{"id":"F2015L01858","name":"Customs (Chinese Rules of Origin) Regulation 2015","slug":"customs-chinese-rules-of-origin-regulation-2015","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"209 of 2015","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":93648,"registerId":"commonwealth-F2015L01858-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n  This is the Customs (Chinese Rules of Origin) Regulation 2015.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n  This instrument is made under the Customs Act 1901.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\n  In this instrument:\n\n> Act means the Customs Act 1901.\n\n> Agreement has the meaning given by section 153ZOB of the Act.\n\n> 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.\n\n> 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).\n\n> Australian originating goods has the meaning given by section 153ZOB of the Act.\n\n> Certificate of Origin has the meaning given by section 153ZOB of the Act.\n\n> Declaration of Origin has the meaning given by section 153ZOB of the Act.\n\n> Harmonized System has the meaning given by section 153ZOB of the Act.\n\n> non‑originating materials has the meaning given by section 153ZOB of the Act.\n\n> originating materials has the meaning given by section 153ZOB of the Act.\n\n> produce has the meaning given by section 153ZOB of the Act.\n\n> territory of Australia has the meaning given by section 153ZOB of the Act.\n\n> territory of China has the meaning given by section 153ZOB of the Act.","sortOrder":3},{"sectionNumber":"Part 2","sectionType":"part","heading":"Tariff change requirement","content":"## Part 2—Tariff change requirement","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Change in tariff classification requirement for non‑originating materials","content":"#### 5 Change in tariff classification requirement for non‑originating materials\n\n  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:\n    (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\n    (b) each of those other non‑originating materials satisfies the change in tariff classification, including by one or more applications of this section.","sortOrder":5},{"sectionNumber":"Part 3","sectionType":"part","heading":"Regional value content","content":"## Part 3—Regional value content","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Regional value content","content":"#### 6 Regional value content\n\n  (1) For the purposes of subsection 153ZOE(5) of the Act, the regional value content of goods is worked out using the formula:\n  ![](image.002.png)\n  where:\n\n> customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.\n\n> 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.\n\n  (2) Regional value content must be expressed as a percentage.","sortOrder":7},{"sectionNumber":"Part 4","sectionType":"part","heading":"Determination of value","content":"## Part 4—Determination of value","sortOrder":8},{"sectionNumber":"7","sectionType":"section","heading":"Value of goods that are non‑originating materials","content":"#### 7 Value of goods that are non‑originating materials\n\n  (1) For the purposes of subsection 153ZOB(3) of the Act, the value of non‑originating materials used in the production of goods is:\n    (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\n    (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.\n  (2) For the purposes of paragraph (1)(a), in working out the value of particular non‑originating materials, the following must be included:\n    (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;\n    (b) the cost of insurance related to that freight.\n  (3) For the purposes of paragraph (1)(b), in working out the value of particular non‑originating materials, the following are to be deducted:\n    (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;\n    (b) the cost of insurance related to that freight.","sortOrder":9},{"sectionNumber":"8","sectionType":"section","heading":"Value of accessories, spare parts or tools","content":"#### 8 Value of accessories, spare parts or tools\n\n  If paragraphs 153ZOE(6)(a), (b), (c), (d), (e) and (f) of the Act are satisfied in relation to goods:\n    (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\n    (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.","sortOrder":10},{"sectionNumber":"9","sectionType":"section","heading":"Value of packaging material and container","content":"#### 9 Value of packaging material and container\n\n  If paragraphs 153ZOF(2)(a) and (b) of the Act are satisfied in relation to goods:\n    (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\n    (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.","sortOrder":11},{"sectionNumber":"Part 7","sectionType":"part","heading":"Consignment","content":"## Part 7—Consignment","sortOrder":12},{"sectionNumber":"12","sectionType":"section","heading":"Consignment","content":"#### 12 Consignment\n\n  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.\n\n> 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.