Explanatory Memorandum
(Circulated by authority of the Assistant Minister for Customs, Community Safety and Multicultural Affairs, the Honourable Jason Wood MP)OUTLINE
The purpose of the Customs Amendment (Regional Comprehensive Economic Partnership Agreement Implementation) Bill 2021 (the Bill) is to amend the Customs Act 1901 (the Customs Act) to introduce new rules of origin for goods that are imported into Australia from a Party to the Regional Comprehensive Economic Partnership Agreement (the Agreement). The amendment to the Customs Act will enable goods that satisfy the rules of origin to enter Australia at preferential rates of customs duty.
Complementary amendments will also be made to the Custom Tariff Act 1995 (the Customs Tariff Act) by the Customs Tariff Amendment (Regional Comprehensive Economic Partnership Agreement Implementation) Bill 2021.
The Agreement is a regional free trade agreement that will complement and build upon Australia's existing free trade agreements with 14 other Indo-Pacific countries. It is a modern and comprehensive free trade agreement delivering outcomes for Australian businesses in trade in goods, trade in services, investment, economic and technical cooperation, and new rules for electronic commerce, intellectual property, government procurement, competition, and small and medium sized enterprises.
The Agreement was signed at a virtual signing ceremony on 15 November 2020. Australia signed in Canberra, and the other 14 states signed in their respective territories (China, Japan, New Zealand, the Republic of Korea, and the ten members of the Association of Southeast Asian Nations (ASEAN): Brunei Darussalam, Cambodia, Indonesia, Lao People's Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam).
To give effect to the preferential entry of goods under the Agreement, the amendments contained in the Bill provide rules for determining whether goods are originating goods. The amendments to the Customs Tariff Act will provide for the preferential entry of goods that meet those rules.
The amendments contained in the Bill will be operative on the later of the day on which the Bill receives the Royal Assent and the day on which the Agreement signed on 15 November 2020 enters into force for Australia.
FINANCIAL IMPACT STATEMENT
The 2020-21 Mid-Year Economic and Fiscal Outlook estimated that implementing the Agreement will have no impact on customs duty receipts.
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 Agreement and related preferential treatment of custom duty is at Attachment B.