{"id":"F2004B00397","name":"Customs (Thailand-Australia Free Trade Agreement) Regulations 2004","slug":"customs-thailand-australia-free-trade-agreement-regulations-2004","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"338 of 2004","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":31405,"registerId":"commonwealth-F2004B00397-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Introductory","content":"## Part 1—Introductory","sortOrder":0},{"sectionNumber":"1.1","sectionType":"section","heading":"Name of Regulations","content":"#### 1.1 Name of Regulations\n\n  These Regulations are the Customs (Thailand–Australia Free Trade Agreement) Regulations 2004.","sortOrder":1},{"sectionNumber":"1.3","sectionType":"section","heading":"Authority","content":"#### 1.3 Authority\n\n  These Regulations are made under the Customs Act 1901.","sortOrder":2},{"sectionNumber":"1.4","sectionType":"section","heading":"Definitions","content":"#### 1.4 Definitions\n\n  In these Regulations:\n\n> Act means the Customs Act 1901.\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 2021 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\n> developing country means a country or place listed in Schedule 1 to the Customs Tariff Act 1995, as that Act was in force on 1 January 2005.\n\n> Harmonized System has the meaning given by section 153ZA of the Act.\n\n> non‑originating materials has the meaning given by section 153ZA of the Act.\n\n> originating materials has the meaning given by section 153ZA of the Act.\n\n> produce has the meaning given by section 153ZA of the Act.","sortOrder":3},{"sectionNumber":"Part 2","sectionType":"part","heading":"Tariff change requirement","content":"## Part 2—Tariff change requirement","sortOrder":4},{"sectionNumber":"2.1","sectionType":"section","heading":"Change in tariff classification requirement for non‑originating materials","content":"#### 2.1 Change in tariff classification requirement for non‑originating materials\n\n  For the purposes of subsection 153ZC(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 Thailand, or entirely in Thailand 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 regulation.","sortOrder":5},{"sectionNumber":"Part 3","sectionType":"part","heading":"Regional value content requirement","content":"## Part 3—Regional value content requirement","sortOrder":6},{"sectionNumber":"3.1","sectionType":"section","heading":"Regional value content requirement","content":"#### 3.1 Regional value content requirement\n\n  (1) For the purposes of subsection 153ZC(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 sum of the value, worked out under Part 4, of the following:\n\n    (a) non‑originating materials:\n    (i) imported into Thailand by the producer of the goods; and\n    (ii) used in the production of the goods;\n    (b) non‑originating materials:\n    (i) imported into Thailand and acquired, in the form in which they were imported, by the producer of the goods; and\n    (ii) used in the production of the goods;\n    (c) non‑originating materials imported into Thailand by a producer in Thailand of other non‑originating materials, where the other non‑originating materials:\n    (i) are produced using the imported non‑originating materials; and\n    (ii) are supplied directly to the producer of the goods; and\n    (iii) are used in the production of the goods;\n    (d) non‑originating materials imported into Thailand and acquired, in the form in which they were imported, by a producer in Thailand of other non‑originating materials, where the other non‑originating materials:\n    (i) are produced using the imported non‑originating materials; and\n    (ii) are supplied directly to the producer of the goods; and\n    (iii) are used in the production of the goods.\n  (2) Regional value content must be expressed as a percentage.\n  (3) For the purposes of working out the regional value content of goods under subregulation (1), if:\n    (a) the goods are classified to any of Chapters 50 to 64 of the Harmonized System; and\n    (b) non‑originating materials produced in one or more developing countries are used in the production of the goods;\n  the value of those non‑originating materials may be subtracted from the total value of non‑originating materials used in the production of the goods (up to an amount that is 25% of the customs value of the goods worked out under Division 2 of Part VIII of the Act).