Promulgation Authorities:  General Administration of Customs

Promulgation Date:  2015.12.18

Effective Date:  2015.12.20

Validity Status:  valid

Document Number:  General Administration of Customs Order No. 228

Administrative Measures of PRC Customs on Origin of Imports and Exports under the Free Trade Agreement between the Government of Australia and the Government of the People's Republic of China

Administrative Measures of PRC Customs on Origin of Imports and Exports under the Free Trade Agreement between the Government of Australia and the Government of the People's Republic of China

General Administration of Customs Order No. 228

Article 1    These Measures are formulated pursuant to the provisions of the Customs Law of the People's Republic of China (hereinafter referred to as the "Customs Law"), the Regulations of the People's Republic of China on Place of Origin of Imports and Exports, the Free Trade Agreement Between the Government of Australia and the Government of the People's Republic of China for the purposes of proper determination of origin of imports and exports under the Free Trade Agreement Between the Government of Australia and the Government of the People's Republic of China (hereinafter referred to as the "China-Australia FTA"), to promote trade and economic exchanges between China and Australia.

Article 2    These Measures shall apply to administration of origin of imports and exports under the China-Australia FTA between China and Australia.

Article 3    Imports which satisfy any of the following criteria shall be deemed originated from Australia:

(1) obtained or produced entirely in Australia;

(2) produced entirely in Australia using originating materials which comply with the provisions of these Measures;

(3) not obtained or produced entirely in Australia but satisfy the requirements on change in tariff classification, regional value content, manufacturing or processing workflow or other requirements stipulated by the product specific rules of origin under the China-Australia FTA;

The product specific rules of origin under the China-Australia FTA shall be an integral part of these Measures, and shall be separately formulated by the General Administration of Customs.

Goods originated from Australia which are shipped directly from Australia to China may, pursuant to the provisions of these Measures, apply for entitlement to the agreed tax rates in the China-Australia FTA in the Import and Export Tariffs of the People's Republic of China (hereinafter referred to as the "Tariffs").

Article 4    "Obtained or produced entirely in Australia" referred to in the first paragraph of item (1) of Article 3 shall mean:

(1) live animals born and bred in Australia;

(2) goods obtained from the aforesaid live animals referred to in item (1) of this Article;

(3) goods obtained directly in Australia through hunting, trapping, fishing, farming, gathering or capture;

(4) plants and plant products harvested, picked or collected in Australia;

(5) minerals and other naturally-occurring substances extracted or obtained in Australia which are not included in item (1) to item (4) of this Article;

(6) products extracted pursuant to the China-Australia FTA from waters, seabed or subsoil other than  Australia's territorial waters, excluding fish, crustaceans, plants and other marine organisms;

(7) fish, crustaceans, plants and other marine organisms obtained from high seas by vessels registered in Australia and flying the Flag of Australia;

(8) goods obtained or produced from goods referred to in item (7) of this Article by factory ships registered in Australia and flying the Flag of Australia;

(9) waste and scrap generated in the processing workflow in Australia, or second-hand goods collected in Australia which can only be used for recovery of raw materials; and

(10) goods produced in Australia from goods referred to in item (1) to item (9) of this Article.

Article 5    "Change in tariff classification" referred to in the first paragraph of item (3) of Article 3 shall mean change in tariff codes in the Tariffs following manufacturing and processing in Australia using non-originating materials.

Article 6    "Regional value content" referred to in the first paragraph of item (3) shall be computed using the formula:

Regional value content  = Price of goods – price of non-originating materials 　× 100%

Price of goods

"Price of goods" shall mean the price of goods adjusted on the basis of FOB price pursuant to the Customs Valuation Agreement.

"Price of non-originating materials" shall mean import costs, freight charges and insurance premium for shipping to the port or venue of destination of non-originating materials determined pursuant to the Customs Valuation Agreement, including the price of materials of undetermined origin. Where the non-originating materials are obtained in Australia by the manufacturer, the transaction price determined pursuant to the Customs Valuation Agreement shall be exclude the freight charges, insurance premiums, packaging fee and any other expenses incurred in the process of shipping the said non-originating materials from the supplier's warehouse to the location of the manufacturer.

For computation of regional value content of the goods pursuant to the first paragraph of this Article, the price of non-originating materials shall exclude the price of non-originating materials used for production of originating materials in the production process.

Article 7    Where materials originating from China are used for production of other goods in Australia, the materials shall be deemed materials originating from Australia.

