Customs and Excise Regulations 1996

Part 6 Determination of country of produce or manufacture

Provisions relating to Australia

32 Interpretation

In regulations 32 to 39G, unless the context otherwise requires,—

adjusted value, in relation to any goods, means the value of the goods determined in accordance with Schedule 4 of the Act

allocate means to apportion in a manner appropriate under generally accepted accounting principles

allowable expenditure, in relation to labour, means the sum of costs—

(a)

incurred by, or on behalf of, the principal manufacturer that relate, directly or indirectly, wholly or partly, to the processing of the goods in Australia and that can reasonably be allocated to the processing of the goods in Australia; and

(b)

that consist of 1 or more of the following:

(i)

the cost of wages and employee benefits:

(ii)

the cost of supervision and training:

(iii)

the cost of management of the process of manufacture:

(iv)

the cost of receipt and storage of materials:

(v)

the cost of quality control:

(vi)

the cost of packing goods into inner containers:

(vii)

the cost of handling and storing goods within the place or places in which a process, operated by the principal manufacturer in Australia, is performed

allowable expenditure, in relation to overheads, means the sum of costs—

(a)

incurred by, or on behalf of, the principal manufacturer that relate, directly or indirectly, wholly or partly, to the processing of the goods in Australia and that can reasonably be allocated to the processing of the goods in Australia; and

(b)

that consist of 1 or more of the following:

(i)

the cost of inspecting and testing materials and goods:

(ii)

the cost of insurance of the following kinds:

(A)

insurance of plant, equipment, and materials used in the production of the goods:

(B)

insurance of work in progress and finished goods:

(C)

liability insurance:

(D)

accident compensation insurance:

(E)

insurance against consequential loss from accident to plant and equipment:

(iii)

the cost of dies, moulds, and tooling and the depreciation, maintenance, and repair of plant and equipment:

(iv)

the cost of interest payments for plant and equipment:

(v)

the cost of research, development, design, and engineering:

(vi)

the cost of the following items in respect of real property that is used, in Australia, in the manufacture of the goods:

(A)

insurance:

(B)

rent and lease payments:

(C)

mortgage interest:

(D)

depreciation on buildings:

(E)

maintenance and repair:

(F)

rates and taxes:

(G)
[Revoked]

(vii)

the cost of leasing of plant and equipment:

(viii)

the cost of energy, fuel, water, lighting, lubricants, rags, and other materials and supplies not directly incorporated in goods manufactured in the territory of the exporting party:

(ix)

the cost of storing goods at the place or places in which a process, operated by the principal manufacturer in Australia, is performed:

(x)

the cost of royalties or licences in respect of patented machines or processes used in the manufacture of the goods or in respect of the right to manufacture the goods:

(xi)

the cost of subscriptions to standards institutions, and industry and research associations:

(xii)

the cost of the provision of medical care, cleaning services, cleaning materials and equipment, training materials, and safety and protective clothing and equipment:

(xiii)

the cost of the disposal of non-recyclable waste:

(xiv)

the cost of subsidising a cafeteria in the place or places in which a process, operated by the principal manufacturer in Australia, is performed, to the extent not recovered by financial returns:

(xv)

the cost of security in the place or places in which a process, operated by the principal manufacturer in Australia, is performed:

(xvi)

the cost of computer facilities allocated to the process of manufacture of the goods:

(xvii)

the cost of contracting out, within the territories of either or both parties, part of the manufacturing process, including any associated transport or storage costs:

(xviii)

the cost of employee transport:

(xix)

the cost of vehicle expenses:

(xx)

the cost of any fringe benefits tax or tax of a similar nature:

(xxi)

the cost of transporting goods in Australia between places in which 1 or more processes are performed by, or on behalf of, the principal manufacturer; and

(c)

does not include any of the following costs:

(i)

any costs or expense relating to the general expense of doing business (including, but not limited to, any cost or expense relating to insurance or to executive, financial, sales, advertising, marketing, accounting, or legal services):

(ii)

the cost of telephone, mail, or other means of communication:

(iii)

the cost of international travel and expenses, including fares and accommodation:

