These Regulations set the rules for applying the ASEAN‑Australia‑New Zealand Free Trade Agreement’s origin and regional value content tests. They explain how to calculate origin (two formulas), how to value originating and non‑originating materials, what records producers and exporters must keep, and how businesses can become and remain approved exporters. The measures affect producers, exporters and customs administration by allocating compliance costs to businesses, giving the Comptroller‑General discretion over approvals, and determining which goods qualify for preferential tariffs.
These Regulations implement mechanics for determining and evidencing preferential origin, regional value content and related administrative procedures under the ASEAN‑Australia‑New Zealand Free Trade Agreement framework as given legislative force by the Customs Act 1901. They do not rewrite the Act, they provide rules and working formulas that the Act imports by reference (see reg 1.3). The instrument does the following, mechanically:
Defines which external instruments and statutory cross‑references are used in the Regulations (reg 1.4). Several key terms are defined by reference to the Act (for example, Agreement, Harmonized System, originating materials, non‑originating materials, Party, produce, Proof of Origin).
Sets a rule for when a non‑originating material is treated as having satisfied a change in tariff classification requirement by allowing a recursive, within‑Party production pathway to qualify (reg 2.1).
Prescribes two methods to calculate regional value content (RVC): the direct method and the indirect/build‑down method together with the precise algebraic formulas (regs 3.1 and 3.2).
Specifies how to value originating and non‑originating materials for the RVC calculations and for the rules of origin, including when to apply freight and insurance and when deductions are permissible (reg 4.1).
Provides express rules about the treatment for accessories, spare parts and information materials, and for packaging and containers, when calculating RVC (regs 4.2 and 4.3).
Prescribes record keeping obligations for exporters that are not producers and for producers (reg 5.1 and 5.2), including the documents to keep, the 5‑year retention period, location and language/format requirements.
Establishes an approved exporter regime: application formality, electronic application route, eligibility criteria, the decision process, the approved exporter code, conditions of approval, and the Comptroller‑General’s powers to vary, suspend or terminate approvals (regs 6.1-6.5). The eligibility criteria tie approval to the existence of a trusted trader agreement (reg 6.2(a)) and to obtaining producer declarations that commit producers to cooperate in verification processes (reg 6.2(c)(i) and (ii)).
Current sections
Direct links to the current provisions in Customs (ASEAN-Australia-New Zealand) Regulations 2009.
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Part 1
Introductory
Part 1—Introductory
1.1
Name of Regulations
1.1 Name of Regulations
These Regulations are the Customs (ASEAN‑Australia‑New Zealand) Regulations 2009.
1.3
Authority
1.3 Authority
These Regulations are made under the Customs Act 1901.
1.4
Definitions
1.4 Definitions
In these Regulations:
Act means the Customs Act 1901.
Agreement has the meaning given by section 153ZKB of the Act.
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.
Note: The Marrakesh Agreement Establishing the World Trade Organization is in Australian Treaty Series 1995 No. 8 ([1995] ATS 8) and could in 2018 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
Harmonized System has the meaning given by subsection 153ZKB(1) of the Act.
non‑originating materials has the meaning given by section 153ZKB of the Act.
originating materials has the meaning given by section 153ZKB of the Act.
Participating Party has the same meaning as in Article 6 of Chapter 3 of the Agreement.
Party has the meaning given by section 153ZKB of the Act.
produce has the meaning given by section 153ZKB of the Act.
Proof of Origin has the meaning given by subsection 153ZKB(1) of the Act.
Part 2
Tariff change requirement
Part 2—Tariff change requirement
2.1
Change in tariff classification requirement for non‑originating materials
2.1 Change in tariff classification requirement for non‑originating materials
For the purposes of subsection 153ZKE(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:
(a) it was produced entirely in a Party from other non‑originating materials; and
(b) each of those other non‑originating materials satisfies the change in tariff classification, including by one or more applications of this regulation.
AANZFTA material cost means the value, worked out under Part 4, of the originating materials used in the production of the goods.
customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.
labour cost includes wages, remuneration and other employee benefits.
other costs means the costs incurred in placing the goods in the ship or other means of transport for export including, but not limited to, domestic transport costs, storage and warehousing, port handling, brokerage fees and service charges.
overhead cost means the total overhead expense.
profit has the same meaning as it has in Article 5 of Chapter 3 of the Agreement.
(2) Regional value content must be expressed as a percentage.
customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.
value of non‑originating materials means the value, worked out under Part 4, of the non‑originating materials used in the production of the goods.
(2) Regional value content must be expressed as a percentage.
Part 4
Determination of value
Part 4—Determination of value
4.1
Value of goods that are originating materials or non‑originating materials
4.1 Value of goods that are originating materials or non‑originating materials
(1) For the purposes of subsection 153ZKB(3) of the Act, this regulation explains how to work out the value of originating materials or non‑originating materials used in the production of goods.
(2) The value of the materials is as follows:
(a) for non‑originating materials imported into a Party by the producer of the goods—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;
(b) for originating materials acquired, or produced, by the producer of the goods—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 on the assumption that those materials had been imported into a Party by the producer of the goods;
(c) for non‑originating materials acquired by the producer of the goods—the earliest ascertained price paid for the materials by that producer.
(3) For the purposes of paragraph (2)(a), in working out the value of particular non‑originating materials, the following must be included:
(a) the cost of freight of the non‑originating materials to the port or place of entry into the Party;
(b) the cost of insurance related to that freight.
(4) For the purposes of paragraph (2)(a) or (c), in working out the value of particular non‑originating materials used in the production of goods where the last process of production occurs in a Participating Party, the following may be deducted:
(a) the value of any production undertaken on the non‑originating materials in any other Participating Party;
(b) the amount of the value added to the non‑originating materials in any other Participating Party.
4.2
Value of accessories, spare parts, tools or instructional or other information materials
4.2 Value of accessories, spare parts, tools or instructional or other information materials
If paragraphs 153ZKE(7)(a), (b), (c), (d) and (e) of the Act are satisfied in relation to goods:
(a) the value of the accessories, spare parts, tools or instructional or other information materials must be taken into account for the purposes of working out the regional value content of the goods under Part 3; and
(b) if the accessories, spare parts, tools or instructional or other information materials are originating materials—for the purposes of regulations 3.1 and 4.1, those accessories, spare parts, tools or instructional or other information materials are taken to be originating materials used in the production of the goods; and
(c) if the accessories, spare parts, tools or instructional or other information materials are non‑originating materials—for the purposes of regulations 3.2 and 4.1, those accessories, spare parts, tools or instructional or other information materials are taken to be non‑originating materials used in the production of the goods.
4.3
Value of packaging material and container
4.3 Value of packaging material and container
If paragraphs 153ZKH(1)(a) and (b) of the Act are satisfied in relation to goods and the goods must have a regional value content of not less than a particular percentage worked out in a particular way:
(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 Part 3; and
(b) if that packaging material or container is an originating material—for the purposes of regulations 3.1 and 4.1, that packaging material or container is taken to be an originating material used in the production of the goods; and
(c) if that packaging material or container is a non‑originating material—for the purposes of regulations 3.2 and 4.1, that packaging material or container is taken to be a non‑originating material used in the production of the goods.
Part 5
Record keeping obligations
Part 5—Record keeping obligations
5.1
Exportation of goods to a Party—record keeping by exporter who is not the producer of the goods
5.1 Exportation of goods to a Party—record keeping by exporter who is not the producer of the goods
(1) For the purposes of subsection 126AKDB(1) of the Act, an exporter of goods mentioned in that subsection, who is not also the producer of the goods, must keep the following records:
(a) records of the purchase of the goods by the exporter;
(b) records of the purchase of the goods by the person to whom the goods are exported;
(c) evidence that payment has been made for the goods;
(d) evidence of the classification of the goods under the Harmonized System;
(e) if the goods include any accessories, spare parts, tools or instructional or other information materials that were purchased by the exporter:
(i) records of the purchase of the accessories, spare parts, tools or instructional or other information materials; and
(ii) evidence of the value of the accessories, spare parts, tools or instructional or other information materials;
(f) if the goods include any accessories, spare parts, tools or instructional or other information materials that were produced by the exporter:
(i) records of the purchase of all materials that were purchased for use or consumption in the production of the accessories, spare parts, tools or instructional or other information materials; and
(ii) evidence of the value of the materials so purchased; and
(iii) records of the production of the accessories, spare parts, tools or instructional or other information materials;
(g) if the goods are packaged for retail sale in packaging material or a container that was purchased by the exporter:
(i) records of the purchase of the packaging material or container; and
(ii) evidence of the value of the packaging material or container;
(h) if the goods are packaged for retail sale in packaging material or a container that was produced by the exporter:
(i) records of the purchase of all materials that were purchased for use or consumption in the production of the packaging material or container; and
(ii) evidence of the value of the materials so purchased; and
(iii) records of the production of the packaging material or container;
(i) a copy of the Proof of Origin for the goods;
(j) any other documents in support of the goods being originating goods in accordance with Chapter 3 of the Agreement (including documents from the producer or supplier of the goods).
