(f) mere dilution with water or another substance that does not materially alter the characteristics of the goods;
(g) disassembly of products into parts;
(h) slaughtering (within the meaning of Article 4.7 of Chapter 4 of the Agreement) of animals;
(i) simple painting or polishing operations;
(j) simple peeling, stoning or shelling;
(k) simple mixing (within the meaning of Article 4.7 of Chapter 4 of the Agreement) of goods, whether or not of different kinds;
(l) any combination of things referred to in paragraphs (a) to (k).
(2) For the purposes of this section, simple has the same meaning as it has in Article 4.7 of Chapter 4 of the Agreement.
Subdivision D—Packaging materials and containers
153ZMP Packaging materials and containers
(1) If:
(a) goods are packaged for retail sale in packaging material or a container; and
(b) the packaging material or container is classified with the goods in accordance with Rule 5 of the Interpretation Rules;
then the packaging material or container is to be disregarded for the purposes of this Division.
Qualifying value content
(2) However, if a requirement that applies in relation to the goods is that the goods must have a qualifying value content of not less than a particular percentage worked out in a particular way, the regulations must provide for the following:
(a) the value of the packaging material or container to be taken into account for the purposes of working out the qualifying value content of the goods;
(b) the packaging material or container to be taken into account as an originating material or non‑originating material, as the case may be.
Note: The value of the packaging material or container is to be worked out in accordance with the regulations: see subsection 153ZML(2).
Subdivision E—Consignment
153ZMQ Consignment
(1) Goods are not Indian originating goods under this Division if the goods are transported through a non‑party and either or both of the following apply:
(a) the goods undergo further production or any other operation in the non‑party (other than unloading, reloading, storing, repacking, relabelling for the purpose of satisfying the requirements of Australia, splitting up or consolidating loads or any other operation necessary to preserve the goods in good condition or to transport the goods to the territory of Australia);
(b) while the goods are in the non‑party, the goods do not remain under customs control at all times.
(2) This section applies despite any other provision of this Division.
Subdivision F—Regulations
153ZMR Regulations
The regulations may make provision for and in relation to determining whether goods are Indian originating goods under this Division.
Division 1K—Japanese originating goods
Subdivision A—Preliminary
153ZNA Simplified outline of this Division
• This Division defines Japanese originating goods. Preferential rates of customs duty under the Customs Tariff Act 1995 apply to Japanese originating goods that are imported into Australia.
• Subdivision B provides that goods are Japanese originating goods if they are wholly obtained in Japan.
• Subdivision C provides that goods are Japanese originating goods if they are produced entirely in Japan from originating materials only.
• Subdivision D sets out when goods are Japanese originating goods because they are produced entirely in Japan, or in Japan and Australia, from non‑originating materials only or from non‑originating materials and originating materials.
• Subdivision E deals with how the consignment of goods affects whether the goods are Japanese originating goods.
• Subdivision F allows regulations to make provision for and in relation to determining whether goods are Japanese originating goods.
153ZNB Interpretation
Definitions
(1) In this Division:
Agreement means the Japan‑Australia Economic Partnership Agreement, done at Canberra on 8 July 2014, as amended from time to time.
Note 1: The Agreement is in Australian Treaty Series 2015 No. 2 ([2015] ATS 2) and could in 2018 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
Note 2: There is also a separate agreement (known as the Implementing Agreement) that sets out the details and procedures for the implementation of the Japan‑Australia Economic Partnership Agreement. The Implementing Agreement is in that same Australian Treaty Series.
Area of Japan means Area within the meaning, so far as it relates to Japan, of Article 1.2 of the Agreement.
Australian originating goods means goods that are Australian originating goods under a law of Japan that implements the Agreement.
Certificate of Origin means a certificate that is in force and that complies with the requirements of Article 3.15 of the Agreement.
Convention means the International Convention on the Harmonized Commodity Description and Coding System done at Brussels on 14 June 1983, as in force from time to time.
Note: The Convention is in Australian Treaty Series 1988 No. 30 ([1988] ATS 30) and could in 2014 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
customs value of goods has the meaning given by section 159.
enterprise has the meaning given by Article 1.2 of the Agreement.
factory ships of Japan means factory ships of the Party within the meaning, so far as it relates to Japan, of Article 3.1 of the Agreement.
Harmonized Commodity Description and Coding System means the Harmonized Commodity Description and Coding System that is established by or under the Convention.
