House of Representatives

Explanatory Memorandum

(Circulated by authority of the Assistant Minister for Citizenship and Multicultural Affairs, the Honourable Julian Hill MP)

NOTES ON INDIVIDUAL CLAUSES

Clause 1 Short title

1. Clause 1 provides for the Bill, when enacted, to be cited as the Customs Amendment (ASEAN Australia New Zealand Free Trade Area Second Protocol Implementation and Other Measures) Act 2024.

Clause 2 Commencement

2. Clause 2 sets out the point in time at which the provisions of the Bill, when enacted, will commence.

3. Subclause 2(1) provides that each provision of the Bill, when enacted, specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table, and that any other statement in column 2 has effect according to its terms.

4. Table item 1 provides that sections 1 to 3 and anything in the Bill, when enacted, not covered elsewhere by the table will commence on the day the Act receives the Royal Assent.

5. Table item 2 provides that Schedule 1 will commence on the later of the day the Bill, when enacted, receives the Royal Assent and the day the Second Protocol done on 21 August 2023 at Semarang, Indonesia enters into force for Australia. However, the provisions do not commence at all if the Second Protocol does not enter into force for Australia.

6. Table item 2 also provides that the Minister must announce the day on which the Agreement enters into force for Australia by a notifiable instrument. The announcement made in the notifiable instrument does not lead to the commencement of Schedule 1, it merely requires the Minister to announce the commencement of the Second Protocol for public awareness. This instrument is not legislative in character. This instrument is declared by the Bill to be a notifiable instrument for the purposes of the Legislation Act 2003 (Legislation Act) to ensure it is still required to be made publicly available on the Register. Notifiable instruments are governed by the Legislation Act.

7. Table item 3 provides that Schedule 2 will commence on a single day to be fixed by Proclamation. However, if the provisions do not commence within the period of 6 months beginning on the day the Bill receives the Royal Assent, they commence on the day after the end of that period.

8. The note at the foot of the table explains that the table relates only to the provisions of the Bill as originally enacted and that the table will not be amended to address any later amendments of the Bill, when enacted.

9. Subclause 2(2) provides that any information in column 3 of the table is not part of the Bill, when enacted. Information may be inserted in this column, or information in it may be edited, in any published version of the Bill, when enacted.

Clause 3 Schedules

10. This clause enables the Schedules to the Bill, when enacted, to amend or repeal provisions of legislation specified in the Schedule in accordance with the applicable items. This clause also provides that any other item in a Schedule to the Act has effect according to its terms. Schedules 1 and 2 amend the Customs Act.

SCHEDULE 1 - ASEAN-Australia-New Zealand Free Trade Area Second Protocol amendments

Part 1 - Proof of Origin

Customs Act 1901

Item 1 Subsection 153ZKB(1) (definition of Certificate of Origin )

11. This item amends subsection 153ZKB(1) of the Customs Act to repeal the definition of Certificate of Origin.

12. The amendments made by item 2 will insert a definition of Proof of Origin into section 153ZKB(1) of the Customs Act. That definitions covers Certificate of Origin and a Declaration of Origin, both by reference to the meaning as set out in Chapter 3 of the Second Protocol. Because of this the definition of Certificate of Origin under subsection 153ZKB(1) of the Customs Act is no longer required and is repealed.

Item 2 Subsection 153ZKB(1)

13. This item inserts a new definition of Proof of Origin in subsection 153ZKB(1) of the Customs Act.

14. Rule 1 of Chapter 3 to Annex 3A concerns the new document requirement required to be met under the Second Protocol in order to satisfy a requirement for the purpose of determining whether import goods are to be treated as originating goods covered by that Agreement and as such be eligible for preferential tariff treatment. Under Rule 1, any of the following shall be considered as a Proof of Origin:

(a)

a Certificate of Origin issued by an Issuing Authority/Body in accordance with this Annex;

(b)

a Declaration of Origin by an approved exporter in accordance with paragraph 1(a) of Rule 14; or

(c)

a Declaration of Origin by an exporter or producer in accordance with paragraph 1(b) of Rule 14,

based on information available that the good is originating.

15. This item implements the new document requirement by defining Proof of Origin to mean a certificate or declaration that is in force and complies with the requirements of Rule 1 of Annex 3A to Chapter 3 of the Second Protocol.

16. The purpose of this amendment is to complement the amendments made by items 3 to 5, and together give effect to Article 15 of Chapter 3 of the Second Protocol for the purpose of Article 2 of that Chapter. Article 2 of Chapter 3 set out the kind of goods that are to be treated as originating goods for preferential tariff treatment provided other requirement under that Chapter are met. For Article 2, Article 15 of Chapter 3 provides that a claim that goods are eligible for preferential tariff treatment shall be supported by a Proof of Origin, which includes Declarations of Origin in addition to Certificates or Origin. Paragraph 5 of Rule 1 sets out the format and of and the matters to be included in a Proof or Origin.

17. Under the AANZFTA, a claim that goods were originating goods could only be supported by a Certificate of Origin. A Declaration of Origin differs to a Certificate of Origin in that it may be made by the exporter of goods (self-certification), as opposed to an independently issued Certificate of Origin from an authorised issuing body.

18. For a Declaration of Origin by an approved exporter, paragraph 1(a) of Rule 14 of Annex 3A of the Second Protocol requires that the document be completed by an approved exporter within the meaning of Rule 15 of Annex 3A of the Second Protocol. For a Declaration of Origin by an exporter or producer that is not an approved exporter, paragraph 1(a) of Rule 14 requires the document to be completed by the exporter or producer of the goods.

19. Regardless of whom completes a Declaration of Origin, paragraph 2 of Rule 14 provides the format of the document.

20. Furthermore, irrespective of whether a Certificate of Origin is completed, Rule 9 of Annex 3A requires that a Proof of Origin shall specify the relevant origin conferring criteria. That is, the criteria that is satisfied to qualify the good as AANZ originating goods.

21. The amendment made by this item has the effect of incorporating the aforementioned requirements under the Second Protocol, ensuring the document requirements to be met and implemented under amendments made by items 3 to 5 are consistent with the Second Protocol.

Item 3 Subparagraphs 153ZKC(1)(b)(i) and (ii)

22. Section 153ZKC of the Customs Act sets out AANZ originating goods that are wholly obtained goods as covered by Articles 2 (paragraph 1.1), 3 and 15 of Chapter 3 of the AANZFTA. These goods are the first of the three kind of goods that are eligible for preferential tariff treatment.

