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This is a Bill, not an Act. For current law, see the Acts databases.
2013-2014
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Customs Amendment (Korea-Australia
Free Trade Agreement Implementation)
Bill 2014
No. , 2014
(Immigration and Border Protection)
A Bill for an Act to amend the Customs Act 1901,
and for related purposes
No. , 2014
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Amendments
3
Part 1--Korean originating goods
3
Customs Act 1901
3
Part 2--Verification powers
14
Customs Act 1901
14
Part 3--Application provisions
16
No. , 2014
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
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 may be cited as the Customs Amendment
5
(Korea-Australia Free Trade Agreement Implementation) Act
6
2014.
7
2 Commencement
8
(1) Each provision of this Act specified in column 1 of the table
9
commences, or is taken to have commenced, in accordance with
10
column 2 of the table. Any other statement in column 2 has effect
11
according to its terms.
12
2
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
No. , 2014
1
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) 1 December 2014; and
(b) the day the Korea-Australia Free Trade
Agreement, done at Seoul on 8 April
2014, enters into force for Australia.
However, the provisions do not commence
at all if the event mentioned in paragraph (b)
does not occur.
The Minister must announce by notice in the
Gazette the day the Agreement enters into
force for Australia.
Note:
This table relates only to the provisions of this Act as originally
2
enacted. It will not be amended to deal with any later amendments of
3
this Act.
4
(2) Any information in column 3 of the table is not part of this Act.
5
Information may be inserted in this column, or information in it
6
may be edited, in any published version of this Act.
7
3 Schedules
8
Legislation that is specified in a Schedule to this Act is amended or
9
repealed as set out in the applicable items in the Schedule
10
concerned, and any other item in a Schedule to this Act has effect
11
according to its terms.
12
Amendments Schedule 1
Korean originating goods Part 1
No. , 2014
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
3
Schedule 1
--Amendments
1
Part 1
--Korean originating goods
2
Customs Act 1901
3
1 After Division 1H of Part VIII
4
Insert:
5
Division 1J--Korean originating goods
6
Subdivision A--Preliminary
7
153ZMA Simplified outline of this Division
8
•
This Division defines Korean originating goods. Preferential
9
rates of customs duty under the Customs Tariff Act 1995 apply
10
to Korean originating goods that are imported into Australia.
11
•
Subdivision B provides that goods are Korean originating
12
goods if they are wholly obtained in Korea or in Korea and
13
Australia.
14
•
Subdivision C provides that goods are Korean originating
15
goods if they are produced entirely in Korea, or in Korea and
16
Australia, from originating materials only.
17
•
Subdivision D sets out when goods are Korean originating
18
goods because they are produced entirely in Korea, or in
19
Korea and Australia, from non-originating materials only or
20
from non-originating materials and originating materials.
21
•
Subdivision E provides that goods are not Korean originating
22
goods under this Division merely because of certain
23
operations.
24
Schedule 1 Amendments
Part 1 Korean originating goods
4
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
No. , 2014
•
Subdivision F deals with other matters, such as how the
1
consignment of goods affects whether the goods are Korean
2
originating goods.
3
153ZMB Interpretation
4
Definitions
5
(1) In this Division:
6
Agreement means the Korea-Australia Free Trade Agreement,
7
done at Seoul on 8 April 2014, as amended from time to time.
8
Note:
The Agreement could in 2014 be viewed in the Australian Treaties
9
Library on the AustLII website (http://www.austlii.edu.au).
10
aquaculture has the meaning given by Article 3.30 of the
11
Agreement.
12
Australian originating goods means goods that are Australian
13
originating goods under a law of Korea that implements the
14
Agreement.
15
Certificate of Origin means a certificate that is in force and that
16
complies with the requirements of Article 3.15 of the Agreement.
17
Convention means the International Convention on the
18
Harmonized Commodity Description and Coding System done at
19
Brussels on 14 June 1983, as in force from time to time.
20
Note:
The Convention is in Australian Treaty Series 1988 No. 30 ([1988]
21
ATS 30) and could in 2014 be viewed in the Australian Treaties
22
Library on the AustLII website (http://www.austlii.edu.au).
