{"id":"F2014L01474","name":"Customs (Korean Rules of Origin) Regulation 2014","slug":"customs-korean-rules-of-origin-regulation-2014","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"161 of 2014","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":128694,"registerId":"commonwealth-F2014L01474-current","compilationNumber":null,"startDate":"2026-04-03","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 (Korean 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 153ZMB 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 153ZMB of the Act.\n\n> Certificate of Origin has the meaning given by section 153ZMB of the Act.\n\n> Harmonized System has the meaning given by section 153ZMB of the Act.\n\n> non‑originating materials has the meaning given by section 153ZMB of the Act.\n\n> originating materials has the meaning given by section 153ZMB of the Act.\n\n> produce has the meaning given by section 153ZMB of the Act.\n\n> territory of Australia has the meaning given by section 153ZMB of the Act.\n\n> territory of Korea has the meaning given by section 153ZMB 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 153ZME(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 Korea, or entirely in the territory of Korea 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 requirement","content":"## Part 3—Regional value content requirement","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Build‑down method","content":"#### 6 Build‑down method\n\n  (1) For the purposes of subsection 153ZME(7) of the Act, the regional value content of goods under the build‑down method 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":"7","sectionType":"section","heading":"Build‑up method","content":"#### 7 Build‑up method\n\n  (1) For the purposes of subsection 153ZME(7) of the Act, the regional value content of goods under the build‑up method is worked out using the formula:\n  ![](image.003.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 originating materials means the value, worked out under Part 4, of the originating materials used in the production of the goods.\n\n  (2) Regional value content must be expressed as a percentage.","sortOrder":8},{"sectionNumber":"Part 4","sectionType":"part","heading":"Determination of value","content":"## Part 4—Determination of value","sortOrder":9},{"sectionNumber":"8","sectionType":"section","heading":"Value of goods that are originating materials or non‑originating materials","content":"#### 8 Value of goods that are originating materials or non‑originating materials\n\n  (1) For the purposes of subsection 153ZMB(3) 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  (2) The value of the materials is as follows:\n    (a) for materials imported into the territory of Korea 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    (b) for materials acquired in the territory of Korea—the earliest ascertainable cost of acquisition of the materials;\n    (c) for materials that are produced by the producer of the goods—the sum of:\n    (i) all the costs incurred in the production of the materials, including general expenses; and\n    (ii) 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.\n  (3) In working out the value of particular originating materials under subsection (2), the following may be included, to the extent that they have not been taken into account under that subsection:\n    (a) the costs of freight, insurance, packing and all other costs incurred to transport the materials within the territory of Korea, or between the territory of Australia and the territory of Korea, to the location of the producer of the goods;\n    (b) duties, taxes and customs brokerage fees on the materials that:\n    (i) have been paid in either or both of the territory of Korea and the territory of Australia; and\n    (ii) have not been waived or refunded; and\n    (iii) are not refundable or otherwise recoverable;\n    including any credit against duties or taxes that have been paid or that are payable.\n  (4) In working out the value of particular non‑originating materials under subsection (2), the following may be deducted if they were included under that subsection:\n    (a) the costs of originating materials used in the production of the non‑originating materials in the territory of Korea;\n    (b) the costs of freight, insurance, packing and all other costs incurred to transport the non‑originating materials within the territory of Korea, or between the territory of Australia and the territory of Korea, to the location of the producer of the goods;\n    (c) duties, taxes and customs brokerage fees on the non‑originating materials that:\n    (i) have been paid in either or both of the territory of Korea and the territory of Australia; and\n    (ii) have not been waived or refunded; and\n    (iii) are not refundable or otherwise recoverable;\n    including any credit against duties or taxes that have been paid or that are payable;\n    (d) the costs of processing incurred in either or both of the territory of Korea and the territory of Australia in the production of the non‑originating materials.","sortOrder":10},{"sectionNumber":"9","sectionType":"section","heading":"Value of accessories, spare parts or tools","content":"#### 9 Value of accessories, spare parts or tools\n\n  If paragraphs 153ZME(8)(a), (b), (c) and (d) of the Act are satisfied in relation to goods:\n    (a) the value of the accessories, spare parts or tools must be taken into account for the purposes of working out the regional value content of the goods under Part 3 of this instrument; and\n    (b) if the accessories, spare parts or tools are non‑originating materials—for the purposes of sections 6 and 8 of this instrument, those accessories, spare parts or tools are taken to be non‑originating materials used in the production of the goods; and\n    (c) if the accessories, spare parts or tools are originating materials—for the purposes of sections 7 and 8 of this instrument, those accessories, spare parts or tools are taken to be originating materials used in the production of the goods.","sortOrder":11},{"sectionNumber":"10","sectionType":"section","heading":"Value of packaging material and container","content":"#### 10 Value of packaging material and container\n\n  If paragraphs 153ZMF(1)(a) and (b) of the Act are satisfied in relation to goods and the goods must have a regional value content of not less than a particular percentage worked out in a particular way:\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 Part 3 of this instrument; and\n    (b) if that packaging material or container is a non‑originating material—for the purposes of sections 6 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; and\n    (c) if that packaging material or container is an originating material—for the purposes of sections 7 and 8 of this instrument, that packaging material or container is taken to be an originating material used in the production of the goods.","sortOrder":12},{"sectionNumber":"Part 5","sectionType":"part","heading":"Record keeping obligations","content":"## Part 5—Record keeping obligations","sortOrder":13},{"sectionNumber":"12","sectionType":"section","heading":"Exportation of goods to Korea—record keeping by exporter who is not the producer of the goods","content":"#### 12 Exportation of goods to Korea—record keeping by exporter who is not the producer of the goods\n\n  (1) For subsection 126AMB(1) of the Act, an exporter of goods mentioned in that subsection, who is not also the producer of 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 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 signed.