China / Australia Free Trade Agreement – Now in Effect

Six months ago the China / Australia Free Trade Agreement (ChAFTA) was signed with the intention of reducing the cost of trade between the two countries. With the agreement coming into effect 20th December 2015 we are now beginning to see the benefits as well as some of the processes importers need to follow to take advantage of the trade concessions.

Out of the loop? Find out about ChAFTA HERE.

For importers to take advantage of the discounted duties provided by ChAFTA the supplier must provide a Certificate of Origin (CoO) issued by the relevant authorised bodies in China. The CoO must be presented along with the regular paperwork for processing of the Customs Entry at which point the discount will be calculated for the relevant HS codes and applied. The duties discount available depends on the HS code of the goods. A full list of HS codes and their respective discounts can be found HERE (11.4mb, PDF, 337 pages).

We can assist exporters in getting a CoO for their goods to take advantage of the trade concessions.

While the agricultural and food industry has the most to gain from ChAFTA there are also savings to be had from manufacturing as well with tariff reductions on a wide range of products as well as locking in existing tariff free trade.

You can get an overview of ChAFTA from our previous article HERE or you can find out more on the Department of Foreign Affairs and Trade website HERE.