Document ID: chunk:federal_register_of_legislation:F2019L01659:reg:7
Version: federal_register_of_legislation:F2019L01659
Segment Type: reg
Provision Reference: reg 7
Character Range: 5014–7233

7  Value of goods that are non‑originating materials
 (1) For the purposes of subsection 153ZPB(2) of the Act, the value of non‑originating materials used in the production of goods is:
 (a) for non‑originating materials imported into the Area of Hong Kong, China by the producer of the goods—the value of the materials worked out in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994; or
 (b) for non‑originating materials acquired in the Area of Hong Kong, China:
 (i) the price paid or payable for the materials by the producer of the goods; or
 (ii) the value of those materials worked out under paragraph (a) on the assumption that those materials had been imported into the Area of Hong Kong, China by the producer of the goods; or
 (iii) the earliest ascertainable price paid or payable for the materials in the Area of Hong Kong, China.
 (2) For the purposes of paragraph (1)(a), in working out the value of particular non‑originating materials, the costs incurred in the international shipment of the materials must be included.
 (3) In working out the value of particular non‑originating materials under subsection (1), the following may be deducted:
 (a) the costs of freight, insurance, packing and all other costs incurred in transporting the materials within the Area of Hong Kong, China to the location of the producer of the goods;
 (b) duties, taxes and customs brokerage fees on the materials that:
 (i) have been paid in either or both of the Area of Hong Kong, China and the Area of Australia; and
 (ii) have not been waived or refunded; and
 (iii) are not refundable or otherwise recoverable;
  including any credit against duties or taxes that have been paid or that are payable;
 (c) the costs of waste and spoilage resulting from the use of the materials in the production of goods, reduced by the value of reusable scrap or by‑products;
 (d) the costs of processing the materials in either or both of the Area of Hong Kong, China and the Area of Australia;
 (e) the costs of originating materials used in the production of the non‑originating materials in either or both of the Area of Hong Kong, China and the Area of Australia.