CUSTOMS (PERUVIAN RULES OF ORIGIN) REGULATIONS 2019 (F2019L01646) EXPLANATORY STATEMENT

Commonwealth Numbered Regulations - Explanatory Statements

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CUSTOMS (PERUVIAN RULES OF ORIGIN) REGULATIONS 2019 (F2019L01646)

EXPLANATORY STATEMENT

 

 

Issued by the Assistant Minister for Customs, Community Safety and Multicultural Affairs and Parliamentary Secretary to the Minister for Home Affairs

 

Customs Act 1901

 

Customs (Peruvian Rules of Origin) Regulations 2019

 

The Customs Act 1901 (the Customs Act) concerns customs related functions and is the legislative authority that sets out the customs requirements for the importation, and exportation, of goods to and from Australia.

 

Subsection 270(1) of the Customs 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.

 

The Peru-Australia Free Trade Agreement (PAFTA) was signed on 12 February 2018, in Canberra, by the Hon Steven Ciobo MP, then Minister for Trade, Tourism and Investment, and his Peruvian counterpart Mr Eduardo Ferreyros. PAFTA sets out, amongst other things, comprehensive provisions for trade in goods and services and related customs procedures and rules of origin for claiming preferential rates of customs duty. These rules determine whether goods imported into Australia from the territory of Peru are Peruvian originating goods and are thereby eligible for preferential rates of customs duty.

 

The Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Act 2019 inserts

new Division 1EA into Part VIII of the Customs Act to implement the provisions dealing with trade in goods and rules of origin.

 

The purpose of the Customs (Peruvian Rules of Origin) Regulations 2019 (the Regulations) is to prescribe matters relating to the new rules that are required to be prescribed under new Division 1EA of Part VIII of the Customs Act.

 

The Regulations prescribe the rules used to determine whether a good is Peruvian-originating including the methods used to determine the regional value content of goods (a calculation used in determining whether a good made from originating and non-originating materials is a Peruvian originating good) for the purposes of some of the product-specific rules requirements; and prescribe the valuation rules for different kinds of goods.

 

Details of the Regulations are set out in Attachment A. A Statement of Compatibility with Human Rights has been prepared in accordance with the Human Rights (Parliamentary Scrutiny) Act 2011, and is at Attachment B.

 

Government departments conducted extensive public and targeted stakeholder consultations during the negotiations of PAFTA including on matters now encompassed in the Regulations. Details of these consultations were set out in the consultation attachment to the National Interest Analysis of the PAFTA.

 

The Joint Standing Committee on Treaties also conducted an inquiry on PAFTA based on written submissions and a public hearing. The Committee's report recommended binding treaty action be taken.

 

Details of the Regulations are set out in Attachment A. A Statement of Compatibility with Human Rights has been prepared in accordance with the Human Rights (Parliamentary Scrutiny) Act 2011, and is at Attachment B.

 

The Regulations commence at the same time as Schedule 1 to the Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Act 2019 commences.

 

OPC64140 - A

 

 

 


 

ATTACHMENT A

 

Details of the Customs (Peruvian Rules of Origin) Regulations 2019

 

Section 1 - Name of Regulation

 

This section provides that the title of the Regulations is the Customs (Peruvian Rules of Origin) Regulations 2019 (the Regulations).

 

Section 2 - Commencement

 

This section sets out, in a table, the date on which each of the provisions contained in the Regulations commence.

 

Table item 1 provides for the whole instrument to commence at the same time as Schedule 1 to the Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Act 2019 (the Customs Amendment Act) commences.

 

Section 3 - Authority

 

This section sets out the authority under which the Regulations are to be made, which is the Customs Act 1901 (the Customs Act).

 

Section 4 - Definitions

 

This section sets out the definitions for the purpose of the Regulations:

 

(a)    'Act' means the Customs Act;

(b)   'Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994' means the Agreement of that name set out in Annex 1A of the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994;

 

The following words and expressions have the meanings given by section 153ZIM of the Customs Act:

 

(c)    'Agreement';

(d)   'Australian originating goods';

(e)    'Certificate of Origin';

(f)    'Harmonized System';

(g)   'non-originating materials';

(h)   'originating materials';

(i)'production';

(j)'territory of Australia'; and

(k)   'territory of Peru'.