23. Under the Second Protocol the document requirement that must be met, in order for goods to satisfy a requirement to be treated as originating goods covered by that Protocol for preferential tariff treatment, is expanded to enable a Certificate of Origin or an alternative Declaration of Origin document to be provided for meeting document requirements. A Certificate of Origin is a document issued by an authorised issuing body, while a Declaration of Origin is a self-declaration document made by the exporter of the goods. The two concepts are collectively referred to as Proof of Origin and are implemented through amendments made by items 1 and 2.

24. Per the notes for item 2, Article 2 of Chapter 3 of the Second Protocol set out the kind of goods that are to be treated as originating goods for preferential tariff treatment provided other requirement under that Chapter are met. Goods that are wholly obtained goods, and referred to in section 153ZKC of the Customs Act, are a kind of such goods as covered by paragraph 1(a) of Article 2 of Chapter 3.

25. This item amends both subparagraphs 153ZKC(1)(b)(i) and (ii) of the Customs Act to omit the words 'Certificate of Origin' and substitute them with 'Proof of Origin'. In doing so, these amendments give effect to Article 15 of Chapter 3 of the Second Protocol (which provides a claim that a good is an AANZ originating good shall be supported by a Proof of Origin in accordance with Annex 3A) as they apply to wholly obtained goods. This will enable importers to rely on either a Certificate of Origin or an alternative Declaration of Origin for complying with document requirements for the purpose of a claim for preferential tariff treatment in the form of reduced customs duty rates set out in the Customs Tariff Act 1995 (Customs Tariff Act) that applies to AANZ originating goods. The Second Protocol does not make any changes to applicable rates.

Item 4 Subparagraphs 153ZKD(b)(i) and (ii)

26. Section 153ZKD of the Customs Act sets out AANZ originating goods that are produced from originating materials as covered by Articles 2 (paragraph 1.3), 3 and 15 of Chapter 3 of the AANZFTA. These goods are the second of the three kind of goods that are eligible for preferential tariff treatment.

27. Per the notes for item 3, the Second Protocol has the effect that, for goods to be treated as originating goods for preferential tariff treatment under that Protocol, a Certificate of Origin or alternatively a Declaration of Origin must be produced to satisfy Proof of Origin requirements.

28. Article 2 of Chapter 3 of the Second Protocol states that goods that are to be treated as originating goods for preferential tariff treatment provided other requirement under that Chapter are met. Goods that are produced entirely in a Party from originating materials only and, and referred to in section 153ZKD of the Customs Act, are a kind of such goods as covered by paragraph 1(c) of Article 2 of Chapter 3.

29. This item replaces the words 'Certificate of Origin' with 'Proof of Origin' in subsections 153ZKD(b)(i) and (ii). This amendment is to give effect to Article 15 of Chapter 3 of the Second Protocol, that a claim that a good is an AANZ originating good shall be supported by a Proof of Origin. This will enable importers to rely on either a Certificate of Origin or alternatively a Declaration of Origin for complying with document requirements for the purpose of a claim for preferential tariff treatment in the form of reduced customs duty rates set out in the Customs Tariff Act that applies to AANZ originating goods. The Second Protocol does not make any changes to applicable rates.

Item 5 Subparagraphs 153ZKE(d)(i) and (ii)

30. Section 153ZKE sets out AANZ originating goods that are produced from non-originating materials as covered by Articles 2 (paragraph 1.2), 4, 7 and 15 of Chapter 3 of the AANZFTA. These goods are the third of the three kind of goods that are eligible for preferential tariff treatment

31. Per the notes for item 3, the Second Protocol has the effect that, for goods to be treated as originating goods for preferential tariff treatment under that Protocol, a Certificate of Origin or alternatively a Declaration of Origin must be produced to satisfy Proof of Origin requirements.

32. Article 2 of Chapter 3 of the Second Protocol outlines that goods that are to be treated as originating goods for preferential tariff treatment provided other requirement under that Chapter are met. Goods that are produced entirely in a Party from non-originating materials only or from non-originating materials and originating materials and, and referred to in section 153ZKE of the Customs Act, are a kind of such goods as covered by paragraph 1(c) of Article 2 of Chapter 3.

33. This item replaces the words 'Certificate of Origin' with 'Proof of Origin' in subsections 153ZKE(d)(i) and (ii). This amendment is to give effect to Article 15 of Chapter 3 of the Second Protocol, that a claim that a good is an AANZ originating good shall be supported by a Proof of Origin. This will enable importers to rely on either a Certificate of Origin or alternatively a Declaration of Origin for complying with document requirements for the purpose of a claim for preferential tariff treatment in the form of reduced customs duty rates set out in the Customs Tariff Act that applies to AANZ originating goods. The Second Protocol does not make any changes to applicable rates.

Item 6 Application provision

34. This item provides that the amendments made by this Part apply in relation to goods imported into Australia on or after the commencement of Part 1. The purpose and effect of this amendment is to clarify the goods that are these amendments apply.

Part 2 - Harmonized System and Product Specific Rules

Customs Act 1901

Item 7 Subsection 153ZKB(1) (paragraph (b) of the definition of Harmonized system)

35. The HS is a structured nomenclature that organises goods according to the degree of production by tariff classification. They are commonly used throughout the world to identify products when assessing duties and taxes. The HS is administered by the World Customs Organisation and updated every five years.

36. Annex 3B of the Second Protocol, the PSR, contains the tariff classification numbers under the version of HS in 2022 (HS 2022), for each product listed. From 1 January 2023, Australia is required to use an updated version of the PSR which use the nomenclature of HS 2022.

37. This item amends the definition of Harmonized System to repeal and substitute paragraph 153ZKB(1)(b). Under new paragraph 153ZKB(1)(b), if either of the following events occurs:

(i)

Annex 3B to Chapter 3 of the Second Protocol is amended or replaced to refer to Chapters, headings and subheadings of an updated version of the HS; or

(ii)

there is a transposition (as mentioned in paragraph 4 of Article 3 of Chapter 3 of the Second Protocol) of Annex 3B to Chapter 3B to Chapter 3 of the Second Protocol because of an updated version of the Harmonized Commodity Description and Coding System and that transposition is adopted as mentioned in that paragraph;

the version of the Harmonized Commodity Description and Coding System covered by whichever of those events occurred most recently.

38. The purpose of this amendment is to implement the PSR using HS 2022 nomenclature in accordance with the Second Protocol. The updated definition has the effect that subsequent versions of the HS are incorporated by reference when either Annex 3B to Chapter 3 is formally amended or as a result of a transposition, which is a process by which a parallel or separate version of the PSR because of updates to the HS.