Harmonized System means:
(a) the Harmonized Commodity Description and Coding System as in force immediately before 1 January 2017; or
(b) if the table in Annex 2 to the Agreement is amended or replaced to refer to Chapters, headings and subheadings of a later version of the Harmonized Commodity Description and Coding System—the later version of the Harmonized Commodity Description and Coding System.
indirect materials means:
(a) goods or energy used in the production, testing or inspection of goods, but not physically incorporated in the goods; or
(b) goods or energy used in the maintenance or operation of equipment or buildings associated with the production of goods;
including:
(c) fuel (within its ordinary meaning); and
(d) tools, dies and moulds; and
(e) spare parts and materials; and
(f) lubricants, greases, compounding materials and other similar goods; and
(g) gloves, glasses, footwear, clothing, safety equipment and supplies; and
(h) catalysts and solvents.
Interpretation Rules means the General Rules (as in force from time to time) for the Interpretation of the Harmonized System provided for by the Convention.
Japanese originating goods means goods that, under this Division, are Japanese originating goods.
non‑originating materials means goods that are not originating materials.
originating materials means:
(a) Japanese originating goods that are used in the production of other goods; or
(b) Australian originating goods that are used in the production of other goods; or
(c) indirect materials.
origin certification document means a document that is in force and that complies with the requirements of Article 3.16 of the Agreement.
person of Japan means:
(a) a natural person of a Party within the meaning, so far as it relates to Japan, of Article 1.2 of the Agreement; or
(b) an enterprise of Japan.
produce means manufacture, assemble, process, raise, grow, breed, mine, extract, harvest, fish, trap, gather, collect, hunt or capture.
sea‑fishing has the same meaning as it has in the Agreement.
territorial sea has the same meaning as in the Seas and Submerged Lands Act 1973.
vessels of Japan means vessels of the Party within the meaning, so far as it relates to Japan, of Article 3.1 of the Agreement.
Value of goods
(3) The value of goods for the purposes of this Division is to be worked out in accordance with the regulations. The regulations may prescribe different valuation rules for different kinds of goods.
Tariff classifications
(4) In prescribing tariff classifications for the purposes of this Division, the regulations may refer to the Harmonized System.
(5) Subsection 4(3A) does not apply for the purposes of this Division.
Incorporation of other instruments
(6) Despite subsection 14(2) of the Legislation Act 2003, regulations made for the purposes of this Division may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time.
Subdivision B—Goods wholly obtained in Japan
153ZNC Goods wholly obtained in Japan
(1) Goods are Japanese originating goods if:
(a) they are wholly obtained in Japan; and
(b) either:
(i) the importer of the goods has, at the time the goods are imported, a Certificate of Origin or an origin certification document, or a copy of one, for the goods; or
(ii) Australia has waived the requirement for a Certificate of Origin or an origin certification document for the goods.
(2) Goods are wholly obtained in Japan if, and only if, the goods are:
(a) live animals born and raised in the Area of Japan, other than the sea outside the territorial sea of Japan; or
(b) animals obtained from hunting, trapping, fishing, gathering or capturing in the Area of Japan, other than the sea outside the territorial sea of Japan; or
(c) goods obtained from live animals in the Area of Japan; or
(d) plants, fungi or algae harvested, picked or gathered in the Area of Japan; or
(e) minerals, or other naturally occurring substances, extracted or taken from the Area of Japan, other than the seabed, or subsoil beneath the seabed, outside the territorial sea of Japan; or
(f) goods of sea‑fishing, or other goods, taken by vessels of Japan from the sea outside the territorial sea of Japan and the territorial sea of Australia; or
(g) goods produced on board factory ships of Japan from goods referred to in paragraph (f); or
(h) goods taken by Japan, or a person of Japan, from the seabed, or subsoil beneath the seabed, outside the territorial sea of Japan, but only if Japan has rights to exploit that part of the seabed or subsoil in accordance with international law; or
(i) goods that are collected in Japan, that can no longer perform their original purpose, that are not capable of being restored or repaired and that are fit only for disposal or for the recovery of raw materials; or
(j) waste and scrap that has been derived from production or consumption in Japan and that is fit only for disposal or for the recovery of raw materials; or
(k) raw materials recovered in Japan from goods that can no longer perform their original purpose and that are not capable of being restored or repaired; or
(l) goods produced in the Area of Japan exclusively from goods referred to in paragraphs (a) to (k).
Subdivision C—Goods produced in Japan from originating materials
153ZND Goods produced in Japan from originating materials
Goods are Japanese originating goods if:
(a) they are produced entirely in Japan from originating materials only; and
(b) either:
(i) the importer of the goods has, at the time the goods are imported, a Certificate of Origin or an origin certification document, or a copy of one, for the goods; or
(ii) Australia has waived the requirement for a Certificate of Origin or an origin certification document for the goods.
