Explanatory Memorandum
(Circulated by authority of the Assistant Minister for Home Affairs, Senator the Hon. Linda Reynolds CSC)Outline
The main purpose of the Customs Amendment (Product Specific Rule Modernisation) Bill 2018 (the Bill) is to amend the Customs Act 1901 (the Customs Act) to streamline the way in which the product specific rules of origin (PSRs) of four of Australia's Free Trade Agreements (FTAs) are given effect domestically. These four FTAs are the Singapore-Australia Free Trade Agreement (SAFTA), the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), the Japan-Australia Economic Partnership Agreement (JAEPA) and the China-Australia Free Trade Agreement (ChAFTA).
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 treatment of customs duty on import into Australia under the Customs Tariff Act 1995 (the Customs Tariff Act).
The second purpose of the Bill is to amend the Customs Act to align it with certain FTA provisions not yet implemented by domestic legislation. This will ensure that domestic legislation is consistent with the FTAs.
Financial Impact Statement
The amendments are technical in nature and do not change underlying revenue over the forward estimates.
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.