(2) The records must be kept for at least 5 years starting on the date the Proof of Origin for the goods is issued.
(3) The exporter:
(a) may keep the records at any place (whether or not in Australia); and
(b) must ensure that:
(i) the records are kept in a form that would enable a determination of whether the goods are originating goods in accordance with Chapter 3 of the Agreement; and
(ii) if the records are not in English—the records are kept in a place and form that would enable an English translation to be readily made; and
(iii) if the records are kept by mechanical or electronic means—the records are readily convertible into a hard copy in English.
5.2
Exportation of goods to a Party—record keeping by the producer of the goods
5.2 Exportation of goods to a Party—record keeping by the producer of the goods
(1) For the purposes of subsection 126AKDB(1) of the Act, a producer of goods mentioned in that subsection, whether or not the producer is the exporter of the goods, must keep the following records:
(a) records of the purchase of the goods;
(b) if the producer is the exporter of the goods—evidence of the classification of the goods under the Harmonized System;
(c) evidence that payment has been made for the goods;
(d) evidence of the value of the goods;
(e) records of the purchase of all materials that were purchased for use or consumption in the production of the goods and evidence of the classification of the materials under the Harmonized System;
(f) evidence of the value of those materials;
(g) records of the production of the goods;
(h) if the goods include any accessories, spare parts, tools or instructional or other information materials that were purchased by the producer:
(i) records of the purchase of the accessories, spare parts, tools or instructional or other information materials; and
(ii) evidence of the value of the accessories, spare parts, tools or instructional or other information materials;
(i) if the goods include any accessories, spare parts, tools or instructional or other information materials that were produced by the producer:
(i) records of the purchase of all materials that were purchased for use or consumption in the production of the accessories, spare parts, tools or instructional or other information materials; and
(ii) evidence of the value of the materials so purchased; and
(iii) records of the production of the accessories, spare parts, tools or instructional or other information materials;
(j) if the goods are packaged for retail sale in packaging material or a container that was purchased by the producer:
(i) records of the purchase of the packaging material or container; and
(ii) evidence of the value of the packaging material or container;
(k) if the goods are packaged for retail sale in packaging material or a container that was produced by the producer:
(i) records of the purchase of all materials that were purchased for use or consumption in the production of the packaging material or container; and
(ii) evidence of the value of the materials so purchased; and
(iii) records of the production of the packaging material or container;
(l) a copy of the Proof of Origin for the goods.
(2) The records must be kept for at least 5 years starting on the date the Proof of Origin for the goods is issued.
(3) The producer:
(a) may keep the records at any place (whether or not in Australia); and
(b) must ensure that:
(i) the records are kept in a form that would enable a determination of whether the goods are originating goods in accordance with Chapter 3 of the Agreement; and
(ii) if the records are not in English—the records are kept in a place and form that would enable an English translation to be readily made; and
(iii) if the records are kept by mechanical or electronic means—the records are readily convertible into a hard copy in English.
Part 6
Approved exporters
Part 6—Approved exporters
6.1
Application for approval as approved exporter
6.1 Application for approval as approved exporter
(1) For the purposes of section 126AKDE of the Act, an entity may make an application to the Comptroller‑General of Customs for approval as an approved exporter.
(2) An application may be made by document or electronically.
(3) A documentary application must:
(a) be communicated to the Comptroller‑General of Customs; and
(b) be in an approved form; and
(c) contain the information required by the approved form; and
(d) be signed in a manner indicated by the approved form.
(4) An electronic application must communicate such information as is set out in an approved statement.
(5) An entity may withdraw an application at any time by notice in writing given to the Comptroller‑General of Customs.
6.2
Eligibility criteria
6.2 Eligibility criteria
For the purposes of section 126AKDE of the Act, the eligibility criteria that an entity must meet in order for the Comptroller‑General of Customs to approve the entity as an approved exporter are the following:
(a) a trusted trader agreement with the entity is in force under section 176A of the Act;
(b) the Comptroller‑General is satisfied that the entity knows and understands the rules of origin as set out in Annex 3A to Chapter 3 of the Agreement;
(c) the Comptroller‑General is satisfied that, if the entity were to complete a Declaration of Origin for goods exported to a Party, the entity would be able to obtain from the producer of the goods a declaration:
(i) claiming that the goods are originating goods in accordance with Chapter 3 of the Agreement; and
(ii) stating that the producer is willing to cooperate with any verification process in accordance with Rules 19 and 20 of Annex 3A to Chapter 3 of the Agreement and is able to meet the requirements of that Annex.
6.3
Comptroller‑General of Customs to decide application
6.3 Comptroller‑General of Customs to decide application
(1) For the purposes of section 126AKDE of the Act, the Comptroller‑General of Customs may, in writing, approve an entity as an approved exporter if:
(a) the entity makes an application in accordance with regulation 6.1; and
(b) the Comptroller‑General is satisfied that the entity meets the eligibility criteria under regulation 6.2.
(2) For the purposes of section 126AKDE of the Act, the Comptroller‑General must consider the following matters in deciding whether to approve an entity as an approved exporter:
(a) whether a trusted trader agreement between the entity and the Comptroller‑General has been varied, suspended or terminated under section 178A of the Act;
(b) whether the Comptroller‑General is considering varying, suspending or terminating a trusted trader agreement between the entity and the Comptroller‑General.
(3) Subregulation (2) does not limit the matters the Comptroller‑General may consider in deciding whether to approve an entity as an approved exporter.
Approved exporter code
(4) An approval under subregulation (1) must specify the entity’s approved exporter code.
Copy of approval to be given to entity
(5) The Comptroller‑General of Customs must give a copy of an approval under subregulation (1) to the entity.
Period for which approval is in force
(6) An approval under subregulation (1) must specify the period for which it is in force.
Note: See regulation 6.5 for variation, suspension or termination of an approval.
Refusal to approve entity as approved exporter
(7) If an entity makes an application for approval as an approved exporter and the application is in accordance with regulation 6.1, the Comptroller‑General of Customs may, in writing, refuse to approve the entity as an approved exporter.
(8) If the Comptroller‑General does so, the Comptroller‑General must notify the entity of the refusal and of the reasons for the refusal.
Review
(9) An application may be made to the Administrative Review Tribunal for review of a decision to refuse to approve an entity as an approved exporter.
6.4
Conditions of approval
6.4 Conditions of approval
For the purposes of section 126AKDE of the Act, an approval of an entity as an approved exporter is subject to the following conditions:
(a) the entity complies with paragraph 4 of Rule 15 of Annex 3A to Chapter 3 of the Agreement;
(b) any other conditions specified in the approval by the Comptroller‑General of Customs.
6.5
Variation, suspension or termination of approval
6.5 Variation, suspension or termination of approval
(1) For the purposes of section 126AKDE of the Act, the Comptroller‑General of Customs may, in writing, vary, suspend or terminate an entity’s approval as an approved exporter if the Comptroller‑General is satisfied that:
(a) the entity no longer meets the eligibility criteria under regulation 6.2; or
(b) the entity has not complied, or is not complying, with any condition of the entity’s approval.
(2) Without limiting subregulation (1), a variation of an approval may involve imposing new conditions on the approval or varying or removing existing conditions.
Process for making decision
(3) Before making a decision under subregulation (1), the Comptroller‑General of Customs must give the entity notice in writing:
(a) stating the decision the Comptroller‑General is considering making; and
(b) stating the reasons why the Comptroller‑General is considering making the decision; and
(c) inviting the entity to make written submissions to the Comptroller‑General within the period specified in the notice (which must be a period of at least 10 business days starting on the day on which the notice is given).
