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Customs (Indonesian Rules of Origin) Regulations 2019

Authoritative Version
Regulations as made
These regulations prescribe matters relating to the new rules that are required or permitted to be prescribed under new Division 1HA of the Customs Act 1901. They also prescribe the rules used to determine whether a good is Indonesian originating, including the methods used to determine the qualifying value content (QVC) of goods (a calculation used in determining whether a good made from originating and non-originating materials is an Indonesian originating good) for the purposes of some of the product-specific rules requirements. The regulations also prescribe the valuation rules for different kinds of goods.
Administered by: Home Affairs
Exempt from sunsetting by the Legislation (Exemptions and Other Matters) Regulation 2015 s11 item 01
Registered 17 Dec 2019
Tabling HistoryDate
Tabled HR04-Feb-2020
Tabled Senate04-Feb-2020

Commonwealth Coat of Arms of Australia

 

Customs (Indonesian Rules of Origin) Regulations 2019

I, General the Honourable David Hurley AC DSC (Retd), Governor‑General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulations.

Dated 12 December 2019

David Hurley

Governor‑General

By His Excellency’s Command

Jason Wood

Assistant Minister for Customs, Community Safety and Multicultural Affairs
Parliamentary Secretary to the Minister for Home Affairs

 

  

  

  


Contents

Part 1—Preliminary                                                                                                                                        1

1............ Name............................................................................................................................. 1

2............ Commencement............................................................................................................. 1

3............ Authority....................................................................................................................... 1

4............ Definitions..................................................................................................................... 1

Part 2—Tariff change requirement                                                                                                      3

5............ Change in tariff classification requirement for non‑originating materials....................... 3

Part 3—Qualifying value content requirement                                                                              4

6............ Direct/build‑up method.................................................................................................. 4

7............ Indirect/build‑down method.......................................................................................... 4

Part 4—Determination of value                                                                                                               5

8............ Value of goods that are originating materials or non‑originating materials.................... 5

9............ Value of accessories, spare parts, tools or instructional or other information materials. 6

10.......... Value of packaging material and container.................................................................... 6

Part 5—Record keeping obligations                                                                                                     7

11.......... Exportation of goods to Indonesia................................................................................. 7

 


Part 1Preliminary

  

1  Name

                   This instrument is the Customs (Indonesian Rules of Origin) Regulations 2019.

2  Commencement

             (1)  Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this instrument

At the same time as Schedule 2 to the Customs Amendment (Growing Australian Export Opportunities Across the Asia‑Pacific) Act 2019 commences.

 

Note:          This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

             (2)  Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3  Authority

                   This instrument is made under the Customs Act 1901.

4  Definitions

                   In this instrument:

Act means the Customs Act 1901.

Agreement has the meaning given by section 153ZLK 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 2019 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

Australian originating goods has the meaning given by section 153ZLK of the Act.

Certificate of Origin has the meaning given by section 153ZLK of the Act.

Declaration of Origin has the meaning given by section 153ZLK of the Act.

Harmonized System has the meaning given by section 153ZLK of the Act.

non‑originating materials has the meaning given by section 153ZLK of the Act.

originating materials has the meaning given by section 153ZLK of the Act.

production has the meaning given by section 153ZLK of the Act.

territory of Australia has the meaning given by section 153ZLK of the Act.

territory of Indonesia has the meaning given by section 153ZLK of the Act.

Part 2Tariff change requirement

  

5  Change in tariff classification requirement for non‑originating materials

                   For the purposes of subsection 153ZLN(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 the territory of Indonesia, or entirely in the territory of Indonesia and the territory of Australia, 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 section.

Part 3Qualifying value content requirement

  

6  Direct/build‑up method

             (1)  For the purposes of subsection 153ZLN(6) of the Act, the qualifying value content of goods under the direct/build‑up 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.

IA‑CEPA material cost means the value, worked out under Part 4, of the originating materials that are acquired by the producer, or produced by the producer, and are used by the producer in the production of the goods.

labour costs means wages, remuneration and other employee benefits associated with the production of the goods.

other costs means the costs incurred in placing the goods in a ship or other means of transport for export including transport costs, storage and warehousing costs, port handling fees, brokerage fees and service charges.

overhead costs has the meaning given by Article 4.5 of Chapter 4 of the Agreement.

profit has the meaning given by Article 4.5 of Chapter 4 of the Agreement.

             (2)  Qualifying value content must be expressed as a percentage.

7  Indirect/build‑down method

             (1)  For the purposes of subsection 153ZLN(6) of the Act, the qualifying 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 that are acquired by the producer and are used by the producer in the production of the goods, other than non‑originating materials produced by the producer.

             (2)  Qualifying value content must be expressed as a percentage.

Part 4Determination of value

  

8  Value of goods that are originating materials or non‑originating materials

             (1)  For the purposes of subsection 153ZLK(2) of the Act, this section 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 the territory of Indonesia 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 the territory of Indonesia 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)  In working out the value of particular non‑originating materials under subsection (2), the following are to be deducted if they were included under that subsection:

                     (a)  the costs of freight, insurance, packing and all other costs incurred to transport the non‑originating materials to the location of the producer of the goods;

                     (b)  duties, taxes and customs brokerage fees on the non‑originating materials that:

                              (i)  have been paid in either or both of the territory of Indonesia and the territory of Australia; and

                             (ii)  have not been waived or refunded; and

                            (iii)  are not refundable or otherwise recoverable;

                            including any credit against duties or taxes that have been paid or that are payable;

                     (c)  the costs of waste and spoilage resulting from the use of the non‑originating materials in the production of the goods, reduced by the value of reusable scrap or by‑products;

                     (d)  the costs of processing incurred in either or both of the territory of Indonesia and the territory of Australia in the production of the non‑originating materials;

                     (e)  the costs of originating materials used in the production of the non‑originating materials in either or both of the territory of Indonesia and the territory of Australia.

9  Value of accessories, spare parts, tools or instructional or other information materials

                   If paragraphs 153ZLN(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 qualifying value content of the goods under Part 3 of this instrument; and

                     (b)  if the accessories, spare parts, tools or instructional or other information materials are originating materials—for the purposes of sections 6 and 8 of this instrument, 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 sections 7 and 8 of this instrument, 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.

10  Value of packaging material and container

                   If paragraphs 153ZLO(1)(a) and (b) of the Act are satisfied in relation to goods and the goods must have a qualifying 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 qualifying value content of the goods under Part 3 of this instrument; and

                     (b)  if that packaging material or container is an originating material—for the purposes of sections 6 and 8 of this instrument, 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 sections 7 and 8 of this instrument, that packaging material or container is taken to be a non‑originating material used in the production of the goods.

Part 5Record keeping obligations

  

11  Exportation of goods to Indonesia

             (1)  For the purposes of subsection 126ALF(1) of the Act, an exporter of goods mentioned in that subsection 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; and

                            (iii)  records of the production of the packaging material or container;

                      (i)  a copy of the Certificate of Origin, or Declaration of Origin, for the goods.

             (2)  The records must be kept for at least 5 years starting on the day of exportation of the goods.

             (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 Australian originating goods; 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.