Article 8    In event of the goods for which the change in tariff classification requirements under the China-Australia FTA apply, where the non-originating materials used in the production process do not satisfy the change in tariff classification requirements, but the transaction price of the aforesaid non-originating materials determined pursuant to  the Customs Valuation Agreement does not exceed 10% of the FOB price of the said goods, and the goods comply with all other provisions of  these Measures on applicability, the said goods shall still be deemed as originating goods.

Article 9    Goods which have merely undergone any one or more of the following minor processing or treatment without other processing or treatment, shall not be classified as originating goods:

(1) processing or treatment carried out to ensure that the goods maintain good condition during the transportation or storage period;

(2) packaging and repackaging;

(3) filtering, screening, selection, sorting, grading, matching (including combination set of items);

(4) bottling, canning, bagging, boxing, fixing onto cardboard or wood and other simple packaging process;

(5) pasting or printing of labels, marks, logs and other marks for distinguishing purpose on products or their packaging; and/or

(6) unloading of goods.

Article 10    Packaging materials and containers used in the shipping process for protection of the goods shall not affect determination of origin of the goods.

Where the requirements on regional value content in the product specific rules of origin under the China-Australia FTA are applicable for determination of origin of goods, the price of packaging materials and containers used for retail of such goods shall be computed pursuant to the purchase price of the originating materials or non-originating materials based on the respective origin.

Where other requirements in the product specific rules of origin under the China-Australia FTA, other than the requirements on regional value content, are applicable for determination of origin of goods, and the packaging materials and containers used for retail of the goods are classified together with such goods, the origin of the packaging materials and containers used for retail of such goods shall not affect determination of origin of the goods.

Article 11    For computation of regional value content of goods for which the requirements on regional value content in the product specific rules of origin under the China-Australia FTA are applicable, the price of the imported accessories, spare parts and tools declared together with such goods should be computed into the price of originating materials or non-originating materials.

Where other requirements in the product specific rules of origin under the China-Australia FTA, other than the requirements on regional value content, are applicable for determination of origin of goods, if the imported accessories, spare parts or tools declared together with such goods are classified together with such goods in the Tariffs, and the prices are included in the price of the goods, the origin of the said accessories, spare parts or tools shall not affect determination of origin of the goods.

The quantity and price of the accessories, spare parts or tools referred to in the first paragraph and the second paragraph of this Article shall fall with reasonable scope.

Article 12    The origin of the following materials or articles which do not form an integral part of the goods shall not affect determination of origin of the goods:

(1) materials or articles used for production of the goods;

(a) fuel, energy;

(b) tools, molds and dies;

(c) gloves, goggles, boots, clothing, safety equipment and supplies;

(d) catalysts and solutions;

(2) materials or articles used for maintenance of equipment and factory building:

(a) spare parts and materials;

(b) lubricants, oil (grease), synthetic materials and other materials;

(3) equipment, apparatus and supplies used for testing or inspection of the goods; and

(4) any other goods used in the production process of the goods which do not constitute an integral part of such goods but their participation in the production process of such goods can be reasonably shown.

Article 13    In the determination of origin of goods, commercially-interchangeable materials of the same nature which are indistinguishable via visual observation shall be distinguished through physical separation of each material or application of inventory management methods recognised by recognised accounting principles of the exporter.

Article 14    "Shipped directly" referred to in Article 3 of these Measures shall mean shipping of imports under the China-Australia FTA from Australia directly to China without passing through any country or region other than China and Australia (hereinafter referred to as "any other country or region").

Goods originating from Australia which pass through any other country or region in the shipping process to China, regardless if there is a change of transport vehicle or temporary storage in any other country or region, shall be deemed as "shipped directly" if they satisfy all the following criteria:

(1) the goods have not undergone any treatment other than unloading, logistics split or treatment necessary to keep the goods in good condition when passing through such countries or regions;

(2) where the goods are stored temporarily in any other countries or regions, the duration of stay in such countries or regions shall not exceed 12 months; and

(3) the goods are under Customs supervision in such countries or regions.

Article 15    Unless otherwise stipulated by the General Administration of Customs,

the consignee of imports or its agent shall, at the time of declaration for the imports, fill in a "People's Republic of China Customs Declaration Form for Imports" (hereinafter referred to as the "Customs Declaration Form for Imports") pursuant to the declaration provisions of the Customs to declare that the agreed tax rate in the China-Australia FTA is applicable, and submit the following documentation:

(1) the valid certificate of origin (see Appendix 1 for format)  issued by an authorised agency of Australia, or a declaration of origin (see Appendix 2 for format) completed and signed by the manufacturer or the exporter; and

(2) commercial invoice and full journey transportation documentation for the goods.

