Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Act 2019 (108 of 2019)
Schedule 2 Indonesia
Part 1 Indonesian originating goods
Customs Act 1901
3 After Division 1H of Part VIII
Insert:
Division 1HA - Indonesian originating goods
Subdivision A - Preliminary
153ZLJ Simplified outline of this Division
• This Division defines Indonesian originating goods . Preferential rates of customs duty under the Customs Tariff Act 1995 apply to Indonesian originating goods that are imported into Australia.
• Subdivision B provides that goods are Indonesian originating goods if they are wholly obtained or produced in Indonesia.
• Subdivision C provides that goods are Indonesian originating goods if they are produced entirely in the territory of Indonesia from originating materials only.
• Subdivision D sets out when goods are Indonesian originating goods because they are produced entirely in the territory of Indonesia, or entirely in the territory of Indonesia and the territory of Australia, from non-originating materials only or from non-originating materials and originating materials.
• Subdivision E deals with how the consignment or exhibition of goods affects whether the goods are Indonesian originating goods.
• Subdivision F allows regulations to make provision for and in relation to determining whether goods are Indonesian originating goods.
153ZLK Interpretation
Definitions
(1) In this Division:
Agreement means the Indonesia-Australia Comprehensive Economic Partnership Agreement, done at Jakarta on 4 March 2019, 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 4.1 of Chapter 4 of the Agreement.
Australian originating goods means goods that are Australian originating goods under a law of Indonesia that implements the Agreement.
Certificate of Origin means a certificate that is in force and that complies with the requirements of Article 4.20 of Chapter 4 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.
Declaration of Origin means a declaration that is in force and that complies with the requirements of Article 4.20 of Chapter 4 of the Agreement.
enterprise has the meaning given by Article 1.4 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 4-C 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 or operation of equipment or buildings associated with the production of goods;
including:
(c) fuel (within its ordinary meaning); and
(d) tools, dies and moulds; and
(e) spare parts and materials; and
(f) lubricants, greases, compounding materials and other similar goods; and
(g) gloves, glasses, footwear, clothing, safety equipment and supplies; and
(h) catalysts and solvents.
Indonesian originating goods means goods that, under this Division, are Indonesian originating 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 4 of the Agreement.
originating materials means:
(a) Indonesian 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 Indonesia means:
(a) a natural person of a Party within the meaning, so far as it relates to Indonesia, of Article 1.4 of Chapter 1 of the Agreement; or
(b) an enterprise of Indonesia.
production has the meaning given by Article 4.1 of Chapter 4 of the Agreement.
sea-fishing has the same meaning as it has in Chapter 4 of the Agreement.
territory of Australia means territory within the meaning, so far as it relates to Australia, of Article 1.4 of Chapter 1 of the Agreement.
territory of Indonesia means territory within the meaning, so far as it relates to Indonesia, of Article 1.4 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 prescribing 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 in Indonesia
153ZLL Goods wholly obtained or produced in Indonesia
(1) Goods are Indonesian originating goods if:
(a) they are wholly obtained or produced in Indonesia; and
(b) either:
(i) the importer of the goods has, at the time the goods are imported, a Certificate of Origin or a Declaration of Origin, or a copy of one, for the goods; or
(ii) Australia has waived the requirement for a Certificate of Origin or a Declaration of Origin for the goods.
(2) Goods are wholly obtained or produced in Indonesia if, and only if, the goods are:
(a) plants, or goods obtained from plants, that are grown, harvested, picked or gathered in the territory of Indonesia (including fruit, flowers, vegetables, trees, seaweed, fungi and live plants); or
(b) live animals born and raised in the territory of Indonesia; or
(c) goods obtained from live animals in the territory of Indonesia; or
(d) goods obtained from hunting, trapping, fishing, farming, aquaculture, gathering or capturing conducted in the territory of Indonesia; or
(e) minerals, or other naturally occurring substances, extracted or taken from the soil, waters, seabed or beneath the seabed in the territory of Indonesia; or
(f) goods of sea-fishing, or other marine goods, taken from the high seas, in accordance with international law, by any vessel that is registered or recorded with Indonesia and is entitled to fly the flag of Indonesia; or
(g) goods produced, from goods referred to in paragraph (f), on board a factory ship that is registered or recorded with Indonesia and is entitled to fly the flag of Indonesia; or
(h) goods taken by Indonesia, or a person of Indonesia, from the seabed, or beneath the seabed, outside:
(i) the exclusive economic zone of Indonesia; and
(ii) the continental shelf of Indonesia; and
(iii) an area over which a non-party exercises jurisdiction;
and taken under exploitation rights granted in accordance with international law; or
(i) either of the following:
(i) waste and scrap that has been derived from production or consumption in the territory of Indonesia and that is fit only for the recovery of raw materials;
(ii) used goods that are collected in the territory of Indonesia and that are fit only for the recovery of raw materials; or
(j) goods obtained or produced in the territory of Indonesia solely from goods referred to in paragraphs (a) to (i) or from their derivatives.