 

Part 2 - Tariff change requirement

 

Section 5 - Change in tariff classification requirement for non-originating materials

 

Annex 3-B to Chapter 3 of PAFTA, amongst other matters, sets out the product specific rules and chemical reaction rules, and related requirements that may need to be satisfied in order for goods to be eligible for preferential tariff treatment. Regulations may be required to specify or provide for related requirements.

 

One of the requirements under Annex 3-B that may apply to goods is the change in tariff classification requirement. Where a requirement that applies in relation to goods is that all non-originating materials used in the production of the goods must have undergone a particular change in tariff classification, the regulations may prescribe when a non-originating material used in the production of the goods is taken to satisfy the change in tariff classification (subsection 153ZIP(3) refers).

 

For the purposes of subsection 153ZIP(3), section 5 of the Regulations provides for a non-originating material used in the production of goods that does not satisfy a particular change in tariff classification to be taken to satisfy the change in tariff classification if:

 

(a)    it was produced entirely in the territory of Peru, or entirely in the territory of Peru and the territory of Australia, from other non-originating materials; and

(b)   each of those other non-originating materials satisfies the change in tariff classification, including by one or more applications of this section.

 

Paragraph 5(b) gives effect to the accumulation provisions contained in Article 3.8 of Chapter 3 of the Peru-Australia Free Trade Agreement (PAFTA), and applies where the non-originating materials that are used to directly produce the final good do not satisfy the change in tariff classification.

 

In practice, in producing a final good, a producer may use goods that are produced in Peru by another producer. The components of these goods may be produced by yet another producer in Peru or may have been imported into Peru by another importer. It is possible that non-originating materials that make up the good may not satisfy the change in tariff classification rule, which may mean that the final good is non-originating.

 

In such circumstances, it will be necessary to examine each step in the production process of each non-originating material that occurs in Peru or in Australia in order to determine whether each step satisfies the change in tariff classification rule for the final good. If the non-originating materials used to make another non-originating material satisfies the change in tariff classification rule, then the final material will be an originating material and the final good will be an originating good (subject to satisfying all other requirements of new Division 1EA of the Customs Act). This is how paragraph 5(b) of the Regulations operates.

 

Example: The following diagram relates to the production of particular goods made from non-originating materials that occurred entirely in Peru. The diagram and the accompanying text illustrate the application of paragraph 5(b).

 

 

The goods are produced from non-originating materials 1 and 2.

 

First application of paragraph 5(b)

 

Non-originating materials 1 and 2 must satisfy the change in tariff classification.  Under paragraph 5(a), the transformation of non-originating material 1 satisfies the relevant change in tariff classification requirement. Under paragraph 5(b), the transformation of non-originating material 2 does not satisfy the relevant change in tariff classification requirement, but it has been produced by non-originating materials 3 and 4.

 

Second application of paragraph 5(b)

 

Non-originating materials 3 and 4 must satisfy the change in tariff classification.  Under paragraph 5(a), non-originating material 3 satisfies the relevant change in tariff classification requirement. Under paragraph 5(b), non-originating material 4 does not satisfy the relevant change in tariff classification requirement, but it has been produced by non-originating material 5.

 

Third application of paragraph 5(b)

 

For non-originating material 4 to be originating, non-originating material 5 must satisfy the change in tariff classification requirement. Under paragraph 5(a), the transformation of non-originating material 5 (into non-originating material 4) satisfies the relevant change in tariff classification requirement.

 

Final result

 

The result of the three applications of paragraph 5(b) is that goods produced from non-originating materials 1 and 2 are originating goods. This is because the three applications of paragraph 5(b) would result in all materials (being non-originating materials 1 to 5) satisfying the change in tariff classification requirement and therefore transformed into originating materials.


 

 

Part 3 - Regional value content requirement

 

Sections 6 and 7

 

Subsection 153ZIP(6) of the Customs Act provides that, if a requirement that applies in relation to the goods is that the goods must have a regional value content (RVC) worked out in a particular way:

 

(a)    the RVC of the goods is to be worked out in accordance with PAFTA; or

(b)   if the regulations prescribe how to work out the RVC of the goods--the RVC of the goods is to be worked out in accordance with the regulations.

 

For the purpose of subsection 153ZIP(6), sections 6 and 7 of the Regulations prescribe the 'Build-down method' and the 'Build-up method' respectively under which the RVC of goods is calculated.

