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House of Representatives

Customs Amendment (Product Specific Rule Modernisation) Bill 2019

Explanatory Memorandum

(Circulated by authority of the Assistant Minister for Customs, Community Safety and Multicultural Affairs, the Hon Jason Wood MP)


The main purpose of the Customs Amendment (Product Specific Rule Modernisation) Bill 2019 (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 six of Australia's free trade agreements (FTAs) are given effect domestically. These six FTAs are the:

Australia-Chile Free Trade Agreement (ACLFTA);
Australia-New Zealand Closer Economic Relations Agreement (ANZCERTA);
Australia-United States Free Trade Agreement (AUSFTA).
Korea-Australia Free Trade Agreement (KAFTA);
Malaysia-Australia Free Trade Agreement (MAFTA); and
Thailand-Australia Free Trade Agreement (TAFTA);

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 amendments made to the Customs Act are similar in nature to those made by the Customs Amendments (Product Specific Rule Modernisation) Act 2018, and represent the second tranche of amendments to the provisions in the Customs Act relating to FTAs.


The amendments are technical in nature and have no financial impact.


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.

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