{"id":"F2019L01649","name":"Customs (Indonesian Rules of Origin) Regulations 2019","slug":"customs-indonesian-rules-of-origin-regulations-2019","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440344,"registerId":"F2019L01649-fast-fetch-1775956009661","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Customs (Indonesian Rules of Origin) Regulations 2019","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nCustoms (Indonesian Rules of Origin) Regulations 2019\n\nI, General the Honourable David Hurley AC DSC (Retd), Governor‑General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulations.\n\nDated 12 December 2019\n\nDavid Hurley\n\nGovernor‑General\n\nBy His Excellency’s Command\n\nJason Wood\n\nAssistant Minister for Customs, Community Safety and Multicultural Affairs  Parliamentary Secretary to the Minister for Home Affairs\n\n \n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1 Name\n\n2 Commencement\n\n3 Authority\n\n4 Definitions\n\nPart 2—Tariff change requirement\n\n5 Change in tariff classification requirement for non‑originating materials\n\nPart 3—Qualifying value content requirement\n\n6 Direct/build‑up method\n\n7 Indirect/build‑down method\n\nPart 4—Determination of value\n\n8 Value of goods that are originating materials or non‑originating materials\n\n9 Value of accessories, spare parts, tools or instructional or other information materials\n\n10 Value of packaging material and container\n\nPart 5—Record keeping obligations\n\n11 Exportation of goods to Indonesia\n\n \n\nPart 1—Preliminary\n\n \n\n1  Name\n\n  This instrument is the Customs (Indonesian Rules of Origin) Regulations 2019.\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument At the same time as Schedule 2 to the Customs Amendment (Growing Australian Export Opportunities Across the Asia‑Pacific) Act 2019 commences.\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3  Authority\n\n  This instrument is made under the Customs Act 1901.\n\n4  Definitions\n\n  In this instrument:\n\nAct means the Customs Act 1901.\n\nAgreement has the meaning given by section 153ZLK of the Act.\n\nAgreement 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\nNote: The Marrakesh Agreement Establishing the World Trade Organization is in Australian Treaty Series 1995 No. 8 ([1995] ATS 8) and could in 2019 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\nAustralian originating goods has the meaning given by section 153ZLK of the Act.\n\nCertificate of Origin has the meaning given by section 153ZLK of the Act.\n\nDeclaration of Origin has the meaning given by section 153ZLK of the Act.\n\nHarmonized System has the meaning given by section 153ZLK of the Act.\n\nnon‑originating materials has the meaning given by section 153ZLK of the Act.\n\noriginating materials has the meaning given by section 153ZLK of the Act.\n\nproduction has the meaning given by section 153ZLK of the Act.\n\nterritory of Australia has the meaning given by section 153ZLK of the Act.\n\nterritory of Indonesia has the meaning given by section 153ZLK of the Act.\n\nPart 2—Tariff change requirement\n\n \n\n5  Change in tariff classification requirement for non‑originating materials\n\n  For the purposes of subsection 153ZLN(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\n (a) it was produced entirely in the territory of Indonesia, or entirely in the territory of Indonesia and the territory of Australia, from other non‑originating materials; and\n\n (b) each of those other non‑originating materials satisfies the change in tariff classification, including by one or more applications of this section.\n\nPart 3—Qualifying value content requirement\n\n \n\n6  Direct/build‑up method\n\n (1) For the purposes of subsection 153ZLN(6) of the Act, the qualifying value content of goods under the direct/build‑up method is worked out using the formula:\n\n![](image.002.png)where:\n\ncustoms value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.\n\nIA‑CEPA material cost means the value, worked out under Part 4, of the originating materials that are acquired by the producer, or produced by the producer, and are used by the producer in the production of the goods.\n\nlabour costs means wages, remuneration and other employee benefits associated with the production of the goods.\n\nother costs means the costs incurred in placing the goods in a ship or other means of transport for export including transport costs, storage and warehousing costs, port handling fees, brokerage fees and service charges.\n\noverhead costs has the meaning given by Article 4.5 of Chapter 4 of the Agreement.\n\nprofit has the meaning given by Article 4.5 of Chapter 4 of the Agreement.\n\n (2) Qualifying value content must be expressed as a percentage.\n\n7  Indirect/build‑down method\n\n (1) For the purposes of subsection 153ZLN(6) of the Act, the qualifying value content of goods under the indirect/build‑down method is worked out using the formula:\n\n![](image.003.png)\n\nwhere:\n\ncustoms value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.\n\nvalue of non‑originating materials means the value, worked out under Part 4, of the non‑originating materials that are acquired by the producer and are used by the producer in the production of the goods, other than non‑originating materials produced by the producer.\n\n (2) Qualifying value content must be expressed as a percentage.