\n  (4) Subregulation (3) ceases to have effect at the end of 31 December 2024.","sortOrder":7},{"sectionNumber":"Part 4","sectionType":"part","heading":"Determination of value","content":"## Part 4—Determination of value","sortOrder":8},{"sectionNumber":"4.1","sectionType":"section","heading":"Value of goods that are non‑originating materials","content":"#### 4.1 Value of goods that are non‑originating materials\n\n  (1) For the purposes of subsection 153ZA(2) of the Act, the value of non‑originating materials is 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  (2) In working out the value of particular non‑originating materials under subregulation (1), the following must be included, to the extent that they have not been taken into account under that subregulation:\n    (a) the cost of transporting the non‑originating materials to Thailand from their country of export;\n    (b) the cost of insurance and other services related to that transport.","sortOrder":9},{"sectionNumber":"4.2","sectionType":"section","heading":"Value of accessories, spare parts or tools","content":"#### 4.2 Value of accessories, spare parts or tools\n\n  If paragraphs 153ZC(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 153ZC(6)(f) of the Act must be taken into account for the purposes of working out the regional value content of the goods under regulation 3.1; and\n    (b) for the purposes of regulations 3.1 and 4.1, those accessories, spare parts or tools are taken to be non‑originating materials used in the production of the goods.","sortOrder":10},{"sectionNumber":"4.3","sectionType":"section","heading":"Value of packaging material and container","content":"#### 4.3 Value of packaging material and container\n\n  If paragraphs 153ZG(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 regulation 3.1; and\n    (b) for the purposes of regulations 3.1 and 4.1, that packaging material or container is taken to be a non‑originating material used in the production of the goods.","sortOrder":11}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"These Regulations modify how the Customs Act's origin and valuation provisions operate for goods under the Thailand–Australia FTA. They (a) create a deeming rule that can treat certain non‑originating materials produced in Thailand as satisfying tariff‑classification tests (reg 2.1); (b) prescribe the RVC formula and permit a limited subtraction for non‑originating inputs from listed developing countries for Chapters 50–64 until 31 Dec 2024 (reg 3.1(1)–(4)); (c) require valuation of non‑originating materials under the GATT Article VII method with transport and insurance to Thailand included (reg 4.1); and (d) treat accessories, spare parts, tools and packaging as non‑originating materials for RVC when Act conditions apply (regs 4.2–4.3). These are specific departures from default, Act‑level rules and thus change the operational scope for preferential origin claims."},"complexity_factors":["Formulaic regional value content (RVC) calculation requiring customs value and an aggregated value of non‑originating materials (reg 3.1(1)–(2)) increases numerical and documentary complexity.","Recursive tariff‑classification deeming: a non‑originating material can be treated as satisfying a change in tariff classification if it was produced entirely in Thailand (or Thailand and Australia) from other non‑originating materials that themselves satisfy the change, including by repeated application of the rule (reg 2.1).","Temporary special treatment for Chapters 50–64 allowing subtraction of developing‑country inputs up to 25% of customs value creates an expiry and process change (reg 3.1(3)–(4)).","Valuation ties to the GATT Article VII (Agreement on Implementation of Article VII) plus mandatory inclusion of transport and insurance to Thailand adds cross‑instrument valuation rules and extra cost items to calculate (reg 4.1(1)–(2)).","Accessories, spare parts, tools and packaging can be treated as non‑originating and included in RVC when particular Act conditions are met, expanding what must be traced and valued (regs 4.2–4.3, referencing 153ZC(6) and 153ZG(2) of the Act).","Heavy cross‑referencing to the Customs Act (subsections 153ZA, 153ZC, 153ZG), the Harmonized System and Division 2 customs value rules increases legal interdependence and interpretive load (reg 1.4 and multiple regs).","Compliance burden: businesses must trace multi‑tier supply chains, secure supplier documentation, allocate values for inputs produced in Thailand vs imported, and adjust procedures when the temporary allowance ceases (regs 2.1, 3.1, 4.1).","Administrative interpretation risk where factual conditions like 'produced entirely in Thailand', 'supplied directly', or classification outcomes are determinative and may require agency rulings (regs 2.1, 3.1(c))."],"plain_english_summary":"These Regulations set the technical rules for when goods qualify as originating under the Thailand–Australia Free Trade Agreement. They tell producers, exporters, importers and customs officers how to treat non‑originating inputs, how to calculate regional value content, and how to value materials, packaging and accessories for preferential tariff claims.