(4) In deciding whether to make a decision under subregulation (1), the Comptroller‑General must consider any submissions received from the entity within the period specified in the notice.
(5) Subregulation (4) does not limit the matters the Comptroller‑General may consider in deciding whether to make a decision under subregulation (1).
Notice of decisions
(6) The Comptroller‑General must give notice of a variation, suspension or termination to the entity.
(7) The notice must specify the day the variation, suspension or termination takes effect (which must not be before the day after the notice is given to the entity).
(8) The Comptroller‑General must give the entity notice in writing of any decision not to vary, suspend or terminate the entity’s approval as an approved exporter.
Consequences of suspension
(9) An approval has no effect while suspended, but the period for which it remains in force continues to run despite the suspension.
(10) The Comptroller‑General of Customs may, under subregulation (1), vary or terminate an approval while it is suspended.
Revocation of suspension
(11) The Comptroller‑General of Customs may, in writing, revoke a suspension under subregulation (1).
(12) The Comptroller‑General must give notice of the revocation of the suspension to the entity. The notice must specify the day the revocation takes effect.
Review
(13) An application may be made to the Administrative Review Tribunal for review of a decision to vary, suspend or terminate an entity’s approval as an approved exporter.
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Part 1 Introductory
Part 1—Introductory
1.1 Name of Regulations
1.1 Name of Regulations
These Regulations are the Customs (ASEAN‑Australia‑New Zealand) Regulations 2009.
1.3 Authority
1.3 Authority
These Regulations are made under the Customs Act 1901.
1.4 Definitions
1.4 Definitions
In these Regulations:
Act means the Customs Act 1901.
Agreement has the meaning given by section 153ZKB of the Act.
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.
Note: The Marrakesh Agreement Establishing the World Trade Organization is in Australian Treaty Series 1995 No. 8 ([1995] ATS 8) and could in 2018 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
Harmonized System has the meaning given by subsection 153ZKB(1) of the Act.
non‑originating materials has the meaning given by section 153ZKB of the Act.
originating materials has the meaning given by section 153ZKB of the Act.
Participating Party has the same meaning as in Article 6 of Chapter 3 of the Agreement.
Party has the meaning given by section 153ZKB of the Act.
produce has the meaning given by section 153ZKB of the Act.
Proof of Origin has the meaning given by subsection 153ZKB(1) of the Act.
Part 2 Tariff change requirement
Part 2—Tariff change requirement
2.1 Change in tariff classification requirement for non‑originating materials
2.1 Change in tariff classification requirement for non‑originating materials
For the purposes of subsection 153ZKE(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:
(a) it was produced entirely in a Party from other non‑originating materials; and
(b) each of those other non‑originating materials satisfies the change in tariff classification, including by one or more applications of this regulation.
The Regulations largely implement technical and administrative details that the Act references (for example, see the several references to subsections of the Act such as 153ZKB, 153ZKE, 126AKDB and 126AKDE). The instrument therefore shifts many compliance and evidentiary burdens onto exporters and producers by prescribing what documents are required, how RVC must be calculated, what values are included, and how approvals are granted and managed. Where the Regulations refer to external instruments (for example, the Agreement on Implementation of Article VII of GATT 1994, Annex 3A to Chapter 3 of the Agreement, and Article 5 of Chapter 3), those instruments supply definitions or substantive meaning that the Regulations treat as authoritative for the specified tasks (see regs 1.4, 3.1, 4.1 and 6.2). The Regulations do not themselves provide the customs valuation rules in Division 2 of Part VIII of the Act, nor the substantive text of Annex 3A; those remain external sources that must be read alongside these Regulations to determine compliance.
Main concepts
The Regulations operate around several technical core concepts, each defined by operation across the text and by reference to the Act or to the international Agreement:
Origin and Proof of Origin. The concept of originating goods and Proof of Origin is central. The Regulations repeatedly refer to the definitions in subsection 153ZKB(1) of the Act and to the Agreement and Annex 3A for the substantive rules (reg 1.4). A Proof of Origin is a document the Regulations assume will be issued; it is the starting point for retention periods and for many evidentiary obligations (regs 5.1(2), 5.2(2)).
Moveable classification requirement. The “change in tariff classification” is a common rules‑of‑origin criterion. Regulation 2.1 creates a specific rule for non‑originating materials: if a non‑originating material is produced entirely in a Party from other non‑originating materials and each of those underlying non‑originating materials satisfies the change in tariff classification (including by repeated application of the same regulation), then the finished non‑originating material is treated as satisfying the change in tariff classification for the purposes of subsection 153ZKE(3) of the Act. This enables a recursive compliance pathway where intermediate non‑originating inputs can be combined in a Participating Party and still qualify, provided the component materials themselves meet the classification change criteria.
Regional Value Content (RVC). The Regulations prescribe two complementary methods to calculate RVC for RVC thresholds in origin rules:
Direct method (reg 3.1): RVC% = (AANZFTA material cost + labour cost + overhead cost + profit + other costs) / customs value × 100. The regulation defines each term: AANZFTA material cost is the value of originating materials under Part 4, customs value is the valuation under Division 2 of Part VIII of the Act, labour, overhead, profit (with profit given the meaning in Article 5 of Chapter 3 of the Agreement), and other costs (explicitly including domestic transport, storage, port handling, brokerage, service charges) (reg 3.1(1)).
Indirect or build‑down method (reg 3.2): RVC% = (customs value − value of non‑originating materials) / customs value × 100. The value of non‑originating materials is worked out under Part 4.
Valuation of materials (Part 4). Regulation 4.1 provides three discrete valuation rules:
For non‑originating materials imported into a Party by the producer, value those materials according to the Agreement on Implementation of Article VII of GATT 1994 (reg 4.1(2)(a)).
For originating materials acquired or produced by the producer, value them as if they had been imported (reg 4.1(2)(b)).
For non‑originating materials acquired by the producer (i.e., purchased domestically), use the earliest ascertained price paid by the producer (reg 4.1(2)(c)).
Regulation 4.1(3) requires inclusion of freight to port/place of entry and insurance when valuing non‑originating materials per paragraph (2)(a). Regulation 4.1(4) allows deductions for production value in another Participating Party or value added in another Participating Party when the last process occurs in a Participating Party.
Treatment of accessories and packaging. Regulations 4.2 and 4.3 treat accessories, spare parts, tools, instructional materials and packaging or containers as part of the RVC calculation when specific Act paragraphs are satisfied (regs 4.2 and 4.3), and specify whether those items are to be treated as originating or non‑originating materials for the purposes of calculations under regs 3.1/3.2 and 4.1.
Record keeping obligations (Part 5). Regulations 5.1 and 5.2 list granular documentary requirements for exporters that are not producers and for producers, respectively. Both sets of obligations include purchase records, classification evidence under the Harmonized System, evidence of payment, production records, values of materials, Proof of Origin copy, and other supporting documents (regs 5.1(1)(a)-(j), 5.2(1)(a)-(l)). Records must be retained for at least five years from the date the Proof of Origin is issued (regs 5.1(2), 5.2(2)). The Regulations permit records to be held outside Australia, but require records to be maintained so they can be translated readily into English and, if electronic, converted into hard copy in English (regs 5.1(3), 5.2(3)).
Approved exporter regime (Part 6). Regulations 6.1-6.5 establish the procedural framework for an approved exporter scheme: applications (reg 6.1), eligibility (reg 6.2), decision and notice requirements (reg 6.3), conditions of approval (reg 6.4), and the variation/suspension/termination process including procedural fairness safeguards such as notice, reasons and an opportunity to make submissions (reg 6.5). The scheme ties approval to a trusted trader agreement (reg 6.2(a)) and to producer cooperation for verification (reg 6.2(c)(ii)).
Each of these main concepts is framed as an implementation detail of Chapter 3 of the underlying Agreement and of the Act. Many critical terms and substantive standards are imported by cross‑reference and therefore require reading the Act and the Agreement texts in tandem with these Regulations (see reg 1.4 and the cross‑references throughout Parts 3, 4 and 6).