23
customs value of goods has the meaning given by section 159.
24
enterprise has the meaning given by Article 1.4 of the Agreement.
25
Harmonized System means the Harmonized Commodity
26
Description and Coding System (as in force from time to time) that
27
is established by or under the Convention.
28
indirect materials means:
29
Amendments Schedule 1
Korean originating goods Part 1
No. , 2014
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
5
(a) goods or energy used in the production, testing or inspection
1
of goods, but not physically incorporated in the goods; or
2
(b) goods or energy used in the maintenance or operation of
3
equipment or buildings associated with the production of
4
goods;
5
including:
6
(c) fuel (within its ordinary meaning); and
7
(d) tools, dies and moulds; and
8
(e) spare parts and materials; and
9
(f) lubricants, greases, compounding materials and other similar
10
goods; and
11
(g) gloves, glasses, footwear, clothing, safety equipment and
12
supplies; and
13
(h) catalysts and solvents.
14
Interpretation Rules means the General Rules (as in force from
15
time to time) for the Interpretation of the Harmonized System
16
provided for by the Convention.
17
Korea means the Republic of Korea.
18
Korean originating goods means goods that, under this Division,
19
are Korean originating goods.
20
non-originating materials means goods that are not originating
21
materials.
22
originating materials means:
23
(a) Korean originating goods that are used in the production of
24
other goods; or
25
(b) Australian originating goods that are used in the production
26
of other goods; or
27
(c) indirect materials.
28
person of Korea means:
29
(a) a national within the meaning, so far as it relates to Korea, of
30
Article 1.4 of the Agreement; or
31
(b) an enterprise of Korea.
32
Schedule 1 Amendments
Part 1 Korean originating goods
6
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
No. , 2014
produce means grow, mine, harvest, fish, breed, raise, trap, hunt,
1
manufacture, process, assemble or disassemble.
2
territorial sea has the same meaning as in the Seas and Submerged
3
Lands Act 1973.
4
territory of Australia means territory within the meaning, so far as
5
it relates to Australia, of Article 1.4 of the Agreement.
6
territory of Korea means territory within the meaning, so far as it
7
relates to Korea, of Article 1.4 of the Agreement.
8
vegetable goods has the same meaning as it has in the Agreement.
9
Regional value content of goods
10
(2) The regional value content of goods for the purposes of this
11
Division is to be worked out in accordance with the regulations.
12
The regulations may prescribe different regional value content
13
rules for different kinds of goods.
14
Value of goods
15
(3) 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
(4) In prescribing tariff classifications for the purposes of this
20
Division, the regulations may refer to the Harmonized System.
21
(5) Subsection 4(3A) does not apply for the purposes of this Division.
22
Incorporation of other instruments
23
(6) Despite subsection 14(2) of the Legislative Instruments Act 2003,
24
regulations made for the purposes of this Division may make
25
provision in relation to a matter by applying, adopting or
26
incorporating, with or without modification, any matter contained
27
in an instrument or other writing as in force or existing from time
28
to time.
29
Amendments Schedule 1
Korean originating goods Part 1
No. , 2014
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
7
Subdivision B--Goods wholly obtained in Korea or in Korea
1
and Australia
2
153ZMC Goods wholly obtained in Korea or in Korea and Australia
3
(1) Goods are Korean originating goods if:
4
(a) they are wholly obtained in Korea or in Korea and Australia;
5
and
6
(b) either:
7
(i) the importer of the goods has, at the time for working
8
out the rate of import duty on the goods, a Certificate of
9
Origin, or a copy of one, for the goods; or
10
(ii) Australia has waived the requirement for a Certificate of
11
Origin for the goods.