Item 8 Subsection 153ZKB(1)

39. This item inserts a definition of 'Product-Specific Rules' into subsection 153ZKB(1). The definition of PSR as contained in Article 1 of the Second Protocol provides that they are the rules in Annex 3B that specify that the materials used to produce a good have undergone a change in tariff classification or a specific manufacturing or processing operation, or satisfy a regional value content criterion or a combination of any of these criteria.

40. Annex 2 of the AANZFTA contains the PSR's for goods for the purpose of determining whether goods produced from non-originating material qualify as AANZ originating goods. The relevant Annex, however, under the Second Protocol is Annex 3B.

41. The purpose of this amendment is to ensure that the updated Annex 3B is captured or transposition of Annex 3B that does not result in the Annex being amended or replaced, that Annex is transposed is captured. The effect of this amendment is that any amendments to the PSR as well as updates that occur through a transposition of Annex 3B are recognised.

Item 9 Paragraph 153ZKE(1)(a)

42. This item amends paragraph 153ZKE(1)(a) of the Customs Act to omit the words 'the table in Annex 2 to the Agreement' and substitute with 'the Product-Specific Rules'. This amendment is consequential to amendments made by item 8.

43. Per the notes for item 8, the PSR for the AANZFTA is contained in Annex 2. Under the Second Protocol, the PSR is contained in Annex 3B.

44. The purpose of this amendment is ensure that Annex 3B is now included in this provision, ensuring the correct PSRs are referred. In doing so, it has the effect that if any changes are made to the PSR, including those that occur through a transposition of Annex 3B, it will be captured by section 153ZKE of the Customs Act.

Item 10 Paragraph 153ZKE(1)(c)

45. This item amends paragraph 153ZKE(1)(c) of the Customs Act to omit the words 'that Annex' and substitute with 'the Product-Specific Rules'. This amendment is consequential to amendments made by item 8.

46. Per the notes for item 8, the PSR for the AANZFTA is contained in Annex 2. Under the Second Protocol, the PSR is contained in Annex 3B.

47. The purpose of this amendment is ensure that Annex 3B is now included in this provision, ensuing the correct PSRs are referred. In doing so, it has the effect that if any changes are made to the PSR, including those that occur through a transposition of Annex 3B, it will be captured by section 153ZKE of the Customs Act.

Item 11 Subsection 153ZKE(2)

48. This item amends subsection 153ZKE(2) to omit the words 'the table in Annex 2 to the Agreement' and substitute with 'the Product-Specific Rules'. This amendment is consequential to the amendments made by item 8.

49. Per the notes for item 8, the PSR for the AANZFTA is contained in Annex 2. Under the Second Protocol, the PSR is contained in Annex 3B.

50. The purpose of this amendment is ensure that Annex 3B is now included in this provision, ensuring the correct PSRs are referred to. In doing so, it has the effect that if any changes are made to the PSR, including those that occur through a transposition of Annex 3B, it will be captured by section 153ZKE of the Customs Act.

Item 12 Subsection 153ZKE(2)

51. This item amends subsection 153ZKE(2) to omit the words 'that Annex' and substitute with 'the Product-Specific Rules. This amendment is consequential to amendments made by item 8.

52. Per the notes for item 8, the PSR for the AANZFTA is contained in Annex 2. Under the Second Protocol, the PSR is contained in Annex 3B.

53. The purpose of this amendment is ensure that Annex 3B is now included in this provision, ensuring that the correct PSRs are referred. In doing so, it has the effect that if any changes are made to the PSR, including those that occur through a transposition of Annex 3B, it will be captured by section 153ZKE of the Customs Act.

Item 13 Application Provision

54. This item provides that the amendments made in this Part apply in relation to goods imported into Australia on or after the commencement of this Part. The purpose and effect of this amendment is to clarify the goods to which these amendments apply.

Part 3 - Verification and record keeping requirements

Customs Act 1901

Item 14 After Division 4E of Part VI

55. This item amends Part VI of the Customs Act to insert new Division 4EAA, which is titled 'Exportation of goods to Parties to the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area'.

56. New Division 4E contains new sections 126AKDA, 126AKDB, 126AKDC, 126AKDD, 126AKDE, 126AKDF and 126AKDG. The purpose of these provisions is impose obligations on people who export originating goods to a Party to the Second Protocol and who wish to obtain preferential treatment of customs duty in respect of those goods in accordance with that Agreement, and on people who produce such goods. These provisions give effect to Rule 25 of Annex 3A to the Second Protocol.

57. This Division also contains new sections 126AKDE, 126AKDF and 126AKDG. The purpose of these provisions is to impose obligations on approved exporters and those who wish to claim originating status of goods by completing a Declaration of Origin under preferential tariff rates covered by the Second Protocol. These provisions give effect to Rule 15 of Annex 3A to the Second Protocol.

Section 126AKDA Definitions

58. New section 126AKDA defines the term 'AANZ customs official', 'Agreement', 'approved exporter database', 'customs authority', 'Declaration of Origin', 'Party', 'producer' and 'production' for the purposes of new Division 4EAA. With the exception of 'AANZ customs official', the terms have the same meaning as defined in Division 1G of Part VIII of the Customs Act.

59. 'AANZ customs official' is defined under this section to mean a person representing the customs authority of a Party to the Agreement. The term 'customs authority' is defined to have the meaning given by Article 3 of the Chapter 4 of the Second Protocol and means any authority that is responsible under the law of each Party for the administration and enforcement of its customs laws and regulations.

60. The purpose of the new section is to define terms referred to throughout new Division 4EAA and setting out the intended meaning for those terms.

Section 126AKDB Record keeping obligations

61. New section 126AKDB inserts a head of power to prescribe record keeping obligations. Those record keeping obligations will apply in respect of goods that are exported from Australia to a Party to the Second Protocol.

62. New subsection 126AKDB(1) enables regulations to prescribe record keeping obligations that apply in relation to goods that are exported to a Party and that are claimed to be originating goods, in accordance with Annex 3A of the Second Protocol, for the purpose of obtaining preferential tariff in the Party.

63. It is intended that the method of keeping the documents, such as the length of time for which they must be kept and the manner in which they must be kept, will be similar to current record keeping obligations under the Customs Act. However, the type of documents that will be required to be kept will be much broader than current requirements. The requirements will extend to all records relating to the origin of the goods for which preferential tariff treatment is claimed and may include, amongst other things, records associated with the tariff classification of the goods and the origin or value of the materials used to produce the goods.

64. New subsection 126AKDB(2) provides that the regulations made for the purpose of subsection 126AKDB(1) may impose obligations on an exporter or producer of goods.