Who it affects
The Regulations impose duties, evidentiary obligations and administrative pathways that affect a set of identifiable actors in international trade and customs administration. The primary affected actors are:
Producers of goods (reg 5.2). Producers must keep detailed records: purchase records for goods and materials, evidence of classification under the Harmonized System for materials, evidence of value and payment, production records, and a copy of the Proof of Origin (reg 5.2(1)(a)-(l)). These producers may be inside or outside Australia but are addressed by the Regulations for the purposes of exports to a Party.
Exporters who are not the producers (reg 5.1). These exporters must retain purchase records, evidence of the purchaser’s acquisition, evidence of payment, classification evidence, and documentary proof of accessories, packaging and value where applicable, plus the Proof of Origin and supporting documents from producers or suppliers (reg 5.1(1)(a)-(j)). The exporter’s obligations are specific and include maintaining records in an English‑convertible format and storing records for at least five years (reg 5.1(2)-(3)).
Entities seeking approved exporter status (regs 6.1-6.3). To be approved, an entity must apply, meet the eligibility criteria set out in reg 6.2, and hold a trusted trader agreement in force under section 176A of the Act (reg 6.2(a)). The Comptroller‑General decides approval and may refuse with reasons; the applicant has a right of review to the Administrative Review Tribunal for refusal decisions (reg 6.3(7)-(9)).
Producers supplying declarations. The eligibility criteria for approved exporters require that the exporter be able to obtain from the producer a declaration claiming origin and stating willingness to cooperate with verification (reg 6.2(c)(i)-(ii)). Thus producers are indirectly affected because their cooperation is a precondition for some exporters’ approvals.
The Comptroller‑General of Customs. The Regulations allocate decision‑making authority and procedural tasks to the Comptroller‑General: receiving and deciding applications (reg 6.1, 6.3), setting approved exporter codes (reg 6.3(4)), specifying periods of approval (reg 6.3(6)), imposing conditions (reg 6.4), and varying, suspending, or terminating approvals with statutory processes to be observed (reg 6.5).
Customs administration and verification officers. The Regulations obligate exporters and producers to produce evidence and to cooperate in verification processes by producers where requested (reg 6.2(c)(ii), and via references to Rules 19 and 20 of Annex 3A). Although the Regulations do not set out the verification procedures in full, they provide the administrative basis for verification enquiries and cooperation.
Parties to the Agreement and other Participating Parties. The rules on valuation and the RVC calculations apply when assessing goods for preferential treatment under the Agreement. The definition of “Participating Party” and the availability of deductions for value added in another Participating Party (reg 4.1(4)) create specific interactions for multi‑party supply chains.
Who bears costs and behavioural consequences
Exporters and producers incur record keeping, documentation and calculation burdens. The Regulations list specific records and require retention for five years (regs 5.1(1), 5.2(1), 5.1(2), 5.2(2)). Records must be in a readily translatable, hard‑copy convertible form if electronic (regs 5.1(3)(ii)-(iii), 5.2(3)(ii)-(iii)).
Entities that want administrative convenience via approved exporter status must hold or obtain a trusted trader agreement and be able to obtain producer declarations and cooperation (reg 6.2). That ties approval to a separate regime under the Act (s 176A), potentially raising negotiation or compliance costs to secure a trusted trader agreement.
The Comptroller‑General decides approvals and can impose conditions or suspend approvals. This creates an administrative control point with discretion to revoke privileges subject to notice and review (regs 6.3-6.5).
Supply chains that rely on non‑originating inputs may be affected operationally by reg 2.1 (classification change recursion) and by the valuation rules in Part 4, which determine whether goods meet origin criteria.
The Regulations therefore primarily affect commercial actors handling cross‑border trade with Parties under the specified Agreement, with explicit documentary and calculation obligations allocated to producers and exporters, and administrative powers and decision points vested in the Comptroller‑General.
Key duties and rights
This section lists the principal duties imposed by the Regulations and the principal rights or procedural protections they afford, with precise cross‑references.
Duties imposed on exporters and producers
Record keeping duties: Exporters who are not producers must keep purchase records, evidence of classification under the Harmonized System, proof of payment, values for accessories and packaging where applicable, production records for accessories/packaging they produced, a copy of the Proof of Origin, and any other supporting documents related to origin (reg 5.1(1)(a)-(j)). Producers must keep a similar set of documents that includes records of purchase of materials used in production, production records, evidence of value, and a copy of the Proof of Origin (reg 5.2(1)(a)-(l)).
Retention and format: Both exporters and producers must retain records for at least five years from the date the Proof of Origin is issued (regs 5.1(2), 5.2(2)). Records may be kept anywhere (inside or outside Australia) but must be in a form enabling determination of origin and must be readily translatable and convertible to hard copy in English if not already in that form (regs 5.1(3)(a)-(b), 5.2(3)(a)-(b)).
Calculation duties: When a regional value content requirement exists, the exporter or producer must calculate RVC using either the direct method (reg 3.1) or the indirect/build‑down method (reg 3.2) and express the result as a percentage (regs 3.1(2), 3.2(2)). The calculations require the use of specific valuation rules from Part 4 (reg 4.1).
Valuation duties for materials: Where non‑originating materials are imported into a Party by the producer, their value must be worked out according to the Agreement on Implementation of Article VII of GATT 1994 (reg 4.1(2)(a)). For originating materials produced or acquired, value them as if they had been imported (reg 4.1(2)(b)). For non‑originating materials acquired domestically, use the earliest ascertained price paid by the producer (reg 4.1(2)(c)). Include freight and insurance in the valuation for imported non‑originating materials (reg 4.1(3)). Deductibility is permitted in narrow circumstances where the last process occurs in a Participating Party (reg 4.1(4)).
Accessories and packaging: If the relevant Act paragraphs are satisfied, accessories, spare parts, tools and information materials, and packaging and containers must be taken into account in RVC calculations and are treated as originating or non‑originating respectively depending on their status (regs 4.2, 4.3).
Duties imposed on entities seeking approved exporter status
Application requirements: Applicants must apply by document or electronically and comply with form and signature requirements for documentary applications, or an approved statement for electronic applications (reg 6.1(1)-(4)). Applicants may withdraw an application (reg 6.1(5)).
Eligibility requirements: An exporter must have a trusted trader agreement in force under section 176A of the Act (reg 6.2(a)), know and understand the rules of origin in Annex 3A (reg 6.2(b)), and be able to obtain from the producer declarations asserting origin and affirmative cooperation with verification rules (reg 6.2(c)).
Compliance with conditions: Approval is subject to compliance with paragraph 4 of Rule 15 of Annex 3A and any other conditions the Comptroller‑General specifies (reg 6.4).
Discretionary powers and procedural rights relating to approvals
Discretion to approve or refuse: The Comptroller‑General may approve an entity as an approved exporter if the application complies with reg 6.1 and eligibility criteria under reg 6.2 are met; the Comptroller‑General may refuse and must notify the applicant of the refusal with reasons (reg 6.3(1), (7)-(8)).
Matters to be considered: In deciding, the Comptroller‑General must consider whether the trusted trader agreement has been varied, suspended or terminated or whether such action is under consideration (reg 6.3(2)). This statutory list is not exhaustive (reg 6.3(3)).
Conditions and notification: An approval must specify an approved exporter code and the period for which it is in force; the Comptroller‑General must provide a copy of approval to the entity (reg 6.3(4)-(6)).
Variation, suspension, termination process: The Comptroller‑General may vary, suspend or terminate approvals if the entity no longer meets eligibility criteria or is non‑compliant with conditions (reg 6.5(1)). Before taking such action, the Comptroller‑General must give written notice stating the proposed decision, reasons, and an invitation to make written submissions within at least 10 business days (reg 6.5(3)(a)-(c)). The Comptroller‑General must consider submissions (reg 6.5(4)) and notify the entity of the outcome and the effective date (regs 6.5(6)-(7)). Suspension has the effect that the approval has no effect while suspended but the approval’s period continues to run (reg 6.5(9)). The Comptroller‑General may revoke a suspension and must notify the entity of the revocation (regs 6.5(11)-(12)).
Review rights: An applicant may apply to the Administrative Review Tribunal for review of refusals to approve and for decisions to vary, suspend or terminate an approval (regs 6.3(9), 6.5(13)).
