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This is a Bill, not an Act. For current law, see the Acts databases.
2022
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Customs Amendment (India-Australia
Economic Cooperation and Trade
Agreement Implementation) Bill 2022
No. , 2022
(Home Affairs)
A Bill for an Act to amend the Customs Act 1901,
and for related purposes
No. , 2022
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Amendments
3
Part 1--Indian originating goods
3
Customs Act 1901
3
Part 2--Verification powers
14
Customs Act 1901
14
Part 3--Application provisions
17
No. , 2022
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
1
A Bill for an Act to amend the Customs Act 1901,
1
and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act is the
Customs Amendment (India-Australia Economic
5
Cooperation and Trade Agreement Implementation) Act 2022
.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
No. , 2022
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedule 1
The later of:
(a) the day this Act receives the Royal
Assent; and
(b) the day the India-Australia Economic
Cooperation and Trade Agreement, done
on 2 April 2022, enters into force.
However, the provisions do not commence
at all if the event mentioned in paragraph (b)
does not occur.
The Minister must announce, by notifiable
instrument, the day the Agreement enters
into force.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedules
7
Legislation that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Amendments
Schedule 1
Indian originating goods
Part 1
No. , 2022
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
3
Schedule 1--Amendments
1
Part 1--Indian originating goods
2
Customs Act 1901
3
1 Subparagraph 105B(3)(b)(ii)
4
After "10,", insert "10A,".
5
2 Subsection 105B(4) (paragraph (b) of the definition of
6
biofuel blend)
7
After "10,", insert "10A,".
8
3 After Division 1J of Part VIII
9
Insert:
10
Division 1JA--Indian originating goods
11
Subdivision A--Preliminary
12
153ZMK Simplified outline of this Division
13
•
This Division defines Indian originating goods. Preferential
14
rates of customs duty under the
Customs Tariff Act 1995
apply
15
to Indian originating goods that are imported into Australia.
16
•
Subdivision B provides that goods are Indian originating
17
goods if they are wholly obtained or produced in India or in
18
India and Australia.
19
•
Subdivision C sets out when goods are Indian originating
20
goods because they are produced entirely in the territory of
21
India, or entirely in the territory of India and the territory of
22
Australia, from non-originating materials only or from
23
non-originating materials and originating materials.
24
Schedule 1
Amendments
Part 1
Indian originating goods
4
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
No. , 2022
•
Subdivision D deals with how the packaging materials or
1
containers in which goods are packaged affects whether the
2
goods are Indian originating goods.
3
•
Subdivision E deals with how the consignment of goods
4
affects whether the goods are Indian originating goods.
5
•
Subdivision F allows regulations to make provision for and in
6
relation to determining whether goods are Indian originating
7
goods.
8
153ZML Interpretation
9
Definitions
10
(1) In this Division:
11
Agreement
means the India-Australia Economic Cooperation and
12
Trade Agreement, done on 2 April 2022, as amended from time to
13
time.
14
Note:
The Agreement could in 2022 be viewed in the Australian Treaties
15
Library on the AustLII website (http://www.austlii.edu.au).
16
aquaculture
has the meaning given by Article 4.1 of Chapter 4 of
17
the Agreement.
18
Australian originating goods
means goods that are Australian
19
originating goods under a law of India that implements the
20
Agreement.
21
certificate of origin
means a certificate that is in force and that
22
complies with the requirements of Article 4.15 of Chapter 4 of the
23
Agreement.
24
Convention
means the International Convention on the
25
Harmonized Commodity Description and Coding System done at
26
Brussels on 14 June 1983, as in force from time to time.
27
Note:
The Convention is in Australian Treaty Series 1988 No. 30 ([1988]
28
ATS 30) and could in 2022 be viewed in the Australian Treaties
29
Library on the AustLII website (http://www.austlii.edu.au).
30
customs value
of goods has the meaning given by section 159.
31
Amendments
Schedule 1
Indian originating goods
Part 1
No. , 2022
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
5
Harmonized Commodity Description and Coding System
means
1
the Harmonized Commodity Description and Coding System that
2
is established by or under the Convention.
3
Harmonized System
means:
4
(a) the Harmonized Commodity Description and Coding System
5
as in force on 1 January 2017; or
6
(b) if the table in Annex 4B to Chapter 4 of the Agreement is
7
amended or replaced to refer to Chapters, headings and
8
subheadings of a later version of the Harmonized Commodity
9
Description and Coding System--the later version of the
10
Harmonized Commodity Description and Coding System.