12
(2) Goods are wholly obtained in Korea or in Korea and Australia if,
13
and only if, the goods are:
14
(a) minerals, or other natural resources, taken or extracted from
15
the territory of Korea; or
16
(b) vegetable goods grown, harvested, picked or gathered in the
17
territory of Korea, or in the territory of Korea and the
18
territory of Australia; or
19
(c) live animals born and raised in the territory of Korea, or in
20
the territory of Korea and the territory of Australia; or
21
(d) goods obtained from live animals referred to in paragraph (c);
22
or
23
(e) goods obtained from hunting, trapping, gathering, capturing,
24
aquaculture or fishing conducted in Korea or the territorial
25
sea of Korea; or
26
(f) fish, shellfish or other marine life taken from the sea, seabed,
27
ocean floor or subsoil outside the territorial sea of Korea by
28
ships that are registered or recorded in Korea and are entitled
29
to fly the flag of Korea; or
30
(g) goods produced, from goods referred to in paragraph (f), on
31
board factory ships that are registered or recorded in Korea
32
and are entitled to fly the flag of Korea; or
33
(h) goods, other than fish, shellfish or other marine life, taken or
34
extracted from the seabed, ocean floor or subsoil outside the
35
territory of Korea by Korea, or a person of Korea, but only if
36
Schedule 1 Amendments
Part 1 Korean originating goods
8
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
No. , 2014
Korea, or the person of Korea, has the right to exploit that
1
part of the seabed, ocean floor or subsoil; or
2
(i) goods taken from outer space by Korea, or a person of Korea,
3
and that are not processed in a country other than Korea or
4
Australia; or
5
(j) waste and scrap that:
6
(i) has been derived from production in the territory of
7
Korea; or
8
(ii) has been derived from used goods that are collected in
9
the territory of Korea and that are fit only for the
10
recovery of raw materials; or
11
(k) goods that are collected in the territory of Korea, that can no
12
longer perform their original purpose and that are fit only for
13
the recovery of raw materials; or
14
(l) goods produced entirely in the territory of Korea, or entirely
15
in the territory of Korea and the territory of Australia,
16
exclusively from goods referred to in paragraphs (a) to (k) or
17
from their derivatives.
18
Subdivision C--Goods produced in Korea, or in Korea and
19
Australia, from originating materials
20
153ZMD Goods produced in Korea, or in Korea and Australia, from
21
originating materials
22
Goods are Korean originating goods if:
23
(a) they are produced entirely in the territory of Korea, or
24
entirely in the territory of Korea and the territory of
25
Australia, from originating materials only; and
26
(b) either:
27
(i) the importer of the goods has, at the time for working
28
out the rate of import duty on the goods, a Certificate of
29
Origin, or a copy of one, for the goods; or
30
(ii) Australia has waived the requirement for a Certificate of
31
Origin for the goods.
32
Amendments Schedule 1
Korean originating goods Part 1
No. , 2014
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
9
Subdivision D--Goods produced in Korea, or in Korea and
1
Australia, from non-originating materials
2
153ZME Goods produced in Korea, or in Korea and Australia, from
3
non-originating materials
4
(1) Goods are Korean originating goods if:
5
(a) they are classified to a heading or subheading of the
6
Harmonized System specified in column 1 or 2 of the table in
7
Schedule 1 to the Customs (Korean Rules of Origin)
8
Regulation 2014; and
9
(b) they are produced entirely in the territory of Korea, or
10
entirely in the territory of Korea and the territory of
11
Australia, from non-originating materials only or from
12
non-originating materials and originating materials; and
13
(c) each requirement that is prescribed by the regulations to
14
apply in relation to the goods is satisfied; and
15
(d) either:
16
(i) the importer of the goods has, at the time for working
17
out the rate of import duty on the goods, a Certificate of
18
Origin, or a copy of one, for the goods; or
19
(ii) Australia has waived the requirement for a Certificate of
20
Origin for the goods.
21
Change in tariff classification
22
(2) The regulations may prescribe that each non-originating material
23
used in the production of the goods is required to satisfy a
24
prescribed change in tariff classification.
25
(3) The regulations may also prescribe when a non-originating
26
material used in the production of the goods is taken to satisfy the
27
change in tariff classification.
28
(4) If:
29
(a) the requirement referred to in subsection (2) applies in
30
relation to the goods; and
31
(b) one or more of the non-originating materials used in the
32
production of the goods do not satisfy the change in tariff
33
classification;
34
Schedule 1 Amendments
Part 1 Korean originating goods
10
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
No. , 2014
then the requirement referred to in subsection (2) is taken to be
1
satisfied if the total value of those non-originating materials does
2
not exceed 10% of the customs value of the goods.
