1.1Name of Regulations
These Regulations are the Customs (Australia–US Free Trade Agreement) Regulations 2004.
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These Regulations are the Customs (Australia–US Free Trade Agreement) Regulations 2004.
These Regulations are made under the Customs Act 1901.
In these Regulations:
Act means the Customs Act 1901.
Agreement has the meaning given by section 153YA of the Act.
Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 means the Agreement of that name set out in Annex 1A of the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994.
The Marrakesh Agreement Establishing the World Trade Organization is in Australian Treaty Series 1995 No. 8 ([1995] ATS 8) and could in 2021 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
non‑originating materials has the meaning given by section 153YA of the Act.
originating materials has the meaning given by section 153YA of the Act.
produce has the meaning given by section 153YA of the Act.
US means the United States of America.
used has the meaning given by section 153YA of the Act.
For the purposes of subsection 153YD(3) of the Act, a non‑originating material used in the production of goods that does not satisfy a particular change in tariff classification is taken to satisfy the change in tariff classification if:
it was produced entirely in the US, or entirely in the US and Australia, from other non‑originating materials; and
each of those other non‑originating materials satisfies the change in tariff classification, including by one or more applications of this regulation.
For the purposes of subsection 153YD(7) of the Act, the regional value content of goods under the build‑down method is worked out using the formula:
where:
customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.
value of non‑originating materials means the value, worked out under Part 4, of the non‑originating materials that are acquired by the producer and are used by the producer in the production of the goods, other than non‑originating materials produced by the producer.
Regional value content must be expressed as a percentage.
For the purposes of subsection 153YD(7) of the Act, the regional value content of goods under the build‑up method is worked out using the formula:
where:
customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.
value of originating materials means the value, worked out under Part 4, of the originating materials that are acquired by the producer, or produced by the producer, and are used by the producer in the production of the goods.
Regional value content must be expressed as a percentage.
For the purposes of subsection 153YD(7) of the Act, the regional value content of goods under the net cost method is worked out using the formula:
where:
net cost means the net cost of the goods worked out in accordance with Articles 5.4 and 5.18 of the Agreement.
value of non‑originating materials means the value, worked out under Part 4, of the non‑originating materials that are acquired by the producer and are used by the producer in the production of the goods, other than non‑originating materials produced by the producer.
Regional value content must be expressed as a percentage.
For the purposes of subsection 153YA(2) of the Act, this regulation explains how to work out the value of originating materials or non‑originating materials used in the production of goods.
The value of the materials is as follows:
for materials imported into the US by the producer of the goods—the value of the materials worked out in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994;
for materials acquired in the US—the value of those materials worked out under paragraph (a) on the assumption that those materials had been imported into the US;
for materials that are produced by the producer of the goods—the sum of:
all the costs incurred in the production of the materials, including general expenses; and
an amount that is the equivalent of the amount of profit that the producer would make for the materials in the normal course of trade.
In working out the value of particular originating materials under subregulation (2), the following may be included, to the extent that they have not been taken into account under that subregulation:
the costs of freight, insurance, packing and all other costs incurred to transport the materials within the US, or between Australia and the US, to the location of the producer of the goods;
duties, taxes and customs brokerage fees on the materials that:
have been paid in either or both of the US and Australia; and
have not been waived or refunded; and
are not refundable or otherwise recoverable;
including any credit against duties or taxes that have been paid or that are payable;
the costs of waste and spoilage resulting from the use of the materials in the production of the goods, reduced by the value of renewable scrap or by‑products.
In working out the value of particular non‑originating materials under subregulation (2), the following may be deducted if they were included under that subregulation:
the costs of freight, insurance, packing and all other costs incurred to transport the non‑originating materials within the US, or between Australia and the US, to the location of the producer of the goods;
duties, taxes and customs brokerage fees on the non‑originating materials that:
have been paid in either or both of the US and Australia; and
have not been waived or refunded; and
are not refundable or otherwise recoverable;
including any credit against duties or taxes that have been paid or that are payable;
the costs of waste and spoilage resulting from the use of the non‑originating materials in the production of the goods, reduced by the value of renewable scrap or by‑products;
the costs of processing incurred in either or both of the US and Australia in the production of the non‑originating materials;
the costs of originating materials used in the production of the non‑originating materials in either or both of the US and Australia.
If paragraphs 153YD(8)(a), (b), (c) and (d) of the Act are satisfied in relation to goods:
the value of the accessories, spare parts or tools must be taken into account for the purposes of working out the regional value content of the goods under Part 3 of these Regulations; and
if the accessories, spare parts or tools are non‑originating materials—for the purposes of Part 3 of these Regulations and regulation 4.1, those accessories, spare parts or tools are taken to be non‑originating materials used in the production of the goods; and
if the accessories, spare parts or tools are originating materials—for the purposes of Part 3 of these Regulations and regulation 4.1, those accessories, spare parts or tools are taken to be originating materials used in the production of the goods.
If paragraphs 153YK(1)(a) and (b) of the Act are satisfied in relation to goods and the goods must have a regional value content of not less than a particular percentage worked out in a particular way:
the value of the packaging material or container in which the goods are packaged must be taken into account for the purposes of working out the regional value content of the goods under Part 3 of these Regulations; and
if that packaging material or container is a non‑originating material—for the purposes of Part 3 of these Regulations and regulation 4.1, that packaging material or container is taken to be a non‑originating material used in the production of the goods; and
if that packaging material or container is an originating material—for the purposes of Part 3 of these Regulations and regulation 4.1, that packaging material or container is taken to be an originating material used in the production of the goods.