11
Indian originating goods
means goods that, under this Division,
12
are Indian originating goods.
13
indirect materials
means:
14
(a) goods or energy used in the production, testing or inspection
15
of goods, but not physically incorporated in the goods; or
16
(b) goods or energy used in the maintenance or operation of
17
equipment or buildings associated with the production of
18
goods;
19
including:
20
(c) fuel (within its ordinary meaning), catalysts and solvents; and
21
(d) gloves, glasses, footwear, clothing, safety equipment and
22
supplies; and
23
(e) tools, dies and moulds; and
24
(f) spare parts and materials; and
25
(g) lubricants, greases, compounding materials and other similar
26
goods.
27
Interpretation Rules
means the General Rules (as in force from
28
time to time) for the Interpretation of the Harmonized System
29
provided for by the Convention.
30
non-originating materials
means goods that are not originating
31
materials.
32
non-party
has the same meaning as it has in Chapter 4 of the
33
Agreement.
34
Schedule 1
Amendments
Part 1
Indian originating goods
6
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
No. , 2022
originating materials
means:
1
(a) Indian originating goods that are used in the production of
2
other goods; or
3
(b) Australian originating goods that are used in the production
4
of other goods; or
5
(c) indirect materials.
6
production
has the meaning given by Article 4.1 of Chapter 4 of
7
the Agreement.
8
territorial sea
has the same meaning as in the
Seas and Submerged
9
Lands Act 1973
.
10
territory of Australia
means territory within the meaning, so far as
11
it relates to Australia, of Article 1.3 of Chapter 1 of the Agreement.
12
territory of India
means territory within the meaning, so far as it
13
relates to India, of Article 1.3 of Chapter 1 of the Agreement.
14
Value of goods
15
(2) The
value
of goods for the purposes of this Division is to be
16
worked out in accordance with the regulations. The regulations
17
may prescribe different valuation rules for different kinds of goods.
18
Tariff classifications
19
(3) In prescribing tariff classifications for the purposes of this
20
Division, the regulations may refer to the Harmonized System.
21
(4) Subsection 4(3A) does not apply for the purposes of this Division.
22
Incorporation of other instruments
23
(5) Despite subsection 14(2) of the
Legislation Act 2003
, regulations
24
made for the purposes of this Division may make provision in
25
relation to a matter by applying, adopting or incorporating, with or
26
without modification, any matter contained in an instrument or
27
other writing as in force or existing from time to time.
28
Amendments
Schedule 1
Indian originating goods
Part 1
No. , 2022
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
7
Subdivision B--Goods wholly obtained or produced in India or
1
in India and Australia
2
153ZMM Goods wholly obtained or produced in India or in India
3
and Australia
4
(1) Goods are
Indian originating goods
if:
5
(a) they are wholly obtained or produced in India or in India and
6
Australia; and
7
(b) either:
8
(i) the importer of the goods has, at the time the goods are
9
imported, a certificate of origin, or a copy of one, for the
10
goods; or
11
(ii) Australia has waived the requirement for a certificate of
12
origin for the goods.