Section 126AKDC Power to require records

65. Under Rule 25 of the Annex 3A of the Second Protocol, the importing party may take action to verify the eligibility of goods for preferential treatment, including requesting the supply of information relating to the production or export of the goods. New section 126AKDC gives effect to this Rule by imposing a requirement on exporters and producers to produce records to authorised officers, and empowering authorised officers to disclose records AANZ custom officials.

66. Subsection 126AKDC(1) provides that an authorised officer (as defined in section 4 of the Customs Act) may require a person who is subject to record keeping obligations under regulations made for the purpose of section 126AKDB to produce to the officer such of those records as the officer requires.

67. The note to new subsection 126AKDC(1) indicates that, where an authorised officer has requested a person who is subject to record keeping obligations under regulations made for the purposes of section 126AKDB, a failure to produce documents or records by that person may be an offence under section 243SB of the Customs Act. The note also indicates that, under section 243SC of the Customs Act, a person does not have to produce a record if doing so would tend to incriminate the person.

68. New subsection 126AKDC(2) provides that an authorised officer (as defined in section 4 of the Customs Act) may disclose any records so produced to a AANZ customs official for the purpose of verifying a claim for a preferential tariff in a Party. Records obtained by an authorised officer under new section 126AKDC may be 'Immigration and Border Protection information' within the meaning of the ABF Act.

69. Section 42 of the ABF Act prohibits the disclosure of Immigration and Border Protection information except, amongst other things, where the disclosure is authorised by or under a law of the Commonwealth.

70. By including an express provision in the Customs Act to permit the disclosure of information that may be Immigration and Border Protection information to an AANZ customs official, the disclosure of such information is required or authorised by a law of the Commonwealth for the purposes of Part 6 of the ABF Act.

Section 126AKDD Power to require records

71. New subsection 126AKDD(1) provides that an authorised officer (as defined in section 4 of the Customs Act) may require a person who is an exporter or producer of goods that:

(a)

are exported to a Party; and

(b)

are claimed to be originating goods, in accordance with Chapter 3 of the Agreement, for the purpose of obtaining a preferential tariff in the Party;

to

answer questions in order to verify the origin of the goods.

72. The power to ask questions in the circumstances set out in this section is considered a necessary adjunct to the power to require records in new section 126AKDD.

73. The note to new subsection 126AKDD(1) indicates that, where an authorised officer has requested a person to answer questions in order to verify the origin of goods in accordance with this subsection, a failure to answer questions by that person may be an offence under section 243SA of the Customs Act. The note also indicates that, under section 243SC of the Customs Act, a person does not have to produce a record if doing so would tend to incriminate the person.

74. Subsection 126AKDD(2) enables an authorised officer (as defined in section 4 of the Customs Act), for the purpose of verifying a claim for a preferential tariff in a Party, to disclose any answers to questions answered in accordance with new subsection 126AKDD(1) to a AANZ customs official.

75. The answers to questions obtained by an authorised officer under new section 126AKDD may also be 'Immigration and Border Protection information' within the meaning of Part 6 of the ABF Act and therefore cannot be disclosed to an AANZ customs official except as allowed by Part 6. By including an express provision in the Customs Act allowing for this information to be disclosed to an AANZ customs official, the disclosure is required or authorised by a law of the Commonwealth for the purposes of Part 6 of the ABF Act.

Section 126AKDE Approved exporters and Declarations of Origin

76. New subsection 126AKDE(1) provides that any exporter or producer can make a Declaration of Origin under Rule 14.1(b) of the Annex 3A to Chapter 3 of the Second Protocol if the importing and exporting parties have implemented this provision within the defined period outlined in paragraph 1(c) of Rule 1. An exporter to the Second Protocol that has not implemented paragraph 1(c) of Rule 1, must not complete a Declaration of Origin for the goods unless the exporter is, under the regulations, an approved exporter.

77. New subsection 126AKDE(2) inserts a head of power to administer the approved exporter scheme including by prescribing various matters in regulations. The purpose and effect of this amendment is to implement the obligations as set out in Rule 15 of the Annex 3A to Chapter 3 of the Second Protocol.

78. New subsection 126AKDE(3) provides that the Comptroller-General of Customs may make provision for the following matters:

(a)

the making of applications to the Comptroller-General of Customs by entities for approval as approved exporters and the withdrawal of those applications;

(b)

the eligibility criteria that an entity must meet in order for the Comptroller-General to approve the entity as an approved exporter;

(c)

the matters that the Comptroller-General must consider in deciding whether to approve an entity as an approved exporter;

(d)

the making of decisions by the Comptroller-General of Customs in relation to the applications;

(e)

the conditions that an approval of an entity as an approved exporter is subject to;

(f)

the variation, suspension or termination of an approval of an entity as an approved exporter;

(g)

the giving of notice of decisions made by the Comptroller-General of Customs ;

(h)

the review of decisions made by the Comptroller-General of Customs.

79. Prescribing matters relating to the approved exporter scheme in subordinate regulations ensures flexibility and adaptability. The regulatory frameworks for the approved exporter scheme have been designed to balance stability and transparency, allow reasonable flexibility to take account of the dynamic international trade environment and ensure the continued relevance of the scheme to participants. This approach also allows the Department to more quickly update the scheme as international trade dynamics change or as compliance requirements evolve. By using prescribing details of the scheme in the regulations, the Department can implement and revise procedures efficiently, making it easier for exporter to understand and comply with the requirements.

80. The implementation of the scheme will be subject to ongoing evaluation by the Department. As the programme evolves, further opportunities to reduce the regulatory burden associated with customs procedures at the border may be identified. Prescribing these in the regulations rather than the primary legislation will provide the flexibility that is required to enable the scheme to develop.

81. As the regulations are a legislative instruments, they will be subject to parliamentary scrutiny and disallowance.

Section 126AKDF ASEAN Register of Approved Exporters

82. Rule 15.3 of Annex 3A to the Second Protocol provides that the ASEAN Secretariat shall be the custodian of the approved exporter database. Section 126AKDF implements this obligation on the Comptroller-General of Customs.

83. Subsection 126AKDF(1) provides that the Comptroller-General of Customs may maintain a register, to be known as the ASEAN Register of Approved Exporters, which is to contain information that relates to which entities have been approved under section 126AKDE, the conditions than an approved entity is subject to and the variation, suspension or termination of an entity's approval. New subsection 126AKDF(2) provides that the Register must be made publically available and subsection 126AKDF(3) outlines that the Register is not a legislative instrument.