(iv)

the cost of the following items in respect of real property used by persons carrying out administrative functions:

(A)

insurance:

(B)

rent and lease payments:

(C)

mortgage interest:

(D)

depreciation on buildings:

(E)

maintenance and repair:

(F)

rates and taxes:

(v)

the cost of conveying, insuring, or shipping the goods after manufacture:

(vi)

the cost of shipping containers or packing the goods into shipping containers:

(vii)

the cost of any royalty payment relating to a licensing agreement to distribute or sell the goods:

(viii)

the profit of the principal manufacturer and the profit or remuneration of any trader, agent, broker, or other person dealing in the goods after manufacture:

(ix)

any other costs incurred after the completion of all processes performed by, or on behalf of, the principal manufacturer:

(x)

the cost of processing goods in a place that is not in the territory of a party

Annex G means Annex G of the ANZCERTA as set out in the document entitled Product Specific Rules for Australian goods—Annex G (2022), as certified on 9 November 2021 by the chief executive under clause 4 of Schedule 2 of the Legislation Act 2019 and published by the chief executive on the Customs’ Internet site (to align with the Harmonised System as in force in respect of New Zealand as at 1 January 2022)

ANZCERTA means the Australia New Zealand Closer Economic Relations Trade Agreement done at Canberra on 28 March 1983

factory cost means the sum of the total expenditure on originating and non-originating materials, the allowable expenditure on labour and factory overheads, and the cost of inner containers

fungible goods or fungible materials means goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical and between which it is impractical to differentiate by mere visual examination

generally accepted accounting principles means principles with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of information, and the preparation of financial statements, being principles that reflect the recognised consensus, or that have substantial authoritative support, in Australia and that may encompass broad guidelines of general application as well as detailed standards, practices, and procedures

goods wholly obtained or produced, in relation to the territory of either or both parties, means goods that are—

(a)

mineral goods extracted in the territory of a party:

(b)

plants grown in the territory of a party, or products obtained from such plants:

(c)

a live animal born and raised in the territory of a party:

(d)

a product obtained from a live animal in the territory of a party:

(e)

goods obtained from hunting, trapping, fishing, capturing, or aquaculture conducted in the territory of a party:

(f)

fish, shellfish, and any other marine life taken from the sea by vessels registered or recorded with a party and flying its flag, or entitled to fly its flag:

(g)

goods produced or obtained exclusively from products referred to in paragraph (f) on board factory ships registered or recorded with a party and flying its flag:

(h)

goods taken by a party, or a person of the party, from the seabed or subsoil of the territorial sea or the continental shelf of that party, in accordance with that party’s rights under international law:

(i)

waste and scrap derived from the production of goods in the territory of a party, or used goods collected in the territory of a party, if those goods are fit only for the recovery of raw materials:

(j)

goods produced in the territory of a party exclusively from goods referred to in paragraphs (a) to (i), or from their derivatives, at any stage of production

indirect materials—

(a)

means goods used or consumed—

(i)

in the production, testing, or inspection of goods but not physically incorporated into the goods; or

(ii)

in the maintenance of buildings or the operation of equipment associated with the production of the goods; and

(b)

includes—

(i)

fuel and energy:

(ii)

tools, dies, and moulds:

(iii)

spare parts and materials used in the maintenance of equipment and buildings:

(iv)

lubricants, greases, compounding materials, and other materials used in production or used to operate equipment and buildings:

(v)

gloves, glasses, footwear, clothing, safety equipment, and supplies:

(vi)

equipment, devices, and supplies used for testing or inspecting the goods:

(vii)

catalysts and solvents:

