The Australian Competition and Consumer Commission has today issued guidelines on country of origin claims made by the toys 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, importers and retailers of toys who want to make country of origin claims within the provisions of the Trade Practices Act 1974.
The most common claims are 'Made in Australia' and 'Product of Australia' - or similar claims about goods from other countries. In a sector such as the toys industry where a significant level of products are imported, claims of origin associated with other countries, such as Made in China, are also common place.
A working party, led by the ACCC, and including the CEO of the Australian Toy Association Ltd (ATA) produced the guidelines in consultation with the Department of Industry, Tourism and Resources and the Australia Made Campaign. The working party undertook a number of visits to a representative range of companies in the industry to ensure that the guide addressed issues specific to the toys industry.
The guide is the final in a series of six ACCC publications for industry. These guides have been successful in raising 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 …' and 'Product of…' 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 defences set out in Part V, Division 1AA of the Act.
The 'Made in Australia' defence, 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' defence 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.
Toys – 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 ATA and Australia Made Campaign to industry members. There is no charge for the guide.