3
(5) Subsection (4) does not apply in relation to goods that are
4
classified to a heading or subheading of the Harmonized System
5
falling within the following:
6
(a) heading 0301 to 0303 or 0305 to 0308 of Chapter 3;
7
(b) heading 0701 to subheading 0710.10 or heading 0713 to
8
0714 of Chapter 7;
9
(c) heading 0801 to 0810 or subheading 0813.10 to 0813.40 of
10
Chapter 8.
11
(6) If:
12
(a) the requirement referred to in subsection (2) applies in
13
relation to the goods; and
14
(b) the goods are classified to any of Chapters 50 to 63 of the
15
Harmonized System; and
16
(c) one or more of the non-originating materials used in the
17
production of the goods do not satisfy the change in tariff
18
classification;
19
then the requirement referred to in subsection (2) is taken to be
20
satisfied if the total weight of those non-originating materials does
21
not exceed 10% of the total weight of the goods.
22
Regional value content
23
(7) The regulations may prescribe that the goods are required to have a
24
regional value content of at least a prescribed percentage.
25
(8) If:
26
(a) the goods are required to have a regional value content of at
27
least a particular percentage; and
28
(b) the goods are imported into Australia with accessories, spare
29
parts or tools; and
30
(c) the accessories, spare parts or tools are not invoiced
31
separately from the goods; and
32
(d) the quantities and value of the accessories, spare parts or
33
tools are customary for the goods;
34
Amendments Schedule 1
Korean originating goods Part 1
No. , 2014
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
11
then the regulations must require the value of the accessories, spare
1
parts or tools to be taken into account as originating materials or
2
non-originating materials, as the case may be, for the purposes of
3
working out the regional value content of the goods.
4
Note:
The value of the accessories, spare parts or tools is to be worked out in
5
accordance with the regulations: see subsection 153ZMB(3).
6
No limit on regulations
7
(9) Subsections (2) and (7) do not limit paragraph (1)(c).
8
153ZMF Packaging materials and containers
9
(1) If:
10
(a) goods are packaged for retail sale in packaging material or a
11
container; and
12
(b) the packaging material or container is classified with the
13
goods in accordance with Rule 5 of the Interpretation Rules;
14
then the packaging material or container is to be disregarded for
15
the purposes of this Subdivision.
16
Regional value content
17
(2) However, if the goods are required to have a regional value content
18
of at least a particular percentage, the regulations must require the
19
value of the packaging material or container to be taken into
20
account as originating materials or non-originating materials, as the
21
case may be, for the purposes of working out the regional value
22
content of the goods.
23
Note:
The value of the packaging material or container is to be worked out
24
in accordance with the regulations: see subsection 153ZMB(3).
25
Subdivision E--Non-qualifying operations
26
153ZMG Non-qualifying operations
27
(1) Goods are not Korean originating goods under this Division merely
28
because of the following operations or processes:
29
(a) operations to preserve goods in good condition for the
30
purpose of transport or storage of the goods;
31
Schedule 1 Amendments
Part 1 Korean originating goods
12
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
No. , 2014
(b) changing of packaging or the breaking up or assembly of
1
packages;
2
(c) washing, cleaning or removal of dust, oxide, oil, paint or
3
other coverings;
4
(d) sharpening or simple processes of grinding, crushing or
5
cutting;
6
(e) simple placing in bottles, cans, flasks, bags, cases or boxes,
7
fixing on cards or boards or other simple packaging
8
operations;
9
(f) affixing or printing marks, labels, logos or other
10
distinguishing signs on goods or on their packaging;
11
(g) disassembly of goods;
12
(h) the reclassification of goods without any physical change in
13
the goods;
14
(i) any combination of things referred to in paragraphs (a) to (h).
15
(2) This section applies despite any other provision of this Division.