Subdivision C - Goods produced in Indonesia from originating materials
153ZLM Goods produced in Indonesia from originating materials
Goods are Indonesian originating goods if:
(a) they are produced entirely in the territory of Indonesia from originating materials only; and
(b) either:
(i) the importer of the goods has, at the time the goods are imported, a Certificate of Origin or a Declaration of Origin, or a copy of one, for the goods; or
(ii) Australia has waived the requirement for a Certificate of Origin or a Declaration of Origin for the goods.
Subdivision D - Goods produced in Indonesia, or in Indonesia and Australia, from non-originating materials
153ZLN Goods produced in Indonesia, or in Indonesia and Australia, from non-originating materials
(1) Goods are Indonesian 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 4-C of the Agreement; and
(b) they are produced entirely in the territory of Indonesia, or entirely in the territory of Indonesia and the territory of Australia, from non-originating materials only or from non-originating materials and originating materials; and
(c) the goods satisfy the requirements applicable to the goods in that Annex; and
(d) either:
(i) the importer of the goods has, at the time the goods are imported, a Certificate of Origin or a Declaration of Origin, or a copy of one, for the goods; or
(ii) Australia has waived the requirement for a Certificate of Origin or a Declaration of Origin for the goods.
(2) Without limiting paragraph (1)(c), a requirement may be specified in the table in Annex 4-C 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.
Qualifying value content
(6) If a requirement that applies in relation to the goods is that the goods must have a qualifying value content of not less than a particular percentage worked out in a particular way:
(a) the qualifying value content of the goods is to be worked out in accordance with the Agreement; or
(b) if the regulations prescribe how to work out the qualifying value content of the goods - the qualifying value content of the goods is to be worked out in accordance with the regulations.
(7) If:
(a) a requirement that applies in relation to the goods is that the goods must have a qualifying value content of not less than a particular percentage worked out in a particular way; and
(b) the goods are imported into Australia with accessories, spare parts, tools or instructional or other information materials; and
(c) the accessories, spare parts, tools or instructional or other information materials are not invoiced separately from the goods; and
(d) the accessories, spare parts, tools or instructional or other information materials are included in the price of the goods; and
(e) the 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 qualifying 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 153ZLK(2).
(8) If the goods are claimed to be Indonesian originating goods on the basis that the goods have a qualifying value content of not less than a particular percentage worked out in a particular way, the following are to be disregarded in determining whether the goods are Indonesian originating goods:
(a) operations or processes to preserve the goods in good condition for the purpose of transport or storage of the goods;
(b) operations or processes to facilitate the shipment or transportation of the goods;
(c) packaging or presenting the goods for transportation or sale;
(d) simple processes of sifting, classifying, washing or other similar simple processes;
(e) affixing of marks, labels or other distinguishing signs on the goods or on their packaging;
(f) mere dilution with water or another substance that does not materially alter the characteristics of the goods;
(g) any combination of things referred to in paragraphs (a) to (f).
153ZLO Packaging materials and containers
(1) If:
(a) goods are packaged for retail sale in packaging material or a container; and
(b) the packaging material or container is classified with the goods in accordance with Rule 5 of the Interpretation Rules;
then the packaging material or container is to be disregarded for the purposes of this Subdivision.
Qualifying value content
(2) However, if a requirement that applies in relation to the goods is that the goods must have a qualifying value content of not less than a particular percentage worked out in a particular way, the regulations must provide for the value of the packaging material or container to be taken into account for the purposes of working out the qualifying value content of the goods (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 153ZLK(2).
Subdivision E - Consignment and exhibition
153ZLP Consignment
(1) Goods are not Indonesian originating goods under this Division if the goods are transported through a non-party, the goods are not exhibited in the non-party and one or more of the following apply:
(a) the goods undergo any operation in the non-party (other than unloading, reloading, unpacking and repacking, labelling or any other operation that is necessary to preserve the goods in good condition);
(b) the goods enter the commerce of the non-party;
(c) the transport through that non-party is not justified by geographical, economic or logistical reasons.
(2) This section applies despite any other provision of this Division.
153ZLQ Exhibition
(1) Goods are not Indonesian originating goods under this Division if:
(a) the goods are imported into Australia after being exhibited in a non-party; and
(b) one or more of subparagraphs (a), (b), (c), (d) and (e) of paragraph 1 of Article 4.16 of Chapter 4 of the Agreement are not satisfied.
(2) This section applies despite any other provision of this Division.
Subdivision F - Regulations
153ZLR Regulations
The regulations may make provision for and in relation to determining whether goods are Indonesian originating goods under this Division.