preferential tariff treatment in the United Arab Emirates in accordance with Chapter 3 of the Agreement.

Under new subsection 126ASB(1) of the Customs Act, the regulations may prescribe record keeping obligations that apply in relation to goods that:

are exported to the United Arab Emirates; and
are claimed to be Australian originating goods for the purpose of obtaining a preferential tariff in the territory of the United Arab Emirates.

Under new subsection 126ASB(2) of the Customs Act, regulations for the purposes of subsection 126ASB(1) may impose such obligations on an exporter or producer of goods.

The purpose of this Part is to complement Division 4N of Part VI of the Customs Act and together give effect to Article 3.34 of Chapter 3 of the Agreement.

Section 11 Exportation of goods to the United Arab Emirates—record keeping by exporter who is not the producer of the goods

For the purposes of subsection 126ASB(1) of the Customs Act, subsection 11(1) of the Regulations provides that an exporter of goods mentioned in subsection 126ASB(1), who issues a certificate of origin for the goods and who is not also the producer of the goods, must keep the following records:

records of the purchase of the goods by the exporter;
records of the purchase of the goods by the person to whom the goods are exported;
evidence that payment has been made for the goods;
evidence of the classification of the goods under the Harmonized System;
if the goods include any accessories, spare parts, tools or instructional or other information materials that were purchased by the exporter:
1. records of the purchase of the accessories, spare parts, tools or instructional or other information materials; and
2. evidence of the value of the accessories, spare parts, tools or instructional or other information materials;
if the goods include any accessories, spare parts, tools or instructional or other information materials that were produced by the exporter:
1. records of the purchase of all materials that were purchased for use or consumption in the production of the accessories, spare parts, tools or instructional or other information materials; and
2. evidence of the value of the materials so purchased; and
3. records of the production of the accessories, spare parts, tools or instructional or other information materials;
if the goods are packaged for retail sale in packaging material or a container that was purchased by the exporter:
1. records of the purchase of the packaging material or container; and
2. evidence of the value of the packaging material or container;
if the goods are packaged for retail sale in packaging material or a container that was produced by the exporter:
1. records of the purchase of all materials that were purchased for use or consumption in the production of the packaging material or container; and
2. evidence of the value of the materials so purchased; and
3. records of the production of the packaging material or container;
a copy of the certificate of origin for the goods.

For the records referred to in subsection 11(1) of the Regulations, subsection 11(2) provides that the records must be kept for at least five years starting on the date the certificate of origin for the goods is issued.

Subsection 11(3) of the Regulations sets out the manner in which a record is to be kept. The exporter may keep the records at any place (whether or not in Australia), and must ensure that:

the records are kept in a form that would enable a determination of whether the goods are Australian originating goods in accordance with Chapter 3 of the Agreement; and
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
if the records are kept by mechanical or electronic means—the records are readily convertible into a hard copy in English.

The purpose of section 11 is to ensure that adequate records are kept by an exporter of goods to the United Arab Emirates to enable the customs authorities of the United Arab Emirates to verify that goods claimed to be Australian originating goods under the Agreement satisfy the requirements of the Agreement, and therefore may be lawfully characterised as such.

Section 12 Exportation of goods to the United Arab Emirates—record keeping by the producer of the goods

For the purposes of subsection 126ASB(1) of the Customs Act, subsection 12(1) of the Regulations provides that a producer of goods mentioned in subsection 126ASB(1), whether or not the producer is also the exporter of the goods, must keep the following records:

records of the purchase of the goods;
if the producer is the exporter of the goods—evidence of the classification of the goods under the Harmonized System;
evidence that payment has been made for the goods;
evidence of the value of the goods;
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;
evidence of the value of those materials;
records of the production of the goods;
if the goods include any accessories, spare parts, tools or instructional or other information materials that were purchased by the producer:
1. records of the purchase of the accessories, spare parts, tools or instructional or other information materials; and
2. evidence of the value of the accessories, spare parts, tools or instructional or other information materials;
if the goods include any accessories, spare parts, tools or instructional or other information materials that were produced by the producer:
1. records of the purchase of all materials that were purchased for use or consumption in the production of the accessories, spare parts, tools or instructional or other information materials; and
2. evidence of the value of the materials so purchased; and
3. records of the production of the accessories, spare parts, tools or instructional or other information materials;
if the goods are packaged for retail sale in packaging material or a container that was purchased by the producer:
1. records of the purchase of the packaging material or container; and
2. evidence of the value of the packaging material or container;
if the goods are packaged for retail sale in packaging material or a container that was produced by the producer:
1. records of the purchase of all materials that were purchased for use or consumption in the production of the packaging material or container; and
2. evidence of the value of the materials so purchased; and
3. records of the production of the packaging material or container;
a copy of the certificate of origin for the goods.

For the records referred to in subsection 12(1) of the Regulations, subsection 12(2) provides that the records must be kept for at least five years starting on the date the certificate of origin for the goods is issued.

Subsection 12(3) of the Regulations sets out the manner in which a record is to be kept. The producer may keep the records at any place (whether or not in Australia), and must ensure that:

the records are kept in a form that would enable a determination of whether the goods are Australian originating goods in accordance with Chapter 3 of the Agreement; and
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
if the records are kept by mechanical or electronic means—the records are readily convertible into a hard copy in English.

The purpose of section 12 is to ensure that adequate records are kept by a producer of goods for export to the United Arab Emirates to enable the customs authorities of the United Arab Emirates to verify that goods claimed to be Australian originating goods under the Agreement satisfy the requirements of the Agreement, and therefore may be lawfully characterised as such.

ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Customs (United Arab Emirates Rules of Origin) Regulations 2025

This Disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Disallowable Legislative Instrument

On 6 November 2024, Senator the Hon Don Farrell, the Minister for Trade and Tourism, and his counterpart from the United Arab Emirates, Minister for Foreign Trade, His Excellency Dr. Thani bin Ahmed Al Zeyoudi, signed the Comprehensive Economic Partnership Agreement between Australia and the United Arab Emirates (the Agreement).

The Agreement delivers outcomes for trade in goods and services and sets out related customs procedures and rules of origin for claiming preferential rates of customs duty.

The Customs Amendment (Australia-United Arab Emirates Comprehensive Economic Partnership Agreement Implementation) Act 2025 (Customs Implementation Act) amends the Customs Act 1901 (the Customs Act) to, among other things, insert new Division 1Q into Part VIII of the Customs Act to implement the provisions under the Agreement dealing with trade in goods and rules of origin.

The new rules of origin determine whether goods imported into Australia from the United Arab Emirates are originating goods (referred to as UAE originating goods) and are thereby eligible for preferential rates of customs duty. UAE originating goods are goods that satisfy the rules of origin; the framework of which is contained in new Division 1Q of Part VIII of the Customs Act.

The purpose of the Customs (United Arab Emirates Rules of Origin) Regulations 2025 (the Regulations) is to prescribe matters for and relating to the new rules that are required to be prescribed under new Division 1Q of Part VIII of the Customs Act.

In particular, the Regulations:

set out the circumstance under which the tariff change requirement is taken to be satisfied;
prescribe the method used to determine the qualifying value content (a calculation used in determining whether a good is an UAE originating good) of goods for the purposes of some of the product-specific requirements set out in Annex 3A to Chapter 3 of the Agreement. Annex 3A is applied by reference in section 153ZSB(1) of new Division 1Q of Part VIII of the Customs Act;
prescribe the classes of records that must be kept by Australian exporters and producers of Australian originating goods, including a certificate of origin.

The expression “certificate of origin” is inserted into new subsection 153ZSB(1) of the Customs Act by the Customs Implementation Act. It means a certificate that is in force and that complies with the requirements of Article 3.22 of Chapter 3 of the Agreement. The information required to be provided as part of a certificate of origin includes personal information. The Regulations bring UAE originating goods within the scope of the preferential customs duty scheme in the Customs Act.

The Regulations commence on the later of the day after the instrument is registered, and the day on which Schedule 1 to the Customs Implementation Act commences. Schedule 1 to the Customs Implementation Act commences on the later of the day after that Act receives the Royal Assent, and the day the Agreement enters into force for Australia.

Human rights implications

The Regulations engage the right to not be subjected to arbitrary or unlawful interference with privacy in Article 17 of the International Covenant on Civil and Political Rights (ICCPR).

To the extent the Regulations facilitate the collection and disclosure of personal information, by requiring certain information to be provided in a Certificate of Origin document, the Regulations engage the right to privacy under Article 17 of the ICCPR. Article 17(1) sets out:

No one shall be subjected to arbitrary or unlawful interference with his privacy, family, home or correspondence, nor to unlawful attacks on his honour and reputation.

Under Article 3.21 of Chapter 3 of the Agreement, a “certificate of origin” document applied for by the exporter or producer or an authorised representative of the exporter or producer shall support a claim that goods are eligible for preferential tariff treatment in accordance with the Agreement. The key information that must be included in a “certificate of origin” document is detailed in Article 3.22 and Annex 3B, of Chapter 3 of the Agreement and includes personal information, that is the exporter’s and/or the producer’s name and address.

The Customs Implementation Act inserts new sections 126ASB, 126ASC and 126ASD into the Customs Act to enable regulations to prescribe record keeping obligations that apply in relation to goods claimed to be Australian originating goods exported from Australia to the United Arab Emirates, in accordance with the Agreement.

The regulations prescribed for record keeping obligations are contained in Part 5 of the Regulations, which amongst other things require records and evidence of the purchase of material, value of material, production goods, and the certificate of origin to be kept for at least five years starting on the date the certificate of origin for the goods is issued. The Regulations implement the record keeping requirements of Article 3.34 of Chapter 3.

Part 5 of the Regulations together with new sections 126ASB, 126ASC and 126ASD of the Customs Act, operate to allow customs authorities of the United Arab Emirates to verify the origin of goods exported from Australia that are claimed to be Australian originating goods. As the certificate of origin includes personal information, this engages the right to privacy. Information contained in the Certificate of Origin may be disclosed to a UAE customs official (within the meaning of section 126ASA of the Customs Act) for the purpose of verifying a claim for a preferential tariff.

The limitation on the right to privacy is not arbitrary and is pursuant to law. Amendments to the Customs Act made by the Customs Implementation Act permit the collection and disclosure of personal information in relation to goods claiming to be originating goods. Neither the Customs Implementation Act nor the Regulations alters the existing protections.

The verification of the eligibility for preferential treatment is required under the Agreement and the measures in the Regulations are directed at the legitimate purpose of facilitating and supporting Australia’s international obligations under the Agreement. This collection and disclosure of personal information will only be permitted for the limited purpose of verifying a claim made by a person for preferential tariff treatment making it a reasonable and proportionate response to a legitimate purpose. As such, the collection and disclosure of personal information in these circumstances will not constitute an unlawful or arbitrary interference with privacy.

Conclusion

The Regulations are compatible with human rights because, to the extent that the Regulations may limit the right to privacy, the limitation is reasonable, necessary and proportionate in achieving a legitimate objective.

The Hon Julian Hill MP

Assistant Minister for Citizenship, Customs and Multicultural Affairs

[1] https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r7334

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