Changes to Customs Tariff Classifications

On 01 January 2022, some tariff classifications in the Customs Tariff Act 1995 will change as a result of amendments to implement the 2022 Harmonized Commodity Description and Coding System (HS2022).

Back in April, we reported on the planned Customs changes to the way Product Specific Rules will affect Free Trade Agreements.

These amendments to the Customs Tariff Act 1995 will also affect:
– tariff advices
– tariff public advice products
– tariff concession orders.

The Australian Border Force (ABF) has issued Australian Customs Notice (ACN) No. 2021/51: 2022 Harmonized System Product Specific Rules of Origin for Free Trade Agreements.

Free Trade Agreements
Implementation of the HS2022 changes will require amendments to the Product Specific Rules of Origin (PSRs) in Australia’s sixteen free trade agreements (FTAs).

The Australian Government still needs to negotiate with FTA partners to finalise and implement the transposition to HS2022 of the PSR for these FTAs. Further ACNs will be published to notify of their commencement.

Until these ACNs are issued, the ABF will continue to accept valid origin documentation under an FTA such as Certificates of Origin (COO) or Declarations of Origin (DOO) with prior versions of the HS classifications for goods imported into Australia.

The current version of the HS used in the PSR can be found under product specific rules of origin on the ABF FTA webpage for that agreement.

Compliance Approach
The ABF will continue to undertake compliance activities in accordance with policy settings described above, to ensure that the correct tariff classification and claim for preference under a PSR is declared in line with the intent of this notice.

Where a tariff classification or claim for preference under a PSR has not been declared in line with this notice, appropriate treatments will be applied. Treatments can range from education and awareness for those genuinely trying to comply, a demand for payment of outstanding duty and taxes, to the issuing of infringement notices and prosecution for more serious and systemic breaches.

Detailed information about HS2022 can be found on the ABF 2022 Harmonized System Changes web page.

As licensed Customs Brokers and International Freight Forwarders, Colless Young offers correct professional advice on your import shipments, including tariff items and duty rates. We provide a complete range of import and export logistics services, by air and sea cargo, at all major Australian ports and airports. Call us for information and updates to shipping schedules and freight rates.