Australia – CPTPP – entry into force 30 December 2018

On 30 December 2018, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP or TPP-11) will enter into force for Australia, Canada, Japan, Mexico, New Zealand and Singapore. On 14 January 2019, the TPP-11 will enter into force for Vietnam. DHA Notice № 2018/37 summarises the implementation for goods.

Trans-Pacific Partnership originating goods

Trans-Pacific Partnership originating goods are those that meet the requirements of Division 1GB of Part VIII of the Customs Act 1901. From 30 December 2018 to 13 January 2019, only materials sourced from Australia, Canada, Japan, Mexico, New Zealand and Singapore are considered as originating materials for the purposes of determining whether a good is a Trans-Pacific Partnership originating good. From 14 January 2019 materials sourced from Vietnam can also be considered as originating materials in Trans-Pacific Partnership originating goods. Goods and materials from the remaining TPP-11 Parties are not considered as originating materials until the TPP-11 enters into force for that Party. Further information about determining the originating status of goods and materials is available in the Procedural Instruction: Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP-11) Rules of Origin.

Preferential rates of customs duty and duty rate phase down

Schedule 8B of the Customs Tariff Act 1995 (Customs Tariff Act) lists preferential rates of customs duty for Trans-Pacific Partnership originating goods that will be incrementally reduced to ‘Free’. Schedule 8B provides the preferential rate that will apply for each relevant tariff subheadings on 30 December 2018, the incremental reductions to the preferential customs duty rate, and the day on which those reductions commence. Schedule 8B also provides the customs duty rates that apply to excise-equivalent goods. The rates set out in the schedule apply from 30 December 2018 and will be indexed consistent with the equivalent rates listed in Schedule 3 to the Customs Tariff Act. Goods classified to a tariff subheading not listed in Schedule 8B have a ‘Free’ rate of customs duty from 30 December 2018. Customs Tariff Working Pages for Schedule 8B, and other TPP-11 amendments, are at Attachment A. The Online Tariff will be updated prior to the commencement of TPP-11.

Claiming preferential rates of customs duty

The Integrated Cargo System (ICS) preference scheme for TPP-11, the applicable Preference Rules and relevant country codes are outlined in the table below.

* From 14 January 2019

Status of Parties that have not ratified TPP-11

Brunei Darussalam, Chile, Malaysia and Peru had not ratified TPP-11 as at the date of DHA Notice № 2018/37. For these Parties, TPP-11 will enter into force 60 days after the Party ratifies TPP-11. The Department of Home Affairs will issue further notification when the entry into force date for the remaining Parties is known. Importers should check the latest Home Affairs notices if they are in doubt as to whether goods that they are importing from these countries are eligible for preferential tariff treatment under TPP-11.

Until TPP-11 enters into force for these Parties, goods that originate in one of these Parties will not be eligible for preferential treatment; and materials sourced from one of these Parties cannot be counted as Trans-Pacific Partnership originating. The only exceptions are those that apply to any non-originating materials under the TPP-11 Rules of Origin: i.e. they will become originating if they are incorporated into goods that originate in a Party where TPP-11 had entered into force at the time the goods were imported and meet any applicable Product-Specific Rules.

The requirements for obtaining a refund for duty overpaid as a result of a preferential rate of duty being available to goods that are Trans-Pacific Partnership originating are outlined in a table found in DHA Notice № 2018/37.