Customs Amendment (Thailand-Australia Free Trade Agreement Implementation) Act 2004 (130 of 2004)
Schedule 1 Amendments
Part 1 Thai originating goods
Customs Act 1901
1 Before Division 2 of Part VIII
Insert:
Division 1D - Thai originating goods
Subdivision A - Preliminary
153Z Simplified outline
The following is a simplified outline of this Division:
• This Division defines Thai originating goods . Preferential rates of customs duty under the Customs Tariff Act 1995 apply to Thai originating goods that are imported into Australia.
• Subdivision B sets out when goods that are wholly obtained goods of Thailand are Thai originating goods.
• Subdivision C sets out when goods that are produced entirely in Thailand, or in Thailand and Australia, are Thai originating goods.
• Subdivision D sets out when accessories, spare parts or tools (imported with other goods) are Thai originating goods.
• Subdivision E deals with how the packaging materials or containers in which goods are packaged affects whether the goods are Thai originating goods.
• Subdivision F deals with how the consignment of goods affects whether the goods are Thai originating goods.
153ZA Interpretation
Definitions
(1) In this Division:
Agreement means the Thailand-Australia Free Trade Agreement, done at Canberra on 5 July 2004, as amended from time to time.
Note: In 2004 the text of the Agreement was accessible on the Internet through the web site of the Department of Foreign Affairs and Trade.
Australian originating goods means goods that are Australian originating goods under a law of Thailand that implements the Agreement.
Certificate of Origin means a certificate that is in force and that complies with the requirements of Annex 4.2 of the Agreement.
continental shelf has the same meaning as in the Seas and Submerged Lands Act 1973.
Convention means the International Convention on the Harmonized Commodity Description and Coding System done at Brussels on 14 June 1983.
Note: The text of the Convention is set out in Australian Treaty Series 1988 No. 30. In 2004 this was available in the Australian Treaties Library of the Department of Foreign Affairs and Trade, accessible on the Internet through that Department’s world-wide web site.
customs value , in relation to goods, has the meaning given by section 159.
Harmonized System means the Harmonized Commodity Description and Coding System (as in force from time to time) that is established by or under the Convention.
Interpretation Rules means the General Rules for the Interpretation of the Harmonized System provided for by the Convention.
non-originating materials means goods that are not originating materials.
originating materials means:
(a) goods that are used in the production of other goods and that are Thai originating goods; or
(b) goods that are used in the production of other goods and that are Australian originating goods.
produce means grow, raise, mine, harvest, fish, trap, hunt, manufacture, process, assemble or disassemble. Producer and production have corresponding meanings.
tariff table means the table in Schedule 1 to the Customs (Thailand-Australia Free Trade Agreement) Regulations 2004.
territorial sea has the same meaning as in the Seas and Submerged Lands Act 1973.
Thai originating goods means goods that, under this Division, are Thai originating goods.
Value of goods
(2) The value of goods for the purposes of this Division is to be worked out in accordance with the regulations. The regulations may prescribe different valuation rules for different kinds of goods.
Tariff classifications
(3) In specifying tariff classifications for the purposes of this Division, the regulations may refer to the Harmonized System.
(4) Subsection 4(3A) does not apply for the purposes of this Division.
Regulations
(5) For the purposes of this Division, the regulations may apply, adopt or incorporate any matter contained in any instrument or other writing as in force or existing from time to time.
Subdivision B - Wholly obtained goods of Thailand
153ZB Wholly obtained goods of Thailand
(1) Goods are Thai originating goods if:
(a) they are wholly obtained goods of Thailand; and
(b) the importer of the goods holds, at the time the goods are imported, a Certificate of Origin, or a copy of one, for the goods.
(2) Goods are wholly obtained goods of Thailand if, and only if, the goods are:
(a) minerals extracted in Thailand; or
(b) agricultural goods harvested, picked or gathered in Thailand; or
(c) live animals born and raised in Thailand; or
(d) products obtained from live animals in Thailand; or
(e) goods obtained directly from hunting, trapping, fishing, gathering or capturing carried out in Thailand; or
(f) fish, shellfish, plant or other marine life taken:
(i) within the territorial sea of Thailand; or
(ii) within any other maritime zone in which Thailand has sovereign rights under the law of Thailand and in accordance with UNCLOS; or
(iii) from the high seas by ships flying the flag of Thailand; or
(g) goods obtained or produced exclusively from goods referred to in paragraph (f) on board factory ships flying the flag of Thailand; or
(h) goods taken from the seabed or the subsoil beneath the seabed of the territorial sea of Thailand or of the continental shelf of Thailand:
(i) by Thailand; or
(ii) by a national of Thailand; or
(iii) by a body corporate incorporated in Thailand; or
(i) waste and scrap that has been derived from production operations in Thailand and that is fit only for the recovery of raw materials; or
(j) used goods that are collected in Thailand and that are fit only for the recovery of raw materials; or
(k) goods produced entirely in Thailand exclusively from goods referred to in paragraphs (a) to (j).
