(5) If contributing materials within the meaning of subsection (4) are, after their importation into a country in the qualifying area and before their incorporation into the particular materials from which preference claim goods are manufactured, subsequently exported to a country outside that area, then, on their reimportation into a country in the qualifying area, subsection (2) or (4), as the case requires, applies as if that subsequent reimportation were the only importation of those materials.
(6A) If:
(a) goods claimed to be the manufacture of Papua New Guinea or a particular Forum Island Country are manufactured, in whole or in part, from particular materials; and
(b) if the qualifying area for that country consisted only of that country and Australia—under subsection (4), the allowable expenditure of the factory on those particular materials, after excluding any costs required to be excluded under subsection (4), would be at least 50% of the total expenditure of the factory on those particular materials worked out in accordance with section 153C;
then, despite subsection (4), the allowable expenditure of the factory on those particular materials is taken to be that total expenditure.
Waste or scrap
(7) If:
(a) materials are imported into a country; and
(b) the subjecting of those materials to a process of manufacture gives rise to waste or scrap; and
(c) that waste or scrap is fit only for the recovery of raw materials;
any raw materials that are so recovered in that country are to be treated, for the purposes of this section, as if they were unmanufactured raw products of that country.
Transhipment
(8) If, in the course of their exportation from one country to another country, materials are transhipped, that transhipment is to be disregarded for the purpose of determining, under this section, the country from which the materials were exported.
153E Calculation of the cost of materials received at a factory
Purpose of section
(1) This section sets out, for the purposes of sections 153C and 153D, the rules for working out the cost of materials in the form they are received at a factory.
General rule
(2) Subject to this section, the cost of materials received at a factory is the amount paid or payable by the manufacturer in respect of the materials in the form they are so received.
Customs and excise duties and certain other taxes to be disregarded
(3) Any part of the cost of materials in the form they are received at a factory that represents:
(a) a customs or excise duty; or
(b) a tax in the nature of a sales tax, a goods and services tax, an anti‑dumping duty or a countervailing duty;
imposed on the materials by a country in the qualifying area is to be disregarded.
Comptroller‑General of Customs may require artificial elements of cost to be disregarded
(4) If the Comptroller‑General of Customs is satisfied that preference claim goods consist partly of materials added or attached solely for the purpose of artificially raising the allowable factory cost of the goods, the Comptroller‑General of Customs may, by written notice given to the importer of the preference claim goods, require the part of that cost that is, in the opinion of the Comptroller‑General of Customs, reasonably attributable to those materials, to be disregarded.
Comptroller‑General of Customs may require cost over normal market value to be disregarded
(5) If the Comptroller‑General of Customs is satisfied that the cost to the manufacturer of materials in the form they are received at a factory exceeds, by an amount determined by the Comptroller‑General of Customs, the normal market value of the materials, the Comptroller‑General of Customs may, by written notice given to the importer of preference claim goods in which those materials are incorporated, require the excess to be disregarded.
Comptroller‑General of Customs may determine cost of certain materials received at a factory
(6) If the Comptroller‑General of Customs is satisfied:
(a) that materials in the form they are received at a factory are so received:
(i) free of charge; or
(ii) at a cost that is less than the normal market value of the materials; and
(b) that the receipt of the materials free of charge or at a reduced cost has been arranged, directly or indirectly, by a person who will be the importer of preference claim goods in which those materials are incorporated;
the Comptroller‑General of Customs may, by written notice given to the importer, require that an amount determined by the Comptroller‑General of Customs to be the difference between the cost, if any, paid by the manufacturer and the normal market value be treated as the amount, or a part of the amount, paid by the manufacturer in respect of the materials.
Effect of determination
(7) If the Comptroller‑General of Customs gives a notice to the importer of preference claim goods under subsection (4), (5) or (6) in respect of materials incorporated in those goods, the cost of the materials to the manufacturer must be determined having regard to the terms of that notice.
153F Allowable expenditure of factory on labour
Calculation of allowable expenditure of factory on labour
(1) Allowable expenditure of a factory on labour in respect of preference claim goods means the sum of the part of each cost prescribed for the purposes of this subsection:
(a) that is incurred by the manufacturer of the goods; and
(b) that relates, directly or indirectly, and wholly or partly, to the manufacture of the goods; and
(c) that can reasonably be allocated to the manufacture of the goods.
Regulations may specify manner of working out cost
(2) Regulations prescribing a cost for the purposes of subsection (1) may also specify the manner of working out that cost.
153G Allowable expenditure of factory on overheads
Calculation of allowable expenditure of factory on overheads
(1) Allowable expenditure of a factory on overheads in respect of preference claim goods means the sum of the part of each cost prescribed for the purposes of this subsection:
(a) that is incurred by the manufacturer of the goods; and
(b) that relates, directly or indirectly, and wholly or partly, to the manufacture of the goods; and
(c) that can reasonably be allocated to the manufacture of the goods.
