Seeking industry views on Rules of Origin for new FTAs
The Government is currently negotiating separate free trade agreements (FTAs) with ASEAN, Malaysia, China, Chile and the Gulf Cooperation Council (GCC).
To assist industry to understand the implications for their businesses on the development of Rules of Origin (ROO) in the FTAs and to make comment, Commonwealth agencies have prepared a background paper setting out the issues, as well as an update on this aspect of each of the FTA negotiations.
Australia is also considering how recent changes in the way goods are marketed, warehoused and transported internationally affect the generally accepted definitions of off-shore processing and transport through third countries. A background paper on these Third Country Transportation issues has also been prepared.
What Can Industry Tell Us?
We are seeking industry views on the ROO for each of the FTAs as the negotiations move into the next stages. Some industry associations have already put forward positions on the CTC ROO and we would be interested to hear any further details on those positions, and to receive views from organisations that are yet to put forward their ideas. In particular, we are seeking information on the following:
- What is the appropriate level of tariff change required for individual products to demonstrate origin? Does the CTC test need to be supplemented by an RVC or specific manufacturing process requirement for certain products? Where and what would these be?
- The CTC-based ROO in two of Australia’s current FTAs have been in place for nearly a year and a half. Is the CTC ROO for your industry in these Agreements appropriate?
- Previous practice in our FTAs using value-added ROO is that the last process in the manufacture of the good must take place within the FTA parties. Is it time to reconsider the meaning of this requirement in light of changes in the way goods move through third countries?
- For the alternative value-added test, what is the appropriate threshold for each tariff line relevant to your industry?
- Should any value-added test stand as only an interim measure on the path to a single, comprehensive CTC approach to ROO?
On Third Country Transportation:
- To what extent is third country transportation, including use of bonded warehouses and distribution hubs, used by Australian exporters and importers when trading in goods travelling to, or coming from, China, Chile, the GCC, New Zealand and the ASEAN countries – Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
- The reason why goods pass through third countries
- What processes are undertaken while goods are held in a third country
- What kinds of processes do you think should be allowed to be performed on transhipped goods and goods held in distribution hubs without those goods losing preferential access to FTA partners?
Comments on the issues raised in the background and update papers are invited. Responses can be sent to:
Mr Tim Ward
Goods & Government Procurement Team
FTA Unit
Department of Foreign Affairs and Trade
BARTON ACT 0221
Tel: (02) 6261 3832
E-mail: asean_fta@dfat.gov.au