Commonwealth Numbered Regulations - Explanatory Statements

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CUSTOMS (ASEAN-AUSTRALIA-NEW ZEALAND RULES OF ORIGIN) AMENDMENT REGULATION 2015 (NO. 1) (SLI NO 62 OF 2015)

EXPLANATORY STATEMENT

 

SELECT LEGISLATIVE INSTRUMENT NO. 62, 2015

 

Issued by the Authority of the Minister for Immigration and Border Protection

 

Customs Act 1901

 

Customs (ASEAN-Australia-New Zealand Rules of Origin) Amendment Regulation 2015 (No. 1)

 

Subsection 270(1) of the Customs Act 1901 (the Act) provides, in part, that the

Governor-General may make regulations not inconsistent with the Act prescribing all matters which by the Act are required or permitted to be prescribed or as may be necessary or convenient to be prescribed for giving effect to the Act or for the conduct of any business relating to Customs.

The Customs (ASEAN-Australia-New Zealand Rules of Origin) Amendment Regulation 2015 (No. 1) (the Regulation) repeals and replaces Part 2 of Schedule 1 to the Customs (ASEAN-Australia-New Zealand Rules of Origin) Regulations 2009 (the AANZFTA Regulations) to fulfil Australia's obligations under the AANZFTA First Protocol (the First Protocol), which contains changes to the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (the Agreement).

The Agreement entered into force for Australia on 1 January 2010. The Agreement sets out, amongst other things, rules of origin that determine whether goods imported into Australia from ASEAN countries or from New Zealand are AANZFTA originating goods and are thereby eligible for AANZFTA preferential rates of customs duty.  These rules of origin are set out in Division 1G of Part VIII of the Act and in Part 2 of Schedule 1 to the AANZFTA Regulations.

Since the Agreement entered into force for Australia, Australian businesses have identified a number of issues relating to implementation, specifically in relation to the rules of origin where the Agreement is not consistent with Australia's other free trade agreements (FTAs).  Parties to the Agreement negotiated the First Protocol to address these issues.

The First Protocol would consolidate the rules of origin known as product specific rules (PSRs), which are rules that a good must satisfy in order to claim preference, into a single Annex.  This would make it easier for businesses to understand the rules and to identify the specific PSR that applies to their particular product.  Additionally, the First Protocol would update references to the 2007 version of the International Harmonized Commodity Description and Coding System (HS) with references to the current 2012 version of the HS and would improve arrangements for updating these references in the future.

These changes will make the Agreement consistent with the approach taken in Australia's other FTAs where the PSRs are provided in the one Annex.  The amendments in the First Protocol are largely of a technical nature and do not affect current commitments under the Agreement.

The First Protocol was signed on 26 August 2014 and will enter into force 30 days after the date on which Australia, New Zealand and at least four ASEAN Member States notify each other in writing that they have completed their domestic legislation processes.

The amendments in the First Protocol would only affect PSRs that are set out in Part 2 of Schedule 1 to the AANZFTA Regulations.  Due to the large number of amendments to the PSRs, the Regulation repeals and replaces Part 2 of Schedule 1 of the AANZFTA Regulations.

Sections 1-4 of the Regulation will commence the day after the instrument is registered.  Schedule 1 of the Regulation will commence on the later of the day after the instrument is registered and the day the First Protocol enters into force for Australia.  The Minister will be required to notify this date by notice published in the Gazette.   

The purpose of the Regulation is to prescribe matters relating to amendments to the PSRs that were agreed in the First Protocol.  Broad consultation was conducted in relation to the First Protocol and encompassed all matters set out in the Regulation.  Government Departments conducted public and targeted stakeholder consultations during the negotiations of the First Protocol.  Details of these consultations were set out in the consultation attachment to the National Interest Analysis of the Agreement.  The Joint Standing Committee on Treaties also conducted an enquiry on the First Protocol.  The enquiry included written submissions and a public hearing that resulted in a report, tabled on 26 March 2015, recommending binding treaty action be taken. 

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

OPC61033-A

 


Statement of Compatibility with Human Rights

 

(Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011
)

 

Customs (ASEAN-Australia-New Zealand Rules of Origin) Amendment Regulation 2015 (No. 1)

 

This legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

 

Overview of the Regulation

 

The purpose of the Regulation is to repeal and replace Part 2 of Schedule 1 to the Customs (ASEAN-Australia-New Zealand Rules of Origin) Regulations 2009 (the AANZFTA Regulations) to fulfil Australia's obligations under the AANZFTA First Protocol.

 

 

Human Rights implications

 

The Regulation does not engage, impact on or limit in any way, the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights at section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

 

Conclusion

 

The Regulation does not raise any human rights issues.

 

 

 

Minister for Immigration and Border Protection

 

 

 


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