(viii)

any other goods that are not incorporated into the goods but whose use in the production of the goods can reasonably be demonstrated to be a part of that production

manufacture means the creation of an article essentially different from the matters or substances that go into the article

materials means goods that are used or consumed in the production of other goods

non-originating materials means materials that are not originating materials

originating goods means goods of a class specified in regulation 33(2) that meet all applicable criteria specified by regulations 33 to 39C

originating materials means originating goods or indirect materials

party means Australia or New Zealand

preferential treatment means the application, under section 7(1)(a) of the Tariff Act 1988, of the Tariff to goods that are the produce or manufacture of Australia

principal manufacturer means the person in the territory of a party who performs, or has had performed on its behalf, the last process of the manufacture of goods

producer means a person who grows, farms, raises, breeds, mines, harvests, fishes for, traps, hunts, captures, gathers, collects, extracts, manufactures, processes, assembles, restores, or renovates goods

production means growing, farming, breeding, capturing, gathering, collecting, extracting, raising, mining, harvesting, fishing for, trapping, hunting, manufacturing, processing, assembling, restoring, or renovating goods

qualifying expenditure means—

(a)

total expenditure on originating materials; and

(b)

allowable expenditure on labour and factory overheads incurred in the territory of either or both parties; and

(c)

the cost of inner containers that originate in the territory of either or both parties

self-produced, in relation to any materials, means materials that are produced by a producer of goods and used or consumed in the production of those goods

unmanufactured raw products means natural or primary products that have not been subjected to an industrial process, other than an ordinary process of primary production, including any of the following:

(a)

animals:

(b)

bones, hides, skins, and other parts of animals obtained by killing, including such hides and skins that have been sun-dried:

(c)

greasy wool:

(d)

plants and parts of plants, including raw cotton, bark, fruit, nuts, grains, seeds in their natural state, and unwrought logs:

(e)

minerals in their natural state and ores:

(f)

crude petroleum.

Regulation 32: substituted, on 1 January 2007, by regulation 4 of the Customs and Excise (Rules of Origin for Australian Goods) Amendment Regulations 2006 (SR 2006/397).

Regulation 32 adjusted value: substituted, on 13 December 2007, by regulation 4(1) of the Customs and Excise (Rules of Origin for Australian Goods) Amendment Regulations 2007 (SR 2007/346).

Regulation 32 adjusted value: amended, on 1 October 2018, by section 443(4) of the Customs and Excise Act 2018 (2018 No 4).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(vi)(G): revoked, on 22 October 2009, by regulation 4(1) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(vii): substituted, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(viii): substituted, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(ix): substituted, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(x): substituted, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(xi): substituted, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(xii): substituted, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(xiii): substituted, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(xiv): substituted, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(xv): substituted, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(xvi): substituted, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(xvii): substituted, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(xviii): substituted, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(xix): substituted, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(xx): substituted, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 allowable expenditure (in relation to overheads) paragraph (b)(xxi): added, on 22 October 2009, by regulation 4(2) of the Customs and Excise (Rules of Origin) Amendment Regulations 2009 (SR 2009/264).

Regulation 32 Annex G: replaced, on 1 January 2022, by regulation 4 of the Customs and Excise (Rules of Origin—Harmonised System and Other Matters) Amendment Regulations 2021 (SL 2021/422).

Regulation 32 ANZCERTA: inserted, on 13 December 2007, by regulation 4(4) of the Customs and Excise (Rules of Origin for Australian Goods) Amendment Regulations 2007 (SR 2007/346).

Regulation 32 Customs Valuation Agreement: revoked, on 13 December 2007, by regulation 4(3) of the Customs and Excise (Rules of Origin for Australian Goods) Amendment Regulations 2007 (SR 2007/346).

Regulation 32 goods wholly obtained or produced: amended, on 30 April 2012, by regulation 4(1) of the Customs and Excise (Rules of Origin for Australian Goods—ANZCERTA Article 3) Amendment Regulations 2012 (SR 2012/77).

Regulation 32 manufacture: replaced, on 30 April 2012, by regulation 4(2) of the Customs and Excise (Rules of Origin for Australian Goods—ANZCERTA Article 3) Amendment Regulations 2012 (SR 2012/77).

Regulation 32 producer: amended, on 30 April 2012, by regulation 4(3) of the Customs and Excise (Rules of Origin for Australian Goods—ANZCERTA Article 3) Amendment Regulations 2012 (SR 2012/77).

Regulation 32 production: amended, on 30 April 2012, by regulation 4(4) of the Customs and Excise (Rules of Origin for Australian Goods—ANZCERTA Article 3) Amendment Regulations 2012 (SR 2012/77).