Subdivision C - Goods produced entirely in Thailand or in Thailand and Australia
153ZC Simplified outline
The following is a simplified outline of this Subdivision:
• This Subdivision sets out when goods that are produced entirely in Thailand, or in Thailand and Australia, are Thai originating goods.
• The goods may be Thai originating goods under section 153ZD (which applies to all goods).
• The goods may also be Thai originating goods under section 153ZE (which applies only to goods that are chemicals, plastics or rubber).
153ZD Goods produced entirely in Thailand or in Thailand and Australia
(1) Subject to subsection (6), goods are Thai originating goods if:
(a) they are classified to a heading or subheading of the Harmonized System that is specified in column 1 or 2 of the tariff table; and
(b) they are produced entirely in Thailand, or entirely in Thailand and Australia, from originating materials or non-originating materials, or both; and
(c) the requirement or requirements that are specified in column 4 of the tariff table and that apply to the goods are satisfied; and
(d) the importer of the goods holds, at the time the goods are imported, a Certificate of Origin, or a copy of one, for the goods.
Change in tariff classification
(2) The regulations may make it a requirement (the tariff change requirement ) that each non-originating material (if any) used to produce the goods must satisfy a particular change in tariff classification. The regulations may also set out when a non-originating material is taken to satisfy that change.
(3) The tariff change requirement is also taken to be satisfied if the total value of all the non-originating materials that:
(a) do not satisfy the particular change in tariff classification; and
(b) are used to produce the goods;
does not exceed 10% of the customs value of the goods.
Regional value content
(4) The regulations may make it a requirement that the goods must satisfy a regional value content requirement. The regulations may prescribe different regional value content requirements for different kinds of goods.
No limit on paragraph (1)(c)
(5) Subsections (2) and (4) do not limit the requirements the regulations may specify under paragraph (1)(c).
Dilution with water or another substance
(6) However, the goods are not Thai originating goods under this section if:
(a) they are classified to any of Chapters 1 to 40 of the Harmonized System; and
(b) they are produced merely as a result of non-originating materials being diluted with water or another substance; and
(c) that dilution does not materially alter the characteristics of the non-originating materials.
153ZE Goods that are chemicals, plastics or rubber
Goods are Thai originating goods if:
(a) they are produced entirely in Thailand or entirely in Thailand and Australia; and
(b) they are classified to any of Chapters 28 to 40 of the Harmonized System; and
(c) they are the product of a chemical reaction (within the meaning of the Customs (Thailand-Australia Free Trade Agreement) Regulations 2004); and
(d) the importer of the goods holds, at the time the goods are imported, a Certificate of Origin, or a copy of one, for the goods.
Subdivision D - Other Thai originating goods
153ZF Standard accessories, spare parts and tools
(1) If goods (the underlying goods ) are imported into Australia with standard accessories, standard spare parts or standard tools, then the accessories, spare parts or tools are Thai originating goods if:
(a) the underlying goods are Thai originating goods; and
(b) the accessories, spare parts or tools are not invoiced separately from the underlying goods; and
(c) the quantities and value of the accessories, spare parts or tools are the usual quantities and value in relation to the underlying goods.
Exception
(2) However, the accessories, spare parts or tools are not Thai originating goods under this section if:
(a) the underlying goods must satisfy a regional value content requirement under section 153ZD to be Thai originating goods; and
(b) the accessories, spare parts or tools are imported solely for the purpose of artificially raising the regional value content of the underlying goods.
Underlying goods
(3) If:
(a) the underlying goods must satisfy a regional value content requirement under section 153ZD to be Thai originating goods; and
(b) the accessories, spare parts or tools are not imported solely for the purpose of artificially raising the regional value content of the underlying goods;
then the regulations must require the value of the accessories, spare parts or tools to be taken into account for the purposes of that requirement.
Note: The value of the accessories, spare parts or tools is to be worked out in accordance with the regulations: see subsection 153ZA(2).
Subdivision E - Packaging materials and containers
153ZG Packaging materials and containers
(1) If:
(a) goods are packaged for retail sale in packaging material or a container; and
(b) the packaging material or container is classified with the goods in accordance with Rule 5 of the Interpretation Rules;
then the packaging material or container is to be disregarded for the purposes of this Division (with 1 exception).
(2) The exception is that in working out if the goods are Thai originating goods, if the goods must satisfy a regional value content requirement under section 153ZD, the regulations must require the value of the packaging material or container to be taken into account for the purposes of that requirement.
Note: The value of the packaging material or container is to be worked out in accordance with the regulations: see subsection 153ZA(2).
Subdivision F - Consignment
153ZH Consignment
(1) Goods are not Thai originating goods under this Division if:
(a) they are transported through a country or place other than Thailand or Australia; and
(b) either:
(i) they undergo any process of production or other operation in that country or place (other than any operation to preserve them in good condition or any operation that is necessary for them to be transported to Australia); or
(ii) they are traded or used in that country or place.
(2) This section applies despite any other provision of this Division.