Rights and obligations that rely on external instruments
Many definitions and substantive duties depend on external texts: the Agreement on Implementation of Article VII of GATT 1994 (for valuation; reg 4.1), Article 5 of Chapter 3 of the Agreement (profit definition; reg 3.1), Annex 3A to Chapter 3 of the Agreement and its Rules 15, 19 and 20 (rules of origin, producer cooperation, verification; regs 6.2, 6.4). These imports mean that parties’ duties and rights under the Regulations are contextually dependent on the content of those instruments.
The Regulations therefore create a web of express administrative duties and procedural rights focused on record keeping, calculation methodology, and administrative approvals, while embedding substantive standards in externally referenced instruments. The Comptroller‑General is given targeted discretion, subject to notice and review safeguards.
Penalties and enforcement
The Regulations themselves primarily establish administrative obligations, evidentiary requirements and a decision framework for approvals; they do not set out criminal sanctions, fine schedules or specific penalty provisions within their own text. Enforcement and penalties for non‑compliance are therefore principally exercised through:
Administrative controls via the Comptroller‑General. The instrument grants the Comptroller‑General express powers to approve, impose conditions, vary, suspend and terminate an approval as an approved exporter (regs 6.3 and 6.5). These are enforcement levers: suspension nullifies the approval while it is in force (reg 6.5(9)). The Comptroller‑General may also impose additional conditions at approval or variation (reg 6.4 and reg 6.5(2)).
Documentary and evidence obligations. The detailed record keeping requirements in Part 5 (regs 5.1 and 5.2) operate as enforceable administrative duties. While the Regulations do not themselves state the consequences of failing to produce records, the surrounding statutory framework in the Customs Act 1901 (which the Regulations are made under) contains enforcement machinery and penalties for non‑compliance with customs obligations. These Regulations set the content of records that customs officers may require or examine, and non‑production is likely to engage enforcement provisions in the Act (see reg 1.3, which states the Regulations are made under the Act).
Rights to procedural fairness and review. The Regulations give entities procedural safeguards before adverse administrative actions affecting approved exporter status are taken: the Comptroller‑General must give notice of proposed action, reasons, and at least 10 business days to make written submissions (reg 6.5(3)(a)-(c)); the Comptroller‑General must consider submissions (reg 6.5(4)). Entities have review rights to the Administrative Review Tribunal for refusals and decisions to vary/suspend/terminate approvals (regs 6.3(9), 6.5(13)). These are enforcement‑adjacent protections that limit the immediacy of administrative action and provide avenues for challenge.
Verification cooperation and potential consequences. Eligibility for approved exporter status requires that a producer be willing to cooperate in verification under Rules 19 and 20 of Annex 3A (reg 6.2(c)(ii)). The implication is that refusal or failure to cooperate in verification may feed into decisions to suspend or terminate approvals, enforcement activities, or denial of preferential treatment, though the Regulations do not articulate explicit sanctions for failure to cooperate; the enforcement mechanism is administrative control over approvals and the broader Act’s powers.
Implied enforcement via origin denial. The Regulations set the mechanics for establishing origin. Should an exporter or producer fail to meet the documentary or calculation requirements (for example the RVC calculations under regs 3.1/3.2 or valuation rules under reg 4.1), the likely practical consequence under the broader statutory and treaty framework is that preferential tariff treatment will be denied. The Regulations specify the methods and the records required to substantiate claims; absent compliance, claims may be rejected by customs authorities.
Implementation and enforcement risk
Reliance on external legal instruments for substantive definitions and valuation rules introduces a dependency risk: customs officers and traders must interpret and apply material from the Agreement and from Division 2 of Part VIII of the Act to give effect to these Regulations. Misalignment in interpretation can lead to disputes, verification challenges and retrospective reassessments.
The Regulations vest administrative discretion in the Comptroller‑General. While procedural safeguards exist, those discretionary powers , for approving exporters, imposing conditions and suspending approvals , are enforcement mechanisms that shift compliance assurance onto administrative decision‑making. The Regulations require notice and opportunity to respond for variations and terminations (reg 6.5(3)-(4)), but they do not limit the substantive bases on which the Comptroller‑General may act (reg 6.5(5) preserves broad consideration).
Record keeping format and translation requirements create operational enforcement triggers: if the records are not readily translatable or convertible to hard copy, authorities may treat that as a failure to produce required evidence. The Regulations impose these format standards without prescribing precise technical specifications, leaving operational interpretation to customs authorities (regs 5.1(3)(ii)-(iii), 5.2(3)(ii)-(iii)).
In sum, enforcement under the Regulations is executed through administrative controls, documentary expectation and reliance on the underlying Act and relevant international instruments. The Regulations set the scope of documentary and calculation obligations and create an approved exporter pathway that is subject to administrative enforcement and review.
How it interacts with other laws
The Regulations are explicitly made under the Customs Act 1901 (reg 1.3) and are designed to operate as subordinate instruments that interpret or give effect to particular subsections of the Act. The Regulations therefore sit within a legal ecology that includes the Act itself, Australia’s treaty obligations under the Agreement specified in reg 1.4, and other international instruments referenced in the Regulations. Key interactions include:
Direct statutory cross‑references. The Regulations repeatedly cite subsections of the Customs Act , for example subsections 153ZKB and 153ZKE for definitions and rules of origin (see reg 1.4 and regs 2.1, 3.1, 3.2), and sections 126AKDB and 126AKDE for record keeping and approved exporter provisions (see Part 5 and Part 6 headings and specific provisions). The Regulations thus function as implementation instruments for particular provisions of the Act.
Reliance on customs valuation law in the Act. The RVC formulas in regs 3.1 and 3.2 use “customs value” as a denominator or input. The term “customs value” is to be worked out under Division 2 of Part VIII of the Act (regs 3.1(1), 3.2(1), 4.1(2)(a)-(b)). Therefore, valuation rules in the Act (and any amendments or judicial interpretations of those Act provisions) will determine how the RVC calculations operate in practice. Compliance requires traders to align the regulations’ arithmetic with the Act’s customs value methodology.
Interaction with WTO valuation rules. Regulation 4.1(2)(a) and (b) imports the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 for valuation of imported non‑originating materials and for the hypothetical import scenario for originating materials acquired or produced by the producer. This means that the detailed customs valuation methodology from that WTO instrument, as applied in Australian law (see reg 1.4 note about its location in the Australian Treaty Series), is a primary source for valuing inputs in RVC calculations.
Integration with Chapter 3 and Annex 3A to the Agreement. The Regulations make extensive reference to the Agreement and to Annex 3A to Chapter 3 for substantive rules of origin, for the definition of Participating Party and Party, for the meaning of profit (Article 5 of Chapter 3) and for producer verification Rules 19 and 20 (regs 1.4, 3.1, 6.2). Paragraph 4 of Rule 15 of Annex 3A is a condition of approval for approved exporters (reg 6.4). Practitioners must therefore consult Annex 3A and the Agreement for the substance of rules of origin, as the Regulations provide administrative and calculational detail while deferring substantive origin criteria to those instruments.
Trusted trader agreement regime under the Act. Eligibility for approved exporter status requires a trusted trader agreement in force under section 176A of the Act (reg 6.2(a)), and the Comptroller‑General must consider variations, suspensions or terminations of a trusted trader agreement under section 178A when deciding on approvals (reg 6.3(2)(a)-(b)). This links the approved exporter regime directly to the broader trusted trader framework in the Act, so developments or decisions in that regime affect eligibility and ongoing status under the Regulations.
Administrative review framework. The Regulations specify review rights to the Administrative Review Tribunal for refusals to approve and for variations, suspensions or terminations of approvals (regs 6.3(9), 6.5(13)). These review rights interact with the broader administrative law framework, including the Tribunals’ jurisdiction, grounds of review and remedies. The Regulations create specific reviewable decisions within that broader statutory review system.
External documents and operational guidance. The Regulations permit electronic applications by reference to an “approved statement” and impose format and language requirements for records, but do not provide procedural forms or technical specifications within the text. The practical execution of these provisions will be influenced by administrative practice, forms and operational guidance that customs authorities issue under the Act’s delegated powers.
