The Customs Amendment (Australia-United Arab Emirates Comprehensive Economic Partnership Agreement Implementation) Bill 2025 amends the Customs Act 1901 to introduce new rules of origin for determining when goods imported from the UAE qualify for preferential tariff treatment under the Australia–UAE Comprehensive Economic Partnership Agreement (CEPA), and to give effect to verification and record-keeping requirements for goods exported from Australia to the UAE.
The Bill also makes consequential amendments to ensure correct treatment of biofuel blends and excise-equivalent goods, and complements a separate Customs Tariff Amendment Bill that inserts a new Schedule 16 into the Customs Tariff Act 1995 to set out the preferential tariff rates for originating goods.
The Bill amends the Customs Act 1901 by inserting a new Division 1Q (“UAE originating goods”) in Part VIII. Division 1Q contains seven Subdivisions that:
Part 2 of the Bill inserts a new Division 4N in Part VI, imposing export verification powers and obligations: regulations may require record keeping by Australian producers and exporters; authorised officers may require production of records or answers to questions; and relevant records or answers may be disclosed to UAE customs officials to verify origin claims.
Consequential amendments omit references to Schedule 15 of the Customs Tariff Act and substitute references to the new Schedule 16 (to be inserted by the companion Customs Tariff Amendment Bill) in definitions of “excise-equivalent goods” and “biofuel blend”. The Bill commences on Royal Assent or when CEPA enters into force for Australia, whichever is later.
The Bill is necessary to implement Australia’s binding obligations under the CEPA with the UAE, ensuring our domestic law aligns with an international agreement that promises to eliminate tariffs on over 99% of exports by value. Clarity and certainty in the Customs Act reduce legal risk for businesses and customs authorities, lowering trading costs and delays.
By codifying detailed origin rules and verification powers, the Bill streamlines customs procedures and promotes supply-chain resilience. Preferential access to the UAE market is projected to increase Australian exports by around $678 million per year, supporting jobs across agriculture, mining, manufacturing and services, and delivering broad economic benefits to consumers and producers alike.
Further, the record-keeping and verification provisions foster trust between trading partners, uphold the integrity of the CEPA, and signal to other nations that Australia honours its treaty commitments—reinforcing our reputation as a reliable trade partner.
The Bill adds considerable complexity to import and export operations through highly detailed rules of origin in Division 1Q and stringent record-keeping, production-of-records and questioning powers in Division 4N. Small and medium-sized enterprises may face disproportionately high compliance costs navigating multi-layered origin tests, de minimis carve-outs and QVC calculations, which could deter trade rather than facilitate it.[1]
Projected customs revenue losses of $16 million in 2025–26, rising to $23 million annually by 2029–30, place additional pressure on the budget. If administrative burdens delay or discourage exporters from claiming preferences, actual trade gains may fall short of forecasts, leaving Australia with lower revenue and regulatory burdens but without the anticipated overall uplift in trade.[2]
2025-07-24
Passed Both Houses
Unspecified
Home Affairs
Trade Policy