Where the goods pass through any other country or region in the shipping process to China, the proof document issued by the Customs of such country or region or any other proof document recognised by the Customs shall be provided.

Article 16    Where the consignee of imports declared to be originated from Australia or its agent does not submit the certificate of origin or the declaration of origin at the time of declaration of imports, it shall submit, before tax collection, a supplementary declaration to the Customs on whether the imports are of Australia originating status (see Appendix 3 for format).

Where the consignee of imports or its agent makes a supplementary declaration pursuant to the provisions of the first paragraph of this Article to the Customs on whether the imports are of Australia originating status, and provides tax guarantee, the Customs shall process import formalities pursuant to the law. Except for the circumstances for which the laws and administrative regulations stipulate that guarantee is not allowed, if a tax guarantee equivalent to the maximum total tax amount which may be borne by the goods has been provided for reasons such as early clearance, the consignee of imports shall be deemed to comply with the provisions of this paragraph on provision of tax guarantee.

At the time of declaration of imports, where the consignee of imports or its agent does not declare that the agreed tax rate in the China-Australia FTA is applicable, or does not make a supplementary declaration pursuant to the provisions to the Customs on whether the imports are of Australia originating status, the agreed tax rate shall not apply to the declared imports. Where the consignee or its agent applies after tax payment to the Customs for application of the agreed tax rate in the China-Australia FTA, no adjustment shall be made to the tax paid.

Article 17    Where the dutiable price of the same batch of imports originated from Australia and assessed by the Customs pursuant to the law does not exceed RMB6,000, the certificate of origin or the declaration of origin need not be submitted.

The provisions of the preceding paragraph shall not apply for goods imported one or more times to circumvent the provisions of these Measures.

Article 18    A certificate of origin submitted by the consignee of imports or its agent shall satisfy all the following criteria:

(1) the certificate of origin shall be issued by an authorised agency in Australia prior to exportation of the goods or at the time of exportation;

(2) contains safety features such as specimen of seal notified to the China Customs by Australia;

(3) completed in English; and

(4) valid for 12 months from the date of issuance.

Article 19    Where a certificate of origin is not issued before exportation or at the time of exportation, it may be issued retrospectively within 12 months from the date of shipment. A certificate of origin issued retrospectively shall state the wording "issued retrospectively" and shall be valid for 12 months from the date of shipment.

Where a certificate of origin is stolen, lost or mutilated and has not been used, the consignee of imports or its agent may require the exporter or the manufacturer of the goods to apply to the authorised agency in Australia for issuance of a duplicate copy of the certificate of origin within the validity period of the said certificate. The re-issued duplicate copy of certificate of origin shall state the wordings "certified true copy of the certificate of origin's original copy (serial number and date)", and the validity period of the duplicate copy shall be the same as the validity period of the original copy.

Upon submission of the certified duplicate copy of the certificate of origin to the Customs, the original copy of the certificate of origin shall become void. Where the original copy of the certificate of origin has been used, the certified duplicate copy of the certificate of origin shall be invalid.

Article 20    For imports recognised by the Customs, pursuant to an advance ruling made pursuant to the law, as originated from Australia, if the ruling is valid and there is no change in the facts and circumstances for the making of the said ruling, the consignee of imports or its agent may, at the time of importation of goods under the said ruling, submit the declaration of origin to the Customs to declare that the agreed tax rate in the China-Australia FTA is applicable.

The declaration of origin submitted by the consignee of imports or its agent to the Customs shall satisfy all the following criteria:

(1) it complies with the format in Appendix 2 and is completed in English;

(2) it is completed and properly signed by the exporter or the manufacturer;

(3) the goods listed are imports of the same batch and correspond to the same Customs Declaration Form for Imports; and

(4) it is valid for 12 months from the date of issuance.

Article 21    A certificate of origin and a declaration of origin shall in principle not be altered or printed/written over.

Where there is need for correction under special circumstances, the error shall first be crossed out before the correction is added. The corrected contents shall be counter-signed by the correction personnel. In the case of a certificate of origin, the organisation which is authorised to issue the certificate of origin shall also confirm the correction.

Blank spaces on a certificate of origin and a declaration of origin shall be crossed out or state the wording "NA".

