Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I give notice that, on the next day of sitting, I shall move:

That the provisions of paragraphs (5) to (8) of standing order 111 not apply to the following bills, allowing them to be considered during this period of sittings:

Customs Amendment (Korea-Australia Free Trade Agreement Implementation) Bill 2014

Customs Tariff Amendment (Korea-Australia Free Trade Agreement Implementation) Bill 2014.

I also table a statement of reasons justifying the need for these bills to be considered during these sittings and seek leave to have the statement incorporated in Hansard.

Leave granted.

The statement read as follows—

STATEMENT OF REASONS FOR INTRODUCTION AND PASSAGE IN THE 2014 SPRING SITTINGS

Customs Amendment (Korea—Australia Free Trade Agreement Implementation) Bill

Customs Tariff Amendment (Korea—Australia Free Trade Agreement Implementation) Bill

Purpose of the Bills

The bills implement Australia's tariff commitments and obligations under the Rules of Origin Chapter in the Korea-Australia Free Trade Agreement (KAFTA). The bills amend the Customs Act 1901 to define KAFTA originating goods and the CustomsTariff Act 1995 to provide preferential tariffs for KAFTA originating goods in accordance with KAFTA.

Reasons for Urgency

KAFTA was signed by both Parties on 8 April 2014. KAFTA was tabled in Parliament on 13 May 2014 for consideration by the Joint Standing Committee on Treaties (JSCOT). Introduction of the bills will occur after JSCOT has tabled its report on the Agreement.

The Governments of Australia and Korea have agreed to aim for KAFTA to enter into force in 2014 in order to maximise the business gains for both Parties. This would include achieving a competitive advantage for Australian exporters with certain tariff reductions occurring on entry into force and again on 1 January of the following year (i.e. 1 January 2015).

According to its provisions, KAFTA shall enter into force 30 days after the date the Parties exchange written notifications certifying that they have completed their respective applicable legal requirements and procedures or on such other date as the Parties may agree. The mentioned exchange of written notifications is expected to take place in November. These legislative amendments, together with the subsequent making of subsidiary customs regulations, are required to be in force before then so that KAFTA can commence in December 2014.