Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Act 2019 (108 of 2019)
Schedule 1 Peru
Part 1 Peruvian originating goods
Customs Act 1901
3 After Division 1E of Part VIII
Insert:
Division 1EA - Peruvian originating goods
Subdivision A - Preliminary
153ZIL Simplified outline of this Division
• This Division defines Peruvian originating goods. Preferential rates of customs duty under the Customs Tariff Act 1995 apply to such goods that are imported into Australia.
• Subdivision B provides that goods are Peruvian originating goods if they are wholly obtained or produced entirely in Peru or in Peru and Australia.
• Subdivision C provides that goods are Peruvian originating goods if they are produced entirely in the territory of Peru, or entirely in the territory of Peru and the territory of Australia, from originating materials only.
• Subdivision D sets out when goods are Peruvian originating goods because they are produced entirely in the territory of Peru, or entirely in the territory of Peru and the territory of Australia, from non-originating materials only or from non-originating materials and originating materials.
• Subdivision E sets out when goods are Peruvian originating goods because they are accessories, spare parts, tools or instructional or other information materials imported with other goods.
• Subdivision F deals with how the consignment of goods affects whether the goods are Peruvian originating goods.
• Subdivision G allows regulations to make provision for and in relation to determining whether goods are Peruvian originating goods.
153ZIM Interpretation
Definitions
(1) In this Division:
Agreement means the Peru-Australia Free Trade Agreement, done at Canberra on 12 February 2018, as amended from time to time.
Note: The Agreement could in 2019 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
aquaculture has the meaning given by Article 3.1 of Chapter 3 of the Agreement.
Australian originating goods means goods that are Australian originating goods under a law of Peru that implements the Agreement.
Certificate of Origin means a certificate that is in force and that complies with the requirements of Article 3.17 of Chapter 3 of the Agreement.
Convention means the International Convention on the Harmonized Commodity Description and Coding System done at Brussels on 14 June 1983, as in force from time to time.
Note: The Convention is in Australian Treaty Series 1988 No. 30 ([1988] ATS 30) and could in 2019 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
customs value of goods has the meaning given by section 159.
enterprise has the meaning given by Article 1.3 of Chapter 1 of the Agreement.
Harmonized Commodity Description and Coding System means the Harmonized Commodity Description and Coding System that is established by or under the Convention.
Harmonized System means:
(a) the Harmonized Commodity Description and Coding System as in force on 1 January 2017; or
(b) if the table in Annex 3-B of the Agreement is amended or replaced to refer to Chapters, headings and subheadings of a later version of the Harmonized Commodity Description and Coding System - the later version of the Harmonized Commodity Description and Coding System.
indirect materials means:
(a) goods or energy used in the production, testing or inspection of goods, but not physically incorporated in the goods; or
(b) goods or energy used in the maintenance of buildings or the operation of equipment associated with the production of goods;
including:
(c) fuel (within its ordinary meaning); and
(d) catalysts and solvents; and
(e) gloves, glasses, footwear, clothing, safety equipment and supplies; and
(f) tools, dies and moulds; and
(g) spare parts and materials; and
(h) lubricants, greases, compounding materials and other similar goods.
Interpretation Rules means the General Rules (as in force from time to time) for the Interpretation of the Harmonized System provided for by the Convention.
non-originating materials means goods that are not originating materials.
non-Party has the same meaning as it has in Chapter 3 of the Agreement.
originating materials means:
(a) Peruvian originating goods that are used in the production of other goods; or
(b) Australian originating goods that are used in the production of other goods; or
(c) indirect materials.
person of Peru means:
(a) a national within the meaning, so far as it relates to Peru, of Article 1.3 of Chapter 1 of the Agreement; or
(b) an enterprise of Peru.
Peruvian originating goods means goods that, under this Division, are Peruvian originating goods.
production has the meaning given by Article 3.1 of Chapter 3 of the Agreement.
territory of Australia means territory within the meaning, so far as it relates to Australia, of Article 1.3 of Chapter 1 of the Agreement.
territory of Peru means territory within the meaning, so far as it relates to Peru, of Article 1.3 of Chapter 1 of the Agreement.
Value of goods
(2) The value of goods for the purposes of this Division is to be worked out in accordance with the regulations. The regulations may prescribe different valuation rules for different kinds of goods.
Tariff classifications
(3) In specifying tariff classifications for the purposes of this Division, the regulations may refer to the Harmonized System.
(4) Subsection 4(3A) does not apply for the purposes of this Division.
Incorporation of other instruments
(5) Despite subsection 14(2) of the Legislation Act 2003, regulations made for the purposes of this Division may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time.