Article 22    For the purpose of determination of the veracity and accuracy of a  certificate of origin or a declaration of origin and determination of the originating status of the relevant goods, or determination of whether the goods satisfy other requirements stipulated in these Measures, the Customs may verify the origin, and verification shall be carried out as follows in sequential order:

(1)  request for assistance from Australia Customs;

(2)  written request for the exporter or the manufacturer in Australia to provide information; and

(3)  written request for the authorised agency in Australia to verify the validity of the certificate of origin.

Where the methods stipulated in the first paragraph of this Article are inadequate for determination, the Customs may conduct onsite verification and visit with the exporter or the manufacturer upon discussion with Australia Customs, and may apply other procedures agreed with Australia Customs.

While awaiting the verification results, the Customs may, pursuant to the law, process clearance based on guarantee upon application by the consignee of imports or its agent.

Where the imports are prohibited or restricted by the State, the Customs shall not process clearance of the goods before completion of verification.

Article 23    Under any of the following circumstances, the consignee of imports or its agent may, within one year from importation of the goods, apply to the Customs within the guarantee period approved by the Customs for lifting of tax guarantee:

(1) the consignee of imports or its agent has made supplementary declaration to the Customs pursuant to the provisions of these Measures, and submitted the certificate of origin or the declaration of origin; or(2) the consignee of imports or its agent has completed verification of origin pursuant to these Measures, and the verification results can prove the true origin of the goods.

Article 24    Under any of the following circumstances, the agreed tax rate in the China-Australia FTA shall not apply to the imports:

(1) the consignee of imports or its agent does not declare at the time of importation of the goods that the agreed tax rate is applicable, and does not make a supplementary declaration pursuant to the provisions of Article 16 of these Measures;

(2) the goods do not possess Australia originating status;

(3) the certificate of origin or the declaration of origin does not comply with the provisions of these Measures;

(4) the Customs have not received supplementary information from the exporter or the manufacturer within three months from the date of request for verification of origin, or the reply from Australia Customs does not include information which can determine the veracity of the certificate of origin or the true origin of the goods; or

(5) non-compliance with other provisions of these Measures.

Where the Customs, pursuant to the provisions of the first paragraph of this Article, deem that the agreed tax rate in the China-Australia FTA does not apply to the imports, the Customs shall notify the consignee of imports or its agent in writing (see Appendix 4 for format).

Article 25    The consignor of exports or its agent shall, at the time of declaration of exports, fill in a "People's Republic of China Customs Declaration Form for Exports" pursuant to the declaration provisions of the Customs, and submit to the Customs electronic data or photocopy of the original copy of the certificate of origin or the declaration of origin under the China-Australia FTA.

Article 26    Where there is an origin mark on the imports and exports under the China-Australia FTA and their packaging, the origin mark shall be consistent with the origin of the goods determined pursuant to these Measures.

Article 27    The Customs shall bear confidentiality obligation for commercial secrets obtained pursuant to the provisions of these Measures. Without the consent of the consignee of the imports or the consignor of the exports, the Customs shall not disclose or use them for other purposes, except where the laws, administrative regulations and the relevant judicial interpretations stipulate otherwise.

Article 28    Violations of these Measures which constitute smuggling, violation of Customs regulatory provisions or other violations of the Customs Law shall be dealt with by the Customs pursuant to the relevant provisions of the Customs Law and the Implementation Regulations of the Customs of the People's Republic of China on Administrative Penalties; where the case constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Article 29    The following terms in these Measures shall be defined as follows:

Declaration of origin shall mean the declaration of origin of goods by the exporter or the manufacturer of the goods, which is used for confirmation and declaration of the goods as originating goods.

Recognised accounting principles shall mean accounting principles for

recording income, expenditure, costs, assets and liabilities, information disclosure and preparation of financial statements, which are recognised or officially supported by the domestic law in China or in Australia, including generally-applied extensive guidelines, as well as detailed standards, administration and procedures.

Materials shall mean objects or substances used in the production process of the goods and physically constituting an integral part of the goods.

Originating materials shall mean materials of originating status as stipulated in these Measures.

Production shall mean the methods of obtaining products,

including but not limited to planting, mining, harvesting, fishing, trapping, hunting, manufacturing, processing or assembly of products.

Article 30    The General Administration of Customs shall be responsible for interpretation of these Measures.

Article 31    These Measures shall be implemented with effect from 20 December 2015.

Appendices:

1. Certificate of origin

2. Declaration of origin

3. Declaration of originating status

4. Notification of Non-applicability of Agreed Tax Rate