16
Subdivision F--Other matters
17
153ZMH Consignment
18
(1) Goods are not Korean originating goods under this Division if they
19
are transported through a country other than Korea or Australia and
20
either or both of the following apply:
21
(a) they undergo subsequent production or any other operation in
22
that country (other than unloading, reloading, storing,
23
repacking, relabelling, splitting up of loads for transport or
24
any operation that is necessary to preserve them in good
25
condition or to transport them to Australia);
26
(b) they do not remain under customs control at all times while
27
they are in that country.
28
(2) This section applies despite any other provision of this Division.
29
153ZMI Outward processing zones on the Korean Peninsula
30
Goods are not prevented from being Korean originating goods
31
under this Division if they contain materials that:
32
(a) have been exported from Korea; and
33
Amendments Schedule 1
Korean originating goods Part 1
No. , 2014
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
13
(b) have undergone processing in an area designated as an
1
outward processing zone in accordance with Annex 3-B to
2
Chapter 3 of the Agreement; and
3
(c) have been re-imported to Korea after that processing.
4
Schedule 1 Amendments
Part 2 Verification powers
14
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
No. , 2014
Part 2
--Verification powers
1
Customs Act 1901
2
2 After Division 4F of Part VI
3
Insert:
4
Division 4G--Exportation of goods to Korea
5
126AMA Definitions
6
In this Division:
7
Korea means the Republic of Korea.
8
Korean customs official means a person representing the customs
9
administration of Korea.
10
producer means a person who grows, mines, harvests, fishes,
11
breeds, raises, traps, hunts, manufactures, processes, assembles or
12
disassembles goods.
13
126AMB Record keeping obligations
14
Regulations may prescribe record keeping obligations
15
(1) The regulations may prescribe record keeping obligations that
16
apply in relation to goods that:
17
(a) are exported to Korea; and
18
(b) are claimed to be Australian originating goods for the
19
purpose of obtaining a preferential tariff in Korea.
20
On whom obligations may be imposed
21
(2) Regulations for the purposes of subsection (1) may impose such
22
obligations on an exporter or producer of goods.
23
Amendments Schedule 1
Verification powers Part 2
No. , 2014
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
15
126AMC Power to require records
1
Requirement to produce records
2
(1) An authorised officer may require a person who is subject to record
3
keeping obligations under regulations made for the purposes of
4
section 126AMB to produce to the officer such of those records as
5
the officer requires.
6
Note:
Failing to produce a record when required to do so by an officer may
7
be an offence: see section 243SB. However, a person does not have to
8
produce a record if doing so would tend to incriminate the person: see
9
section 243SC.
10
Disclosing records to Korean customs official
11
(2) An authorised officer may, for the purpose of verifying a claim for
12
a preferential tariff in Korea, disclose any records so produced to a
13
Korean customs official.
14
126AMD Power to ask questions
15
Power to ask questions
16
(1) An authorised officer may require a person who is an exporter or
17
producer of goods that:
18
(a) are exported to Korea; and
19
(b) are claimed to be Australian originating goods for the
20
purpose of obtaining a preferential tariff in Korea;
21
to answer questions in order to verify the origin of the goods.
22
Note:
Failing to answer a question when required to do so by an officer may
23
be an offence: see section 243SA. However, a person does not have to
24
answer a question if doing so would tend to incriminate the person:
25
see section 243SC.
26
Disclosing answers to Korean customs official
27
(2) An authorised officer may, for the purpose of verifying a claim for
28
a preferential tariff in Korea, disclose any answers to such
29
questions to a Korean customs official.
30
Schedule 1 Amendments
Part 3 Application provisions
16
Customs Amendment (Korea-Australia Free Trade Agreement
Implementation) Bill 2014
No. , 2014
Part 3
--Application provisions
1
3 Application provisions
2
(1)
The amendment made by item 1 applies in relation to:
3
(a) goods imported into Australia on or after the commencement
4
of that item; and
5
(b) goods imported into Australia before the commencement of
6
that item, where the time for working out the rate of import
7
duty on the goods had not occurred before the
8
commencement of that item.
9
(2)
The amendment made by item 2 applies in relation to goods exported to
10
Korea on or after the commencement of that item (whether the goods
11
were produced before, on or after that commencement).
12