Customs Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation)

Current status

This bill became law on Nov 23rd, 2022.

Policy area

Immigration, border & security

What does this bill do?

Goods imported from India can get lower Australian customs duty if they meet the new legal test for being Indian goods under the trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply..

Why was it introduced?

The India-Australia trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply. created a gap: Australia needed new rules to identify Indian goods and verify tariff claims before lower duty rates could apply. This bill sets those origin tests, lets qualifying Indian goods enter at preferential customs ratesLower import duty rates given to goods that qualify under the trade agreement., and requires records and information-sharing to check claims.

Broader context

After years of stop-start negotiations, Australia and India signed an interim economic cooperation and trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply. on 2 April 2022 that promised tariff cuts, including immediate elimination of tariffs on 85 per cent of Australian exports to India. That deal could not operate at the Australian border without new legal tests for when goods counted as Indian and how claims would be checked, so Parliament passed this bill in November 2022 to create those origin and verification rules and let preferential customs ratesLower import duty rates given to goods that qualify under the trade agreement. take effect.

Key criticism

The main criticism was that the bill implements a trade deal without clear human rights or other public-interest safeguards, raising concern that closer trade could proceed despite abuses or weak standards. That case was limited rather than broad: it was raised most clearly by the Greens in a defeated Senate amendment, while Monique Ryan separately warned the deal was too weak on climate safeguards.

Who supported it?

Clare O'neil MP introduced this bill. It passed on the voices.

Introduced in House 27 Oct 2022
Passed House 21 Nov 2022
Passed Senate 22 Nov 2022
Became law 23 Nov 2022

Did it become law?

Yes

Became law 23 Nov 2022

Final passage

Passed without a counted vote

1 recorded amendment or procedural vote was found, but no counted vote on the bill itself was recorded.

Passage speed

27 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

What does this bill do?

  1. Goods imported from India can get lower Australian customs duty if they meet the new legal test for being Indian goods under the trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply..

  2. Goods grown, raised, caught, mined or otherwise fully made in India, or in India and Australia together, can qualify for the lower rate if the importer has an origin certificateA document that supports a claim that goods qualify as Indian originating goods, unless Australia allows the claim without one. or Australia waives it.

  3. Goods made in India from overseas inputs can still get the lower rate if they meet the agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply.’s product rules about tariff classificationThe code-based system used to sort goods for customs purposes, which the agreement uses in its product-specific rules., value content and production steps.

  4. Australian exporters and producers claiming Indian tariff preferences for goods sent to India can be required to hand over records, and Australian officials can pass those records to Indian customs officers to check the claim.

  5. Australian officials can also require exporters and producers to answer questions about whether goods sent to India really qualify, and refusing can be an offence unless the answer would incriminate them.

Show source excerpts
  1. • This Division defines Indian originating goods. Preferential rates of customs duty under the Customs Tariff Act 1995 apply to Indian originating goods that are imported into Australia.
    Customs Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) Act 2022 final Act text
  2. New subsection 153ZMM(1) provides that goods are Indian originating goods if they are wholly obtained or produced in India or in India and Australia, and either the importer of the goods has, at the time the goods are imported, a certificate of origin, or a copy of one, for the goods; or Australia has waived the requirement for a certificate of origin for the goods.
    Customs Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) explanatory memorandum
  3. New section 153ZMN gives effect to Articles 4.2, 4.3, 4.5, 4.6, 4.8, 4.12, 4.15 and 4.20 of Chapter 4 of the Agreement in respect of rules of origin for goods produced from non‑originating materials. The purpose of this new section is to specify the requirements that must be satisfied in order for goods to be subject to preferential treatment of customs duty in accordance with the Agreement.
    Customs Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) explanatory memorandum
  4. Under Article 4.25 of Chapter 4 of the Agreement, the importing party may take action to verify the eligibility of goods for preferential treatment, including requesting the supply of information relating to the production or export of the goods. New section 126AMG gives effect this Article by imposing a requirement on exporters and producers to produce records to authorised officers, and empowering authorised officers to disclose records to Indian customs officials.
    Customs Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) explanatory memorandum
  5. to answer questions in order to verify the origin of the goods.
    Customs Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) as-passed bill text

Broader context for this bill

After years of stop-start negotiations, Australia and India signed an interim economic cooperation and trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply. on 2 April 2022 that promised tariff cuts, including immediate elimination of tariffs on 85 per cent of Australian exports to India. That deal could not operate at the Australian border without new legal tests for when goods counted as Indian and how claims would be checked, so Parliament passed this bill in November 2022 to create those origin and verification rules and let preferential customs ratesLower import duty rates given to goods that qualify under the trade agreement. take effect.

  1. 31 Mar 2022

    Australia and India prepare to sign an interim trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply.

    The Australian Financial Review reported the deal would be signed that weekend after years of on-again, off-again negotiations, showing the agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply. was finally moving from talks to action.

    Australian Financial Review ↗
  2. 01 Apr 2022

    Interim deal promises immediate tariff cuts on most Australian exports to India

    The Australian Financial Review reported tariffs would be eliminated immediately on 85 per cent of Australian exports to India, making the agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply.'s commercial benefits concrete.