Subdivision B - Goods wholly obtained or produced entirely in Peru or in Peru and Australia
153ZIN Goods wholly obtained or produced entirely in Peru or in Peru and Australia
(1) Goods are Peruvian originating goods if:
(a) they are wholly obtained or produced entirely in Peru or in Peru and Australia; and
(b) either:
(i) the importer of the goods has, at the time the goods are imported, a Certificate of Origin, or a copy of one, for the goods; or
(ii) Australia has waived the requirement for a Certificate of Origin for the goods.
(2) Goods are wholly obtained or produced entirely in Peru or in Peru and Australia if, and only if, the goods are:
(a) plants, or goods obtained from plants, that are grown, cultivated, harvested, picked or gathered in the territory of Peru or in the territory of Peru and the territory of Australia; or
(b) live animals born and raised in the territory of Peru or in the territory of Peru and the territory of Australia; or
(c) goods obtained from live animals in the territory of Peru; or
(d) animals obtained by hunting, trapping, fishing, gathering or capturing in the territory of Peru; or
(e) goods obtained from aquaculture conducted in the territory of Peru; or
(f) minerals, or other naturally occurring substances, extracted or taken from the territory of Peru; or
(g) fish, shellfish, other goods of sea-fishing or other marine life taken from the sea, seabed or subsoil beneath the seabed:
(i) outside the territory of Peru and the territory of Australia; and
(ii) in accordance with international law, outside the territorial sea of non-Parties;
by vessels that are registered or recorded with Peru and are entitled to fly the flag of Peru; or
(h) goods produced, from goods referred to in paragraph (g), on board a factory ship that is registered or recorded with Peru and is entitled to fly the flag of Peru; or
(i) goods (except fish, shellfish, other goods of sea-fishing or other marine life) taken by Peru, or a person of Peru, from the seabed, or subsoil beneath the seabed, outside the territory of Peru and the territory of Australia, and beyond areas over which non-Parties exercise jurisdiction, but only if Peru, or the person of Peru, has the right to exploit that seabed or subsoil in accordance with international law; or
(j) waste or scrap that:
(i) has been derived from production in the territory of Peru and that is fit only for the recovery of raw materials; or
(ii) has been derived from used goods that are collected in the territory of Peru and that are fit only for the recovery of raw materials; or
(k) goods produced entirely in the territory of Peru, or entirely in the territory of Peru and the territory of Australia, exclusively from goods referred to in paragraphs (a) to (j) or from their derivatives.
Subdivision C - Goods produced in Peru, or in Peru and Australia, from originating materials
153ZIO Goods produced in Peru, or in Peru and Australia, from originating materials
Goods are Peruvian originating goods if:
(a) they are produced entirely in the territory of Peru, or entirely in the territory of Peru and the territory of Australia, from originating materials only; and
(b) either:
(i) the importer of the goods has, at the time the goods are imported, a Certificate of Origin, or a copy of one, for the goods; or
(ii) Australia has waived the requirement for a Certificate of Origin for the goods.
Subdivision D - Goods produced in Peru, or in Peru and Australia, from non-originating materials
153ZIP Goods produced in Peru, or in Peru and Australia, from non-originating materials
(1) Goods are Peruvian originating goods if:
(a) they are classified to a Chapter, heading or subheading of the Harmonized System that is covered by the table in Annex 3-B of the Agreement; and
(b) they are produced entirely in the territory of Peru, or entirely in the territory of Peru and the territory of Australia, from non-originating materials only or from non-originating materials and originating materials; and
(c) the goods satisfy the requirements applicable to the goods in that Annex; and
(d) either:
(i) the importer of the goods has, at the time the goods are imported, a Certificate of Origin, or a copy of one, for the goods; or
(ii) Australia has waived the requirement for a Certificate of Origin for the goods.
Note: Subsection (9) sets out a limitation for goods that are put up in a set for retail sale.
(2) Without limiting paragraph (1)(c), a requirement may be specified in the table in Annex 3-B of the Agreement by using an abbreviation that is given a meaning for the purposes of that Annex.
Change in tariff classification
(3) If a requirement that applies in relation to the goods is that all non-originating materials used in the production of the goods must have undergone a particular change in tariff classification, the regulations may prescribe when a non-originating material used in the production of the goods is taken to satisfy the change in tariff classification.
(4) If:
(a) a requirement that applies in relation to the goods is that all non-originating materials used in the production of the goods must have undergone a particular change in tariff classification; and
(b) one or more of the non-originating materials used in the production of the goods do not satisfy the change in tariff classification;
then the requirement is taken to be satisfied if the total value of the non-originating materials covered by paragraph (b) does not exceed 10% of the customs value of the goods.
