Essay Made in Australia Branding
Due to recent court decisions, considerable confusion has been created in the minds of the industry and consumers alike, undermining both the value of origin claims in the marketplace. The government is acting to address this uncertainty, and set rules that the industry can follow and consumers can understand.
Consequently legislation was established by the Commonwealth Parliament to make the legal standing of corporations that make representations regarding the country of origin of goods they …show more content…
There are four general classes of country of origin representation recognised in part 5-3of the ACL.
General country of origin claims is a provision that covers terms used to indicate origin, for example, ‘Made in Australia’. The general country of origin test is set out in the s.255 (1) item 1, which states that if a representation as to the country of origin of goods meets the following requirements:
(a) The goods have been substantially transformed in that country; and
(b) 50 percent or more of the total cost of producing or manufacturing the goods as worked out under section 256 is attributable to the production or manufacturing processes that occurred in that country; and
(c) The representation is not a representation to which product of/produce of representations or prescribed logo representations apply.
A person does not contravene ss.18, 29(1)(a), 29(1)(k), 151(1)(a) or (1)(k) by reason only of making the representation.
What this means is that goods must pass two tests to qualify for the general country of origin defence. They must be substantially transformed in the country that is the subject of representation and 50 percent or more of the costs of production or manufacture of the goods must be incurred in relation to the processes that occurred in that country. If goods pass both of these tests for a