{"id":"F2016L02024","name":"Specified Percentage of Total Factory Costs Determination No. 1 of 2016","slug":"specified-percentage-of-total-factory-costs-determination-no-1-of-2016","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":95679,"registerId":"commonwealth-F2016L02024-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Specified Percentage of Total Factory Costs Determination No. 1 of 2016","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\nmeta-generator: Aspose.Words for .NET 20.2\ntitle: I, John Michael Drury, Acting Chief Executive Officer, Australian Customs Service, hereby determine, pursuant to subsection 15\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\nCUSTOMS ACT 1901\n\nSUBSECTION 153L(4)\n\nSPECIFIED PERCENTAGE OF TOTAL FACTORY COSTS\n\nDETERMINATION NO. 1 OF 2016\n\nI, ROMAN QUAEDVLIEG, Comptroller-General of Customs, pursuant to subsection 153L(4) of the Customs Act 1901, determine that the specified percentage of the total factory cost of wiring harnesses claimed to be the manufacture of Samoa is 40% where the wiring harnesses:\n\n(a)   are classified to tariff subheading 8544.30.00 of Schedule 3 to the Customs Tariff Act 1995; and\n\n(b)   are of a kind used in, and are for use in, passenger motor vehicles, as defined in Chapter 87 of the Customs Tariff Act 1995 for the purposes of tariff heading 8703.\n\n \n\nThis determination is effective from 1 January 2017 until 31 December 2017.\n\n \n\n \n\nDated: 21/12/2016\n\n \n\n \n\nROMAN QUAEDVLIEG\n\nComptroller-General of Customs\n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This is a standard administrative determination made under existing legislative authority. It does not expand the scope of the Customs Act; it merely exercises a specific power granted by subsection 153L(4) to set a percentage for a particular product from a particular country for a limited time period."},"complexity_factors":["Single operative provision with two straightforward conditions (tariff classification and end use)","No defined terms section — relies on external references to Customs Tariff Act 1995","No nested exceptions or conditional logic","Extremely short document (under 200 words of substantive content)","Clear temporal limitation (fixed 12-month effective period)"],"plain_english_summary":"This is a technical customs determination that sets a specific rule for calculating import duties on wiring harnesses (electrical wiring systems) from Samoa.\n\n**What it does:**\n- Sets the **\"specified percentage\" at 40%** for wiring harnesses manufactured in Samoa\n- This percentage is used to calculate whether goods qualify for preferential tariff treatment under Australia's trade rules\n\n**Who it affects:**\n- **Importers** bringing wiring harnesses into Australia from Samoa\n- **Manufacturers** in Samoa producing wiring harnesses for export to Australia\n- Specifically covers wiring harnesses used in **passenger cars** (classified under tariff code 8544.30.00)\n\n**Why it matters:**\nUnder the **Customs Act**, goods can get reduced import duties if a certain percentage of their factory cost comes from manufacturing in a partner country. This determination fixes that percentage at 40% for Samoan wiring harnesses — meaning at least 40% of the total factory cost must be attributable to Samoan manufacturing processes for the goods to qualify for preferential treatment.\n\nThis was a **time-limited rule** that applied only during calendar year 2017."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The instrument itself establishes the specified percentage (40%) for the defined goods and period. The text does not indicate any change from a prior scope or a modification of an earlier instrument; based solely on this instrument, the scope set here is the operative scope for 1 January 2017 to 31 December 2017."},"complexity_factors":["Narrow technical scope: applies only to wiring harnesses under tariff subheading 8544.30.00 and for use in passenger motor vehicles (Chapter 87 / heading 8703).","Single numeric threshold: a single specified percentage (40%) reduces conceptual complexity of the rule itself.","Dependence on external definitions and accounting: interpretation and application require reference to the Customs Tariff Act 1995 and to how 'total factory cost' is calculated under customs practice, which adds procedural complexity.","Administrative discretion and temporality: instrument is set under subsection 153L(4) and is time‑limited (one year), requiring stakeholders to monitor future determinations.","Verification and compliance burden: businesses must assemble cost evidence and may face customs verification; the Determination does not itself specify evidentiary detail."],"plain_english_summary":"What this instrument does\n\n- The Comptroller‑General of