\n\n> 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.","sortOrder":13},{"sectionNumber":"Part 8","sectionType":"part","heading":"Record keeping obligations","content":"## Part 8—Record keeping obligations","sortOrder":14},{"sectionNumber":"13","sectionType":"section","heading":"Exportation of goods to China—record keeping by exporter who is not the producer of the goods","content":"#### 13 Exportation of goods to China—record keeping by exporter who is not the producer of the goods\n\n  (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:\n    (a) records of the purchase of the goods by the exporter;\n    (b) records of the purchase of the goods by the person to whom the goods are exported;\n    (c) evidence that payment has been made for the goods;\n    (d) evidence of the classification of the goods under the Harmonized System;\n    (e) if the goods include any accessories, spare parts or tools that were purchased by the exporter:\n    (i) records of the purchase of the accessories, spare parts or tools; and\n    (ii) evidence of the value of the accessories, spare parts or tools;\n    (f) if the goods include any accessories, spare parts or tools that were produced by the exporter:\n    (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\n    (ii) evidence of the value of the materials; and\n    (iii) records of the production of the accessories, spare parts or tools;\n    (g) if the goods are packaged for retail sale in packaging material or a container that was purchased by the exporter:\n    (i) records of the purchase of the packaging material or container; and\n    (ii) evidence of the value of the packaging material or container;\n    (h) if the goods are packaged for retail sale in packaging material or a container that was produced by the exporter:\n    (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\n    (ii) evidence of the value of the materials; and\n    (iii) records of the production of the packaging material or container;\n    (i) a copy of the Certificate of Origin, or Declaration of Origin, for the goods.\n  (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.\n  (3) The exporter:\n    (a) may keep the records at any place (whether or not in Australia); and\n    (b) must ensure that:\n    (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\n    (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\n    (iii) if the records are kept by mechanical or electronic means—the records are readily convertible into a hard copy in English.","sortOrder":15},{"sectionNumber":"14","sectionType":"section","heading":"Exportation of goods to China—record keeping by the producer of the goods","content":"#### 14 Exportation of goods to China—record keeping by the producer of the goods\n\n  (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:\n    (a) records of the purchase of the goods;\n    (b) if the producer is the exporter of the goods—evidence of the classification of the goods under the Harmonized System;\n    (c) evidence that payment has been made for the goods;\n    (d) evidence of the value of the goods;\n    (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;\n    (f) evidence of the value of those materials;\n    (g) records of the production of the goods;\n    (h) if the goods include any accessories, spare parts or tools that were purchased by the producer:\n    (i) records of the purchase of the accessories, spare parts or tools; and\n    (ii) evidence of the value of the accessories, spare parts or tools;\n    (i) if the goods include any accessories, spare parts or tools that were produced by the producer:\n    (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\n    (ii) evidence of the value of the materials; and\n    (iii) records of the production of the accessories, spare parts or tools;\n    (j) if the goods are packaged for retail sale in packaging material or a container that was purchased by the producer:\n    (i) records of the purchase of the packaging material or container; and\n    (ii) evidence of the value of the packaging material or container;\n    (k) if the goods are packaged for retail sale in packaging material or a container that was produced by the producer:\n    (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\n    (ii) evidence of the value of the materials; and\n    (iii) records of the production of the packaging material or container;\n    (l) a copy of the Certificate of Origin, or Declaration of Origin, for the goods.\n  (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.\n  (3) The producer:\n    (a) may keep the records at any place (whether or not in Australia); and\n    (b) must ensure that:\n    (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\n    (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\n    (iii) if the records are kept by mechanical or electronic means—the records are readily convertible into a hard copy in English.","sortOrder":16}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation appears consistent with its original purpose of implementing the rules of origin chapter of the China-Australia Free Trade Agreement. The scope covers tariff classification changes, regional value content calculations, valuation methodologies, consignment rules for Hong Kong transit, and record-keeping obligations—all standard components of a free trade agreement implementation regulation. There is no evidence of scope creep beyond the technical implementation of origin determination rules."