G/RO/LDC/N/AUS/1/Rev.1  
 
16 September  2019 
(19-5928) Page: 1/5 
Committee on Rules of Origin  Original: English  
 
NOTIFICATION OF PREF ERENTIAL RULES OF OR IGIN FOR  
LEAST DEVELOPED COUN TRIES  
AUSTRALIA  
Revision  
The following communication, dated 13 September  2019, is being circulated at the request of the 
delegation of Australia . 
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Paragraph 4.3 of the 2015 Ministerial Decision on preferential rules of origin for least developed 
countries (WT/L/917/Add.1) requires preference -granting Members to not ify preferential rules of 
origin as per the established procedures1. In addition, as mandated by the Ministerial Decision, the 
Committee on Rules of Origin agreed, at its meeting of 2 March 2017, to a template for such 
notifications (G/RO/84).  
 
Following s uch requirements, the following revised notification has been received from: Australia . 
A. BASIC INFORMATION  
1)  Notifying member  Australia  
2)  Date of entering into force of 
Rules of origin and any 
substantive m odification 
thereof  12 April 1966  
Most recent a mendments made in 2003.  
3)  Date of expiration of Rules of 
origin if applicable  Not applicable .  
4)  Title of the preferential 
scheme for which legislation 
on Rules of origin is applicable  Australian System of Tariff Preferences  (ASTP)  
5)  Authority(ies) granting the 
preferential treatment  Australian Border Force  
https://www.abf.gov.au/  
6)  National authorities in charge 
of Rules of origin 
administration  
 Australian Border Force  
Trade Policy Section  
Telephone: +61 131 881 / +612 6196 0196  
https://www.abf.gov.au/importing -exporting -and-
manufacturing/free -trade-agreements/developing -countries -or-
least-developed -countries  
                                                
1 The relevant notification requirements are contained in Paragraph 2(d) of Annex 1 of the Transparency 
Mechanism for Preferential Trade Arrangements (WT/L/806) and in Paragraph 4 of Annex II of the Agreement 
on Rules of Origin.  G/RO/LDC/N/AUS/1/Rev.1  
 
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  B. INFORMATION ON RULES OF ORIGIN  
I.  BENEFICIARIES  
1) List of Beneficiaries  https://www.abf.gov.au/importing -exporting -and-
manufacturing/tariff -classification/current -tariff/schedule -1 
2) Eligibility  A country that was  recognised as a least developed country by 
the United Nations in 2003 (when Australia extended duty-free 
and quota -free treatment to all goods from least developed 
countries) receives  least developed country preferences under  
the ASTP . 
 
II.  CRITERIA FOR DETERMINING SUBSTANTIAL TRANSFORMATION  
1)  General criteria, if applicable for all products  
 (a) Definition of wholly 
obtained products  Goods claimed to be the produce of a country are the produce of 
that country if they are its  unmanufactured raw  products.  
 (b)  Describe the criteria for 
not-wholly produced 
products  Goods are the manufacture of an Least Developed Country (LDC) 
if: the last process in the manufacture of the goods was 
performed in an LDC; and the allowable factory cost of the goods 
is not less than 50%  of the total factory cost of the goods.  
For LDC preferences, at least 25% of the al lowable factory  cost 
of the goods must be from one or more LDCs, with at least 25% 
from other countries in the quali fying area.  
 (c)  Insert the formula for 
calculating ad valorem  
percentage  % = Allowable Factory Costs/Total Factory  Costs  
Section 153B of the Customs Act defines "allowable factory cost" 
and "total factory cost" in terms of materials, labour and 
overhea d.  
Sections 153D and 153E of the Customs Act establish rules for 
calculating the total expenditure and allowable expenditure 
respectively in regard to materials received at the factory.  
2)   Product specific rules of origin, 
where applicable  No product specific rules of origin.  
 (a)  Insert  the link where the 
complete list of product 
specific rules of origin can 
be found.  
 (b) Insert the formula for 
calculating ad valorem  
percentage, when applied 
for product specific rule  
3) Definition of non -originating 
material and originating material, 
if any  Not applicable.  
4) List of insufficient working 
process, if any  The manufacturer of the preference claim goods must perform 
the last process in the manufacture of those goods. The last 
process of manufacture must be determined on a case -by-case 
basis with due regard to the nature of the goods concerned and 
the processes to which they have been subjected. Manufacture 
does not include restoration, refitting and/or repair of goods. 
The manufacturer must be making a different thing from that out 
of which it is made.  G/RO/LDC/N/AUS/1/Rev.1  
 
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  5) Rules for application of 
cumulation and related 
procedures if any  LDC goods qualify for preference if a specified percentage (50%) 
of the total factory cost in producing those goods constitutes 
allowable expenditure in relation to the particular "qualifying 
area".  
For LDCs the qualifying area is a minimum of 25% allowab le 
costs from least developed countries, Papua New Guinea, Forum 
Island countries and up to 25% from developing countries as per 
list in question BI 1).  
6) Any other information that 
member deems necessary  - 
 
