Do you import from China? Do you have exports to China?
The China Australia Free Trade Agreement may provide benefits if you trade with China.
The agreement was signed on the 17th of June 2015, and still requires domestic ratification in both countries before being brought into force. Current indications are that Chafta will be in force early in 2016, if not sooner.
There are significant benefits for both countries, with reduced Tariffs applying on both directions of trade.
Most import tariff rates will be reduced to duty free upon implementation of the agreement, however there are many tariff classifications that will gradually phase to duty free over either a 3 or 5 year period. As an example certain textile fabrics will phase to duty free over 3 years, and steel and glass products will phase to duty free over 5 years.
So do all goods supplied from China automatically get Chafta reduced rates?
No, there are rules of origin within the agreement, depending on the tariff classification. Some require a change to the tariff headings of non-originating components. Others require a Regional Value content to be eligible for Chafta.
The Chafta does not remove any requirement to pay dumping and countervailing duties.
How do I claim Chafta preferential rates for my shipments?
The agreement requires that a Certificate of Origin issued by an authorised body in China is provided to claim preferential rates. As an alternative, importers may request an advance ruling (Origin Advice) from the Department of Immigration and Border Protection in Australia. The advice is specific to particular goods from a specified supplier and importer. Once the advice is obtained, a declaration of origin can be used in place of a certificate of origin.
The process can be involved, and requires extensive information regarding the goods, so it is expected most importers will consider the certificate of origin as a preferred process.
Full details of the agreement are available at:
Your BTi team will provide more information as the agreement gets closer to being brought into force.
No comments:
Post a Comment