Regulations may specify manner of working out cost
(2) Regulations prescribing a cost for the purposes of subsection (1) may also specify the manner of working out that cost.
153H Unmanufactured goods
Goods claimed to be the produce of a country are the produce of that country if they are its unmanufactured raw products.
153L Manufactured goods originating in Papua New Guinea or a Forum Island Country
Rule for certain goods wholly manufactured in Papua New Guinea
(1) Goods claimed to be the manufacture of Papua New Guinea are the manufacture of that country if they are wholly manufactured in Papua New Guinea from one or more of the following:
(a) unmanufactured raw products;
(b) materials wholly manufactured in Australia or Papua New Guinea or Australia and Papua New Guinea;
(c) materials imported into Papua New Guinea that the Comptroller‑General of Customs has determined, by Gazette notice, to be manufactured raw materials of Papua New Guinea.
Rule for manufactured goods last processed in PNG or a Forum Island Country
(2) Goods claimed to be the manufacture of Papua New Guinea or of a Forum Island Country are the manufacture of that country if:
(a) the last process in their manufacture was performed in that country; and
(b) having regard to their qualifying area, their allowable factory cost is not less than the specified percentage of their total factory cost.
Specified percentage
(4) The specified percentage of the total factory cost of goods referred to in subsection (2) is:
(a) unless paragraph (b) applies—50%; or
(b) if the goods are of a kind for which the Comptroller‑General of Customs has determined, by Gazette notice, that a lesser percentage is appropriate—that percentage.
153LA Modification of section 153L in special circumstances
When 50% in subsection 153L(4) can be read as 48%
(1) If the Comptroller‑General of Customs is satisfied:
(a) that the allowable factory cost of preference claim goods in a shipment of such goods that are claimed to be the manufacture of Papua New Guinea or a Forum Island Country is at least 48% but not 50% of the total factory cost of those goods; and
(b) that the allowable factory cost of those goods would be at least 50% of the total factory cost of those goods if an unforeseen circumstance had not occurred; and
(c) that the unforeseen circumstance is unlikely to continue;
the Comptroller‑General of Customs may determine, in writing, that section 153L has effect:
(d) for the purpose of the shipment of goods that is affected by that unforeseen circumstance; and
(e) for the purposes of any subsequent shipment of similar goods that is so affected during a period specified in the determination;
as if the reference in subsection 153L(4) to 50% were a reference to 48%.
Effect of determination
(2) If the Comptroller‑General of Customs makes a determination, then, in relation to all preference claim goods imported into Australia that are covered by the determination, section 153L has effect in accordance with the determination.
Comptroller‑General of Customs may revoke determination
(3) If:
(a) the Comptroller‑General of Customs makes a determination; and
(b) the Comptroller‑General of Customs becomes satisfied that the unforeseen circumstance giving rise to the determination no longer continues;
the Comptroller‑General of Customs may, by written notice, revoke the determination despite the fact that the period referred to in the determination has not ended.
Definition of similar goods
(4) In this section:
similar goods, in relation to goods in a particular shipment, means goods:
(a) that are contained in another shipment that is imported by the same importer; and
(b) that undergo the same process or processes of manufacture as the goods in the first‑mentioned shipment.
153M Manufactured goods originating in a particular Developing Country
Goods claimed to be the manufacture of a particular Developing Country are the manufacture of that country if:
(a) the last process in their manufacture was performed in that country; and
(b) having regard to their qualifying area, their allowable factory cost is at least 50% of their total factory cost.
153N Manufactured goods originating in a Developing Country but not in any particular Developing Country
Goods claimed to be the manufacture of a Developing Country, but not of any particular Developing Country, are the manufacture of a Developing Country, but not a particular Developing Country, if:
(a) the last process in their manufacture was performed in Papua New Guinea or a Forum Island Country; and
(b) they are not the manufacture of Papua New Guinea or a Forum Island Country under section 153L; and
(c) having regard to their qualifying area, their allowable factory cost is at least 50% of their total factory cost.
153NA Manufactured goods originating in a Least Developed Country
Goods claimed to be the manufacture of a Least Developed Country are the manufacture of that country if:
(a) the last process in their manufacture was performed in that country; and
(b) having regard to their qualifying area, their allowable factory cost is at least 50% of their total factory cost.
153P Manufactured goods originating in Canada
General rule
(1) Despite section 153H and subsections (2) and (3), goods claimed to be the produce or manufacture of Canada are not the produce or manufacture of that country unless:
(a) they have been shipped to Australia from Canada; and
(b) either:
(i) they have not been transhipped; or
(ii) the Comptroller‑General of Customs is satisfied that, when they were shipped from Canada, their intended destination was Australia.