In short, the Regulations are tightly integrated with the Customs Act and with international treaty instruments. Compliance therefore requires simultaneous reference to the Act (for valuation, trusted trader and administrative powers), to the WTO valuation Agreement, and to Chapter 3 and Annex 3A of the ASEAN‑Australia‑New Zealand Agreement for the substantive origin rules and verification procedures. The Regulations provide domestic procedures and formulas but depend on those other texts for substantive meaning.
Amendment history
The Regulations themselves identify their short name and the year in which they were made: “These Regulations are the Customs (ASEAN‑Australia‑New Zealand) Regulations 2009” (reg 1.1). The only historical annotation in the text provided is a note referencing the Marrakesh Agreement Establishing the World Trade Organization and its publication details (reg 1.4 Note). Beyond these elements, the body of the Regulations as provided does not include a record of amendments, dates of commencement for individual provisions, or schedules identifying amendments or repeals.
What is recorded in the instrument:
The Regulations are made under the Customs Act 1901 (reg 1.3), which identifies the parent statute that confers power to make the delegated legislation. That link is the statutory origin of the Regulations and provides the legal authority for the provisions that follow.
The definition section (reg 1.4) contains a Note about the Marrakesh Agreement and where it was published in the Australian Treaty Series (1995 No. 8) and that it could be viewed in 2018 on AustLII. That Note functions as bibliographic assistance for locating an external instrument rather than an amendment record.
What is not present in the provided text:
There is no schedule or marginal note enumerating dates of amendment or amendments made since 2009, nor any version history within the quoted text. The Regulations as supplied do not include footnotes or marginal annotations showing subsequent changes.
Practical implications for practitioners
Because the provided text lacks an amendment history, users of the Regulations must verify the currentness of each provision by checking the official consolidated version of the Regulations as maintained by the Attorney‑General’s Department, the Federal Register of Legislation, or other official publication channels.
Amendments to the Customs Act or to the international instruments referenced (for example changes to Division 2 of Part VIII of the Act, or to Annex 3A of the Agreement) may alter how these Regulations operate; the absence of amendment metadata in the supplied text means practitioners should confirm whether subsequent instruments have modified these Regulations.
For historical context or legislative intent, one should consult the original legislative instruments, explanatory memoranda, parliamentary debates and the consolidated register of amendments. The Regulations themselves, as provided, do not contain that contextual material.
In short, the instrument identifies its date and authority but provides no internal amendment log. Users must consult official consolidated legislative databases to obtain an authoritative amendment history.
Litigation history
The Regulations as supplied do not include any litigation citations, case law, or references to tribunal or court decisions. No judicial decisions are embedded in the text, and no examples of judicial interpretation are recorded within the instrument.
Consequences and practical follow‑up for practitioners
Absence of litigation references does not indicate absence of disputes in practice. The Regulations set out technical tests (for example the RVC formulas in regs 3.1 and 3.2, the valuation rules in reg 4.1 and the approved exporter decision framework in regs 6.3-6.5) that are evident candidates for administrative review and judicial review in practice. However, to identify relevant judicial or tribunal authority, a researcher must search external databases: Federal Court judgments, Administrative Appeals Tribunal or Administrative Review Tribunal records, and tribunal decisions concerning the Customs Act or the Agreement’s implementation.
Administrative Review Tribunal. The Regulations refer to review to the Administrative Review Tribunal for specified decisions (regs 6.3(9), 6.5(13)). The text does not include an index of prior reviews or tribunal decisions. Practitioners wanting to assess how these provisions have been applied should search the Administrative Review Tribunal records and, where relevant, court appeals from tribunal decisions.
Customs Act litigation. Because the Regulations operate under the Customs Act, case law interpreting relevant provisions of the Act , for example, customs valuation provisions, decisions about trusted trader agreements, or the scope of administrative powers in relation to approvals and suspensions , will be relevant. The Regulations do not catalogue such case law; it must be identified through legal research databases.
Verification and origin disputes. The Regulations create administrative mechanisms for verification (by reference to Annex 3A Rules 19 and 20). Disputes over verification outcomes, producer cooperation, or the adequacy of documentary evidence could give rise to litigation or tribunal proceedings; the Regulations do not include any examples or precedent.
Guidance for searching litigation history
To build a litigation history, practitioners should search the Federal Court, Federal Circuit and Family Court consolidated database, Administrative Review Tribunal and Administrative Appeals Tribunal decisions, and the relevant appellate decisions. Keywords to include in searches are the regulation names and numbers (for example “Customs (ASEAN‑Australia‑New Zealand) Regulations 2009,” “reg 3.1 regional value content,” “approved exporter,” “Comptroller‑General of Customs decision,” and the corresponding Act provisions cited in the Regulations such as s 126AKDE, s 126AKDB, s 153ZKB, s 153ZKE). Also search for cases that cite the Agreement or Annex 3A for guidance on origin and verification.
In short, the text provided contains no litigation history. Building an authoritative litigation map requires targeted external legal research in tribunal and court databases.
Gotchas
The Regulations embed a number of specific technical traps and operational pitfalls that parties should be aware of. These are not speculative policy criticisms; they are concrete features of the text that create compliance risk or unexpected outcomes if overlooked.
Recursive application of tariff change requirement (reg 2.1)
Reg 2.1 allows a non‑originating material to be treated as satisfying a change in tariff classification if it was produced entirely in a Party from other non‑originating materials and each of those other materials satisfies the change, including by repeated application of the regulation. This creates a recursive pathway for complex manufacturing chains that might otherwise be excluded. The gotcha is that compliance for a single finished input depends on proving the chain of compliance for all component non‑originating materials. Record keeping and producer cooperation across multiple tiers will be necessary to rely on this provision.
Two distinct RVC methods with different inputs (regs 3.1 and 3.2)
The direct method includes AANZFTA material cost, labour, overhead, profit and other costs, all divided by customs value (reg 3.1). The indirect method subtracts the value of non‑originating materials from customs value (reg 3.2). The same term “customs value” is used in both methods but is defined externally under Division 2 of Part VIII of the Act. The practical risk is choosing the wrong method or mis‑valuing components (for example profit or overhead). Note that “profit” is defined by Article 5 of Chapter 3 of the Agreement (reg 3.1). Getting the components wrong alters the RVC percentage materially.
Freight and insurance must be included when valuing imported non‑originating materials (reg 4.1(3))
When valuing non‑originating materials imported into a Party by the producer, reg 4.1(3) requires inclusion in value of freight to the port or place of entry and insurance related to that freight. If an entity mistakenly omits these costs, its valuation of non‑originating materials will be understated relative to the Regulation’s requirement, potentially affecting eligibility.
Deductions for production or value‑added in another Participating Party only where last process occurs in a Participating Party (reg 4.1(4))
The ability to deduct the value of production undertaken or the amount of value added in another Participating Party is conditional on the last process of production occurring in a Participating Party. This is a narrow gateway; supply chains that have last processing steps outside Participating Parties cannot claim these deductions, even if intermediate processing occurred in a Participating Party.
Accessories, spare parts and packaging may be included in RVC (regs 4.2 and 4.3)
The Regulations mandate inclusion of accessories, spare parts, tools, informational materials and packaging in RVC calculations where the Act’s paragraphs are satisfied. Entities must check applicability of the Act’s referenced paragraphs (153ZKE(7) and 153ZKH(1)(a)-(b)) to determine whether these items are to be added. Misclassification or failure to document these items can invalidate an RVC calculation.
Records must be readily translatable and convertible to hard copy in English (regs 5.1(3)(b)-(c), 5.2(3)(b)-(c))
Records may be held overseas, but if they are not in English, the exporter/producer must ensure they can be readily translated and that electronic records are readily convertible into a hard copy in English. The gotcha is that “readily” is not defined; customs authorities may assess compliance on a practical basis and could treat delays or onerous conversions as a failure to produce records.
Five‑year retention starts on date the Proof of Origin is issued (regs 5.1(2), 5.2(2))
The retention clock starts on the date the Proof of Origin is issued, not on date of export or production. Entities must track that date precisely to meet the retention minimum.
Approved exporter eligibility requires a trusted trader agreement (reg 6.2(a))
An exporter cannot be approved unless a trusted trader agreement is in force under s 176A of the Act. If an entity expects to qualify as an approved exporter to ease administrative burdens, the need to obtain a trusted trader agreement is a precondition that may involve separate negotiation and compliance.