    Australian Financial Review ↗
  3. 02 Apr 2022

    Australia and India sign the economic cooperation and trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply.

    The explanatory memorandum says the agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply. was signed on this date, creating the need for Australian customs law to recognise Indian originating goodsGoods that satisfy the agreement's origin rules and can therefore enter Australia at preferential customs duty rates. and apply preferential duty rates.

    Customs Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) explanatory memorandum ↗
  4. 27 Oct 2022

    Government introduces the bill to implement the deal at the border

    The bill was introduced to amend the Customs Act 1901The main Australian law being changed so Indian goods can qualify for lower duty and so officials can check origin claims. so goods meeting the agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply.'s origin rules could enter Australia at lower customs duty rates.

    Parliamentary timeline ↗
  5. 22 Nov 2022

    Parliament passes the bill

    Both houses passed the bill in the same form, clearing the way for the agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply.'s origin tests, record-keeping powers and information-sharing rules to become law.

    Parliamentary timeline ↗
  6. 23 Nov 2022

    Royal AssentThe final approval that turns the bill into an Act and starts some provisions from that day. turns the customs changes into law

    Royal AssentThe final approval that turns the bill into an Act and starts some provisions from that day. made the bill an Act, with the explanatory memorandum stating the amendments would operate from assent or the agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply.'s entry into force, whichever came later.

    Parliamentary timeline ↗

How did it move through Parliament?

House Senate
Introduced 27 Oct 2022

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 27 Oct 2022

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 21 Nov 2022

The bill reached this recorded parliamentary step.

House second reading agreed 21 Nov 2022

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

House third reading agreed 21 Nov 2022

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 21 Nov 2022

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 21 Nov 2022

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 22 Nov 2022

The bill reached this recorded parliamentary step.

Senate second reading agreed 22 Nov 2022

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Senate third reading agreed 22 Nov 2022

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 22 Nov 2022

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 23 Nov 2022

The Governor-General gave Royal AssentThe final approval that turns the bill into an Act and starts some provisions from that day., turning the bill into an Act.

The main case against this bill

The main criticism was that the bill implements a trade deal without clear human rights or other public-interest safeguards, raising concern that closer trade could proceed despite abuses or weak standards. That case was limited rather than broad: it was raised most clearly by the Greens in a defeated Senate amendment, while Monique Ryan separately warned the deal was too weak on climate safeguards.

No party represented in the debate opposed the bill itself, but some support was qualified by rights and climate concerns.

No human rights safeguards

Critics argued the bill helps bring the India trade deal into force without requiring strong human rights protections, so Australia could deepen trade ties without adequately responding to reported abuses.

Raised by The Greens, especially Senator Dorinda Cox, in a Senate second-reading amendment Source ↗

Weak climate safeguards

A narrower criticism was that the broader deal is too weak on climate, because it could encourage more coal and gas exports without safeguards tied to emissions or climate policy.

Raised by Monique Ryan Source ↗

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.

Passed

House passed the bill

House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

21 Nov 2022

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Passed

Senate passed the bill

Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

22 Nov 2022

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Amendments at a glance

Recorded amendment and procedural votes grouped by chamber. Expand a vote to see the party breakdown.

Senate

Defeated

Condemn India rights abuses

Aye 14 No 31

Defeated 14 to 31. Support came from Greens and Jacqui Lambie Network. Opposition came from Labor, Liberal Party, Nationals, and One Nation.

22 Nov 2022

The Senate rejected the amendment 31 to 14, so the bill's second reading proceeded without the Greens' added statement.

Party Recorded votes Aye / No
Labor 0 / 20
Greens 12 / 0
Liberal Party 0 / 8
Nationals 0 / 1
Jacqui Lambie Network 2 / 0
One Nation 0 / 1
UAP 0 / 1

These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Clare O'Neil

Australian Labor Party • MP 27 Oct 2022

O'Neil supports the bill, saying it will implement the India-Australia trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply. and give Australian exporters and services providers major new access to the Indian market.

Read in Hansard ↗
Lead supporting voice Supports

Simon Birmingham

Liberal Party • Senator 22 Nov 2022

Simon Birmingham says the coalition strongly supports the bill and wants it passed quickly because it will help bring the India-Australia trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply. into force and deliver export gains for Australia.

Read in Hansard ↗
Lead non-major voice Supports

Monique Ryan

Independent • MP 21 Nov 2022

Ryan supports the bill as a step toward a stronger relationship with India and says it will make exports cheaper and create opportunities for workers and businesses.

Read in Hansard ↗
Lead voice Supports

Josh Wilson

Australian Labor Party • MP 21 Nov 2022

Josh Wilson supports the bill and says it will implement Australia’s India trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply., cut tariffs, diversify exports, and deepen a strategically important relationship with India.