Customs uses power under subsection 153L(4) of the Customs Act 1901 to set a numeric threshold for origin‑claiming. [subsection 153L(4)]\n- For the year 2017 (1 Jan 2017 to 31 Dec 2017) the specified percentage of the total factory cost for certain wiring harnesses claimed to be the manufacture of Samoa is fixed at 40%. (Determination No. 1 of 2016, dated 21/12/2016)\n\nWhich goods are covered\n\n- The rule applies only to wiring harnesses classified to tariff subheading 8544.30.00 of Schedule 3 to the Customs Tariff Act 1995. [tariff subheading 8544.30.00]\n- It applies only where those wiring harnesses are of a kind used in, and for use in, passenger motor vehicles as defined in Chapter 87 of the Customs Tariff Act 1995 for the purposes of tariff heading 8703. [Chapter 87; tariff heading 8703]\n\nWho is affected and who decides\n\n- Importers, exporters, or suppliers who wish to claim that such wiring harnesses are the manufacture (origin) of Samoa will be directly affected. They will need to measure the \"total factory cost\" of the wiring harnesses and compare it against the 40% specified percentage to support an origin claim. [Determination text; subsection 153L(4)]\n- The Comptroller‑General of Customs makes the determination and sets the percentage under the statutory power. The instrument is the exercise of that administrative discretion. [Determination text]\n\nWhy this matters (mechanics and incentives)\n\n- Origin determinations influence whether products qualify for particular tariff treatment or customs rules tied to being a \"manufacture of Samoa.\" By fixing a 40% specified percentage, the instrument defines a cost‑based threshold that claimants must meet to assert Samoan manufacture for these wiring harnesses. (Determination No. 1 of 2016)\n- Who pays: if a product fails to meet the 40% threshold, the party seeking preferential or origin‑based treatment may lose that entitlement and could face standard tariff treatment or other compliance consequences. The instrument itself does not state the tariff consequence, only the percentage used to assess the origin claim. [Determination text; subsection 153L(4)]\n\nImplementation, compliance and administrative features\n\n- Compliance task: affected parties must calculate \"total factory cost\" for the wiring harnesses and establish that the applicable share meets or exceeds 40%. The determination does not define the detailed method of calculating total factory cost — that is governed by the broader legal framework tied to the Customs and Tariff Acts. [Determination text; statutory references]\n- Administrative discretion: the Comptroller‑General sets the percentage by instrument under subsection 153L(4). The determination is time‑limited (one calendar year), so the percentage can be changed annually by further determinations. (Effective 1/1/2017–31/12/2017) [Determination text]\n\nTrade‑off and compliance burden considerations (mechanics, not policy)\n\n- Concentration of effect: the rule targets a narrow product line (one tariff subheading and use case), so the compliance burden is concentrated on businesses dealing in those wiring harnesses. [tariff subheading 8544.30.00; Chapter 87; tariff heading 8703]\n- Calculation and verification costs: affected businesses must document cost calculations to claim Samoan origin; customs may verify those calculations. The instrument fixes the numeric test but leaves the cost‑accounting and evidentiary work to the parties and to administrative processes. [Determination text; subsection 153L(4)]\n- Temporal scope and planning: the one‑year effective period creates an implementation horizon for businesses and raises the possibility that the percentage could change for subsequent years, affecting forward purchasing and sourcing decisions. [Determination text]\n\nSource references\n\n- This Determination: \"Specified Percentage of Total Factory Costs Determination No. 1 of 2016\", dated 21/12/2016. Authority: subsection 153L(4) of the Customs Act 1901. Effective period: 1 January 2017 to 31 December 2017. Product scope: tariff subheading 8544.30.00; use limitation linked to Chapter 87 and tariff heading 8703."}},"importantCases":[],"_links":{"self":"/api/acts/specified-percentage-of-total-factory-costs-determination-no-1-of-2016","history":"/api/acts/specified-percentage-of-total-factory-costs-determination-no-1-of-2016/history","analysis":"/api/acts/specified-percentage-of-total-factory-costs-determination-no-1-of-2016/analysis","conflicts":"/api/acts/specified-percentage-of-total-factory-costs-determination-no-1-of-2016/conflicts","importantCases":"/api/acts/specified-percentage-of-total-factory-costs-determination-no-1-of-2016/important-cases","documents":"/api/acts/specified-percentage-of-total-factory-costs-determination-no-1-of-2016/documents"}}