The Australian Competition and Consumer Commission has today issued guidelines on country of origin claims made by the electrical goods industry.
The publication of the guidelines is an important part of the ACCC's broad industry compliance and education program relating to country of origin representations.
The guidelines will assist manufacturers and producers of electrical and electronic goods who want to make country of origin claims within the provisions of the Trade Practices Act 1974.
The production of electrical and electronic goods is a global process that is becoming increasingly complex. Many products embody sub-assemblies and critical components that are available only from a few production centres in the world. In this context the industry raises significant issues when it comes to questions of how to determine the origin of a product.
A working party, led by the ACCC, including representatives from the Australian Electrical and Electronic Manufacturers' Association Ltd (AEEMA) produced the guidelines in consultation with the Department of Industry, Tourism and Resources and the Australian Chamber of Commerce and Industry. The working party undertook extensive research covering a representative range of the industry's manufacturing processes and worked with several manufacturers and distributors of electrical goods to ensure that the guide addressed processes and issues specific to the electrical goods industry.
The guide is the fifth in a series of six ACCC publications for industry. The guides raise awareness of the country of origin provisions of the Act and are designed to ensure that consumers and industry have a similar understanding of what is meant by 'Made in â?¦' and 'Product ofâ?¦' claims. More specifically, the guides assist different industries to ensure that they comply with the Act's country of origin rules and provide guidance as to the ACCC's interpretation of 'safe harbours' set out in Part V, Division 1AA of the Act.
The 'Made in Australia' safe harbour, in Division 1AA, has two components:
- the goods must have been substantially transformed in the country claimed to be the origin; and
- 50 per cent or more of the cost of production must have been carried out in that country.
The 'Product of Australia' safe harbour has two rigorous criteria which must be met:
- the country of the claim must be the country of origin of each significant component of the goods; and
- all, or virtually all, processes involved in the production or manufacture must have happened in that country.
Electrical Goods – Country of origin guidelines to the Trade Practices Act will be available on the ACCC website, or by contacting the ACCC Publishing Unit on (02) 6243 1143. Paper copies of the guide will also be distributed by AEEMA and ACCI to industry members. There is no charge for the guide.