Suspension preserves running of approval period (reg 6.5(9))
If an approval is suspended it has “no effect while suspended” but the period for which the approval remains in force continues to run. That means the efficacy of an approval can be eroded by suspension without extension of the approval term. Entities should be aware that suspension can reduce the remaining life of an approval.
Procedural timelines , at least 10 business days to make submissions (reg 6.5(3)(c))
Before varying, suspending or terminating an approval, the Comptroller‑General must invite written submissions with at least 10 business days to respond. Entities must monitor communications closely and prepare submissions within this defined (and arguably short) period to preserve procedural rights.
Many substantive definitions are external (reg 1.4)
Core terms like Agreement, Harmonized System, originating/non‑originating materials, Party, produce and Proof of Origin are defined in the Act or in the Agreement. The Regulations therefore do not stand alone; misreading the external definitions is a common source of error.
Administrative discretion with broad consideration powers (regs 6.3(3), 6.5(5))
The Comptroller‑General’s decision‑making is not narrowly constrained by the listed matters; the Regulations explicitly say that the listed matters do not limit what the Comptroller‑General may consider. That expands administrative discretion beyond the enumerated items.
These are concrete, text‑based pitfalls. Each creates operational compliance challenges that require document systems, cross‑tier supplier cooperation, clear valuation practice and attention to administrative notices and timelines.
How to comply
Compliance under these Regulations requires a programmatic approach covering documentation, calculation methods, approvals and engagement with the Comptroller‑General’s processes. The following is a practical step‑by‑step compliance checklist grounded in the Regulations’ text.
Identify applicable origin criteria and chosen RVC method
Determine whether the goods are claimed as originating under Chapter 3 of the Agreement (see reg 1.4; the Regulations repeatedly assume Annex 3A governs the substantive origin tests). If an RVC requirement applies, decide which method you will use , direct or indirect , and document the choice and rationale. The formulas are explicit:
Direct method (reg 3.1(1)): RVC% = (AANZFTA material cost + labour cost + overhead cost + profit + other costs) / customs value × 100. Ensure you can populate each component in accordance with Part 4 and Article 5 of Chapter 3 for “profit”.
Indirect method (reg 3.2(1)): RVC% = (customs value − value of non‑originating materials) / customs value × 100. Ensure the “value of non‑originating materials” is calculated per Part 4.
Calculate customs value correctly
Use Division 2 of Part VIII of the Customs Act to establish the customs value that will serve as the denominator or input in RVC calculations (refs at regs 3.1(1) and 3.2(1)). If there is any doubt about valuation methods under the Act, obtain specialist advice or a customs ruling; the RVC result depends on an accurate customs value.
Apply material valuation rules in Part 4
For non‑originating materials imported into a Party by the producer, value them according to the Agreement on Implementation of Article VII of GATT 1994 (reg 4.1(2)(a)), and include freight to the port/place of entry and related insurance (reg 4.1(3)). For originating materials produced or acquired by the producer, value them as if imported (reg 4.1(2)(b)). For non‑originating materials acquired domestically, use the earliest ascertained price paid by the producer (reg 4.1(2)(c)). If the last process occurs in a Participating Party, evaluate whether a deduction for production value or value added in another Participating Party is available (reg 4.1(4)).
Document accessories and packaging decisions
If paragraphs 153ZKE(7) or 153ZKH(1)(a)-(b) of the Act are satisfied, include accessories, spare parts, tools, instructional materials and packaging or containers in RVC calculations as specified in regs 4.2 and 4.3. Maintain records showing how these items were valued and whether they are originating or non‑originating.
Set up record keeping systems meeting the Regulations’ specificity
For exporters who are not producers, ensure the records listed in reg 5.1(1)(a)-(j) are captured and retained.
For producers, ensure the records in reg 5.2(1)(a)-(l) are captured and retained.
Retain records for at least five years from the date the Proof of Origin is issued (regs 5.1(2), 5.2(2)).
Ensure records can be produced in English readily: if documents are not in English, maintain a translation process that allows prompt translation (regs 5.1(3)(b), 5.2(3)(b)). Ensure electronic records are convertible into hard copy in English (regs 5.1(3)(c), 5.2(3)(c)). Document your process for translation and conversion as part of your compliance files.
Manage supplier and producer declarations proactively
For RVC calculations and origin claims that depend on inputs from upstream suppliers, obtain and archive producer declarations claiming origin and stating willingness to cooperate in verification under Rules 19 and 20 of Annex 3A (reg 6.2(c)(i)-(ii)). If you intend to be an approved exporter, ensure producers understand and have processes to cooperate with verification.
Consider applying for approved exporter status if appropriate
If your business expects to export frequently to a Party and to benefit administratively from approval, note the application rules (reg 6.1): applications in approved form, electronic application via an approved statement, and withdrawal options. Ensure eligibility criteria are met: trusted trader agreement in force under s 176A of the Act (reg 6.2(a)), knowledge of Annex 3A rules (reg 6.2(b)), and capacity to obtain the necessary producer declarations (reg 6.2(c)). Keep records that demonstrate compliance with paragraph 4 of Rule 15 of Annex 3A and any other approval conditions the Comptroller‑General imposes (reg 6.4).
Anticipate and manage administrative processes for approvals
If seeking approval, expect the Comptroller‑General to set an approved exporter code and specify a period for approval (reg 6.3(4)-(6)). Be prepared to respond to enquiries about variations, suspensions or terminations; reg 6.5 requires the Comptroller‑General to give notice with reasons and at least 10 business days for written submissions prior to making a decision (reg 6.5(3)(c)). Maintain an administrative point of contact to receive and respond to any such notices promptly.
Prepare for verification
Because approved exporter eligibility requires producers to be willing to cooperate in verification (reg 6.2(c)(ii)), prepare internal procedures to facilitate on‑site checks or documentary verifications that the Comptroller‑General or designated verification authorities may request under Annex 3A. Maintain audit trails showing material flows and RVC calculations.
Retain Proofs of Origin and related evidence
Keep a copy of each Proof of Origin issued for exported goods and link that copy to the five‑year record retention schedule (regs 5.1(1)(i), 5.2(1)(l), 5.1(2), 5.2(2)). Ensure the Proof of Origin is date‑stamped or otherwise recorded so that retention start dates are clear.
Coordinate with customs advisers and legal counsel
Given the Regulations’ reliance on the Act, Annex 3A and the WTO valuation Agreement, coordinate with customs brokers, trade compliance specialists and legal counsel to ensure alignment across statutory valuation rules, RVC calculations and treaty requirements. Where uncertainty exists about the interpretation of undefined or cross‑referenced terms (for example, the precise treatment of “profit” under Article 5 of Chapter 3), obtain binding rulings or precedent guidance where possible.
Monitor changes to the Act and international instruments
The Regulations import substantive standards from other legal sources. Regularly monitor amendments to the Customs Act, to Annex 3A and to the Agreement on Implementation of Article VII of GATT 1994. Update internal compliance documentation and training accordingly.
Implementing these steps will address the technical calculation requirements, the documentary obligations and the administrative processes the Regulations impose. The core compliance challenge is ensuring that valuation, RVC arithmetic and documentary evidence are consistent, auditable and readily producible to customs authorities.
Section 2.1Change in tariff classification requirement for non‑originating materials
(1) For the purposes of subsection 153ZKE(6) of the Act, the regional value content of goods under the direct method is worked out using the formula:
where:
AANZFTA material cost means the value, worked out under Part 4, of the originating materials used in the production of the goods.
customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.
labour cost includes wages, remuneration and other employee benefits.
other costs means the costs incurred in placing the goods in the ship or other means of transport for export including, but not limited to, domestic transport costs, storage and warehousing, port handling, brokerage fees and service charges.
overhead cost means the total overhead expense.
profit has the same meaning as it has in Article 5 of Chapter 3 of the Agreement.
(2) Regional value content must be expressed as a percentage.
3.2 Indirect/build‑down method
3.2 Indirect/build‑down method
(1) For the purposes of subsection 153ZKE(6) of the Act, the regional value content of goods under the indirect/build‑down method is worked out using the formula:
where:
customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.
value of non‑originating materials means the value, worked out under Part 4, of the non‑originating materials used in the production of the goods.
(2) Regional value content must be expressed as a percentage.