III.   DOCUMENTARY REQUIREMENTS  
1)  Certificate of origin and other proofs of origin  
 (a)  Requirement for certificate 
of origin and/or any other 
proof of origin, if any  Australia accepts certificates of origin or declarations of origin 
made by the overseas manufacturer of goods imported into 
Australia to support a preference claim, provided:  
(a) the certificate of origin or declaration of o rigin clearly 
identifies the goods to which it applies;  
(b)  the certificate of origin or d eclaration  of origin specifies 
that the last process in the manufacture of the goods was 
performed in the LDC and that the manufacturer 's 
allowable factory cost is at least 50% of their total factory 
cost; and  
(c)  there is no reason to doubt the veracity  or reliab ility of 
the certificate of origin or declaration of o rigin 
There is no prescribed form for certificate of origin or 
declaration of o rigin by the manufacturer. It should, however, 
describe the goods and refer to the particular provision in 
Divisi on 1A of Part  VIII of the Customs Act that the goods 
meet. Also, the name of the person signing the certificate or 
declaration, together with their position and the company or 
entity represented, should be clearly stated. The declaration 
may be on the comm ercial documents or form a separate 
document.  
 (b)  Authority to be designated 
for issuance of certificate 
of origin  No designated authorities for LDC certificates of origin.  
 (c)  Prescribed form of 
Certificate of origin and/or 
any other proof of origin  There is no prescribed form of certificate of origin or 
declaration of o rigin. However, Form A in the Australian GSP 
manual  may be used to claim LDC preferences under the ASTP . 
Form A  can be found at : 
http://unctad.org/Sections/gsp/docs/gsp_form_a_new_en.pdf   
 (d)  Any other procedures 
applied for certificate of 
origin and/or any other 
proof of origin, if any  The Australian Border Force may seek further evidence of 
preference entitlement for any specific reason or a simple 
intuitive selection, irrespective of the existence of a certificate 
or declaration.  
2)  Direct shipment  
 (a)  Rules applicable for direct 
shipment, if any  There are no direct shipment requirements for LDC 
preferences.  
 (b)  Documentary requirement 
for proof of direct 
shipment including when 
the transport of 
consignment involves 
transit through one or 
more intermediate 
countries, if any  Not applicable.  
 G/RO/LDC/N/AUS/1/Rev.1  
 
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  IV.  VERIFICATION AND PENALTIES  
1) Procedure for verification of 
proofs of origin  Verification of origin is done under general powers provided by 
the Customs Act 1901.  
Legislation available: 
https://www.legislation.gov.au/Details/C2017C00028   
Relevant sections include:  
- Section 30 Customs control  
- Section 68 Importation of goods  
- Section 186  General powers of examination of goods 
subject to customs control  
- Section 186AA  General powers of examination of goods 
loaded onto or unloaded from ships or aircraft  
- Part XII, Division 1  
- Subdivision J —General powers to monitor and audit  
- Sections 240 (Commercial doc uments to be kept), 240AA 
(Authorised officer may require person to produce 
commercial documents), 240AB (Verifying communications 
to department, 240AC (Authorised officer may require 
person to produce record).  
2) Penalties for fraud and false 
declarations  Customs Act 1901, sections 243U and 243T and section 234 
(Customs offences) 
https://www.legislation.gov.au/Details/C2017C00028  
3) Authorities and procedures for 
appeal in the case of dispute on 
verification  Traders have access to internal review by the Australian 
Border Force  as well as merit review by an external tribunal: 
the Administrative Appeals Tribunal  (http://www.aat.gov.au/ ) 
and judicial review by the Federal Court of Australia  
(http://www.federalcourt.gov.au/ ). 
4) Requirement for preserving the 
documents related to issuance 
of certificate of origin  Requirement for preserving the documents related to issuance 
of certificate of origin in the Customs Act 1901, section 240. 
Commercial documents must be kept for five years after the 
goods were imported into Australia.  
5) Any other relevant information  - 
 
V.  REFERENCE TEXTS  
(a) The legislative texts in one of 
the official WTO languages 
containing the preferential rules 
of origin applicable under a PTA 
granted under the Decision on 
Measures in Favour of Least -
Developed Countries (Annex F 
of the Hong Kong Ministerial 
Declaration)  Customs Act 1901: 
https://www.legislation.gov.au/Details/C2017C00219  
Customs (International Obligations) Regulation 2015  
https://www.legislation.gov.au/Details/F2019C00083  
Customs Regulation 2015  
https://www.legislation.gov.au/Details/F2019C00566   
 
(b) The full text of the 
administrative regulations 
concerning modalities for 
issuance, acceptance, 
retrospective issuance and 
replacement of certificates of 
origin or any equivalent 
declarations to be made, 
including any requirements  
related to stamps to be used 
along with notification of 
stamps  G/RO/LDC/N/AUS/1/Rev.1  
 
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  (c) The full text and related 
administrative regulations of 
the modalities for the proof of 
movement of the consignment 
of the goods from the 
beneficiary countries to 
preference -giving countries 
including transit through third 
countries  
(d) The full texts of the modalities 
of the verification procedures 
and related penalties  
 
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