Australia – DIBP issues summary of China- Australia FTA rules of origin

Department of Immigration and Border Protection (DIBP) Notice 2015/41 dated 15 December 2015, summarises the China-Australia Free Trade Agreement (ChAFTA) rules of origin (ROOs)which are effective when ChAFTA enters into force on 20 December 2015.

The Customs Tariff Act 1995 (Customs Tariff), as amended by the Customs Tariff Amendment (China-Australia Free Trade Agreement Implementation) Act 2015 (the Act), will allow duty free entry of many Chinese originating goods when ChAFTA is implemented. Preferential treatment will apply to Chinese originating goods that are imported on or after the day ChAFTA enters into force, or to goods imported before that day and entered for home consumption on or after that day.

Goods will be Chinese originating goods if they satisfy the requirements of: 

• the new Division 1L of Part VIII of the Customs Act 1901 (Customs Act), as inserted by the Act; and

 • the Customs (Chinese Rules of Origin) Regulation 2015 (ChAFTA Regulations).

Division 1L sets out the ROOs for the following categories of goods: 

• goods that are wholly obtained; 

• goods that are produced entirely from originating materials only; and 

• goods produced from non-originating materials only or from non-originating materials and originating materials.

If a regional value content (RVC) is required, the requirement is met using the formula: 

             RVC = V – VNM x 100   
                                V 

 where:

 “RVC” is the regional value content, expressed as a percentage; 

 “V” is the value of the good, as determined in accordance with the provisions of the Customs Valuation Agreement,  adjusted on an Free-On-Board (FOB) basis; and

“VNM” is the value of the non-originating materials, including materials of undetermined origin.

For information on  processing; packaging materials and containers; accessories, spare parts, tools or instructional or other information materials; non-qualifying operations; and the consignment rule, as well as Certificate of Origin and Declaration of Origin; refunds; and filing a claim on the Import Declaration see DIBP Notice 2015/41.