Section 126AKDG Inclusion of information in approved exporter database

84. The rules of the approved exporter scheme are set out in Rule 15 of Annex 3A to the Second Protocol. Paragraph 15.5 requires Australia to include the following information on a database of approved exporters:

•

the legal name and address of the exporter;

•

the approved exporter authorisation code;

•

the issuance date and, if applicable, the expiry date of its approved exporter authorisation; and

•

a list of goods subject to the authorisation, at least at the HS Chapter level.

85. Paragraphs 126AKDG (a) and (b) provide that the Comptroller-General of Customs may include or disclose information (including personal information within the meaning of the Privacy Act 1988) if it is for the purpose of the information being included in the approved exporter database.

86. Paragraphs 126AKDG (c), (d) and (e) provide that the information included in the approved exporter database will be information relating to:

(c)

an entity approved as an approved exporter under regulations made for the purposes of section 126AKDE;

(d)

the conditions that an approval of an entity as an approved exporter is subject to;

(e)

the variation, suspension or termination of an approval of an entity as an approved exporter.

87. The majority of exporters that will participate in the approved exporter scheme are businesses. An exporter's legal name and address could be considered to be 'personal information' if the exporter is a sole trader or a partnership who have listed their residential address as their place of business or if the exporter's business name is similar to the individual's name.

88. To the extent that information about approved exporter will be published is 'personal information' under the Privacy Act 1988, the use of the personal information to create the register of approved exporters, and the disclosure of the register, will be lawful under the Australian Privacy Principle (APP) 6.2(b), and the disclosure to overseas recipients will be lawful under APP 8.2(c). Both apply when a use or disclosure (for APP 6) or a disclosure (for APP 8) is required or authorised by or under, relevantly, an Australian law. Here, the Australian law is proposed new section 126ADKF of the Customs Act (read together with the regulations that will be made under this section). To the extent that an entity's right to privacy is affected by the amendments, the impact is not arbitrary.

89. The amendments are reasonable, necessary and proportionate to achieving the legitimate objectives of the Scheme and will ensure proper governance and transparency of the Scheme within the Department of Home Affairs (Department).

90. Disclosing particular personal information on the public on the register is vital for Australia to meet its international obligations and non-disclosure of particular details would frustrate the objective of the scheme. A fundamental purpose of the approved exporter scheme is to allow importing countries to confirm, on an accessible register, that the exporter of another country has met the necessary conditions to self-certify the preferential origin themselves.

91. Applications for approved exporter status will be supplemented with a privacy notice listing the circumstances in which their personal information can be used, stored and disclosed. It should also be emphasized that it is an opt-in scheme and that non-disclosure methods of certifying preferential origin is also available to exporters.

92. The inclusion of this information is necessary to identify entities who are participating in the approved exporter scheme so that other parties to the Second Protocol will be able to identify approved exporters from Australia that have been approved as an entity meeting out the conditions set out in the Second Protocol. The Department will not publish information that extends beyond what is required by the proposed new provision or regulations. The Department will rely on its computer and network security, such as user passwords to protect personal information that it collects, but does not need to be disclosed under the Approved Exporter Scheme.

Item 15 Application provision

93. This item also provides that the amendment made by Part 2 applies in relation to goods exported to the Party on or after the commencement of that Part (whether the goods were produced before, on or after that commencement). The purpose and effect of this amendment is to clarify the goods to which these amendments apply.

Part 4 - Miscellaneous

Customs Act 1901

Item 16 Subsections 153ZKB(7) and (8)

94. This item repeals current subsections 153ZKB(7) and (8) of the Customs Act and substitutes them with new subsection 153ZKB(7).

95. New subsection 153ZKB(7) provides that the Minister must announce, by notifiable instrument, the day on which the Agreement, or amendment of the Agreement, enters into force for a Party other than Australia.

96. This purpose of this subsection is to modernise it and substitute it with this new provision which has the effect of overriding subsection 14(2) of the Legislation Act 2023 should be it be necessary in order to implement the Agreement by applying, adopting or incorporating an instrument or other writing that is not an Act or disallowable legislative instrument. Any instrument and other writing so incorporated will be limited to those that are required for the operation of the Agreement and will be accessible through the Department's website, and free of charge, to ensure they are readily available and at no cost to persons concerned.

Item 17 Subparagraphs 153ZKJ(1)(b)(ii) and (iii)

97. This item amends the Customs Act to repeals subparagraphs 153ZKJ(1)(b)(ii) and (iii), and substitutes them with new subparagraph 153ZKJ(1)(b)(ii). New subparagraph 153ZKJ(1)(b)(ii) provides that the goods enter into commerce or free circulation in that country or place. This is different from the previous subparagraph 153ZKJ(1)(b)(ii), which provides that the goods enter the commerce of that country or place.

98. Under paragraphs 2.2 and 2.3 of Article 14 of Chapter 3 of the AANZFTA, in order to satisfy a requirement to retain originating status for AANZ originating goods that transited through a non-Party to that Agreement:

(a)

the good has not entered the commerce of a non-Party (paragraph 2.2 of Article 14 of Chapter 3 of the AANZFTA. This requirement is implemented by subparagraph 153ZKJ(1)(b)(ii) of the Customs Act;

(b)

the transit entry must be justified for geographical, economic or logistical reasons (paragraph 2.3 of Article 14 of Chapter 3 of the AANZFTA). This requirement is implemented by subparagraph 153ZKJ(1)(b)(iii) of the Customs Act.

99. Updated Article 14 of Chapter 3 of the Second Protocol does not replicate the requirement under paragraph 2.3 of Article 14 of Chapter 3 of the AANZFTA. Furthermore, the requirement under subparagraph (b)(ii) of updated Article 14 now requires that the good has not entered into commerce or free circulation in the non-Party.

100. This amendment gives effect to changes in paragraph (b) of the updated Article 14 of Chapter 3 of the Second Protocol which now requires that in order to satisfy a requirement to retain originating status for AANZ originating goods the good must not have entered into commerce or free circulation in the non-Party.

Item 18 Application provision

101. This item provides that the amendments made by this Part apply to:

(a)

goods imported into Australia on or after the commencement of this Part; and

(b)

goods imported into Australia before the commencement of this Part, where the time for working out the rate of import duty on the goods had not occurred before the commencement of this Part.

102. The purpose and effect of this amendment is to clarify the goods to which these amendments apply.

SCHEDULE 2 - Other Amendments

Part 1 - Approved exporters for Regional Comprehensive Economic Partnership Agreement

Customs Act 1901

Item 1 Section 126AQA

103. This item amends section 126AQA of the Customs Act to insert a new definition of 'approved exporter database', which means the approved exporter database referred to in paragraph 6 of Article 3.21 of Chapter 3 of RCEP. This item also amends section 126AQA to insert a new definition of 'Declaration of Origin', which is taken to mean the Declaration of Origin referred to in paragraph 1 of Article 3.16 of Chapter 3 of RCEP Agreement.

