Other Approaches Further information can be found in ChAFTA . Box 3 on page 13 provides Some PSRs allow for a good to become details on calculating a value. good’s originating if the non-originating materials undergo a specific manufacturing or Cumulation production process, for example: The rule of cumulation provides that goods processes that involve which are in one Party are originating chemicals undergoing considered in the other Party various chemical reactions may for the purposes of ChAFTA. This means grant origin on the resulting new that if Australian-originating inputs were chemicals; incorporated into a product made in China, that input would be treated as if it for some agricultural products, originated in China. smoking of non-originating fresh produce may grant origin; and Fungible materials for some textile products, fully Fungible materials are those which are finishing non-originating raw fabric identical or interchangeable, because they may grant origin. are of the same kind of commercial quality, possess the same technical and Note physical characteristics, and, once mixed, It is important to remember that ROO cannot be readily distinguished. Examples requirements do not replace any other include natural gas, grain, or simple parts import requirements such as import (e.g. rivets). Specific accounting rules licences and biosecurity approvals. apply to exporters wishing to demonstrate that fungible goods are originating under Other Important ROOs ChAFTA. More information is available in . There are other important factors to take Minimal operations or processes into account when determining whether your good qualifies as originating. Goods will not qualify as if they have only undergone a simple process De Minimis such as packaging, simple grinding or Where a good contains only a small washing. A full list of processes that will amount of imported inputs, but those not confer origin is available in . inputs fail to achieve the Neutral elements necessary CTC once incorporated in the final good, the product may still qualify as Materials which are used in the production originating. If the value of all of a good, but are not physically materials does not exceed 10 incorporated into the end product, are not per cent of the value of the good, the counted in determining whether a product product will qualify under the de minimis is originating. Examples include fuel and rule. The goods seeking de minimis energy, tools, moulds, catalysts and classification must comply with any other solvents. A full list is available in . applicable requirements of the ROOs.
Other Approaches Some PSRs allow for a good to become originating if the non-originating materials undergo a specific manufacturing or production process, for example: processes that involve chemicals undergoing various chemical reactions may grant origin on the resulting new chemicals; for some agricultural products, smoking of non-originating fresh produce may grant origin; and for some textile products, fully finishing non-originating raw fabric may grant origin. Note It is important to remember that ROO requirements do not replace any other import requirements such as import licences and biosecurity approvals. Other Important ROOs There are other important factors to take into account when determining whether your good qualifies as originating. De Minimis Where a good contains only a small amount of imported inputs, but those inputs fail to achieve the necessary CTC once incorporated in the final good, the product may still qualify as originating. If the value of all materials does not exceed 10 per cent of the value of the good, the product will qualify under the de minimis rule. The goods seeking de minimis classification must comply with any other applicable requirements of the ROOs. Further information can be found in ChAFTA . Box 3 on page 13 provides details on calculating a good’s value. Cumulation The rule of cumulation provides that goods which are in one Party are considered in the other Party for the purposes of ChAFTA. This means that if Australian-originating inputs were incorporated into a product made in China, that input would be treated as if it originated in China. Fungible materials Fungible materials are those which are identical or interchangeable, because they are of the same kind of commercial quality, possess the same technical and physical characteristics, and, once mixed, cannot be readily distinguished. Examples include natural gas, grain, or simple parts (e.g. rivets). Specific accounting rules apply to exporters wishing to demonstrate that fungible goods are originating under ChAFTA. More information is available in . Minimal operations or processes Goods will not qualify as originating if they have only undergone a simple process such as packaging, simple grinding or washing. A full list of processes that will not confer origin is available in . Neutral elements Materials which are used in the production of a good, but are not physically incorporated into the end product, are not counted in determining whether a product is originating. Examples include fuel and energy, tools, moulds, catalysts and solvents. A full list is available in .
guide-to-using-chafta-to-export-and-import-goods.docx