Hunt & Hunt together with the Freight & Trade
Alliance (FTA) has made a joint submission to Customs regarding
their proposed changes to the criteria for making tariff concession
The changes proposed by Customs would make it harder for
importers to obtain TCOs and easier for local manufacturers to seek
revocation of existing TCOs.
previous update on the proposed change outlined the nature and
likely impact of the change . Essentially, before a TCO can be
made, it must be shown that there is no Australian producer of
The current legislation requires that before goods will be
classified as being produced in Australia at least 25% of the
labour costs, factory overhead costs and material must be of
Australian origin (25% test). A second test requires that there be
a substantial process in the manufacture of the goods undertaken in
Australia (Substantial Process Test).
Customs proposes to remove the 25% test as its experience is
that if the Substantial Process Test is met, so too will the 25%
The Hunt & Hunt/FTA submission outlines:
Our experience showing that satisfying the Substantial Process
Test does not always result in satisfaction of the 25% test
Our view that Customs should exercise caution before deeming
that the 25% test is redundant
Methods to make administration of the 25% test less burdensome,
such as allowing TCO applicants to nominate whether satisfaction of
the 25% test is disputed
Our views as to other methods to improve the TCO system.
Click here to view our submission. We will keep you updated on
further developments regarding the proposed change.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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