House of Representatives

Explanatory Memorandum

(Circulated by authority of the Assistant Minister for Customs, Community Safety and Multicultural Affairs, the Hon Jason Wood MP)

Attachment A Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Customs Amendment (Product Specific Rule Modernisation) Bill 2019

This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Bill

The Customs Amendment (Product Specific Rule Modernisation) Bill 2019 (the Bill) amends the Customs Act 1901 (the Customs Act) to streamline the way in which the product specific rules of origin (PSRs) in six of Australia's existing free trade agreements (FTAs) are given effect domestically.

These six FTAs are the:

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Australia-Chile Free Trade Agreement;

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Australia-New Zealand Closer Economic Relations Agreement;

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Australia-United States Free Trade Agreement;

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Korea-Australia Free Trade Agreement;

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Malaysia-Australia Free Trade Agreement; and

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Thailand-Australia Free Trade Agreement.

PSRs are an essential component of FTAs that must be met by importers seeking preferential tariff treatment for goods that include materials not originating in the territories covered by the FTA. If the good satisfies an FTA's PSRs, it is considered to 'originate' in an FTA Party and is entitled to receive preferential rates of customs duty on import into Australia under the Customs Tariff Act 1995.

Human rights implications

The amendments are technical in nature and do not engage any of the applicable rights or freedoms.

Conclusion

The Bill is compatible with applicable rights and freedoms recognised or declared in the international instruments listed in the definition of human rights in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.