},"complexity_factors":["Heavy reliance on defined terms from the parent Customs Act 1901 (11 terms defined by reference to section 153ZOB alone)","Mathematical formula for regional value content with cross-references to valuation rules in Part 4","Nested conditional logic in section 5 (recursive application of tariff change rules)","Multiple cross-references to specific paragraphs of the Customs Act (e.g., paragraphs 153ZOE(6)(a)-(f))","Detailed record-keeping obligations with 9-12 specific categories of documents required","Bifurcated record-keeping regime distinguishing between exporters who are producers versus those who are not","Technical valuation rules requiring inclusion/exclusion of freight and insurance costs depending on circumstances","Reference to external international agreements (WTO Valuation Agreement) for valuation methodology"],"plain_english_summary":"This regulation sets out how goods traded between China and Australia qualify for ChAFTA tariff preferences — defining origin criteria, regional value‑content calculations, valuation of non-origin inputs, transit via Hong Kong, and record‑keeping obligations. It affects manufacturers, importers, exporters, customs brokers and freight forwarders.\n\nThese technical rules let businesses claim negotiated tariff cuts while preventing third‑country transshipment and ensuring only genuine bilateral products get the benefits."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"This regulation narrowly implements technical rules required to apply the Customs Act's origin provisions for goods exported to China: tariff‑shift treatment, RVC calculation, valuation method, treatment of accessories/packaging, consignment through Hong Kong and record‑keeping obligations. It does not expand the legislative purpose beyond defining implementation details and verification mechanics. The recursive feature in section 5 and the detailed record obligations increase operational complexity for traders but do not change the fundamental scope of applying origin tests under the Act."},"complexity_factors":["Multiple cross‑references to the Customs Act (eg. subsections 153ZOE(3), 153ZOE(5), 153ZOB(3), 153ZOE(6), 153ZOF(2), 153ZOI(2), 126AOB(1))","Numerous defined terms delegated to section 153ZOB of the Act rather than defined locally (many upstream dependencies)","Recursive application in section 5 allowing \"one or more applications\" of the tariff‑shift rule (nested/iterative logic)","Technical valuation rule relying on external instrument (WTO Agreement on Customs Valuation) plus specific inclusions/deductions for freight and insurance (section 7)","Numeric formula for regional value content (section 6) tied to customs valuation rules under a different Part of the Act","Detailed, itemised record‑keeping lists for exporters and producers with format, translation and electronic conversion requirements (sections 13–14)","Treatment rules for accessories/spare parts/tools and for packaging that depend on meeting multiple statutory preconditions (sections 8–9)","Special consignment rule for transit through Hong Kong with interaction with other statutory consigning conditions (section 12)","Notes indicating use of other Act provisions for verification (sections 12 note referencing sections 240–240AC) — more cross‑reference depth"],"plain_english_summary":"**What this regulation does (mechanically)\n\n- Establishes specific rules that apply when deciding whether goods exported to China qualify as \"Chinese originating goods\" under the Customs Act 1901. It does this by defining how to treat tariff‑classification changes, how to calculate regional value content, how to value non‑originating materials, how to treat certain accessories and packaging, how consignments through Hong Kong are treated, and what records exporters and producers must keep. (See sections 5–9, 12–14.)\n\n**Who it affects\n\n- Exporters and producers of goods exported to China. They must calculate origin tests, keep particular records and supply Certificates or Declarations of Origin. (Sections 13–14.)\n- Customs officials and other decision‑makers who assess origin claims, verify records and apply the valuation and origin formulas. (Sections 6–7, notes to section 12.)\n\n**Key rules in plain language\n\n- Tariff‑shift rule for materials made in China: A non‑originating input that would otherwise fail a tariff‑classification change is treated as meeting that change if it was wholly produced in China (or in China and Australia) from other non‑originating inputs that themselves satisfy the tariff‑shift test — and that can be applied repeatedly. (Section 5.)\n\n- Regional Value Content (RVC) test: RVC must be calculated using a percentage formula that compares the customs value of the goods to the value of the non‑originating materials used. RVC is expressed as a percentage. The regulation points to the customs valuation rules under the Customs Act for the customs value component. (Section 6.)\n\n- Valuation of non‑originating materials: For non‑originating materials imported into China, their value is calculated in accordance with the WTO valuation Agreement (Agreement on Implementation of Article VII of GATT 1994). For non‑originating materials acquired inside China, their value is calculated on the same basis as if they had been imported. The value for imported materials must include freight and insurance to the Chinese port of entry; for materials acquired inside China those domestic transport, packing and insurance costs are deducted. (Section 7.)