TAFTA step-by-step guide to determining a good's origin

Follow these steps to determine whether a good of mixed origin qualifies as an originating good under TAFTA's rules of origin.For further assistance, contact one of the bodies authorised to certify origin for TAFTA (the 'Authorised Bodies'): the Australian Industry Group or your state or territory Chamber of Commerce and Industry (see contact details under the 'For Business' section).

Step 1

Was the good last processed in the TAFTA region?

If yes, go to step 2.

If no, the good does not qualify.

Step 2

Do any of the materials or components used in the good come from outside the territory of the parties to TAFTA, or otherwise do not qualify as originating materials under TAFTA's rules of origin?

If yes, go to step 3. (If you do not know the origin of any material, you have to assume it does not originate in a TAFTA country.)

If no, the good qualifies.

Step 3

Determine the AHECC/HS code1 of the good. Usually, the six-digit subheading level is sufficient.

Step 4

Using the AHECC/HS code, identify the specific rule or rules of origin in the TAFTA Annex that apply to the good.

If two rules apply, the good must meet one of them. One rule may require only an AHECC/HS code change, whereas the other requires an easier AHECC/HS code change and a regional value content (RVC) test. Select the rule that is most appropriate for the non-originating materials used to produce the goods.

Step 5

Determine the AHECC/HS code of the non-originating materials or components used to produce the good in the TAFTA country.

Step 6

Does the change from the AHECC/HS code of the non-originating materials to the AHECC/HS code of the good imported into Australia meet the AHECC/HS code change required in the specific rule or rules of origin identified in Step 4?

If yes, the AHECC/HS code change requirement is met. Go to Step 7.

If no, the good does not qualify, unless it falls under certain exemptions such as the de minimis exemption.

Step 7

Does the specific rule also contain an RVC test?

If yes, choose whether to use the build-down or build-up method (step 8).

If no, and the HS classification change requirement is met, the good qualifies as an originating good. Go to step 9.

Step 8 — Build-down value method

Determine the actual price paid for the good. Determine the cost including freight (CIF) value of all non-originating materials imported into Australia or Thailand and used to produce the finished good, or used to produce a non-originating material in Thailand or Australia that was supplied to the producer of the finished product. Using the build-down value formula, calculate the RVC percentage.

If the RVC percentage is equal to or more than the minimum percentage set out in the specific rule of origin, the good qualifies as an originating good, as long as you meet all other requirements of the rule. Go to step 9.

If the percentage is less than the set minimum, the good does not qualify.

Step 9

Determine whether the goods meet any other applicable requirements.

If yes, go to step 10.

If no, the good does not qualify.

Step 10

If exporting to Thailand, ensure sufficient evidence has been obtained before applying for registration of the goods as originating goods or for a Certificate of Origin. Provide the Certificate of Origin to the importer. The importer must possess a valid Certificate of Origin to claim preferential duty rates.

Step 11

Determine whether your goods meet TAFTA's consignment provisions. These provide that goods will not be considered originating if they undergo subsequent production or any other operation outside Thailand or Australia. They can undergo operations necessary to preserve them in good condition or to transport them to Thailand or Australia, but cannot be traded or used outside either country.

If yes, the goods qualify as originating.

If no, the good does not qualify.