104. The purpose of this amendment is to define terms referred to throughout Division 4L and setting out the intended meaning for those terms.

Item 2 At the end of Division 4L of Part VI

105. This item amends Part VI of the Customs Act to insert new sections 126AQE, 126AQF and 126AQG. The purpose and effect of these provisions is to impose obligations on approved exporters and those who wish to claim originating status of goods by completing a Declaration of Origin under preferential tariff rates covered by the Second Protocol.

Section 126AQE Approved exporters and Declarations of Origin

106. New subsection 126AQE(1) provides that any exporter or producer can make a Declaration of Origin under Clause 3.16.1(b) of Chapter 3 of the RCEP Agreement if the importing and exporting parties have implemented this provision within the defined period outlined in paragraphs 2 and 3 of Article 3.16. An exporter to the RCEP Agreement that has not implemented paragraph 1(b) of Article 3.18, must not complete a Declaration of Origin for the goods unless the exporter is, under the regulations, an approved exporter.

107. New subsection 126AQE(2) inserts a head of power to administer the approved exporter scheme including by prescribing various matters in regulations. The purpose of this amendment is to allow for regulations to prescribe any further requirements as to the administration of the approved exporter scheme that cannot be legislated on the face of the Customs Act.

108. New subsection 126AQE(3) provides that the Comptroller-General of Customs may make provision for the following matters:

•

the making of applications to the Comptroller-General of Customs by entities for approval as approved exporters and the withdrawal of those applications;

•

the eligibility criteria that an entity must meet in order for the Comptroller-General of Customs to approve the entity as an approved exporter;

•

the matters that the Comptroller-General of Customs must consider in deciding whether to approve an entity as an approved exporter;

•

the making of decisions by the Comptroller-General of Customs in relation to the applications;

•

the conditions that an approval of an entity as an approved exporter is subject to;

•

the variation, suspension or termination of an approval of an entity as an approved exporter;

•

the giving of notice of decisions made by the Comptroller-General of Customs;

•

the review of decisions made by the Comptroller-General of Customs.

109. Prescribing matters relating to the approved exporter scheme in subordinate regulations ensures flexibility and adaptability. The regulatory frameworks for the approved exporter scheme have been designed to balance stability and transparency, allow reasonable flexibility to take account of the dynamic international trade environment and ensure the continued relevance of the scheme to participants. This approach also allows the Department to more quickly update the scheme as international trade dynamics change or as compliance requirements evolve. By using prescribing details of the scheme in the regulations, the Department can implement and revise procedures efficiently, making it easier for exporter to understand and comply with the requirements.

110. The implementation of the scheme will be subject to ongoing evaluation by the Department. As the programme evolves, further opportunities to reduce the regulatory burden associated with customs procedures at the border may be identified. Prescribing these in the regulations rather than the primary legislation will provide the flexibility that is required to enable the scheme to develop.

111. As the regulations are a legislative instruments, they will be subject to parliamentary scrutiny and disallowance.

Section 126AQF RCEP Register of Approved Exporters

112. Article 3.21 to the RCEP Agreement provides that the RCEP Joint Committee may designate the custodian of the approved exporter database. Section 126AKDF implements this obligation on the Comptroller-General of Customs.

113. Subsection 126AQF(1) provides that the Comptroller-General of Customs may maintain a register, to be known as the RCEP Register of Approved Exporters, which is to contain information that relates to which entities have been approved under section 126AKDE, the conditions than an approved entity is subject to and the variation, suspension or termination of an entity's approval. New subsection 126AQF(2) provides that the Register must be made publically available and subsection 126AQF(3) outlines that the Register is not a legislative instrument.

Section 126AQG Inclusion of information in approved exporter database

114. The rules of the approved exporter scheme are set out in Article 3.21 of Chapter 3 of RCEP Agreement. Article 3.21 requires Australia to include the following information on a database of approved exporters:

•

the legal name and address of the exporter;

•

the approved exporter authorisation code;

•

the issuance date and, if applicable, the expiry date of its approved exporter authorisation; and

•

a list of goods subject to the authorisation, at least at the HS Chapter level.

115. Paragraphs 126AQG (a) and (b) provides that the Comptroller-General of Customs may include or disclose information (including personal information within the meaning of the Privacy Act 1988) if it is for the purpose of the information being included in the approved exporter database.

116. Paragraphs 126AQG (c), (d) and (e) provide that the information included in the approved exporter database will be information relating to:

•

an entity approved as an approved exporter under regulations made for the purposes of section 126AQE;

•

the conditions that an approval of an entity as an approved exporter is subject to;

•

the variation, suspension or termination of an approval of an entity as an approved exporter.

117. The majority of exporters that will participate in the approved exporter scheme are businesses. An exporter's legal name and address could be considered to be 'personal information' if the exporter is a sole trader or a partnership who have listed their residential address as their place of business or if the exporter's business name is similar to the individual's name.

118. To the extent that information about approved exporter will be published is 'personal information' under the Privacy Act 1988, the use of the personal information to create the register of approved exporters, and the disclosure of the register, will be lawful under the Australian Privacy Principle (APP) 6.2(b), and the disclosure to overseas recipients will be lawful under APP 8.2(c). Both apply when a use or disclosure (for APP 6) or a disclosure (for APP 8) is required or authorised by or under, relevantly, an Australian law. Here, the Australian law is proposed new section 126AQF of the Customs Act (read together with the regulations that will be made under this section). To the extent that an entity's right to privacy is affected by the amendments, the impact is not arbitrary.

119. The amendments are reasonable, necessary and proportionate to achieving the legitimate objectives of the Scheme and will ensure proper governance and transparency of the Scheme within the Department of Home Affairs (Department).

120. Disclosing particular personal information on the public on the register is vital for Australia to meet its international obligations and non-disclosure of particular details would frustrate the objective of the scheme. A fundamental purpose of the approved exporter scheme is to allow importing countries to confirm, on an accessible register, that the exporter of another country has met the necessary conditions to self-certify the preferential origin themselves.

121. Applications for approved exporter status will be supplemented with a privacy notice listing the circumstances in which their personal information can be used, stored and disclosed. It should also be emphasised that it is an opt-in scheme and that non-disclosure methods of certifying preferential origin is also available to exporters.