\n\nPart 4—Determination of value\n\n \n\n8  Value of goods that are originating materials or non‑originating materials\n\n (1) For the purposes of subsection 153ZLK(2) of the Act, this section explains how to work out the value of originating materials or non‑originating materials used in the production of goods.\n\n (2) The value of the materials is as follows:\n\n (a) for non‑originating materials imported into the territory of Indonesia by the producer of the goods—the value of the materials worked out in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994;\n\n (b) for originating materials acquired, or produced, by the producer of the goods—the value of the materials worked out in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 on the assumption that those materials had been imported into the territory of Indonesia by the producer of the goods;\n\n (c) for non‑originating materials acquired by the producer of the goods—the earliest ascertained price paid for the materials by that producer.\n\n (3) In working out the value of particular non‑originating materials under subsection (2), the following are to be deducted if they were included under that subsection:\n\n (a) the costs of freight, insurance, packing and all other costs incurred to transport the non‑originating materials to the location of the producer of the goods;\n\n (b) duties, taxes and customs brokerage fees on the non‑originating materials that:\n\n (i) have been paid in either or both of the territory of Indonesia and the territory of Australia; and\n\n (ii) have not been waived or refunded; and\n\n (iii) are not refundable or otherwise recoverable;\n\n  including any credit against duties or taxes that have been paid or that are payable;\n\n (c) the costs of waste and spoilage resulting from the use of the non‑originating materials in the production of the goods, reduced by the value of reusable scrap or by‑products;\n\n (d) the costs of processing incurred in either or both of the territory of Indonesia and the territory of Australia in the production of the non‑originating materials;\n\n (e) the costs of originating materials used in the production of the non‑originating materials in either or both of the territory of Indonesia and the territory of Australia.\n\n9  Value of accessories, spare parts, tools or instructional or other information materials\n\n  If paragraphs 153ZLN(7)(a), (b), (c), (d) and (e) of the Act are satisfied in relation to goods:\n\n (a) 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 qualifying value content of the goods under Part 3 of this instrument; and\n\n (b) if the accessories, spare parts, tools or instructional or other information materials are originating materials—for the purposes of sections 6 and 8 of this instrument, those accessories, spare parts, tools or instructional or other information materials are taken to be originating materials used in the production of the goods; and\n\n (c) if the accessories, spare parts, tools or instructional or other information materials are non‑originating materials—for the purposes of sections 7 and 8 of this instrument, those accessories, spare parts, tools or instructional or other information materials are taken to be non‑originating materials used in the production of the goods.\n\n10  Value of packaging material and container\n\n  If paragraphs 153ZLO(1)(a) and (b) of the Act are satisfied in relation to goods and the goods must have a qualifying value content of not less than a particular percentage worked out in a particular way:\n\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 qualifying value content of the goods under Part 3 of this instrument; and\n\n (b) if that packaging material or container is an originating material—for the purposes of sections 6 and 8 of this instrument, that packaging material or container is taken to be an originating material used in the production of the goods; and\n\n (c) if that packaging material or container is a non‑originating material—for the purposes of sections 7 and 8 of this instrument, that packaging material or container is taken to be a non‑originating material used in the production of the goods.\n\nPart 5—Record keeping obligations\n\n \n\n11  Exportation of goods to Indonesia\n\n (1) For the purposes of subsection 126ALF(1) of the Act, an exporter of goods mentioned in that subsection must keep the following records:\n\n (a) records of the purchase of the goods by the exporter;\n\n (b) records of the purchase of the goods by the person to whom the goods are exported;\n\n (c) evidence that payment has been made for the goods;\n\n (d) evidence of the classification of the goods under the Harmonized System;\n\n (e) if the goods include any accessories, spare parts, tools or instructional or other information materials that were purchased by the exporter:\n\n (i) records of the purchase of the accessories, spare parts, tools or instructional or other information materials; and\n\n (ii) evidence of the value of the accessories, spare parts, tools or instructional or other information materials;\n\n (f) if the goods include any accessories, spare parts, tools or instructional or other information materials that were produced by the exporter:\n\n (i) 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\n\n (ii) evidence of the value of the materials so purchased; and\n\n (iii) records of the production of the accessories, spare parts, tools or instructional or other information materials;\n\n (g) if the goods are packaged for retail sale in packaging material or a container that was purchased by the exporter:\n\n (i) records of the purchase of the packaging material or container; and\n\n (ii) evidence of the value of the packaging material or container;\n\n (h) if the goods are packaged for retail sale in packaging material or a container that was produced by the exporter:\n\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\n (ii) evidence of the value of the materials; and\n\n (iii) records of the production of the packaging material or container;\n\n (i) a copy of the Certificate of Origin, or Declaration of Origin, for the goods.