\n\n- Accessories, spare parts, tools, packaging: Where the statutory conditions are met, accessories/spare parts/tools and retail packaging/containers are treated as non‑originating materials and their value must be counted in the RVC calculation. (Sections 8–9.)\n\n- Consignments via Hong Kong: Goods moved through Hong Kong are treated as being under customs control while in Hong Kong; that preserves the possibility that such goods can qualify as Chinese originating goods unless other statutory consigning conditions apply. (Section 12.)\n\n- Record keeping: Exporters who are not producers, and producers (whether or not they export) must keep detailed records — purchases, classifications under the Harmonized System, evidence of payment and values, production records, and copies of Certificates/Declarations of Origin. Records must be retained for 5 years from the date the origin document is issued and must be kept in a form that can be translated into English and converted to hard copy if stored electronically. Records may be kept overseas. (Sections 13–14.)\n\n**Why it matters (official purpose and practical implications)\n\n- The instrument supplies the technical rules that implement origin tests for goods exported to China under the Customs Act and the relevant trade agreement(s). The stated objective is to make clear how origin is tested and how values are calculated so customs can verify claims. (See definitions and the use of the WTO valuation Agreement in section 7.)\n\n- Who pays: Exporters and producers bear the direct compliance costs — calculating RVC, applying the tariff‑shift rule, keeping and producing records for audits and translations, and including specified freight/insurance in valuation. (Sections 5–7, 13–14.)\n\n- Who decides: Customs officers use the regulations and the underlying Customs Act provisions to accept or reject origin claims, request production of records and apply valuation methods. Decisions rely on submitted Certificates/Declarations of Origin and the records the exporter/producer must keep. (Sections 6–7, 12, 13–14 and statutory notes.)\n\n- Behaviour changes and incentives: Businesses are incentivised to (a) document and retain detailed purchase and production records for 5 years; (b) consider sourcing or producing inputs in China (or in China and Australia) since the tariff‑shift rule allows a material produced in China from other non‑originating materials to count as meeting the tariff change; (c) manage transport/insurance costs carefully because the regulation explicitly includes or deducts those costs in valuing non‑originating materials. These rules may influence supply‑chain sourcing, in particular where meeting an origin threshold affects tariff treatment. (Sections 5–7.)\n\n**Costs, trade‑offs and implementation risks (mechanical, not political)\n\n- Compliance burden: The regulation imposes detailed record‑keeping and documentation duties (long lists of specific records, 5‑year retention, translation and hard‑copy conversion requirements). This is a recurring administrative cost for exporters and producers. (Sections 13–14.)\n\n- Measurement and verification challenges: RVC and non‑originating material values depend on customs valuation rules and the WTO valuation Agreement, and on correct Harmonized System classification. Those involve judgment calls (e.g., freight/insurance allocation, classification disputes) that can lead to audits, delays or disputes. (Sections 6–7; definition cross‑references.)\n\n- Cascade effect of the tariff‑shift rule: Section 5 allows the tariff‑shift test to be satisfied by ‘‘one or more applications’’ of the section. That creates a recursive chain where materials produced in China from other non‑originating materials can propagate origin treatment. This reduces the need to re‑source originating inputs, but it may complicate verification because customs must trace multiple production layers.\n\n- Limited discretion in valuation method: The regulation fixes the valuation method (WTO Agreement basis) and specific inclusions/deductions for freight/insurance, constraining alternative valuation approaches but improving consistency. (Section 7.)\n\n**Concrete reference points for compliance\n\n- Calculate RVC per the formula in section 6 and express it as a percentage.\n- Value non‑originating inputs per section 7, including required freight/insurance additions or domestic deductions.\n- Treat accessories, spare parts, tools and packaging as non‑originating where the listed statutory conditions are satisfied and include their value in RVC. (Sections 8–9.)\n- Keep the detailed records listed in sections 13–14 for 5 years; ensure English translations and hard‑copy convertibility where necessary.\n\n(References in this summary are to the numbered sections of the Customs (Chinese Rules of Origin) Regulation 2015 provided above.)"},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/customs-chinese-rules-of-origin-regulation-2015","history":"/api/acts/customs-chinese-rules-of-origin-regulation-2015/history","analysis":"/api/acts/customs-chinese-rules-of-origin-regulation-2015/analysis","conflicts":"/api/acts/customs-chinese-rules-of-origin-regulation-2015/conflicts","importantCases":"/api/acts/customs-chinese-rules-of-origin-regulation-2015/important-cases","documents":"/api/acts/customs-chinese-rules-of-origin-regulation-2015/documents"}}