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  1. Home
  2. Trade
  3. Australia Free Trade Agreement (AUFTA)
  4. U.S. Australia Free Trade Agreement Frequently Asked Questions

U.S. Australia Free Trade Agreement Frequently Asked Questions

General Information

For information about importing from Australia under the AUFTA, visit the U.S. Customs and Border Protection AUFTA webpage.

You can find information on exporting to Australia on www.export.gov.

Making a Claim for Preferential Tariff Treatment

An AUFTA claim is made by prefacing the tariff item on the entry summary with the Special Program Indicator "AU" (19 CFR 10.723) or as a post-importation claim via a Post Entry Amendment (PEA) or a Post Summary Correction (PSC).

No, 19 USC 1520(d) is not an option.

By making an AUFTA preference claim, the importer attests that the good is eligible for AUFTA preference and accepts responsibility for the truthfulness and accuracy of the claim. The importer is also responsible for providing the certification of origin and supporting documentation to CBP upon request.

Certification of Origin and Required Data Elements

If the AUFTA claim is based on the exporter’s or producer’s certification of origin, the importer should provide that certification to CBP. If the AUFTA claim is based on the importer’s certification or importer knowledge, the importer should provide its own certification of origin.

Although there is no official certification of origin form or format required under the U.S.- Australia FTA, CBP encourages the use of the certification of origin template. Alternatively, a free-form certification with all of the data elements in 19 CFR 10.724 may also be made.

The importer must provide CBP with an AUFTA certification of origin upon request by CBP.

If the importer has knowledge that the goods originate and can provide documentation to substantiate the claim, then the importer need not possess an exporter or producer certification of origin.

No, the certification of origin must be signed and dated by an individual with knowledge of the facts and the authority to legally bind the company.

CBP may accept a certification of origin with an incorrect HTSUS number or request that an amended certification be submitted with a copy of the original certification as an attachment. The correct HTSUS number on the certification is an important indicator that the origination analysis was performed using the correct product-specific rule in HTSUS General Note 28(n).

An exporter or producer certification of origin signed after the date of the preference claim could not have been in the importer’s possession at the time of such claim. However, if the preference claim is based on importer’s knowledge, no exporter/producer certification is required.

Requesting Documentation and Verification

The information required to substantiate an origination claim depends on the rule of origin and the nature of the good. In the case of a manufactured good using a product-specific rule of origin in GN 28(n), at a minimum, the following documentation should be provided:

  • copy of the product specific rule of origin
  • descriptive literature, diagrams, etc. to support classification of the imported good
  • bill of materials (with a description, HTSUS number, and the originating status of each material)
  • affidavit or certification attesting to the originating status of all originating materials that would otherwise fail the product-specific rule
  • cost data, if the product-specific rule has a regional value content (RVC) requirement
  • the Build Up or Build Down computation, if the product-specific rule has a RVC requirement

Yes, the importer is responsible for ensuring that CBP receives documentation substantiating that the good meets a rule of origin and otherwise complies with the terms of the AUFTA. If the importer hasn’t the information, he should contact the exporter and/or producer to ensure that the information is provided to CBP. To protect confidentiality, a manufacturer may provide documentation directly to CBP. Per 19 CFR 103.35, CBP is barred from releasing business confidential information to the importer or any other party without obtaining consent.

Yes, CBP will accept a digitized certification of origin as long as it contains a handwritten signature or the image of a handwritten signature.

Origination

In order to be an "originating" good, a good must meet a rule of origin and all other requirements (GN 28 and 19 CFR 10.730).

Generally speaking, a good will originate if:

  • The good is wholly obtained or produced entirely in the territory of Australia or of the United States, or both; or
  • The good is produced entirely in the territory of Australia or of the United States, or both, satisfies all other applicable requirements of this subpart, and (1) Each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in General Note 28(n), HTSUS, and (2) The good otherwise satisfies any applicable regional value content or other requirements specified in General Note 28(n), HTSUS; or
  • The good is produced entirely in the territory of Australia or the United States, or both, exclusively from originating materials. (19 CFR 10.730).

Generally speaking, the producer will know that a material originates because his supplier will provide a certification or affidavit upon request. If a material supplier will not provide a certification or affidavit, then the producer should consider the material to be non-originating.

