Substantial transformation


According to Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010), a food is substantially transformed in a country when either:

  • each of its significant ingredients was grown in that country and all, or virtually all, processing  occurred in that country
  • as a result of one or more processes undertaken in that country, the product is fundamentally different in identity, nature or essential character from all of its ingredients or components that were imported into that country

Examples of substantial transformation

Product

Australian ingredient/ component

Imported ingredient/ component

Substantially transformative or material process/change

Primary reason why it is considered to be substantial transformation

Cake

Sugar, eggs, flour

Spices

Mixing and baking

The imported ingredients (spices) are fundamentally different from, and do not have the identity, nature or essential character of the finished product (cake).

Apple pies

Pastry, sugar

Apples, spices

Forming a pie and baking

The imported ingredients (apples, spices) are fundamentally different from, and do not have the identity, nature or essential character of the finished product (apple pie).

Frozen crumbed prawns

Prawns, egg

Crumbs, spices

Cultivating and shelling prawns and raising chickens (from which eggs are, gathered) before crumbing

The imported ingredients (crumb, spices) are fundamentally different from, and do not have the identity, nature or essential character of the finished product (frozen crumbed prawns).

Frozen battered seafood snack

Flour, eggs, water (to form batter)

Prawns, squid, seasoning

Mincing, mixing, forming and battering

The imported ingredients (seafood) are fundamentally different from, and do not have the identity, nature or essential character of the finished product (frozen battered seafood snack).

Examples of what isn’t substantial transformation

Product

Australian ingredient/ component

Imported ingredient/ component

Material process/change that is not substantially transformative

Primary reason why it is NOT considered to be substantial transformation

Canned apricots

Syrup

Apricots

Peeling, cooking and canning

The imported ingredients (fresh apricots) are not fundamentally different from, retain their identity and nature, and have the essential character of the finished product (canned apricots).

Orange juice

Water, sugar, preservatives

Orange juice concentrate

Reconstitution

The imported ingredient (orange juice concentrate) is not fundamentally different from, retains its identity and nature, and has the essential character of the finished product (orange juice).

Frozen crumbed prawns

Crumb, egg

Prawns, spices

Crumbing, packing, freezing

The imported ingredients (prawns) are not fundamentally different from, retain their identity and nature, and have the essential character of the finished product (frozen crumbed prawns).

Mashed peas

 

Peas

Mashing and packing

The imported ingredients (peas) are not fundamentally different from, retain their identity and nature, and have the essential character of the finished product (mashed peas).