General information
- A country of origin claim is a representation that a good was made or produced in a particular country, such as ‘Made in Australia' or ‘Product of India'.
- Representations can be made explicitly such as with a label, or can be implied, through the use of flags or symbols.
- The Trade Practices Act 1974 includes legal protections for origin claims that comply with specified criteria, often referred to as 'safe harbour' tests.
Country of origin labelling - it's often your choice
- For many goods made or produced in Australia there are no mandatory country of origin labelling requirements.
- In these cases, the decision to display origin information on a good rests with the manufacturer or producer.
- There are some classes of goods for which origin labelling is mandatory (e.g. see the requirements for certain imported goods below).
- This website will help you to find out whether mandatory labelling requirements apply to your products, and assist in locating further information. The information on this website is not an authoritative statement of the law that willl apply in any particular case, and if you are in any doubt you should contact your legal adviser or industry association.
The Trade Practices Act
- The provisions of the Trade Practices Act 1974 establish a 'safe harbour' defence to actions under section 52 (misleading and deceptive conduct) and section 53 (eb) (false and misleading origin claims) for country of origin representations.
- Provided a good meets the tests there cannot be an adverse finding under either section 52 or section 53(eb) on account of the origin representation.
The 'safe harbour' tests
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‘Made In' |
To carry an unqualified ‘made in' claim and ensure compliance with the Trade Practices Act 1974, a product must be:
- substantially transformed in the country represented; and
- a minimum of 50 per cent of production costs must be incurred in the country represented.
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‘Product of' |
The premium ‘product/produce of' category of claims denotes very high levels of local content. To carry an unqualified ‘product of' label and ensure compliance with the Trade Practices Act 1974, a product must meet the following criteria:
- all of the significant ingredients or components of the product come from the country represented; and
- virtually all of the production/manufacturing processes associated with the product occur within the country represented.
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Qualified claims
- Qualified claims of origin include statements such as ‘Made in Italy from Australian wool' or ‘Made in Australia with local and imported ingredients'.
- These claims provide greater information to consumers than do general claims of origin. Where a product fails to meet either of the defences provided above, a qualified claim may be permissible under the Trade Practices Act 1974, provided that it does not mislead or deceive consumers.
Other Origin Claims
Other kinds of origin claims not specifically protected by provisions of the Trade Practices Act 1974 may be made without restriction, provided they are not misleading or deceptive. For example:
- Fresh or processed produce that has been grown in Australia could be labelled "Grown in Australia" or "Australian Grown";
- Spring water collected and bottled in Australia could be labelled "Australian Water: Bottled in Australia";
- Fresh or processed fish from an Australian fish farm or caught in Australian waters could be labelled "Harvested in Australia".
Requirements for labelling of imported goods
The Commerce (Trade Descriptions) Act 1905 and associated regulations require certain goods to be labelled with the country of production or manufacture for import into Australia. These goods may not legally be held or sold in Australia without the required origin marking. The Trade Practices Act 1974 requires that such origin markings must not be false or misleading and must comply with the tests provided for in the Act relating to 'made in...' and 'product of...' claims.
Further information
If you would like further information about country of origin labelling contact your nearest office of the Australian Competition and Consumer Commission. Contact details may be obtained from the Commission's web site at www.accc.gov.au.