Explanatory Memorandum
(Circulated by authority of the Minister for Law Enforcement and Cyber Security, the Honourable Angus Taylor MP)Outline
The purpose of the Customs Amendment (Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation) Bill 2018 (the Bill) is to amend the Customs Act 1901 (the Customs Act) to introduce new rules of origin for goods imported into Australia from a Party to the Comprehensive Agreement for Trans-Pacific Partnership (the TPP-11).
The TPP-11 is a new treaty that incorporates, by reference, the provisions of the original Trans-Pacific Partnership (the TPP) as signed by Ministers on 4 February 2016 in Auckland, New Zealand. Under the TPP-11, signatories will implement the TPP between them, with the exception of a limited number of provisions, which will be suspended. Suspensions will remain in place until the Parties agree to end them, by consensus. The text of the TPP-11 is to be read in conjunction with the text of the TPP.
The TPP-11 amendments contained in the Bill will enable eligible goods that satisfy the new rules of origin to be entered into Australia at preferential rates of customs duty. The amendments will also impose obligations on exporters of eligible goods to a Party to the TPP-11 for which a preferential rate of customs duty is claimed, and on manufacturers who produce such goods.
Complementary amendments will also be made to the Customs Tariff Act 1995 by the Customs Tariff Amendment (Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation) Bill 2018, to give effect to the preferential treatment of customs duty in accordance with the TPP-11.
Financial Impact Statement
The cost of implementing TPP, signed on 4 February 2016, was included in the 2016-17 Budget and was estimated to reduce customs duty collections by $195 million over the forward estimates. The 2018-19 Budget estimated that there would be no additional cost in implementing the TPP-11.
Statement of Compatibility with Human Rights
A Statement of Compatibility with Human rights in respect of the amendments contained in the Bill is at Attachment A . The Statement assesses the amendments to be compatible with Australia's human rights obligations.
Regulation Impact Statement
A regulation impact statement in respect of all amendments to give effect to the new rules of origin requirements in accordance with the TPP-11 and related preferential treatment of customs duty is at Attachment B.