No, the importer would not be exercising reasonable care and may be subject to penalties if the good were found not to originate. By making a preference claim, the importer is certifying that the good meets the terms of the agreement and that the importer/exporter/producer will provide CBP with substantiating documentation upon request.

Yes, there is a chemical reaction rule of origin for goods of HTSUS Chapters 27 – 40. A chemical reaction is defined in General Note 28(m)(vii).

Yes, there is a purification rule of origin for goods of HTSUS Chapters 28 – 35, 38 and 39. Purification is defined in General Note 28(m)(vii).

No, the purpose of the chemical reaction and purification rules is to provide producers an alternate method of establishing origination.

Remanufactured goods, classified in HTSUS Chapters 84-85, 87, or 90, or under heading 94.02, are entirely or partially comprised of recovered goods, and have a life expectancy and factory warranty similar to such new goods. The AUFTA allows recovered goods derived in the territory of one or both of the Parties from used goods and utilized in the territory of one or both of the Parties in the production of remanufactured goods to be considered originating in accordance with General Note 28(c)(ii).

Yes, see General Note 28(i) and 19 CFR 10.737 provide for the use of an inventory management system to constructively segregate originating and non-originating fungible goods and materials.

It means that all non-originating materials, with the possible exception of a small de minimis value, used to produce the good undergo a tariff shift prescribed in General Note 28(n).

The de minimis provision allows a good to originate, as long as all non-originating materials that do not meet the prescribed tariff shift are not more than 10 percent of the adjusted value of the good (for non-textiles). However, if the good must meet a regional value content requirement to originate, the value of such non-originating materials must be taken into account when calculating the regional value content (General Note 28(g) and 19 CFR 10.732).

Some tariff items do not have product-specific rules of origin because the Harmonized Tariff Schedule of the United States (HTSUS) has been modified and the U.S.-Australia FTA product specific rules of origin have not yet been updated to account for these changes. If the good in question corresponds to a tariff item without a product-specific rule, the origination analysis should be performed using the most recent HTSUS that has an alternate tariff item for that good and its corresponding product-specific rule. Previous copies of the HTSUS are available at www.usitc.gov.

Regional Value Content (RVC)

The RVC formula may be used only when the product-specific rule of origin in General Note 28(n) provides for it.

The value of a good and its constituent materials is determined in accordance with General Note 28(e)(iii) and General Note 28(g), and 19 CFR 10.734(a). For permissible adjustments to the value of materials, see 19 CFR 10.735.

Indirect Materials

An indirect material is an originating material without regard to where it is produced. The term "indirect material" means a good used in the production, testing or inspection of a good but not physically incorporated into the good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of a good, including–

  • fuel and energy;
  • tools, dies and molds;
  • spare parts and materials used in the maintenance of equipment or buildings;
  • lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings;
  • gloves, glasses, footwear, clothing, safety equipment and supplies;
  • equipment, devices and supplies used for testing or inspecting the goods; catalysts and solvents; and
  • any other goods that are not incorporated into the good but the use of which in the production of the good can reasonably be demonstrated to be a part of that production. GN 28(k), (19 CFR 10.729 (h)) & (19 CFR 10.740).

Third Country Transportation

Yes, goods may enter the commerce of a non-Party, but they may not be further processed outside of the territories of the Parties per General Note 28(c)(iii) and 19 CFR 10.741.

Goods Subject to Tariff Rate Quotas

Yes, the AUFTA has Tariff Rate Quotas for beef, dairy, avocados, peanuts, tobacco, cotton, sugar, chocolate and animal feed. These are found in Chapter 98 and 99 of the HTSUS and are available on the Quota Enforcement and Administration webpage.

United States Goods Returned

No, U.S. goods returned cannot be claimed under the AUFTA, but may be exempt from duty under HTSUS 9801.00.10.

Merchandise Processing Fee (MPF)

Yes, originating goods are exempt from MPF per 19 CFR 24.23(c)(8).

Yes, the importer can still make an AUFTA claim on unconditionally free goods to obtain the MPF exemption. All of the same requirements apply.

MPF is 0.3464% of the adjusted value of the goods with a $25 minimum and $485 maximum.

No, TPL goods are not "originating" and thus are not exempt from MPF.

Duty Rates and Staging (Phase Out)

The phase out schedule can be found on the AUFTA page at https://www.cbp.gov/trade/free-trade-agreements/australia

Questions may be addressed to our mailbox at fta@dhs.gov.

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Last Modified: June 7, 2022