Part 4 Determination of value
Part 4—Determination of value
4.1 Value of goods that are originating materials or non‑originating materials
4.1 Value of goods that are originating materials or non‑originating materials
(1) For the purposes of subsection 153ZKB(3) of the Act, this regulation explains how to work out the value of originating materials or non‑originating materials used in the production of goods.
(2) The value of the materials is as follows:
(a) for non‑originating materials imported into a Party by the producer of the goods—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;
(b) for originating materials acquired, or produced, by the producer of the goods—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 on the assumption that those materials had been imported into a Party by the producer of the goods;
(c) for non‑originating materials acquired by the producer of the goods—the earliest ascertained price paid for the materials by that producer.
(3) For the purposes of paragraph (2)(a), in working out the value of particular non‑originating materials, the following must be included:
(a) the cost of freight of the non‑originating materials to the port or place of entry into the Party;
(b) the cost of insurance related to that freight.
(4) For the purposes of paragraph (2)(a) or (c), in working out the value of particular non‑originating materials used in the production of goods where the last process of production occurs in a Participating Party, the following may be deducted:
(a) the value of any production undertaken on the non‑originating materials in any other Participating Party;
(b) the amount of the value added to the non‑originating materials in any other Participating Party.
4.2 Value of accessories, spare parts, tools or instructional or other information materials
4.2 Value of accessories, spare parts, tools or instructional or other information materials
If paragraphs 153ZKE(7)(a), (b), (c), (d) and (e) of the Act are satisfied in relation to goods:
(a) the value of the accessories, spare parts, tools or instructional or other information materials must be taken into account for the purposes of working out the regional value content of the goods under Part 3; and
(b) if the accessories, spare parts, tools or instructional or other information materials are originating materials—for the purposes of regulations 3.1 and 4.1, those accessories, spare parts, tools or instructional or other information materials are taken to be originating materials used in the production of the goods; and
(c) if the accessories, spare parts, tools or instructional or other information materials are non‑originating materials—for the purposes of regulations 3.2 and 4.1, those accessories, spare parts, tools or instructional or other information materials are taken to be non‑originating materials used in the production of the goods.
4.3 Value of packaging material and container
4.3 Value of packaging material and container
If paragraphs 153ZKH(1)(a) and (b) of the Act are satisfied in relation to goods and the goods must have a regional value content of not less than a particular percentage worked out in a particular way:
(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 Part 3; and
(b) if that packaging material or container is an originating material—for the purposes of regulations 3.1 and 4.1, that packaging material or container is taken to be an originating material used in the production of the goods; and
(c) if that packaging material or container is a non‑originating material—for the purposes of regulations 3.2 and 4.1, that packaging material or container is taken to be a non‑originating material used in the production of the goods.
Part 5 Record keeping obligations
Part 5—Record keeping obligations
5.1 Exportation of goods to a Party—record keeping by exporter who is not the producer of the goods
5.1 Exportation of goods to a Party—record keeping by exporter who is not the producer of the goods
(1) For the purposes of subsection 126AKDB(1) of the Act, an exporter of goods mentioned in that subsection, who is not also the producer of the goods, must keep the following records:
(a) records of the purchase of the goods by the exporter;
(b) records of the purchase of the goods by the person to whom the goods are exported;
(c) evidence that payment has been made for the goods;
(d) evidence of the classification of the goods under the Harmonized System;
(e) if the goods include any accessories, spare parts, tools or instructional or other information materials that were purchased by the exporter:
(i) records of the purchase of the accessories, spare parts, tools or instructional or other information materials; and
(ii) evidence of the value of the accessories, spare parts, tools or instructional or other information materials;
(f) if the goods include any accessories, spare parts, tools or instructional or other information materials that were produced by the exporter:
(i) records of the purchase of all materials that were purchased for use or consumption in the production of the accessories, spare parts, tools or instructional or other information materials; and
(ii) evidence of the value of the materials so purchased; and
(iii) records of the production of the accessories, spare parts, tools or instructional or other information materials;
(g) if the goods are packaged for retail sale in packaging material or a container that was purchased by the exporter:
(i) records of the purchase of the packaging material or container; and
(ii) evidence of the value of the packaging material or container;
(h) if the goods are packaged for retail sale in packaging material or a container that was produced by the exporter:
(i) records of the purchase of all materials that were purchased for use or consumption in the production of the packaging material or container; and
(ii) evidence of the value of the materials so purchased; and
(iii) records of the production of the packaging material or container;
(i) a copy of the Proof of Origin for the goods;
(j) any other documents in support of the goods being originating goods in accordance with Chapter 3 of the Agreement (including documents from the producer or supplier of the goods).
(2) The records must be kept for at least 5 years starting on the date the Proof of Origin for the goods is issued.
(3) The exporter:
(a) may keep the records at any place (whether or not in Australia); and
(b) must ensure that:
(i) the records are kept in a form that would enable a determination of whether the goods are originating goods in accordance with Chapter 3 of the Agreement; and
(ii) if the records are not in English—the records are kept in a place and form that would enable an English translation to be readily made; and
(iii) if the records are kept by mechanical or electronic means—the records are readily convertible into a hard copy in English.
5.2 Exportation of goods to a Party—record keeping by the producer of the goods
5.2 Exportation of goods to a Party—record keeping by the producer of the goods
(1) For the purposes of subsection 126AKDB(1) of the Act, a producer of goods mentioned in that subsection, whether or not the producer is the exporter of the goods, must keep the following records:
(a) records of the purchase of the goods;
(b) if the producer is the exporter of the goods—evidence of the classification of the goods under the Harmonized System;
(c) evidence that payment has been made for the goods;
(d) evidence of the value of the goods;
(e) records of the purchase of all materials that were purchased for use or consumption in the production of the goods and evidence of the classification of the materials under the Harmonized System;
(f) evidence of the value of those materials;
(g) records of the production of the goods;
(h) if the goods include any accessories, spare parts, tools or instructional or other information materials that were purchased by the producer:
(i) records of the purchase of the accessories, spare parts, tools or instructional or other information materials; and
(ii) evidence of the value of the accessories, spare parts, tools or instructional or other information materials;
(i) if the goods include any accessories, spare parts, tools or instructional or other information materials that were produced by the producer:
(i) records of the purchase of all materials that were purchased for use or consumption in the production of the accessories, spare parts, tools or instructional or other information materials; and
(ii) evidence of the value of the materials so purchased; and
(iii) records of the production of the accessories, spare parts, tools or instructional or other information materials;
(j) if the goods are packaged for retail sale in packaging material or a container that was purchased by the producer:
(i) records of the purchase of the packaging material or container; and
(ii) evidence of the value of the packaging material or container;
(k) if the goods are packaged for retail sale in packaging material or a container that was produced by the producer:
(i) records of the purchase of all materials that were purchased for use or consumption in the production of the packaging material or container; and
(ii) evidence of the value of the materials so purchased; and
(iii) records of the production of the packaging material or container;
(l) a copy of the Proof of Origin for the goods.
(2) The records must be kept for at least 5 years starting on the date the Proof of Origin for the goods is issued.
(3) The producer:
(a) may keep the records at any place (whether or not in Australia); and
(b) must ensure that:
(i) the records are kept in a form that would enable a determination of whether the goods are originating goods in accordance with Chapter 3 of the Agreement; and
(ii) if the records are not in English—the records are kept in a place and form that would enable an English translation to be readily made; and
(iii) if the records are kept by mechanical or electronic means—the records are readily convertible into a hard copy in English.
Part 6 Approved exporters
Part 6—Approved exporters
6.1 Application for approval as approved exporter
6.1 Application for approval as approved exporter
(1) For the purposes of section 126AKDE of the Act, an entity may make an application to the Comptroller‑General of Customs for approval as an approved exporter.
(2) An application may be made by document or electronically.
(3) A documentary application must:
(a) be communicated to the Comptroller‑General of Customs; and
(b) be in an approved form; and
(c) contain the information required by the approved form; and
(d) be signed in a manner indicated by the approved form.
(4) An electronic application must communicate such information as is set out in an approved statement.
(5) An entity may withdraw an application at any time by notice in writing given to the Comptroller‑General of Customs.
6.2 Eligibility criteria
6.2 Eligibility criteria
For the purposes of section 126AKDE of the Act, the eligibili
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