13
(2) Goods are
wholly obtained or produced in India or in India and
14
Australia
if, and only if, the goods are:
15
(a) plants, or goods obtained from plants, that are grown and
16
harvested, picked or gathered in the territory of India or in
17
the territory of India and the territory of Australia (including
18
fruit, flowers, vegetables, trees, seaweed, fungi, algae and
19
live plants); or
20
(b) live animals born and raised in the territory of India or in the
21
territory of India and the territory of Australia; or
22
(c) goods obtained from live animals referred to in
23
paragraph (b); or
24
(d) goods obtained from hunting, trapping, fishing, aquaculture,
25
gathering or capturing conducted in the territory of India; or
26
(e) minerals, or other naturally occurring substances, extracted or
27
taken from the soil, waters, seabed or subsoil beneath the
28
seabed in the territory of India; or
29
(f) fish, shellfish or other marine life extracted or taken from the
30
sea, seabed or subsoil beneath the seabed:
31
(i) beyond the outer limits of the territory of India and the
32
territory of Australia; and
33
(ii) in accordance with international law, outside the
34
territorial sea of non-parties;
35
Schedule 1
Amendments
Part 1
Indian originating goods
8
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
No. , 2022
by vessels that are registered, listed or recorded with India
1
and are entitled to fly the flag of India; or
2
(g) goods produced, from goods referred to in paragraph (f), on
3
board a factory ship that is registered, listed or recorded with
4
India and is entitled to fly the flag of India; or
5
(h) goods, other than fish, shellfish or other marine life, extracted
6
or taken from the seabed or subsoil beneath the seabed
7
outside the territorial sea of India, by India, but only if India
8
has the right to exploit that seabed or subsoil in accordance
9
with international law; or
10
(i) waste and scrap that has been derived from production or
11
consumption in the territory of India and that is fit only for
12
the recovery of raw materials or for recycling purposes; or
13
(j) goods produced in the territory of India, or in the territory of
14
India and the territory of Australia, exclusively from the
15
following:
16
(i) goods referred to in paragraphs (a) to (i) or their
17
derivatives;
18
(ii) Australian originating goods of a kind covered by
19
subparagraph (a) of Article 4.2 of Chapter 4 of the
20
Agreement or their derivatives.
21
Subdivision C--Goods produced in India, or in India and
22
Australia, from non-originating materials
23
153ZMN Goods produced in India, or in India and Australia, from
24
non-originating materials
25
(1) Goods are
Indian originating goods
if:
26
(a) they are classified to a Chapter, heading or subheading of the
27
Harmonized System that is covered by the table in Annex 4B
28
to Chapter 4 of the Agreement; and
29
(b) they are produced entirely in the territory of India, or entirely
30
in the territory of India and the territory of Australia, from
31
non-originating materials only or from non-originating
32
materials and originating materials; and
33
(c) either:
34
(i) the goods satisfy the requirements applicable to the
35
goods in that Annex; or
36
Amendments
Schedule 1
Indian originating goods
Part 1
No. , 2022
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
9
(ii) the goods satisfy the requirements under subsection (3);
1
and
2
(d) either:
3
(i) the importer of the goods has, at the time the goods are
4
imported, a certificate of origin, or a copy of one, for the
5
goods; or
6
(ii) Australia has waived the requirement for a certificate of
7
origin for the goods.
8
(2) Without limiting subparagraph (1)(c)(i), a requirement may be
9
specified in the table in Annex 4B to Chapter 4 of the Agreement
10
by using an abbreviation that is given a meaning for the purposes
11
of that Annex.
12
(3) Goods satisfy the requirements under this subsection if:
13
(a) all non-originating materials used in the production of the
14
goods have undergone a change in tariff classification at the
15
tariff subheading level; and
16
(b) the goods satisfy the qualifying value content requirements
17
prescribed by regulations made for the purposes of this
18
paragraph; and
19
(c) the final production process of the manufacture of the goods
20
is performed in the territory of India.
21
Change in tariff classification
22
(4) If a requirement that applies in relation to the goods is that all
23
non-originating materials used in the production of the goods must
24
have undergone a particular change in tariff classification, the
25
regulations may prescribe when a non-originating material used in
26
the production of the goods is taken to satisfy the change in tariff
27
classification.
28
(5) If:
29
(a) a requirement that applies in relation to the goods is that all
30
non-originating materials used in the production of the goods
31
must have undergone a particular change in tariff
32
classification; and
33
Schedule 1
Amendments
Part 1
Indian originating goods
10
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
No. , 2022
(b) one or more of the non-originating materials used in the
1
production of the goods do not satisfy the change in tariff
2
classification;
3
then the requirement is taken to be satisfied if:
4
(c) in the case of goods classified to any of Chapters 50 to 63 of
5
the Harmonized System--the total weight of the
6
non-originating materials covered by paragraph (b) does not
7
exceed 10% of the total weight of the goods; or
8
(d) otherwise--the total value of the non-originating materials
9
covered by paragraph (b) does not exceed 10% of the
10
customs value of the goods.
11
Qualifying value content
12
(6) If a requirement that applies in relation to the goods is that the
13
goods must have a qualifying value content of not less than a
14
particular percentage worked out in a particular way:
15
(a) the qualifying value content of the goods is to be worked out
16
in accordance with the Agreement, unless paragraph (b)
17
applies; or
18
(b) if the regulations prescribe how to work out the qualifying
19
value content of the goods--the qualifying value content of
20
the goods is to be worked out in accordance with the
21
regulations.
