Australia signs landmark trade agreement with China

Australia signs landmark trade agreement with China

Dear Valued Customer,

The Trade and Investment Minister Andrew Robb and Chinese Commerce Minister Gao Hucheng signed the Free Trade Agreement (FTA) in Canberra on 17 June 2015. Further details on the processes can be found on the attached factsheet for the Implementation Processes and Timeline.

The text of the Agreement and other support documents are available here.

The following Key points should be noted;

  • There is no definite start date, though expectation is that it will start before the end of the year.
  • Most Chinese qualifying goods will duty free on introduction of the FTA with some exceptions(refer tariff schedule for specific tariff classifications)
  • A consignment specific certificate of origin required and shall be issued by an authorised body of the exporting country. The certificate is valid for 12 months.(refer rules of origin)
  • Direct Consignment rule applies:- The goods must be transported directly to the importing country without passing through the territory of a non-party with below exceptions. If goods will be entered/customs cleared into a third country( e.g. Hong Kong), importers will need to review their processes to weigh up any benefits against the loss of duty savings.

(a) the good remains under customs control in those non-parties;

(b) the good does not undergo any operation there other than unloading and reloading, repacking, re-labelling for the purpose of satisfying the requirements of the importing Party, temporary storage or any operation required to keep them in good condition; and

(c) in cases where the good is temporarily stored in the territory of a non-party, as provided in paragraph 2 of this Article, stay of the good in that non-party shall not exceed 12 months from the date of its entry

 

  • Anti-Dumping measures will still be applicable.
  • Importers should start the discussion with their Chinese suppliers so that they can be ready on entry into force of the FTA.

 

Please contact your IFC Global Logistics customs broker for any further advice.