3. Subject to its obligations under this Agreement and the WTO Agreement, a Party may require that remanufactured goods be identified as such for distribution or sale in its territory and that they meet all applicable technical requirements that apply to equivalent goods in new condition.
Article 2.11. Import and Export Restrictions
1. Neither Party shall adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of GATT 1994, including its Notes and Supplementary Provisions. To this end, Article XI of the GATT 1994 and its Notes and Supplementary Provisions are incorporated into and made part of this Agreement, mutatis mutandis.
2. Accordingly, no Party shall adopt or maintain:
(a) export and import price requirements (1), except as permitted in enforcement of countervailing and antidumping duty orders and undertakings; or
(b) import licensing conditioned on the fulfilment of a performance requirement (2);
Article 2.12. Import and Export Monopolies
No Party shall designate or maintain a designated import or export monopoly. For the purposes of this Article, import or export monopoly means the exclusive right or grant of authority by a Party to an entity to import a good from, or export a good to, the other Party.
Article 2.13. Origin Marking
1. Where Australia requires a mark of origin on the importation of goods other than those listed in Annex XX (Origin Marking Product List), Australia shall accept the origin mark "Made in the EU" under conditions that are no less favourable than those applied to marks of origin of Member States of the Union.
2. At the request of the Union, the Parties shall periodically review the product coverage of Annex XX (Origin Marking Product List), and the Trade Committee may decide on potential additional goods for which Australia shall accept the origin mark "Made in the EU" in accordance with this Article.
3. For the purposes of the origin mark "Made in the EU", Australia shall treat the Union as a single territory.
Article 2.14. Import Licensing Procedures
1. Articles 1 to 3 of the Agreement on Import Licensing Procedures are incorporated into and made part of this Agreement, mutatis mutandis.
2. A Party that institutes licensing procedures, or changes to existing licensing procedures, shall notify the other Party of such within 60 days of publication. The notification shall include the information specified in Article 5(2) of the Agreement on Import Licensing Procedures. A Party shall be deemed to be in compliance with this provision if it has notified the relevant import licensing procedure, or any modifications thereof, to the Committee on Import Licensing provided for in Article 4 of the Import Licensing Agreement, including the information specified in Article 5(2) of that Agreement.
3. Upon request of a Party, the other Party shall promptly provide any relevant information, including the information specified in Article 5(2) of the Agreement on Import Licensing Procedures, regarding any import licensing procedure that it intends to adopt, has adopted or maintains, or changes to existing licensing procedures.
Article 2.15. Export Licensing Procedures
1. Each Party shall publish any new export licensing procedure, or any modification to an existing export licensing procedure, in such a manner as to enable governments, traders and other interested parties to become acquainted with them. Such publication shall take place as early as possible before the procedure or modification takes effect, and no later than the date such procedure or modification takes effect. Notwithstanding this, in exceptional and urgent cases, such publication may take place no later than 10 days after the procedure or modification comes into effect.
2. The publication of export licensing procedures shall include the following information:
(a) the texts of its export licensing procedures, including any modifications it makes to those procedures;
(b) the goods subject to each licensing procedure;
(c) for each procedure, a description of the process for applying for a license and any criteria an applicant must meet to be eligible to apply for a license, such as possessing an activity license, establishing or maintaining an investment, or operating through a particular form of establishment in a Party’s territory;
(d) a contact point or points from which interested persons can obtain further information on the conditions for obtaining an export license;
(e) the administrative body or bodies to which an application for a license or other relevant documentation must be submitted;
(f) a description of or citation to a publication reproducing in full any measure or measures that the export licensing procedure is designed to implement;
(g) the period during which each export licensing procedure will be in effect, unless the procedure will remain in effect until withdrawn or revised in a new publication;
(h) if the Party intends to use a licensing procedure to administer an export quota, the overall quantity and, if applicable, the value of the quota and the opening and closing dates of the quota; and
(i) any exemptions or exceptions available to the public that replace the requirement to obtain an export license, how to request or use those exemptions or exceptions, and the criteria for granting them.
3. Within 30 days after the date of entry into force of this Agreement, each Party shall notify the other Party of the publications in which its export licensing procedures, if any, are set out, including addresses of relevant government websites.
4. For greater certainty, nothing in this Article requires a Party to grant an export license, or prevents a Party from implementing its obligations under any international agreement, including but not limited to those under United Nations Security Council Resolutions, as well as its commitments under multilateral non-proliferation regimes and export control arrangements, including but not limited to the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, the Australia Group, the Nuclear Suppliers Group, and the Missile Technology Control Regime. Accordingly, if a Party has published, provided information on, or notified any export licensing procedure pursuant to another bilateral agreement with the other Party, or under an international agreement or arrangement to which both Parties are a party, it shall be deemed to have met the requirements of this article.