\n\nThat matters because the rules determine which shipments get TAFTA tariff treatment and what cost‑tracing and documentation businesses must keep — including treatment of inputs produced in Thailand, inclusion of transport and insurance, and a temporary allowance for some developing‑country inputs."},"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"},"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The regulations remain tightly focused on their original purpose: implementing the rules of origin provisions of the Thailand-Australia Free Trade Agreement. The scope has not expanded beyond determining eligibility for preferential tariff treatment for Thai goods. The inclusion of the textile concession (regulation 3.1(3)) and its sunset clause appears to have been part of the original negotiated agreement rather than a later expansion."},"complexity_factors":["Cross-references to multiple external instruments: Customs Act 1901 (at least 6 specific sections), Customs Tariff Act 1995, WTO Agreement on Implementation of Article VII of GATT 1994, and the Harmonized System","Recursive definition in regulation 2.1: materials can satisfy the tariff change test by 'one or more applications of this regulation' — creating a potentially looping logical structure","Nested conditional formula in regulation 3.1 with four distinct categories of non-originating materials (a)-(d), each with multiple sub-conditions","Temporal limitation: regulation 3.1(4) contains a sunset clause (expires 31 December 2024) affecting the textile/clothing concession","Incorporation by reference of undefined WTO valuation methodology rather than setting out rules directly","Dual-purpose provisions (regulations 4.2 and 4.3) that both define status (deeming items as non-originating materials) and prescribe calculation method"],"plain_english_summary":"These regulations set the rules for determining whether goods imported from Thailand qualify for reduced or zero tariffs under the Thailand-Australia Free Trade Agreement (TAFTA).\n\n**What this means in practice:**\nWhen Australian businesses import goods from Thailand, they can pay less customs duty (tariffs) if the goods are considered \"originating\" — meaning they were made in Thailand (or Thailand and Australia) rather than just shipped through from somewhere else.\n\n**The regulations cover three main tests:**\n\n1. **The \"tariff change\" test (Part 2):** If materials from outside Thailand are used to make a product, those materials must change their classification code (under an international system called the Harmonized System) during production. There's a special rule allowing materials to qualify if they were themselves made in Thailand from other imported materials that *did* change classification.\n\n2. **The \"regional value content\" test (Part 3):** Goods must contain a minimum percentage of value from Thailand or Australia. The formula calculates: (Customs value minus value of non-Thai/Australian materials) ÷ Customs value × 100. There's a special concession for textiles and clothing (Chapters 50-64): up to 25% of the value can come from developing countries (not just Thailand/Australia) until 31 December 2024.\n\n3. **How to calculate value (Part 4):** Sets out how to value imported materials (using WTO valuation rules plus transport/insurance costs) and clarifies that packaging, accessories, and spare parts count as non-originating materials for the calculation.\n\n**Who it affects:** Importers of Thai goods, customs brokers, and manufacturers in Thailand exporting to Australia. It matters because getting the \"originating\" status wrong can mean paying full import duties instead of preferential rates."}},"importantCases":[],"_links":{"self":"/api/acts/customs-thailand-australia-free-trade-agreement-regulations-2004","history":"/api/acts/customs-thailand-australia-free-trade-agreement-regulations-2004/history","analysis":"/api/acts/customs-thailand-australia-free-trade-agreement-regulations-2004/analysis","conflicts":"/api/acts/customs-thailand-australia-free-trade-agreement-regulations-2004/conflicts","importantCases":"/api/acts/customs-thailand-australia-free-trade-agreement-regulations-2004/important-cases","documents":"/api/acts/customs-thailand-australia-free-trade-agreement-regulations-2004/documents"}}