Subdivision D—Goods produced in Japan, or in Japan and Australia, from non‑originating materials
153ZNE Goods produced in Japan, or in Japan and Australia, from non‑originating materials
(1) Goods are Japanese originating goods if:
(a) they are classified to a Chapter, heading or subheading of the Harmonized System that is covered by the table in Annex 2 to the Agreement; and
(b) they are produced entirely in Japan, or entirely in Japan and Australia, from non‑originating materials only or from non‑originating materials and originating materials; and
(c) the goods satisfy the requirements applicable to the goods in that Annex; and
(d) either:
(i) the importer of the goods has, at the time the goods are imported, a Certificate of Origin or an origin certification document, or a copy of one, for the goods; or
(ii) Australia has waived the requirement for a Certificate of Origin or an origin certification document for the goods.
(2) Without limiting paragraph (1)(c), a requirement may be specified in the table in Annex 2 to the Agreement by using an abbreviation or other code that is given a meaning for the purposes of that Annex.
Change in tariff classification
(3) If a requirement that applies in relation to the goods is that all non‑originating materials used in the production of the goods must have undergone a particular change in tariff classification, the regulations may prescribe when a non‑originating material used in the production of the goods is taken to satisfy the change in tariff classification.
(4) If:
(a) a requirement that applies in relation to the goods is that all non‑originating materials used in the production of the goods must have undergone a particular change in tariff classification; and
(b) one or more of the non‑originating materials used in the production of the goods do not satisfy the change in tariff classification;
then the requirement is taken to be satisfied if the total value of the non‑originating materials covered by paragraph (b) does not exceed 10% of the customs value of the goods.
(5) If:
(a) a requirement that applies in relation to the goods is that all non‑originating materials used in the production of the goods must have undergone a particular change in tariff classification; and
(b) the goods are classified to any of Chapters 50 to 63 of the Harmonized System; and
(c) one or more of the non‑originating materials used in the production of the goods do not satisfy the change in tariff classification;
then the requirement is taken to be satisfied if the total weight of the non‑originating materials covered by paragraph (c) does not exceed 10% of the total weight of the goods.
Qualifying value content
(6) If a requirement that applies in relation to the goods is that the goods must have a qualifying value content of not less than a particular percentage worked out in a particular way:
(a) the qualifying value content of the goods is to be worked out in accordance with the Agreement; or
(b) if the regulations prescribe how to work out the qualifying value content of the goods—the qualifying value content of the goods is to be worked out in accordance with the regulations.
(7) If:
(a) a requirement that applies in relation to the goods is that the goods must have a qualifying value content of not less than a particular percentage worked out in a particular way; and
(b) the goods are imported into Australia with accessories, spare parts or tools; and
(c) the accessories, spare parts or tools are not invoiced separately from the goods; and
(d) the quantities and value of the accessories, spare parts or tools are customary for the goods; and
(e) the accessories, spare parts or tools are non‑originating materials;
the regulations must provide for the value of the accessories, spare parts or tools covered by paragraph (e) to be taken into account for the purposes of working out the qualifying value content of the goods.
Note: The value of the accessories, spare parts or tools is to be worked out in accordance with the regulations: see subsection 153ZNB(3).
153ZNF Packaging materials and containers
(1) If:
(a) goods are packaged for retail sale in packaging material or a container; and
(b) the packaging material or container is classified with the goods in accordance with Rule 5 of the Interpretation Rules;
then the packaging material or container is to be disregarded for the purposes of this Subdivision.
Qualifying value content
(2) However, if:
(a) a requirement that applies in relation to the goods is that the goods must have a qualifying value content of not less than a particular percentage worked out in a particular way; and
(b) the packaging material or container is a non‑originating material;
the regulations must provide for the value of the packaging material or container to be taken into account for the purposes of working out the qualifying value content of the goods.
Note: The value of the packaging material or container is to be worked out in accordance with the regulations: see subsection 153ZNB(3).
153ZNG Non‑qualifying operations
Goods are not Japanese originating goods under this Subdivision merely because of the following operations or processes:
(a) operations to preserve goods in good condition for the purpose of transport or storage of the goods (such as drying, freezing and keeping goods in brine);
(b) changing of packaging or the breaking up or assembly of packages;
(c) disassembly of goods;
(d) placing in bottles, cases or boxes or other simple packaging operations;
(e) collecting of parts or components for unassembled goods (where the unassembled goods would be classified to a heading of the Harmonized System in accordance with Rule 2(a) of the Interpretation Rules);
(f) making‑up of sets of goods;
(g) the reclassification of goods without any physical change in the goods;
(h) any combination of things referred to in paragraphs (a) to (g).
Subdivision E—Consignment
153ZNH Consignment
(1) Goods are not Japanese originating goods under this Division if the goods are transported through a country other than Japan or Australia and either or both of the following apply: