(a) the goods undergo subsequent production or any other operation in that country (other than repacking, relabelling, splitting up of the goods, unloading, reloading, storing or any operation that is necessary to preserve the goods in good condition or to transport the goods to Australia);
(b) the goods do not remain under customs control at all times while the goods are in that country.
(2) This section applies despite any other provision of this Division.
Subdivision F—Regulations
153ZNI Regulations
The regulations may make provision for and in relation to determining whether goods are Japanese originating goods under this Division.
Division 1L—Chinese originating goods
Subdivision A—Preliminary
153ZOA Simplified outline of this Division
• This Division defines Chinese originating goods. Preferential rates of customs duty under the Customs Tariff Act 1995 apply to Chinese originating goods that are imported into Australia.
• Subdivision B provides that goods are Chinese originating goods if they are wholly obtained or produced in the territory of China.
• Subdivision C provides that goods are Chinese originating goods if they are produced entirely in the territory of China, or entirely in the territory of China and the territory of Australia, from originating materials only.
• Subdivision D sets out when goods are Chinese originating goods because they are produced entirely in the territory of China, or entirely in the territory of China and the territory of Australia, from non‑originating materials only or from non‑originating materials and originating materials.
• Subdivision E sets out when goods are Chinese originating goods because they are accessories, spare parts or tools imported with other goods.
• Subdivision F provides that goods are not Chinese originating goods under this Division merely because of certain operations.
• Subdivision G deals with how the consignment of goods affects whether the goods are Chinese originating goods.
• Subdivision H allows regulations to make provision for and in relation to determining whether goods are Chinese originating goods.
153ZOB Interpretation
Definitions
(1) In this Division:
Agreement means the China‑Australia Free Trade Agreement, done at Canberra on 17 June 2015, as amended from time to time.
Note: The Agreement could in 2015 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
Australian originating goods means goods that are Australian originating goods under a law of China that implements the Agreement.
Certificate of Origin means a certificate that is in force and that complies with the requirements of Article 3.14 of the Agreement.
Chinese originating goods means goods that, under this Division, are Chinese originating goods.
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 2015 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.
Declaration of Origin means a declaration that is in force and that complies with the requirements of Article 3.15 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 II 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.
non‑originating materials means goods that are not originating materials.
originating materials means:
(a) Chinese 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.
plant has the same meaning as it has in the Agreement.
produce means grow, raise, mine, harvest, fish, farm, trap, hunt, capture, gather, collect, breed, extract, manufacture, process or assemble.
territory of a non‑party has the same meaning as it has in the Agreement, and includes the customs territory of the following members of the World Trade Organization established by the World Trade Organization Agreement:
(a) Hong Kong, China;
(b) Macao, China;
(c) Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
territory of Australia means territory within the meaning, so far as it relates to Australia, of Article 1.3 of the Agreement.
territory of China means territory within the meaning, so far as it relates to China, of Article 1.3 of the Agreement, and does not include the customs territory of the following members of the World Trade Organization established by the World Trade Organization Agreement:
(a) Hong Kong, China;
(b) Macao, China;
(c) Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
World Trade Organization Agreement means the Marrakesh Agreement establishing the World Trade Organization, done at Marrakesh on 15 April 1994.
Note: The Agreement is in Australian Treaty Series 1995 No. 8 ([1995] ATS 8) and could in 2015 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
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 or produced in the territory of China
153ZOC Goods wholly obtained or produced in the territory of China
(1) Goods are Chinese originating goods if:
(a) they are wholly obtained or produced in the territory of China; and
(b) either:
(i) the importer of the goods has, at the time the goods are imported, a Certificate of Origin or a Declaration of Origin, or a copy of one, for the goods; or
(ii) Australia has waived the requirement for a Certificate of Origin or a Declaration of Origin for the goods.
(2) Goods are wholly obtained or produced in the territory of China if, and only if, the goods are:
(a) live animals born and raised in the territory of China; or
(b) goods obtained in the territory of China from live animals referred to in paragraph (a); or
(c) goods obtained directly from hunting, trapping, fishing, aquaculture, gathering or capturing conducted in the territory of China; or
(d) plants, or plant products, harvested, picked or gathered in the territory of China; or
(e) minerals, or other naturally occurring substances, extracted or taken in the territory of China; or
(f) goods, other than fish, shellfish, plant or other marine life, extracted or taken from the waters, seabed or subsoil beneath the seabed outside the territory of China, but only if China has the right to exploit such waters, seabed or subsoil in accordance with international law and the law of China; or
(g) fish, shellfish, plant or other marine life taken from the high seas by a vessel registered with China and flying the flag of China; or
(h) goods obtained or produced from goods referred to in paragraph (g) on board factory ships that are registered with China and flying the flag of China; or
(i) waste and scrap that:
(i) has been derived from production in the territory of China; or
(ii) has been derived from used goods that are collected in the territory of China and that are fit only for the recovery of raw materials; or
(j) goods produced entirely in the territory of China exclusively from goods referred to in paragraphs (a) to (i).
Subdivision C—Goods produced in China, or in China and Australia, from originating materials
153ZOD Goods produced in China, or in China and Australia, from originating materials
Goods are Chinese originating goods if:
(a) they are produced entirely in the territory of China, or entirely in the territory of China and the territory of Australia, 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 a Declaration of Origin, or a copy of one, for the goods; or
(ii) Australia has waived the requirement for a Certificate of Origin or a Declaration of Origin for the goods.
Subdivision D—Goods produced in China, or in China and Australia, from non‑originating materials
153ZOE Goods produced in China, or in China and Australia, from non‑originating materials
(1) Goods are Chinese 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 II to the Agreement; and
(b) they are produced entirely in the territory of China, or entirely in the territory of China and the territory of 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 a Declaration of Origin, or a copy of one, for the goods; or
(ii) Australia has waived the requirement for a Certificate of Origin or a Declaration of Origin for the goods.
(2) Without limiting paragraph (1)(c), a requirement may be specified in the table in Annex II to the Agreement by using an abbreviation 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.
Regional value content
(5) If a requirement that applies in relation to the goods is that the goods must have a minimum requirement of regional value content worked out in a particular way:
(a) the regional 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 regional value content of the goods—the regional value content of the goods is to be worked out in accordance with the regulations.
(6) If:
(a) a requirement that applies in relation to the goods is that the goods must have a minimum requirement of regional value content 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 classified and invoiced with the goods and are included in the price of the goods; and
(d) the accessories, spare parts or tools are not imported solely for the purpose of artificially raising the regional value content of the goods; and
(e) the quantities and value of the accessories, spare parts or tools are customary for the goods; and
(f) 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 (f) to be taken into account for the purposes of working out the regional 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 153ZOB(3).
(7) For the purposes of subsection (6), disregard section 153ZOG in working out whether the accessories, spare parts or tools are non‑originating materials.
153ZOF 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.
Regional value content
(2) However, if:
(a) a requirement that applies in relation to the goods is that the goods must have a minimum requirement of regional value content 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 regional 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 153ZOB(3).
Subdivision E—Goods that are accessories, spare parts or tools
153ZOG Goods that are accessories, spare parts or tools
Goods are Chinese originating goods if:
(a) they are accessories, spare parts or tools in relation to other goods; and
(b) the other goods are imported into Australia with the accessories, spare parts or tools; and
(c) the other goods are Chinese originating goods; and
(d) the accessories, spare parts or tools are classified and invoiced with the other goods and are included in the price of the other goods; and
(e) the accessories, spare parts or tools are not imported solely for the purpose of artificially raising the regional value content of the other goods; and
(f) the quantities and value of the accessories, spare parts or tools are customary for the other goods.
Subdivision F—Non‑qualifying operations
153ZOH Non‑qualifying operations
(1) Goods are not Chinese originating goods under this Division merely because of the following operations or processes:
(a) operations or processes to preserve goods in good condition for the purpose of transport or storage of the goods;
(b) packaging or repackaging;
(c) sifting, screening, sorting, classifying, grading or matching (including the making up of sets of goods);
(d) placing in bottles, cans, flasks, bags, cases or boxes, fixing on cards or boards or other simple packaging operations;
(e) affixing or printing marks, labels, logos or other like distinguishing signs on goods or on their packaging;
(f) disassembly of goods.
(2) This section applies despite any other provision of this Division.
Subdivision G—Consignment
153ZOI Consignment
(1) Goods are not Chinese originating goods under this Division if the goods are transported through the territory of a non‑party and one or more of the following apply:
(a) the goods undergo any operation in the territory of the non‑party (other than unloading, reloading, repacking, relabelling for the purpose of satisfying the requirements of Australia, splitting up of the goods for further transport, temporary storage or any operation that is necessary to preserve the goods in good condition);
(b) if the goods undergo temporary storage in the territory of the non‑party—the goods remain in the territory of the non‑party for a period exceeding 12 months;
(c) the goods do not remain under customs control at all times while the goods are in the territory of the non‑party.
(2) Without limiting paragraph (1)(c), the regulations may make provision for the circumstances in which goods are under customs control while the goods are in the territory of a non‑party.
(3) This section applies despite any other provision of this Division.
Subdivision H—Regulations
153ZOJ Regulations
The regulations may make provision for and in relation to determining whether goods are Chinese originating goods under this Division.
Division 1M—Hong Kong originating goods
Subdivision A—Preliminary
153ZPA Simplified outline of this Division
• This Division defines Hong Kong originating goods. Preferential rates of customs duty under the Customs Tariff Act 1995 apply to Hong Kong originating goods that are imported into Australia.