Clarification on ChAFTA Cargo Shipped Via Hong Kong

In our news item of 15 Nov 2015, we reported that goods originating in China and shipped via Hong Kong may not qualify for Chinese origin under the new ChFTA. However the latest advice from the DIBP is that goods will be admissable under the agreement if they remain under customs control while passing through Hong Kong.

“The consignment provision of ChAFTA requires that goods transported through non-Parties remain under customs control. Hong Kong is considered a non-Party for the purposes of the ChAFTA Rules of Origin chapter.

However, Part 7 of the Customs (Chinese Rules of Origin) Regulation, provides that goods transported through the customs territory of Hong Kong are to be regarded as being under customs control at all times while the goods are in that territory. 

This means that goods transported through Hong Kong on their way to Australia will not lose their Chinese-originating status.

This regulation, which is only for ChAFTA and specific to Hong Kong, does not relieve the importer of the obligation to ensure that goods transiting, transhipping and warehousing through Hong Kong do not undergo any operation other than unloading, reloading, repacking, relabelling for the purpose of satisfying the requirements of Australia; or splitting up of the goods for further transport, temporary storage or any other operation that is necessary to preserve the goods in good condition. 

Documentary evidence that can demonstrate that goods that have been through Hong Kong are compliant with Section 153ZOI of the Customs Act can be requested by DIBP. ”