Article 2.16. Customs Valuation
Each Party shall determine the customs value of goods of the other Party imported into their territory in accordance with Article VII of the GATT 1994 and the Customs Valuation Agreement. To this 0end, Article VII of the GATT 1994, including its Notes and Supplementary Provisions, and Articles 1 to 9 and 15 of the Customs Valuation Agreement, including its General Introductory Commentary and Interpretative Notes, are incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.17. Non-tariff Measures
1. The Parties recognise the importance of preventing and reducing non-tariff measures, consistently with this Agreement, in facilitating trade between the Parties and contributing to an open and transparent trading system.
2. Without prejudice to Chapter X [Dispute Settlement], a Party may request that a non-tariff measure relating to trade in goods is discussed within the Committee on Trade in Goods, with a view to ensuring that it does not constitute an unnecessary or unjustified obstacle to trade between the Parties (4).
Article 2.18. Preference Utilisation
1. For the purpose of monitoring the functioning of the Agreement and calculating preference utilisation rates, the Parties shall annually exchange non-confidential import statistics for a period starting one year from the date of entry into force of this Agreement until 10 years after tariff elimination is completed for all goods in accordance with each Party’s Schedule in Annex [X-x] (Tariff Elimination Schedules). Unless the [Trade Committee] decides otherwise, this period shall be automatically extended for five years, and thereafter the Committee may decide to extend it.
2. The exchange of import statistics shall cover data pertaining to the most recent year available, including value and, where applicable, volume, at the tariff line level for imports of all goods of the other Party and identify those imports:
(a) benefitting from preferential duty treatment under this Agreement;
(b) that received non-preferential treatment, including under the different regimes used by the Parties upon importation; and
(c) as appropriate, benefitting from other relevant international preference systems.
3. These import statistics as well as preference utilisation rates may be discussed in the Committee of Trade in Goods and presented to the Trade Committee for an exchange of views.
Article 2.19. Specific Measures Concerning the Management of Preferential Treatment
1. The Parties shall co-operate in preventing, detecting and combating breaches of customs legislation, including breaches by individual traders and systematic breaches, related to the relevant preferential treatment granted under this Chapter, in accordance with their obligations under the Chapter on Rules of Origin and the Protocol on Mutual Administrative Assistance in Customs Matters.
2. A Party may, in accordance with the procedure laid down in paragraphs 3 to 8, temporarily suspend the relevant preferential treatment of the goods concerned when:
(a) a Party has made a finding, on the basis of objective, compelling and verifiable information, that systematic breaches of customs legislation related to the preferential treatment granted under this Chapter have been committed, which results in a significant loss of revenue to that Party; and
(b) the other Party repeatedly and unjustifiably refuses or fails to comply with the obligations referred to in paragraph 1.
3. A Party that has made a finding referred to in paragraph 2 (the Importing Party) shall, without undue delay, notify that finding to the [Trade Committee] and provide the related information. Following the notification, both Parties shall enter into consultations within the [Trade Committee] with a view to reaching a mutually acceptable solution.
4. If during the consultations, the conditions set out in paragraph 2(a) and 2(b) remain and the Parties fail to agree on a mutually acceptable solution within three months after the date of the notification, the Importing Party may decide to suspend temporarily the relevant preferential treatment of the goods concerned. This includes the temporary suspension of preferential treatment for all traders of the goods concerned, if the Importing Party deems it necessary to combat the breaches in customs legislation.
5. The Importing Party shall notify the [Trade Committee] of the temporary suspension including the start date, once determined, and the period during which it intends the temporary suspension to apply, without undue delay. The temporary suspension referred to in this Article shall apply only for such a period as necessary to counteract the breaches of customs legislation and to protect the financial interests of the Importing Party, and in any event not longer than six months.
6. The Parties shall keep the situation under review. Where the conditions as set out in paragraph 2(a) or 2(b) that gave rise to the temporary suspension are no longer met, the Importing Party shall cease the temporary suspension without undue delay before the end of the period notified to the [Trade Committee].
7. Where the conditions as set out in paragraphs 2(a) and 2(b), that gave rise to the temporary suspension persist at the expiry of the six-month period, the Importing Party may decide to renew the temporary suspension pursuant to paragraphs 5 and 6. The Importing Party shall notify the [Trade Committee] prior to the renewal of the measure including the additional period of the temporary suspension. The Parties shall review, on a periodic basis, any pending temporary suspension through consultations within the [Trade Committee].