22
(7) If:
23
(a) a requirement that applies in relation to the goods is that the
24
goods must have a qualifying value content of not less than a
25
particular percentage worked out in a particular way; and
26
(b) the goods are imported into Australia with accessories, spare
27
parts, tools or instructional or other information materials;
28
and
29
(c) the accessories, spare parts, tools or instructional or other
30
information materials are presented with, and not invoiced
31
separately from, the goods; and
32
(d) the quantities and value of the accessories, spare parts, tools
33
or instructional or other information materials are customary
34
for the goods;
35
the regulations must provide for the following:
36
Amendments
Schedule 1
Indian originating goods
Part 1
No. , 2022
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
11
(e) the value of the accessories, spare parts, tools or instructional
1
or other information materials to be taken into account for the
2
purposes of working out the qualifying value content of the
3
goods;
4
(f) the accessories, spare parts, tools or instructional or other
5
information materials to be taken into account as originating
6
materials or non-originating materials, as the case may be.
7
Note:
The value of the accessories, spare parts, tools or instructional or other
8
information materials is to be worked out in accordance with the
9
regulations: see subsection 153ZML(2).
10
153ZMO Non-qualifying operations
11
(1) Goods are not Indian originating goods under this Subdivision
12
merely because of the following operations:
13
(a) preserving operations to ensure that the goods remain in good
14
condition for the purpose of transport or storage of the goods;
15
(b) packaging or presenting the goods for transportation or sale;
16
(c) simple processes, consisting of sifting, screening, sorting,
17
classifying, sharpening, cutting, slitting, grinding, bending,
18
coiling or uncoiling;
19
(d) for goods that are textiles--attaching accessory articles
20
(including straps, beads, cords, rings and eyelets) to the
21
goods or ironing or pressing the goods;
22
(e) affixing or printing of marks, labels, logos or other like
23
distinguishing signs on the goods or on their packaging;
24
(f) mere dilution with water or another substance that does not
25
materially alter the characteristics of the goods;
26
(g) disassembly of products into parts;
27
(h) slaughtering (within the meaning of Article 4.7 of Chapter 4
28
of the Agreement) of animals;
29
(i) simple painting or polishing operations;
30
(j) simple peeling, stoning or shelling;
31
(k) simple mixing (within the meaning of Article 4.7 of
32
Chapter 4 of the Agreement) of goods, whether or not of
33
different kinds;
34
(l) any combination of things referred to in paragraphs (a) to (k).
35
Schedule 1
Amendments
Part 1
Indian originating goods
12
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
No. , 2022
(2) For the purposes of this section,
simple
has the same meaning as it
1
has in Article 4.7 of Chapter 4 of the Agreement.
2
Subdivision D--Packaging materials and containers
3
153ZMP Packaging materials and containers
4
(1) If:
5
(a) goods are packaged for retail sale in packaging material or a
6
container; and
7
(b) the packaging material or container is classified with the
8
goods in accordance with Rule 5 of the Interpretation Rules;
9
then the packaging material or container is to be disregarded for
10
the purposes of this Division.
11
Qualifying value content
12
(2) However, if a requirement that applies in relation to the goods is
13
that the goods must have a qualifying value content of not less than
14
a particular percentage worked out in a particular way, the
15
regulations must provide for the following:
16
(a) the value of the packaging material or container to be taken
17
into account for the purposes of working out the qualifying
18
value content of the goods;
19
(b) the packaging material or container to be taken into account
20
as an originating material or non-originating material, as the
21
case may be.
22
Note:
The value of the packaging material or container is to be worked out
23
in accordance with the regulations: see subsection 153ZML(2).
24
Subdivision E--Consignment
25
153ZMQ Consignment
26
(1) Goods are not Indian originating goods under this Division if the
27
goods are transported through a non-party and either or both of the
28
following apply:
29
(a) the goods undergo further production or any other operation
30
in the non-party (other than unloading, reloading, storing,
31
repacking, relabelling for the purpose of satisfying the
32
Amendments
Schedule 1
Indian originating goods
Part 1
No. , 2022
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
13
requirements of Australia, splitting up or consolidating loads
1
or any other operation necessary to preserve the goods in
2
good condition or to transport the goods to the territory of
3
Australia);
4
(b) while the goods are in the non-party, the goods do not remain
5
under customs control at all times.