Read in Hansard ↗

All speeches by bloc

Labor

5 speakers · 6 contributions · 4 support · 1 unclear

  1. Carol Brown Carol Brown supports the bill, saying it will implement the India-Australia trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply. and deepen economic ties with India.
    “The Agreement represents significant new trade diversification opportunities for Australian business. From the day IA-ECTA enters into force, 85 per cent of Australian goods exports by value to India will enter without tariffs and an additional 5 per cent will have tariffs eliminated over periods not exceeding 10 years. This is commercially significant for up to $14.8 billion worth of Australian merchandise trade destined for the Indian market each year. The Agreement will also provide certainty and support Australian services suppliers and professionals doing business in India, currently our third largest services export market.”

    Australian Labor Party • Senator • 21 Nov 2022

    Read the full speech in Hansard ↗
  2. Tim Ayres Tim Ayres speaks to the bill, focusing on i am very pleased to rise to speak on the enabling legislation for these two agreements, the Customs Amendment (India-Australia Economic Cooperation and Trade AgreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply. Implementation) Bill 2022 and related bills.
    “I am very pleased to rise to speak on the enabling legislation for these two agreements, the Customs Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) Bill 2022 and related bills.”

    Australian Labor Party • Senator • 22 Nov 2022

    Read the full speech in Hansard ↗
  3. Don Farrell Don Farrell says the government supports the bill and wants the India-Australia trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply. to enter into force as soon as possible so exporters and service suppliers can benefit.
    “The Australia-India Economic Cooperation and Trade Agreement secures Australia's access to the fastest growing Indian market, a market of 1.4 billion people, and provides a solid basis to negotiate a further comprehensive economic cooperation agreement. The agreement will deliver many benefits to Australian producers and service suppliers. These include eliminating tariffs on 90 per cent of Australia's current goods and exports to India by value and locking in access to many sectors in Australia's third-largest services export market. A trade agreement with India will give Australian exporters a competitive advantage in the Indian market and opportunities for very important trade diversification.”

    Australian Labor Party • Senator • 22 Nov 2022

    Read the full speech in Hansard ↗

Coalition

6 speakers · 6 support

  1. Dan Tehan Tehan supports the bill and wants it passed, saying the India trade deal will give Australia major preferential access, diversify exports and supply chains, and strengthen a strategically important relationship.
    “The opportunities and potential of this agreement are enormous. It sits in the background of what we've been able to achieve with India through the Quad, and it now backs that up with a strengthening of the economic relationship. I can't wait for the day that this agreement goes through the parliament and enters into force because it will tick the box on something that Australia has been trying to achieve with India for over a decade.”

    Liberal Party • MP • 21 Nov 2022

    Read the full speech in Hansard ↗
  2. Kevin Hogan Hogan supports the bill and wants it passed because it implements the India trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply. and will open up tariff cuts and new market access for Australian exporters.
    “Tariffs will be eliminated on more than 85 per cent of Australian goods and exports to India valued at over $12 billion a year, rising to 91 per cent valued at $13.4 billion over 10 years.”

    National Party • MP • 21 Nov 2022

    Read the full speech in Hansard ↗
  3. David Van Van says the coalition supports the bill and wants it passed quickly so the India trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply. can be implemented and exporters can start benefiting.
    “As I said, we have been completely bipartisan in supporting the government on these bills; however, why the government has been so haphazard and slow in the implementation of this agreement is absolutely baffling. It shows they have little or no idea on how to govern. Obviously, we support these bills and therefore call on the government to stop the delay. Let's get these agreements implemented as quickly as possible so that Australian exporters can start to reap the benefit of the coalition's hard work.”

    Liberal Party • Senator • 22 Nov 2022

    Read the full speech in Hansard ↗
  4. Ross Cadell Ross Cadell says the coalition will support the bill and wants it passed quickly because he sees the India and UK trade implementation measures as a win for Australian exporters, businesses and the wider economy.
    “We hope these bills go through very quickly and successfully. We'll be supporting them. I commend this bill to the house.”

    National Party • Senator • 22 Nov 2022

    Read the full speech in Hansard ↗
  5. Slade Brockman Brockman supports the bill as part of the trade agreementThe trade deal this bill gives effect to at the Australian border, so agreed tariff cuts can actually apply. package, saying it will liberalise trade flows between Australia and India and is important for Western Australia.
    “I'm very happy to say these are bills that are aimed at liberalising trade flows between Australia and the UK, on the one hand, and Australia and India, on the other, both very important markets to my home state of WA.”

    Liberal Party • Senator • 22 Nov 2022

    Read the full speech in Hansard ↗

Greens

1 speaker · 1 mixed

  1. Dorinda Cox Cox says the Greens have serious concerns about the India implementation bill because trade deals should not proceed without strong human rights protections, and they have moved an amendment to put those concerns on the record.
    “The Greens have circulated a second reading amendment which relates to the three bills implementing the Australia-India Economic Cooperation and Trade Agreement. This amendment is co-sponsored by my colleague Senator Steele-John and seeks to highlight the human rights abuses in India and the recommendations made by the United Nations Human Rights Council's Universal Periodic Review. I, and also on behalf of Senator Steele-John, move:”

    Australian Greens • Senator • 22 Nov 2022

    Read the full speech in Hansard ↗

Minor parties and independents

1 speaker · 1 support

Full record

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