 

Therefore, if it is a requirement in column 3 of the table in new Annex 2 that relevant goods are required to meet a RVC of not less than a particular percentage using a particular method, then the method in sections 6 or 7, as appropriate, would need to be applied.

 

Section 6 - Build-down method

 

Subsection 6(1) provides that the build-down method is the formula:

 

RVC = customs value - Value of non-originating materials   x   100

customs value

 

where:

 

'customs value' means the customs value of the goods worked out under Division 2 of Part VIII of the Customs Act; and

 

'value of non-originating materials' means the value, worked out under Part 4 of the Regulations, of the non-originating materials used in the production of the goods.

 

Subsection 6(2) provides that RVC must be expressed as a percentage.

 

By way of an example using the build-down method to calculate the RVC for canned coffee that is made from originating and imported ingredients and packaged in a steel can. The customs value of each can of coffee is $1 (including the costs of international shipment - calculated as set out under Part 4 - Determination of Value) and the value of the non-originating materials (including packaging) is $0.48. Using the relevant method, the RVC is calculated as follows:

 

RVC = $1 (customs value) - $0.48 (value of the non-originating material)   x   100

                                                    $1 (customs value)

 

Therefore, the RVC for the canned coffee is 52% (since the build down method has established that 48% of the good originates from outside the FTA region).

 

Section 7 - Build-up method

 

Subsection 7(1) provides that the build-up method is the formula:

 

RVC = Value of originating materials   x   100

Customs value

 

where:

 

'customs value' means the customs value of the goods worked out under Division 2 of Part VIII of the Customs Act; and

 

'value of originating materials' means the value, worked out under Part 4 of the Regulations, of the originating materials used in the production of the goods.

 

Subsection 7(2) provides that RVC must be expressed as a percentage.

 

By way of an example using the build-up method to calculate the RVC for wooden cabinets that are made from originating timbers. Each piece of furniture is sold for $100 and the value of the originating materials used to produce the furniture is $43. Using the relevant method, the RVC is calculated as follows:

 

RVC = $43 (value of the originating material)   x   100

                         $100 (customs value))

 

Therefore, the RVC for the wooden cabinets is 43%.

 

Part 4 - Determination of value

 

Section 8 - Value of goods that are originating materials or non-originating materials

 

Subsection 153ZIM(2) of the Customs Act provides that the value of goods for the purposes of Division 1EA is to be worked out in accordance with the regulations, and the regulations may prescribe different valuation rules for different kinds of goods.

 

For the purposes of subsection 153ZIM(2) and section 153ZIP, section 8 of the Regulations sets out how the value of originating materials and non-originating materials used in the production of goods is worked out.

 

Subsection 8(2) provides that the value of the materials is as follows:

 

a)      for materials imported into the territory of Peru by the producer of the goods--the value of the materials worked out under a law of Peru that implements the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994;

b)      for materials acquired in the territory of Peru:

(i)     the price paid or payable for the materials by the producer of the goods; or

(ii)   the value of those materials worked out under paragraph (a) on the assumption that those materials had been imported into the territory of Peru by the producer of the goods; or

(iii)  the earliest ascertainable price paid or payable for the materials in the territory of Peru;

c)      for materials that are produced by the producer of the goods--the sum of:

(i)     all the costs incurred in the production of the materials, including general expenses; and

(ii)   an amount that is the equivalent of the amount of profit that the producer would make for the materials in the normal course of trade or of the amount of profit that is usually reflected in the sale of goods of the same class or kind as the materials.

 

For originating materials, subsection 8(3) provides that the costs incurred in the international shipment of the materials must be included when working out their value.

 

Also for originating materials, subsection 8(4) sets out additional amounts (including freight, insurance, duties, etc.), that may be included when working out their value.

 

For non-originating materials, subsection 8(5) sets out additional amounts (including freight, insurance, duties, etc.), that are to be disregarded when working out their value.

 

Section 9 - Value of accessories, spare parts or tools

 

Subsection 153ZIP(7) of the Customs Act provides that, if:

 

a)      a requirement that applies in relation to the goods is that the goods must have a RVC worked out in a particular way; and

b)      the goods are imported into Australia with accessories, spare parts, tools or instructional or other information materials; and

c)      the accessories, spare parts, tools or instructional or other information materials are classified with, delivered with and not invoiced separately from the goods; and

d)     the types, quantities and value of the accessories, spare parts, tools or instructional or other information materials are customary for the goods;

the regulations must provide for the value of the accessories, spare parts, tools or instructional or other information materials to be taken into account for the purposes of working out the RVC of the goods (whether the accessories, spare parts, tools or instructional or other information materials are originating materials or non-originating materials).