(5) If:
(a) a requirement that applies in relation to the goods is that all non-originating materials used in the production of the goods must have undergone a particular change in tariff classification; and
(b) the goods are classified to any of Chapters 50 to 63 of the Harmonized System; and
(c) one or more of the non-originating materials used in the production of the goods do not satisfy the change in tariff classification;
then the requirement is taken to be satisfied if the total weight of the non-originating materials covered by paragraph (c) does not exceed 10% of the total weight of the goods.
Regional value content
(6) If a requirement that applies in relation to the goods is that the goods must have a regional value content worked out in a particular way:
(a) the regional value content of the goods is to be worked out in accordance with the Agreement; or
(b) if the regulations prescribe how to work out the regional value content of the goods - the regional value content of the goods is to be worked out in accordance with the regulations.
(7) If:
(a) a requirement that applies in relation to the goods is that the goods must have a regional value content worked out in a particular way; and
(b) the goods are imported into Australia with accessories, spare parts, tools or instructional or other information materials; and
(c) the accessories, spare parts, tools or instructional or other information materials are classified with, delivered with and not invoiced separately from the goods; and
(d) the types, quantities and value of the accessories, spare parts, tools or instructional or other information materials are customary for the goods;
the regulations must provide for the value of the accessories, spare parts, tools or instructional or other information materials to be taken into account for the purposes of working out the regional value content of the goods (whether the accessories, spare parts, tools or instructional or other information materials are originating materials or non-originating materials).
Note: The value of the accessories, spare parts, tools or instructional or other information materials is to be worked out in accordance with the regulations: see subsection 153ZIM(2).
(8) For the purposes of subsection (7), disregard section 153ZIR in working out whether the accessories, spare parts, tools or instructional or other information materials are originating materials or non-originating materials.
Goods put up in a set for retail sale
(9) If:
(a) goods are put up in a set for retail sale; and
(b) the goods are classified in accordance with Rule 3(c) of the Interpretation Rules;
the goods are Peruvian originating goods under this sectiononly if:
(c) all of the goods in the set, when considered separately, are Peruvian originating goods; or
(d) the total customs value of the goods (if any) in the set that are not Peruvian originating goods does not exceed 20% of the customs value of the set of goods.
Example: A mirror, brush and comb are put up in a set for retail sale. The mirror, brush and comb have been classified under Rule 3(c) of the Interpretation Rules according to the tariff classification applicable to combs.
The effect of paragraph (c) of this subsection is that the origin of the mirror and brush must now be determined according to the tariff classifications applicable to mirrors and brushes.
153ZIQ Packaging materials and containers
(1) If:
(a) goods are packaged for retail sale in packaging material or a container; and
(b) the packaging material or container is classified with the goods in accordance with Rule 5 of the Interpretation Rules;
then the packaging material or container is to be disregarded for the purposes of this Subdivision.
Regional value content
(2) However, if a requirement that applies in relation to the goods is that the goods must have a regional value content worked out in a particular way, the regulations must provide for the value of the packaging material or container to be taken into account for the purposes of working out the regional value content of the goods (whether the packaging material or container is an originating material or non-originating material).
Note: The value of the packaging material or container is to be worked out in accordance with the regulations: see subsection 153ZIM(2).
Subdivision E - Goods that are accessories, spare parts, tools or instructional or other information materials
153ZIR Goods that are accessories, spare parts, tools or instructional or other information materials
Goods are Peruvian originating goods if:
(a) they are accessories, spare parts, tools or instructional or other information materials in relation to other goods; and
(b) the other goods are imported into Australia with the accessories, spare parts, tools or instructional or other information materials; and
(c) the other goods are Peruvian originating goods; and
(d) the accessories, spare parts, tools or instructional or other information materials are classified with, delivered with and not invoiced separately from the other goods; and
(e) the types, quantities and value of the accessories, spare parts, tools or instructional or other information materials are customary for the other goods.
Subdivision F - Consignment
153ZIS Consignment
(1) Goods are not Peruvian originating goods under this Division if the goods are transported through the territory of one or more non-Parties and either or both of the following apply:
(a) the goods undergo subsequent production or any other operation in the territory of a non-Party (other than unloading, reloading, storing, separation from a bulk shipment, labelling or any other operation that is necessary to preserve the goods in good condition or to transport the goods to the territory of Australia);
(b) while the goods are in the territory of a non-Party, the goods do not remain under customs control at all times.
(2) This section applies despite any other provision of this Division.
Subdivision G - Regulations
153ZIT Regulations
The regulations may make provision for and in relation to determining whether goods are Peruvian originating goods under this Division.