122. The inclusion of this information is necessary to identify entities who are participating in the approved exporter scheme so that other parties to the RCEP Agreement will be able to identify approved exporters from Australia that have been approved as an entity meeting out the conditions set out in the RCEP Agreement. The Department will not publish information that extends beyond what is required by the proposed new provision or regulations. The Department will rely on existing computer and network security, such as user passwords, to protect personal information that it collects, but does not need to be disclosed under the Approved Exporter Scheme.

Part 2 - Harmonized System and Product Specific Rules

Customs Act 1901

Item 3 Subsection 153ZKL(1) (paragraph (b) of the definition of the Harmonized System)

123. The HS is a structured nomenclature that organises goods according to the degree of production by tariff classification. They are commonly used throughout the world to identify products when assessing duties and taxes. The HS is administered by the World Customs Organisation and updated every five years.

124. Annex 3-B of the PACER Plus, the PSR, contains the tariff classification numbers under the HS 2022, for each product listed. From 1 January 2023, Australia is required to use an updated version of the PSR which use the nomenclature of HS 2022.

125. This item amends the definition of Harmonized System to repeal and substitute paragraph 153ZKL(1)(b). Under new paragraph 153ZKL(1)(b), if either of the following events occurs:

i.

Annex 3-B to Chapter 3 of the PACER Plus is amended or replaced to refer to Chapters, headings and subheadings of an updated version of the HS; or

ii.

there is a transposition (as mentioned in paragraph 1 of Article 29 of Chapter 3 of the PACER Plus) to Annex 3-B to Chapter 3 of the PACER Plus because of an updated version of the Harmonized Commodity Description and Coding System and that transposition is adopted as mentioned in that paragraph;

the version of the Harmonized Commodity Description and Coding System covered by whichever of those events occurred most recently.

126. The purpose of this amendment is to implement the PSR using HS 2022 nomenclature in accordance with PACER Plus. The updated definition has the effect that subsequent versions of the HS are incorporated by reference when either Annex 3-B to Chapter 3 is formally amended or as a result of a transposition, which is a process by which a parallel or separate version of the PSR because of updates to the HS.

Item 4 Subsection 153ZKL(1)

127. This item inserts a definition of 'Product-Specific Rules' into subsection 153ZKL(1). The definition of PSR as contained in Article 1 of the PACER Plus provides that they are the rules set out in Annex 3-B.

128. The purpose of this amendment is to ensure that if a transposition of Annex 3-B that does not result in the Annex being amended or replaced, that Annex is transposed is captured. The effect of this amendment is that any amendments to the PSR as well as updates that occur through a transposition of Annex 3-B are recognised in section 153ZKL.

Item 5 Paragraph 153ZKO(1)(a)

129. This item amends paragraph 153ZO(1)(a) of the Customs Act to omit the words 'the table in Annex 3-B to Chapter 3 of the Agreement' and substitute with 'the Product-Specific Rules'. The amendment is consequential to amendments made by item 4.

130. Per the notes for item 4, the PSR for the MAFTA is contained in Annex 3-B.

131. The purpose and effect of this amendment is to ensure that if any changes are made to the PSR, including those that occur through a transposition of Annex 3-B, it will be captured by section 153ZKO of the Customs Act.

Item 6 Paragraph 153ZKO(1)(c)

132. This item amends paragraph 153ZKO(1)(c) of the Customs Act to omit the words 'that Annex' and substitute with 'the Product-Specific Rules'. This amendment is consequential to amendments made by item 4.

133. Per the notes for item 4, the PSR for the MAFTA is contained in Annex 3-B.

134. The purpose and effect of this amendment is to ensure that if any changes are made to the PSR, including those that occur through a transposition of Annex 3-B, it will be captured by section 153ZKO of the Customs Act.

Item 7 Paragraph 153ZKO(2)

135. This item amends subsection 153ZKO(2) of the Customs Act to omit the words 'the table in Annex 3-B to Chapter 3 of the Agreement' and substitute with 'the Product-Specific Rules'. This amendment is consequential to the amendments made by item 4.

136. Per the notes for item 4, the PSR for the MAFTA is contained in Annex 3-B.

137. The purpose and effect of this amendment is to ensure that if any changes are made to the PSR, including those that occur through a transposition of Annex 3-B, it will be captured by section 153ZKO of the Customs Act.

Item 8 Paragraph 153ZKO(2)

138. This item amends subsection 153ZKO(2) of the Customs Act to omit the words 'that Annex' and substitute with 'the Product-Specific Rules'. This amendment is consequential to items 5 to 7. The purpose and effect of this amendment is to ensure that if any changes are made to the PSR, including those that occur through a transposition of Annex 3-B, it will be captured by section 153ZKO.

Item 9 Subsection 153ZLB(1) (paragraph (b) of the definition of the Harmonized System)

139. The HS Codes is a structured nomenclature that organises goods according to the degree of production by tariff classification. They are commonly used throughout the world to identify products when assessing duties and taxes. The HS is administered by the World Customs Organisation and updated every five years.

140. Annex 2 of the Malaysia-Australia Free Trade Agreement (MAFTA), the PSR contains the tariff classification numbers under the HS 2022, for each product listed. From 1 January 2023, Australia is required to use an updated version of the PSR which use the nomenclature of HS 2022.

141. This item amends the definition of Harmonized System to repeal and substitute paragraph 153ZLB(1)(b). Under new paragraph 153ZLB(1)(b) substitutes the definition of HS to ensure that if either of the following events occurs:

i.

Annex 2 of the Agreement is amended or replaced to refer to Chapters, headings and subheadings of an updated version of the HS; or

ii.

there is a transposition (as mentioned in paragraph 2 of Article 3.24 of Chapter 3 of the Agreement) to Annex 2 of the Agreement because of an updated version of the Harmonized Commodity Description and Coding System and that transposition is adopted as mentioned in that paragraph;

the version of the Harmonized Commodity Description and Coding System covered by whichever of those events occurred most recently.

142. The purpose of this amendment is to implement the PSR using HS 2022 nomenclature. The updated definition subsequent versions of the HS are incorporated by reference when either Annex 2 is formally amended or as a result of a transposition, which is a process by which a parallel or separate version of the PSR because of updates to the HS.

Item 10 Subsection 153ZLB(1)

143. This item inserts a definition of 'Product-Specific Rules' into subsection 153ZLB(1).

144. Annex 2 of MAFTA contains the PSR's for goods for the purposes of containing whether goods produced from non-originating material qualify as AANZ originating goods.

145. The purpose of this amendment is to ensure that if a transposition of Annex 2 that does not result in the Annex being amended or replaced, that Annex is transposed. The effect is that any amendments to the PSR as well as updates that occur through a transposition of Annex 2 are recognised in section 153ZLB.