 

For the purpose of subsection 153ZIP(7), section 9 of the Regulation provides that, if the above paragraphs of subsection 153ZIP(7) are satisfied in relation to the goods:

 

a)      the value of the accessories, spare parts, tools or instructional or other information materials must be taken into account for the purposes of working out the regional value content of the goods under Part 3; and

b)      if the accessories, spare parts, tools or instructional or other information materials are non-originating materials--for the purposes of sections 6 and 8, those accessories, spare parts, tools or instructional or other information materials are taken to be non-originating materials used in the production of the goods; and

c)      if the accessories, spare parts, tools or instructional or other information materials are originating materials--for the purposes of sections 7 and 8, those accessories, spare parts, tools or instructional or other information materials are taken to be originating materials used in the production of the goods.

 

Section 10 - Value of packaging materials and containers

 

Section 153ZIQ of the Customs Act deals with packaging materials and containers.

 

Subsection 153ZIQ(1) provides that, 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 Subdivision D of new Division 1EA of the Customs Act.

 

However, if a requirement that applies in relation to the goods is that the goods must have a RVC worked out in a particular way, subsection 153ZIQ(2) provides that the regulations must require the value of the packaging material or container to be taken into account as originating materials or non-originating materials, as the case may be, for the purposes of working out the RVC of the goods.

 

Section 10 of the Regulations provides that, if paragraphs 153ZIQ(1)(a) and (b) are satisfied in relation to goods and the goods must have a RVC worked out in a particular way:

 

a)      the value of the packaging material or container in which the goods are packaged must be taken into account for the purposes of working out the regional value content of the goods under Part 3; and

b)      if that packaging material or container is a non-originating material--for the purposes of sections 6 and 8, that packaging material or container is taken to be a non-originating material used in the production of the goods; and

c)      if that packaging material or container is an originating material--for the purposes of sections 7 and 8, that packaging material or container is taken to be an originating material used in the production of the goods.


 

 

Part 5 - Record keeping obligations

 

Under section 126AJF(1) of the Customs Act, the regulations may prescribe record keeping obligations that apply in relation to goods that:

(a)    are exported to the territory of Peru; and

(b)   are claimed to be Australian originating goods for the purpose of obtaining a preferential tariff in the territory of Peru.

 

Part 5 of the Regulations specify the records that must be kept for goods exported to Peru and are claimed to be originating goods for the purpose of obtaining a preferential tariff treatment in accordance with PAFTA.

 

Section 11 - Exportation of goods to Peru--record keeping by exporter who is not the producer of the goods

 

For the purposes of subsection 126AJF(1), subsection 11(1) of the Regulations provide that an exporter of goods mentioned in that subsection, who is not also the producer of the goods, must keep the following records:

(a)    records of the purchase of the goods by the exporter;

(b)   records of the purchase of the goods by the person to whom the goods are exported;

(c)    evidence that payment has been made for the goods;

(d)   evidence of the classification of the goods under the Harmonized System;

(e)    if the goods include any accessories, spare parts, tools or instructional or other information materials that were purchased by the exporter:

(i)     records of the purchase of the accessories, spare parts, tools or instructional or other information materials; and

(ii)   evidence of the value of the accessories, spare parts, tools or instructional or other information materials;

(f)    if the goods include any accessories, spare parts, tools or instructional or other information materials that were produced by the exporter:

(i)     records of the purchase of all materials that were purchased for use or consumption in the production of the accessories, spare parts, tools or instructional or other information materials; and

(ii)     evidence of the value of the materials so purchased; and

(iii)   records of the production of the accessories, spare parts, tools or instructional or other information materials;

(g)   if the goods are packaged for retail sale in packaging material or a container that was purchased by the exporter:

(i)     records of the purchase of the packaging material or container; and

(ii)   evidence of the value of the packaging material or container;

(h)   if the goods are packaged for retail sale in packaging material or a container that was produced by the exporter:

(i)     records of the purchase of all materials that were purchased for use or consumption in the production of the packaging material or container; and

(ii)   evidence of the value of the materials; and

(iii)   records of the production of the packaging material or container;

(i)     a copy of the Certificate of Origin for the goods.