\n  (3) The exporter:\n    (a) may keep the record at any place (whether or not in Australia); and\n    (b) must ensure that:\n    (i) the record is 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 record is not in English—the record is kept in a place and form that would enable an English translation to be readily made; and\n    (iii) if the record is kept by mechanical or electronic means—the record is readily convertible into a hard copy in English.","sortOrder":14},{"sectionNumber":"13","sectionType":"section","heading":"Exportation of goods to Korea—record keeping by the producer of the goods","content":"#### 13 Exportation of goods to Korea—record keeping by the producer of the goods\n\n  (1) For subsection 126AMB(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 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 signed.\n  (3) The producer:\n    (a) may keep the record at any place (whether or not in Australia); and\n    (b) must ensure that:\n    (i) the record is 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 record is not in English—the record is kept in a place and form that would enable an English translation to be readily made; and\n    (iii) if the record is kept by mechanical or electronic means—the record is readily convertible into a hard copy in English.","sortOrder":15}],"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":6,"scope_assessment":{"changed":false,"description":"No change from an earlier instrument can be identified from the supplied text alone. The regulation implements rules under the Customs Act (authorised at s3), defining origin tests, valuation and record‑keeping requirements for goods exported to Korea (see s5–s13). Without an earlier version or stated prior intent, a change-of-scope determination cannot be made from this instrument alone."},"complexity_factors":["Cross‑references to multiple provisions of the Customs Act (notably sections 153ZMB and 153ZME) and reliance on external international rules (Agreement on Implementation of Article VII of GATT) (s3, s4, s8(2)(a)).","Technical regional value content (RVC) formulas under build‑down and build‑up methods that require arithmetic using customs value and values of (non‑)originating materials (s6, s7).","Recursive tariff‑classification rule allowing a non‑originating material to be treated as satisfying a change in tariff classification if made entirely in Korea from other non‑originating materials that themselves satisfy the change, including by repeated application (s5).","Detailed valuation methodology for materials (imported, acquired, or self‑produced), including permitted additions and deductions (freight, duties, profit equivalents, processing costs) which require cost accounting (s8(2)–(4)).","Specific inclusion rules for accessories, spare parts, tools and packaging and when they are treated as (non‑)originating, affecting RVC calculations (s9, s10).","Extensive documentary and record‑keeping obligations for exporters and producers (itemised purchase, production, classification and value records), mandatory Certificate of Origin retention and 5‑year storage (s12, s13, s12(2), s13(2)).","Format and accessibility requirements for records (may be kept abroad, must enable English translation, and be convertible from electronic to hard copy) which create practical compliance demands (s12(3), s13(3)).","Dependence on Harmonized System classification and customs valuation (Division 2 of Part VIII of the Act) introduces external technical determinations that affect outcome and enforcement (s12(1)(d), s13(1)(b), s6, s7)."],"plain_english_summary":"This regulation sets the technical rules for when goods exported to Korea qualify as Australian originating under the Customs Act. It prescribes tariff‑classification and regional value‑content tests (build‑up and build‑down formulas), valuation methods for originating and non‑originating materials, and rules for packaging, accessories and spare parts.\n\nIt also creates specific record‑keeping duties for producers and exporters (including Certificates of Origin and five‑year retention) and ties calculations to customs valuation and international valuation rules."},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The regulation appears tightly scoped to its original purpose of implementing the rules of origin requirements for the Korea-Australia Free Trade Agreement. It does not appear to have expanded beyond its initial remit of setting technical calculation methods and record-keeping requirements for origin determination."},"complexity_factors":["Multiple cross-references to the Customs Act 1901 (specifically sections 153ZMB, 153ZME, 153ZMF, and 126AMB) without reproducing those provisions","Two alternative calculation methods for regional value content (build-down vs build-up) with different formulas and variable definitions","Complex valuation rules in section 8 with multiple sub-categories (imported materials, acquired materials, self-produced materials) and conditional inclusions/deductions","Recursive logic in section 5 allowing multiple applications of the same rule to determine tariff classification","Conditional treatment of accessories, spare parts, tools, and packaging materials that must be included in calculations under specific circumstances","Extensive record-keeping obligations with 12 separate categories for producers and 9 for non-producer exporters, each with specific evidentiary requirements","Defined terms rely entirely on meanings given in the parent Act rather than being self-contained"],"plain_english_summary":"This regulation sets how goods qualify as originating under the Australia–Korea Free Trade Agreement, so exporters can claim preferential tariffs. It prescribes methods to calculate local content, value materials and components, and requires five years of records to prove origin.\n\nIt affects Australian and Korean exporters, manufacturers using imported inputs, customs brokers and freight forwarders. It matters because it lets businesses access reduced duties while preventing tariff circumvention through transshipment."}},"importantCases":[],"_links":{"self":"/api/acts/customs-korean-rules-of-origin-regulation-2014","history":"/api/acts/customs-korean-rules-of-origin-regulation-2014/history","analysis":"/api/acts/customs-korean-rules-of-origin-regulation-2014/analysis","conflicts":"/api/acts/customs-korean-rules-of-origin-regulation-2014/conflicts","importantCases":"/api/acts/customs-korean-rules-of-origin-regulation-2014/important-cases","documents":"/api/acts/customs-korean-rules-of-origin-regulation-2014/documents"}}