Customs have now issued advice about what discrepancies can be accepted on a Certificate Of Origin (COO) for the purpose of claiming preferential duty rates under the China Australia Free Trade Agreement (ChAFTA).
Their position is now that preference CANNOT be claimed and duty has to be paid if the HS Code on the ChAFTA COO does not match the HS Code on the import declaration. (HS Code refers to the Harmonized Commodity Description and Coding System).
Under the rules for classifying the HS Codes for the purposes of the import declaration, any goods and/or parts of goods MUST BE classified according to the rules of the Customs Tariff. According to these rules, goods that come under a separate tariff heading (e.g. spare parts, surplus packaging, nuts, bolts, springs, etc.) must be classified under their own heading – even if they are to be used as parts of other goods, they must still be classified under their own HS Code.
Note regarding document retention under ChAFTA:
Importers and customs brokers are reminded to keep records and commercial documentation in accordance with the requirements of the Customs Act 1901. Relevant records and documents may include, but are not limited to: invoices, bills of lading, packing lists, testing and analytical results, tariff advices or precedents and any relevant correspondence with the manufacturer, supplier, exporter or importer.
IT IS A LEGAL REQUIREMENT TO RETAIN DOCUMENTS RELATING TO YOUR IMPORTS/EXPORTS FOR A MINIMUM OF 5 YEARS.
For more information do not hesitate to contact us here at Colless Young.