 

For the records referred to in subsection 11(1) of the Regulations, subsection 11(2) has the effect that the records must be kept for at least five years starting on the date the Certificate of Origin for the goods is issued.

 

Subsection 11(3) of the Regulations sets out the manner in which a record is to be kept. A record may be kept in any place, whether or not in Australia, and the exporter must ensure that the records are kept in a form that would enable a determination of whether the goods are Australian originating goods; and (b):

(ii)   if the records are not in English--the records are kept in a place and form that would enable an English translation to be readily made; and

(iii)   if the records are kept by mechanical or electronic means--the records are readily convertible into a hard copy in English.

 

Section 12 - Exportation of goods to Peru--record keeping by producer of the goods

 

For the purposes of subsection 126AJF(1), section 12(1) of the Regulations has the effect that a producer of goods mentioned in that subsection, whether or not the producer is the exporter of the goods, must keep the following records:

(a)    records of the purchase of the goods;

(b)   if the producer is the exporter of the goods--evidence of the classification of the goods under the Harmonized System;

(c)    evidence that payment has been made for the goods;

(d)   evidence of the value of the goods;

(e)    records of the purchase of all materials that were purchased for use or consumption in the production of the goods and evidence of the classification of the materials under the Harmonized System;

(f)    evidence of the value of those materials;

(g)   records of the production of the goods;

(h)   if the goods include any accessories, spare parts, tools or instructional or other information materials that were purchased by the producer:

(i)     records of the purchase of the accessories, spare parts, tools or instructional or other information materials; and

(ii)   evidence of the value of the accessories, spare parts, tools or instructional or other information materials;

(i)     if the goods include any accessories, spare parts, tools or instructional or other information materials that were produced by the producer:

(i)     records of the purchase of all materials that were purchased for use or consumption in the production of the accessories, spare parts, tools or instructional or other information materials; and

(ii)   evidence of the value of the materials so purchased; and

(iii)   records of the production of the accessories, spare parts, tools or instructional or other information materials;

(j)     if the goods are packaged for retail sale in packaging material or a container that was purchased by the producer:

(i)     records of the purchase of the packaging material or container; and

(ii)   evidence of the value of the packaging material or container;

(k)   if the goods are packaged for retail sale in packaging material or a container that was produced by the producer:

(i)     records of the purchase of all materials that were purchased for use or consumption in the production of the packaging material or container; and

(ii)   evidence of the value of the materials; and

(iii)  records of the production of the packaging material or container;

(l)     a copy of the Certificate of Origin for the goods.

 

For the records referred to in subsection 12(1) of the Regulations, subsection 12(2) has the effect that the records must be kept for at least five years starting on the date the Certificate of Origin for the goods is issued.

 

Subsection 12(3) of the Regulations set out the manner in which a record is to be kept. A record may be kept in any place, whether or not in Australia, and the exporter must ensure that the records are kept in a form that would enable a determination of whether the goods are Australian originating goods; and (b):

(i)     the records are kept in a form that would enable a determination of whether the goods are Australian originating goods; and

(ii)     if the records are not in English--the records are kept in a place and form that would enable an English translation to be readily made; and

(iii)   if the records are kept by mechanical or electronic means--the records are readily convertible into a hard copy in English.

 

                


 

ATTACHMENT B

 

 

Statement of Compatibility with Human Rights

 

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

 

Customs (Peruvian Rules of Origin) Regulations 2019

 

The Customs (Peruvian Rules of Origin) Regulations 2019 (the Regulations) is compatible with human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview

 

On 12 February 2018, in Canberra, Australia, the Hon. Steven Ciobo MP, then Minister for Trade, Tourism and Investment, and his Peruvian counterpart Mr Eduardo Ferreyros signed the Peru-Australia Free Trade Agreement (PAFTA). PAFTA is a comprehensive and wide-ranging agreement that provides Peru and Australia with more liberal access to each other's goods, services and investments markets.

 

As a result, the Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Act 2019 (the Customs Amendment Act) amends the Customs Act 1901 (the Customs Act) to fulfil Australia's obligations under Chapter 3 of PAFTA which details the agreement's rules of origin.