\n\n (2) The records must be kept for at least 5 years starting on the day of exportation of the goods.\n\n (3) The exporter:\n\n (a) may keep the records at any place (whether or not in Australia); and\n\n (b) must ensure that:\n\n (i) the records are kept in a form that would enable a determination of whether the goods are Australian originating goods; and\n\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\n (iii) if the records are kept by mechanical or electronic means—the records are readily convertible into a hard copy in English.\n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose of implementing the rules of origin requirements for the Indonesia-Australia Comprehensive Economic Partnership Agreement. It does not expand beyond technical implementation of origin determination and record-keeping for Australia-Indonesia trade."},"complexity_factors":["Multiple calculation methodologies (direct/build-up vs indirect/build-down) with distinct formulas requiring cross-referencing between Parts 3 and 4","14 defined terms in section 4, many referencing external definitions in the Customs Act 1901 and the IA-CEPA Agreement itself","Nested conditional logic in section 5 (recursive application of tariff classification changes)","Extensive cross-referencing to external instruments: Customs Act 1901 (multiple sections), IA-CEPA Agreement Chapter 4 Article 4.5, and WTO GATT 1994 valuation agreement","Detailed deduction requirements in section 8(3) with 5 specific categories of costs to be excluded from material valuations","Bifurcated treatment of purchased vs produced items in sections 9 and 10 (accessories, packaging) requiring different evidentiary standards","Comprehensive record-keeping obligations in section 11 with 9 distinct categories of records and specific retention/formatting requirements"],"plain_english_summary":"This instrument sets the technical rules for deciding when goods exported from Australia to Indonesia qualify as IA-CEPA originating, so they can receive preferential (reduced or zero) tariffs. It explains how origin is calculated, what costs and materials count, and the record-keeping required.\n\nIt affects Australian exporters, manufacturers using imported inputs, and intermediaries (customs brokers, freight forwarders). It matters because it's the practical how‑to for accessing tariff benefits under IA-CEPA."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The instrument implements origin, valuation and record‑keeping rules for goods exported to Indonesia under the Customs Act. It does not itself expand or narrow the Act’s stated subject‑matter; no amendment or contrary scope statement appears in the instrument to indicate a change from its original implementing purpose."},"complexity_factors":["Two alternative quantitative origin tests with formulae that require customs value and itemised costs (ss 6–7).","Cross‑references to the Customs Act definitions and specific sections (multiple references to ss 153ZLK, 153ZLN, 153ZLO etc.), increasing legal interdependence.","Incorporation of external valuation rules from the GATT Article VII Agreement for imported or deemed‑imported inputs (s 8(2)(a)–(b)).","Detailed allowable deductions when valuing non‑originating materials (s 8(3)) that require granular cost accounting (freight, duties, waste, processing, originating inputs).","Specific rules treating accessories, spare parts and packaging as originating or non‑originating for the value tests (ss 9–10), expanding the base of accounted items.","Prescriptive record‑keeping obligations with format, language and retention requirements and a 5‑year retention period (s 11), creating compliance and administrative burden.","Potential need for recurring factual determinations (where materials were produced, price histories, earliest ascertained price) that invite documentary substantiation and possible customs review (ss 5, 8, 11)."],"plain_english_summary":"This instrument sets the rules for when goods exported to Indonesia can be treated as Australian-origin for preferential tariff treatment. It prescribes two value‑content tests (direct/build‑up and indirect/build‑down), a tariff‑classification exception for some Indonesia‑produced non‑originating inputs, methods to value materials, packaging and accessories, and a five‑year record‑keeping obligation for exporters. Exporters and producers must calculate and document origin and values to support preference claims (see ss 5–8, 10–11)."}},"importantCases":[],"_links":{"self":"/api/acts/customs-indonesian-rules-of-origin-regulations-2019","history":"/api/acts/customs-indonesian-rules-of-origin-regulations-2019/history","analysis":"/api/acts/customs-indonesian-rules-of-origin-regulations-2019/analysis","conflicts":"/api/acts/customs-indonesian-rules-of-origin-regulations-2019/conflicts","importantCases":"/api/acts/customs-indonesian-rules-of-origin-regulations-2019/important-cases","documents":"/api/acts/customs-indonesian-rules-of-origin-regulations-2019/documents"}}