Item 11 Paragraph 153ZLE(1)(a)

146. This item amends paragraph 153ZLE(1)(a) of the Customs Act to omit the words 'they are classified to a Chapter, heading or subheading of the Harmonized System that is covered by the table in Annex 2 of the Agreement' and substitute with 'the Product-Specific Rules'. The amendment is consequential to amendments made by item 10.

147. Per the notes for item 10, the PSR for the MAFTA is contained in Annex 2.

148. The purpose and effect of this amendment is to ensure that if any changes are made to the PSR, including those that occur through a transposition of Annex 2, it will be captured by section 153ZLE of the Customs Act.

Item 12 Paragraph 153ZLE(1)(c)

149. This item amends paragraph 153ZLE(1)(c) of the Customs Act to omit the words 'that Annex' and substitute with 'the Product-Specific Rules'. This amendment is consequential to amendments made by item 10.

150. Per the notes for item 10, the PSR for the MAFTA is contained in Annex 2.

151. The purpose and effect of this amendment is to ensure that if any changes are made to the PSR, including those that occur through a transposition of Annex 32, it will be captured by section 153ZLE of the Customs Act.

Item 13 Subsection 153ZLE(2)

152. This item amends subsection 153ZKLE(2) of the Customs Act to omit the words 'the table in Annex 2 to the Agreement' and substitute with 'the Product-Specific Rules'. This amendment is consequential to amendments made by item 10.

153. Per the notes for item 10, the PSR for the MAFTA is contained in Annex 2.

154. The purpose and effect of this amendment is to ensure that if any changes are made to the PSR, including those that occur through a transposition of Annex 2, it will be captured by section 153ZLE of the Customs Act.

Item 14 Subsection 153ZKLE(2)

155. This item amends subsection 153ZKLE(2) of the Customs Act to omit the words 'that Annex' and substitute with 'the Product-Specific Rules'. This amendment is consequential to amendments made by item 10.

156. Per the notes for item 10, the PSR for the MAFTA is contained in Annex 2.

157. The purpose and effect of this amendment is to ensure that if any changes are made to the PSR, including those that occur through a transposition of Annex 2, it will be captured by section 153ZLE of the Customs Act.

Item 15 Subsection 153ZQB(1) (paragraph (b) of the definition of the Harmonized System)

158. The HS Codes is a structured nomenclature that organises goods according to the degree of production by tariff classification. They are commonly used throughout the world to identify products when assessing duties and taxes. The HS is administered by the World Customs Organisation and updated every five years.

159. Annex 3A to Chapter 3 of RCEP, the Product Specific Rules (PSR), contains the tariff classification numbers under the HS 2022, for each product listed. From 1 January 2023, Australia is required to use an updated version of the PSR which use the nomenclature of HS 2022.

160. This item amends the definition of Harmonized System to repeal and substitute paragraph 153ZQB(1)(b). Under 153ZQB(1)(b) substitutes the definition of HS to ensure that if either of the following events occurs:

i.

Annex 3A to Chapter 3 of the Agreement is amended or replaced to refer to Chapters, headings and subheadings of an updated version of the HS; or

ii.

there is a transposition (as mentioned in Article 3.34 of Chapter 3 of the Agreement) to Annex 3A to Chapter 3 of the Agreement because of an updated version of the Harmonized Commodity Description and Coding System and that transposition is adopted as mentioned in that paragraph;

the version of the Harmonized Commodity Description and Coding System covered by whichever of those events occurred most recently.

161. The purpose of this amendment is to implement the PSR using HS 2022 nomenclature. The updated definition subsequent versions of the HS are incorporated by reference when either Annex 3A is formally amended or as a result of a transposition, which is a process by which a parallel or separate version of the PSR because of updates to the HS.

Item 16 Subsection 153ZQB(1)

162. This item inserts a definition of 'Product-Specific Rules' into subsection 153ZQB(1).

163. Annex 3A to Chapter 3 of RCEP contains the PSR's for goods for the purposes of containing whether goods produced from non-originating material qualify as AANZ originating goods.

164. The purpose of this amendment is to ensure that if a transposition of Annex 3B that does not result in the Annex being amended or replaced, that Annex is transpose is captured. The effect is that any amendments to the PSR as well as updates that occur through a transposition of Annex 3A are recognised.

Item 17 Paragraph 153ZQE(1)(a)

165. This item amends paragraph 153ZQE(1)(a) of the Customs Act to omit the words 'the table in Annex 3A to Chapter 3 of the Agreement' and substitute with 'the Product-Specific Rules'. The amendment is consequential to amendments made by item 16.

166. Per the notes for item 16, the PSR for RCEP is contained in Annex 3A.

167. The purpose and effect of this amendment is to ensure that if any changes are made to the PSR, including those that occur through a transposition of Annex 3A, it will be captured by section 153ZQE of the Customs Act.

Item 18 Paragraph 153ZQE(1)(c)

168. This item amends paragraph 153ZQE(1)(a) of the Customs Act to omit the words 'that Annex' and substitute with 'the Product-Specific Rules'. The amendment is consequential to amendments made by item 16.

169. Per the notes for item 16, the PSR for RCEP is contained in Annex 3A.

170. The purpose and effect of this amendment is to ensure that if any changes are made to the PSR, including those that occur through a transposition of Annex 3A, it will be captured by section 153ZQE of the Customs Act.

Item 19 Subsection 153ZQE(2)

171. This item amends subsection 153ZQE(2) of the Customs Act to omit the words 'the table in Annex 3A to Chapter 3 of the Agreement' and substitute with 'the Product-Specific Rules'. The amendment is consequential to amendments made by item 16.

172. Per the notes for item 16, the PSR for RCEP is contained in Annex 3A.

173. The purpose and effect of this amendment is to ensure that if any changes are made to the PSR, including those that occur through a transposition of Annex 3A, it will be captured by section 153ZQE of the Customs Act.

Item 20 Subsection 153ZQE(2)

174. This item amends subsection 153ZQE(2) of the Customs Act to omit the words 'that Annex' and substitute with 'the Product-Specific Rules'. The amendment is consequential to amendments made by item 16.

175. Per the notes for item 16, the PSR for RCEP is contained in Annex 3A.

176. The purpose and effect of this amendment is to ensure that if any changes are made to the PSR, including those that occur through a transposition of Annex 3A, it will be captured by section 153ZQE of the Act.

Item 21 Application provision

177. This item provides that the amendments made by this Part apply in relation to goods imported into Australia on or after the commencement of Part 1. The purpose and effect of this amendment is to clarify the goods to which these amendments apply.