{"id":"F2014L01713","name":"Customs (Japanese Rules of Origin) Regulation 2014","slug":"customs-japanese-rules-of-origin-regulation-2014","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"198 of 2014","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":92387,"registerId":"commonwealth-F2014L01713-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 (Japanese Rules of Origin) Regulation 2014.","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 153ZNB 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\\] ATS 8 and could in 2014 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 153ZNB of the Act.\n\n> Certificate of Origin has the meaning given by section 153ZNB of the Act.\n\n> Harmonized System has the meaning given by section 153ZNB of the Act.\n\n> non‑originating materials has the meaning given by section 153ZNB of the Act.\n\n> originating materials has the meaning given by section 153ZNB of the Act.\n\n> origin certification document has the meaning given by section 153ZNB of the Act.\n\n> produce has the meaning given by section 153ZNB 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 153ZNE(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 Japan, or entirely in Japan and 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":"Qualifying value content","content":"## Part 3—Qualifying value content","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Qualifying value content","content":"#### 6 Qualifying value content\n\n  (1) For the purposes of subsection 153ZNE(6) of the Act, the qualifying 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) Qualifying 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 153ZNB(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 Japan—the value of the non‑originating 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 Japan—the first ascertainable price paid for the non‑originating materials in Japan.\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 costs of freight, packing and all other costs incurred in transporting the non‑originating materials to the importation port in Japan;\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 may be deducted:\n    (a) the costs incurred in Japan of freight, packing and all other costs incurred in transporting the non‑originating materials from the warehouse of the supplier of the materials to the place where the producer is located;\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 153ZNE(7)(a), (b), (c), (d) and (e) of the Act are satisfied in relation to goods:\n    (a) the value of the accessories, spare parts or tools covered by paragraph 153ZNE(7)(e) of the Act must be taken into account for the purposes of working out the qualifying 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 153ZNF(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 qualifying 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 5","sectionType":"part","heading":"Record keeping obligations","content":"## Part 5—Record keeping obligations","sortOrder":12},{"sectionNumber":"10","sectionType":"section","heading":"Exportation of goods to Japan—record keeping by exporter who is not the producer of the goods","content":"#### 10 Exportation of goods to Japan—record keeping by exporter who is not the producer of the goods\n\n  (1) For subsection 126ANB(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 spare parts, accessories or tools that were purchased by the exporter:\n    (i) records of the purchase of the spare parts, accessories or tools; and\n    (ii) evidence of the value of the spare parts, accessories or tools;\n    (f) if the goods include any spare parts, accessories 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 spare parts, accessories or tools; and\n    (ii) evidence of the value of the materials; and\n    (iii) records of the production of the spare parts, accessories 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 the 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 origin certification document for the goods.\n  (2) The records must be kept for at least 5 years starting on the date the Certificate of Origin for the goods is issued or the origin certification document for the goods is completed.\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":13},{"sectionNumber":"11","sectionType":"section","heading":"Exportation of goods to Japan—record keeping by the producer of the goods","content":"#### 11 Exportation of goods to Japan—record keeping by the producer of the goods\n\n  (1) For subsection 126ANB(1) of the Act, a producer of goods mentioned in that subsection, whether or not the producer is also 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 spare parts, accessories or tools that were purchased by the producer:\n    (i) records of the purchase of the spare parts, accessories or tools; and\n    (ii) evidence of the value of the spare parts, accessories or tools;\n    (i) if the goods include any spare parts, accessories 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 spare parts, accessories or tools; and\n    (ii) evidence of the value of the materials; and\n    (iii) records of the production of the spare parts, accessories 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 origin certification document for the goods.\n  (2) The records must be kept for at least 5 years starting on the date the Certificate of Origin for the goods is issued or the origin certification document for the goods is completed.\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":14}],"analysis":{"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":5,"scope_assessment":{"changed":false,"description":"The instrument does not expand or narrow who may claim origin under the Act; it implements and specifies how particular subsections of the Customs Act are to be applied (see sections 3 and 4) by prescribing calculation methods, valuation rules and record‑keeping procedures for origin claims related to Japan. It therefore clarifies procedures and evidentiary requirements rather than changing substantive scope."},"complexity_factors":["Technical formula for qualifying value content requiring the customs value and the value of non‑originating materials to be calculated and expressed as a percentage (section 6).","Recursive allowance that treats non‑originating materials produced entirely in Japan (or Japan and Australia) as satisfying tariff‑change requirements, potentially via multiple applications (section 5).","Different valuation methods for non‑originating materials depending on whether they were imported into Japan or acquired in Japan, including add‑backs and permitted deductions for freight/insurance (section 7).","Specific treatment of accessories, spare parts, tools, packaging and containers as non‑originating materials for value content calculations when legislative conditions are met (sections 8–9).","Extensive record‑keeping obligations for exporters and producers, with documentary detail and a minimum five‑year retention period and requirements about language and convertibility to hard copy (sections 10–11).","Multiple cross‑references to the Customs Act 1901 and defined terms (Authority and Definitions: sections 3–4), requiring users to consult both instruments to interpret obligations.","Interaction with international valuation rules (Agreement on Implementation of Article VII of GATT 1994) for imported inputs (section 7(1)(a)), adding an external legal layer to compliance."],"plain_english_summary":"This regulation prescribes how to decide if goods exported to Japan qualify as Australian-originating for tariff preference. It sets a tariff-change rule for certain Japan‑produced inputs, a percentage formula for qualifying value content, rules for valuing non‑originating materials and packaging, and five‑year record‑keeping duties for exporters and producers. It affects producers and exporters who want preferential tariffs: they must calculate origin using the specified methods and keep supporting records so customs authorities can verify claims."},"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The regulation appears tightly scoped to its original purpose: operationalising the rules of origin requirements under the Australia-Japan Economic Partnership Agreement. It covers tariff classification changes, value content calculations, valuation methodologies, and record-keeping — all core elements necessary for implementing a free trade agreement's origin provisions. There is no evidence of scope creep into unrelated areas."},"complexity_factors":["Heavy reliance on defined terms from the parent Customs Act 1901 (section 153ZNB referenced 8 times), requiring cross-referencing to understand key concepts","Mathematical formula in section 6 for calculating qualifying value content with defined variables","Nested conditional logic in section 5 (recursive application of tariff change rules)","Detailed record-keeping obligations spanning 11 categories for producers and 9 for exporters with multiple sub-paragraphs","Dual valuation methodologies in section 7 depending on whether materials were imported into Japan or acquired domestically","Specific inclusion/exclusion rules for accessories, spare parts, tools, and packaging materials that must be factored into origin calculations","5-year retention period with specific trigger dates and format requirements for electronic records"],"plain_english_summary":"This regulation sets the detailed rules for proving when goods exported from Australia to Japan qualify as originating under the Australia–Japan FTA, covering how origin is determined, how foreign content is valued, and what records must be kept.  \n\nIt affects Australian exporters, manufacturers using imported inputs, and trade intermediaries — and matters because it’s the technical path to reduced or zero tariffs under the agreement."}},"importantCases":[],"_links":{"self":"/api/acts/customs-japanese-rules-of-origin-regulation-2014","history":"/api/acts/customs-japanese-rules-of-origin-regulation-2014/history","analysis":"/api/acts/customs-japanese-rules-of-origin-regulation-2014/analysis","conflicts":"/api/acts/customs-japanese-rules-of-origin-regulation-2014/conflicts","importantCases":"/api/acts/customs-japanese-rules-of-origin-regulation-2014/important-cases","documents":"/api/acts/customs-japanese-rules-of-origin-regulation-2014/documents"}}