Rule for certain manufactured goods wholly manufactured in Canada
(2) Goods claimed to be the manufacture of Canada are the manufacture of that country if they are wholly manufactured in Canada from one or more of the following:
(a) unmanufactured raw products;
(b) materials wholly manufactured in Australia or Canada or Australia and Canada;
(c) materials imported into Canada that the Comptroller‑General of Customs has determined, by Gazette notice, to be manufactured raw materials of Canada.
Rule for other manufactured goods last processed in Canada
(3) Goods claimed to be the manufacture of Canada are the manufacture of that country if:
(a) the last process in their manufacture was performed in Canada; and
(b) having regard to their qualifying area, their allowable factory cost is not less than the specified percentage of their total factory cost.
Specified percentage
(4) The specified percentage of the total factory cost of goods referred to in subsection (3) is:
(a) if the goods are of a kind commercially manufactured in Australia—75%; or
(b) if the goods are of a kind not commercially manufactured in Australia—25%.
153Q Manufactured goods originating in a country that is not a preference country
Rule for certain goods wholly manufactured in a country that is not a preference country
(1) Goods claimed to be the manufacture of a country that is not a preference country are the manufacture of that country if they are wholly manufactured in that country from one or more of the following:
(a) unmanufactured raw products;
(b) materials wholly manufactured in Australia or the country or Australia and the country;
(c) materials imported into the country that the Comptroller‑General of Customs has determined, by Gazette notice, to be manufactured raw materials of the country.
Rule for other manufactured goods last processed in a country that is not a preference country
(2) Goods claimed to be the manufacture of a country that is not a preference country are the manufacture of that country if:
(a) the last process in their manufacture was performed in that country; and
(b) having regard to their qualifying area, their allowable factory cost is not less than the specified percentage of their total factory cost.
Specified percentage
(3) Subject to subsection (4), the specified percentage of the total factory cost of goods referred to in subsection (2) is:
(a) if the goods are of a kind commercially manufactured in Australia—75%; or
(b) if the goods are of a kind not commercially manufactured in Australia—25%.
Special rule for Christmas Island, Cocos (Keeling) Islands and Norfolk Island
(4) If the country that is not a preference country is Christmas Island, Cocos (Keeling) Islands or Norfolk Island, the specified percentage of the total factory cost of goods referred to in subsection (2) is:
(a) if the goods are of a kind commercially manufactured in Australia—50%; or
(b) if the goods are of a kind not commercially manufactured in Australia—25%.
153R Are goods commercially manufactured in Australia?
Comptroller‑General of Customs may determine that goods are, or are not, commercially manufactured in Australia
(1) For the purposes of sections 153P and 153Q, the Comptroller‑General of Customs may, by Gazette notice, determine that goods of a specified kind are, or are not, commercially manufactured in Australia.
Effect of determination
(2) If such a determination is made, this Division has effect accordingly.
153S Rule against double counting
In determining the allowable factory cost or the total factory cost of preference claim goods, a cost incurred, whether directly or indirectly, by the manufacturer of the goods must not be taken into account more than once.
Division 1BA—Singaporean originating goods
Subdivision A—Preliminary
153XC Simplified outline of this Division
• This Division defines Singaporean originating goods. Preferential rates of customs duty under the Customs Tariff Act 1995 apply to such goods that are imported into Australia.
• Subdivision B provides that goods are Singaporean originating goods if they are wholly obtained or produced entirely in Singapore or in Singapore and Australia.
• Subdivision C provides that goods are Singaporean originating goods if they are produced entirely in Singapore, or in Singapore and Australia, from originating materials only.
• Subdivision D sets out when goods are Singaporean originating goods because they are produced entirely in Singapore, or in Singapore and Australia, from non‑originating materials only or from non‑originating materials and originating materials.
• Subdivision E sets out when goods are Singaporean originating goods because they are accessories, spare parts, tools or instructional or other information materials imported with other goods.
• Subdivision F deals with how the consignment of goods affects whether the goods are Singaporean originating goods.
• Subdivision G allows regulations to make provision for and in relation to determining whether goods are Singaporean originating goods.
153XD Interpretation
Definitions
(1) In this Division:
Agreement means the Singapore‑Australia Free Trade Agreement done at Singapore on 17 February 2003, as amended from time to time.
Note: The Agreement is in Australian Treaty Series 2003 No. 16 ([2003] ATS 16) and could in 2017 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
aquaculture has the meaning given by Article 1 of Chapter 3 of the Agreement.
Australian originating goods means goods that are Australian originating goods under a law of Singapore that implements the Agreement.
certification of origin means a certificate that is in force and that complies with the requirements of Article 18 of Chapter 3 of the Agreement.