 

These new rules determine whether goods imported into Australia from Peru are Peruvian originating goods and are thereby eligible for preferential rates of customs duty. Peruvian originating goods are goods from the territory of Peru that satisfy the Rules of Origin; the framework of which is contained in new Division 1EA of Part VIII of the Customs Act.

 

Relevant provisions of the Customs Amendment Act that amend the Customs Act commence on the later of the day after the Customs Amendment Act receives the Royal Assent or the day the Agreement enters into force for Australia.

 

The purpose of the Regulations is to prescribe matters for and relating to the new rules that is required to be prescribed under new Division 1EA.

 

In particular, the Regulations:

 

*         prescribe the method used to determine the regional value content (a calculation used in determining whether a good is a Peruvian originating good) of goods for the purposes of some of the product-specific requirements set out in Annex 3-B to Chapter 3 of PAFTA.  Annex 3-B is applied by reference in section 153ZIP of new Division 1EA;

*         specify the valuation rules that may apply to the goods in Annex 3-B; and

*         prescribe other matters that are required to be prescribed under new Division 1EA.

 


 

The Regulations commence at the same time as Schedule 1 to the Customs Amendment Act, which is the later of the day after that Act receives the Royal Assent, and the day PAFTA enters into force for Australia.

 

Human rights implications

 

This Regulation engages the Right to not be subjected to arbitrary or unlawful interference with privacy in Article 17 of the International Covenant on Civil and Political Rights (ICCPR).

To the extent the Regulations facilitate the collection and disclosure of information, the Regulations engage the right to privacy under Article 17 of the ICCPR.  Article 17(1) sets out:

 

No one shall be subjected to arbitrary or unlawful interference with his privacy, family, home or correspondence, nor to unlawful attacks on his honour and reputation.

 

Under Article 3.17 of Chapter 3 of PAFTA, a certificate of origin document completed by the exporter or producer or an authorised representative of the exporter or producer shall support a claim that goods are eligible for preferential tariff treatment in accordance with PAFTA. The key information that must be included in a 'certificate of origin' document is detailed in Article 3.17, and Annex 3-A to Chapter 3 of PAFTA and includes personal information.

 

The Customs Amendment Act inserts new sections 126AJF, 126AJG and 126AJH into the Customs Act to enable regulations to prescribe record keeping obligations that apply in relation to Australian originating goods exported from Australia to Peru, in accordance with PAFTA.

 

The regulations prescribed for record keeping obligations are contained in Part 5 of the Regulations, which amongst other things require records and evidence of the purchase of material, value of material, production goods, and the certificate of origin to be kept for at least five years starting on the date the certificate of origin for the goods is issued. The records required to be kept accord with Article 3.22 of Chapter 3 of PAFTA.

 

Part 5 of the Regulations together with new sections 126AJF, 126AJG and 126AJH of the Customs Act, operate to allow Peru to verify the origin of goods exported to Peru from Australia that are claimed to be Australian originating goods. This may include the collection and disclosure of personal information, including information set out in a 'certificate of origin' document, for limited purposes. This information may be disclosed to a Peruvian customs official for the purpose of verifying a claim for a preferential tariff in the territory of Peru.

 

Through the amendments to the Customs Act made by the Customs Amendment Act, the collection and disclosure of personal information in relation to goods claiming to be originating goods will be permitted. Further, the collection and disclosure of personal information is authorised under Australian law. Neither the Customs Amendment Act nor the Regulations alters the existing protections.

 

The verification of the eligibility for preferential treatment is required under PAFTA and the measures in the Legislative Instrument are directed at the legitimate purpose of facilitating and supporting Australia's international obligations under PAFTA. This collection and disclosure of personal information will only be permitted for the limited purpose of verifying a claim made by a person for preferential tariff treatment making it a reasonable and proportionate response to a legitimate purpose. As such, the collection and disclosure of personal information in these circumstances will not constitute an unlawful or arbitrary interference with privacy.

 

Conclusion

 

The Regulations are compatible with human rights because to the extent that is may engage human rights, such as the right to privacy, it will not constitute an unlawful or arbitrary interference with the right to privacy.

 

 

The Hon Jason Wood MP

Assistant Minister for Customs, Community Safety and Multicultural Affairs and Parliamentary Secretary to the Minister for Home Affairs

 

 

 

 

 

 


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