8. The Importing Party shall publish, in accordance with its internal procedures, notices to importers about any decision concerning temporary suspensions referred to in this Article.
9. Notwithstanding paragraphs 4 to 7, if an importer satisfies the Importing Party’s customs authority that its goods comply with the Importing Party’s customs legislation, the requirements of this Agreement, and any other appropriate conditions related to the temporary suspension established by the Importing Party in accordance with its laws and regulations, the Importing Party shall allow the importer to apply for preferential treatment and recover any customs duties paid in excess of the applicable preferential customs duties when the goods were imported.
Article 2.20. Committee on Trade In Goods
1. This Article complements and further specifies Article 21.6 (Functions of specialised committees).
2. The functions of the Committee with respect to this Chapter shall include:
a. promoting trade in goods between the Parties, including through consultations on accelerating tariff elimination under this Agreement;
b. discussing non-tariff measures in accordance with Article X.17 (Non-Tariff Measures);
c. addressing issues relating to each Party’s administration of its tariff rate quotas, [or the application of product specific safeguard measures], including to promote transparency in their administration;
d. considering any necessary amendments to Annex XX (Tariff Elimination Schedules) in order to reflect, as appropriate, future amendments to the Harmonised System; and
e. if tasked by the Trade Committee, considering amendments to Annex XX (Tariff Elimination Schedule) that may be necessary to take into account potential effects of the accession of a third country to the Union.
Chapter 3. RULES OF ORIGIN AND ORIGIN PROCEDURES
SECTION A RULES OF ORIGIN
Article ARTICLE 3.1
Definitions
For the purposes of this Chapter, the following definitions apply:
"chapters" and "headings" and "subheadings" mean the chapters, the headings and subheadings used in the nomenclature which makes up the Harmonized System;
"classified" refers to the classification of a product or material under a particular chapter, heading, or subheading of the Harmonized System;
"consignment" means a product that is either sent simultaneously from a consignor to a consignee or covered by a single transport document covering a shipment from the consignor to the consignee or, in the absence of such a document, by a single invoice;
"exporter" means a person, located in a Party, who, in accordance with the requirements set out in the laws and regulations of that Party, exports or produces the originating product and makes out a statement on origin;
"importer" means a person who imports the originating product and claims preferential tariff treatment for it;
"material" means any substance used in the production of a product, including any ingredient, raw material, component or part;
"product" means the result of production, even if it is intended for use as a material in the production of another product, and shall be understood as a good referred to in Chapter 2 (Trade in goods); and
"production" means any kind of working or processing, including such operations as growing, mining, raising, harvesting, fishing, trapping, hunting, assembly or disassembly of a product.
General requirements for originating products
Provided that the product satisfies all other applicable requirements of this Chapter, a product shall be considered as originating in a Party if it is:
wholly obtained in that Party within the meaning of Article 3.4 (Wholly obtained products);
produced entirely in that Party exclusively from originating materials pursuant to this Chapter; or
produced incorporating non-originating materials provided they satisfy the requirements of Annex 3-B (Product-specific rules of origin).
If a product has acquired originating status, the non-originating materials used in the production of that product shall not be considered non-originating when that product is incorporated as a material in another product.
The acquisition of originating status shall be fulfilled without interruption in Australia or the Union.
Cumulation of origin
A product originating in a Party is considered as originating in the other Party if it is used as a material in the production of another product in that other Party.
Paragraph 1 does not apply if the production carried out in the other Party does not go beyond one or more of the operations referred to in Article 3.6 (Insufficient working or processing).
Wholly obtained products
The following shall be considered as wholly obtained in a Party:
a mineral or naturally occurring substance extracted or taken from a Party;
a plant or plant product grown, cultivated, picked, gathered or harvested in a Party;
a live animal born and raised in a Party;
a product obtained from live animals raised in a Party;
a product obtained from slaughtered animals born and raised in a Party;
a product obtained by hunting, trapping, fishing, gathering or capturing, conducted there but not beyond the outer limits of the Party's territorial sea;
a product obtained from aquaculture there, if aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants are born or raised from seed stock, such as eggs, roes, fry, fingerlings or larvae, by intervention in the rearing or growth processes to enhance production, such as regular stocking, feeding or protection from predators;
a product of sea fishing and other products taken from the sea outside any territorial sea by a vessel of a Party;
a product made aboard a factory ship of a Party exclusively from the products referred to in point (h);
a product other than fish, shellfish and other marine life extracted from the seabed or subsoil thereof outside any territorial sea provided that the Party or a person of that Party has the right to work that seabed or subsoil in accordance with international law;1
waste or scrap derived from production in a Party;
waste or scrap derived from used products collected in a Party, provided that those products are fit only for the recovery of raw materials; and
a product produced there exclusively from the products specified in points (a) to (l) or from their derivatives.