6
(2) This section applies despite any other provision of this Division.
7
Subdivision F--Regulations
8
153ZMR Regulations
9
The regulations may make provision for and in relation to
10
determining whether goods are Indian originating goods under this
11
Division.
12
Schedule 1
Amendments
Part 2
Verification powers
14
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
No. , 2022
Part 2--Verification powers
1
Customs Act 1901
2
4 After Division 4G of Part VI
3
Insert:
4
Division 4GA--Exportation of goods to India
5
126AME Definitions
6
In this Division:
7
Agreement
means the India-Australia Economic Cooperation and
8
Trade Agreement, done on 2 April 2022, as amended from time to
9
time.
10
Note:
The Agreement could in 2022 be viewed in the Australian Treaties
11
Library on the AustLII website (http://www.austlii.edu.au).
12
customs administration
for India means customs administration
13
within the meaning, so far as it relates to India, of Article 4.1 of
14
Chapter 4 of the Agreement.
15
Indian customs official
means a person representing the customs
16
administration for India.
17
producer
means a person who engages in the production of goods.
18
production
has the meaning given by Article 4.1 of Chapter 4 of
19
the Agreement.
20
territory of India
means territory within the meaning, so far as it
21
relates to India, of Article 1.3 of Chapter 1 of the Agreement.
22
126AMF Record keeping obligations
23
Regulations may prescribe record keeping obligations
24
(1) The regulations may prescribe record keeping obligations that
25
apply in relation to goods that:
26
Amendments
Schedule 1
Verification powers
Part 2
No. , 2022
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
15
(a) are exported to the territory of India; and
1
(b) are claimed to be Australian originating goods for the
2
purpose of obtaining a preferential tariff in the territory of
3
India.
4
On whom obligations may be imposed
5
(2) Regulations for the purposes of subsection (1) may impose such
6
obligations on an exporter or producer of goods.
7
126AMG Power to require records
8
Requirement to produce records
9
(1) An authorised officer may require a person who is subject to record
10
keeping obligations under regulations made for the purposes of
11
section 126AMF to produce to the officer such of those records as
12
the officer requires.
13
Note:
Failing to produce a record when required to do so by an officer may
14
be an offence: see section 243SB. However, a person does not have to
15
produce a record if doing so would tend to incriminate the person: see
16
section 243SC.
17
Disclosing records to Indian customs official
18
(2) An authorised officer may, for the purpose of verifying a claim for
19
a preferential tariff in the territory of India, disclose any records so
20
produced to an Indian customs official.
21
126AMH Power to ask questions
22
Power to ask questions
23
(1) An authorised officer may require a person who is an exporter or
24
producer of goods that:
25
(a) are exported to the territory of India; and
26
(b) are claimed to be Australian originating goods for the
27
purpose of obtaining a preferential tariff in the territory of
28
India;
29
to answer questions in order to verify the origin of the goods.
30
Schedule 1
Amendments
Part 2
Verification powers
16
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
No. , 2022
Note:
Failing to answer a question when required to do so by an officer may
1
be an offence: see section 243SA. However, a person does not have to
2
answer a question if doing so would tend to incriminate the person:
3
see section 243SC.
4
Disclosing answers to Indian customs official
5
(2) An authorised officer may, for the purpose of verifying a claim for
6
a preferential tariff in the territory of India, disclose any answers to
7
such questions to an Indian customs official.
8
Amendments
Schedule 1
Application provisions
Part 3
No. , 2022
Customs Amendment (India-Australia Economic Cooperation and
Trade Agreement Implementation) Bill 2022
17
Part 3--Application provisions
1
5 Application provisions
2
(1)
The amendments made by Part 1 apply in relation to:
3
(a) goods imported into Australia on or after the commencement
4
of that Part; and
5
(b) goods imported into Australia before the commencement of
6
that Part, where the time for working out the rate of import
7
duty on the goods had not occurred before the
8
commencement of that Part.
9
(2)
The amendment made by Part 2 applies in relation to goods exported to
10
the territory of India on or after the commencement of that Part
11
(whether the goods were produced before, on or after that
12
commencement).
13