The terms "vessel of a Party" and "factory ship of a Party" in points (h) and (i) of paragraph 1 apply only to a vessel or a factory ship that:
1 This point does not apply to the Greater Sunrise Special Regime area, established under the Treaty between Australia and the Democratic Republic of Timor-Leste Establishing Their Maritime Boundaries in the Timor Sea, done in New York on 6 March 2018, in which Australia and Timor-Leste jointly exercise continental shelf rights as coastal states.
is registered in a Member State or in Australia;
sails under the flag of a Member State or of Australia; and
satisfies one of the following conditions:
is at least 50% owned by one or more natural persons of a Party; or
is owned by one or more juridical persons:
which have their head office and main place of business in a Member State or in Australia; and
which are at least 50% owned by a person of a Party.
Tolerances
If the non-originating materials used in the production of a product do not satisfy the requirements of Annex 3-B (Product-specific rules of origin), the product shall be considered as originating in a Party, provided that it satisfies all the other applicable requirements of this Chapter and:
except for products classified under Chapters 50 to 63 of the Harmonized System, the total value of such non-originating materials does not exceed 10 % of the ex-works or free on board price of those products; or
for products classified under Chapters 50 to 63 of the Harmonized System, tolerance applies as stipulated in Notes 6 to 8 of Annex 3-A (Introductory notes to product-specific rules of origin).
Paragraph 1 does not apply if:
the value or weight of non-originating materials used in the production of a product exceeds any of the percentages for the maximum value or weight of non-originating materials as specified in Annex 3-B (Product-specific rules of origin); or
the product is subject to a regional value content rule, the value of originating materials does not satisfy the minimum regional value content requirement as specified in Annex 3-B (Product-specific rules of origin).
Paragraph 1 does not apply to products wholly obtained in a Party within the meaning of Article 3.4 (Wholly obtained products). If Annex 3-B (Product-specific rules of origin) requires that the materials used in the production of a product are wholly obtained in a Party within the meaning of Article 3.4 (Wholly obtained products), paragraphs 1 and 2 apply.
Insufficient working or processing
Notwithstanding point (c) of Article 3.2(1) (General requirements for originating products), a product shall not be considered as originating in a Party if the production of the product in a Party consists of only one or more of the following operations conducted exclusively on non-originating materials:
preserving operations the sole purpose of which is to ensure that the products remain in good condition during transport and storage;
breaking-up or assembly of packages;
washing, cleaning, removal of dust, oxide, oil, paint or other coverings;
ironing or pressing of textiles and textile articles;
simple painting and polishing operations;
husking and partial or total milling of rice;
polishing and glazing of cereals and rice;
operations to colour or flavour sugar or form sugar lumps;
partial or total milling of crystal sugar;
peeling, stoning and shelling, of fruits, nuts and vegetables;
sharpening, simple grinding or simple cutting;
sifting, screening, sorting, classifying, grading or matching including the making-up of sets of articles;
simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
affixing or printing marks, labels, logos and other like distinguishing signs on the product or its packaging;
simple mixing of product, whether or not of different kinds;
mixing of sugar with any material;
simple addition of water or dilution or dehydration or denaturation of the product;
simple assembly of parts of articles to constitute a complete article or disassembly of the product into parts; or
slaughter of animals.
For the purposes of paragraph 1, operations shall be considered simple if neither special skills nor machines, apparatus or equipment especially produced or installed are needed for carrying out those operations.
Unit of qualification
The unit of qualification for the application of this Chapter shall be the particular product which is considered as the basic unit when classifying the product under the Harmonized System.
If a consignment consists of identical products classified under the same heading of the Harmonized System, each individual product shall be taken into account when applying this Chapter.
Packing materials and containers for shipment
Packing materials and containers for shipment that are used to transport or protect a product during transportation shall be disregarded in determining whether that product is originating in a Party.
Packaging materials and containers for retail sale
Packaging materials and containers in which a product is packaged for retail sale, if classified with that product, shall be disregarded in determining whether all the non-originating materials used in the production of the product have undergone the applicable change in tariff classification or a specific production or processing operation set out in Annex 3-B (Product-specific rules of origin), or whether the product is wholly obtained in a Party within the meaning of Article 3.4 (Wholly obtained products).