General update

18/6/2015

China-Australia Free Trade Agreement signed on 17 June 2015

The China-Australia Free Trade Agreement ( CHAFTA ) was signed on 17 June 2015 and will have a significant impact on trade between the two countries.

From an export perspective, 85% of Australian origin goods exported to China will be duty free, rising to 95% on full implementation. Tariffs will be removed on nearly all Australian resources and energy products and a wide range of Australian manufactured goods.

With regard to imports, most products manufactured in China will have immediate duty free status upon implementation of CHAFTA. Some products will however have a “phasing period” where the duty will incrementally reduce to zero over a set period of time.

Imports into both Australia and China will require either a certificate of origin or a declaration of origin to claim the preferential rate of duty. Certificates of origin will only apply to a single consignment while declarations of origin will be issued by the producer or exporter but only after an origin ruling has been issued by the destination Customs authority.

An implementation date is not yet known as both countries must now complete their domestic treaty making processes to bring the CHAFTA into force. In Australia this includes consideration by Parliament. With this in mind a commencement in late 2015 is most likely.

BR International will keep you informed of any relevant updated information with regard to CHAFTA. In the meantime, please feel free to approach your BR International representative should you have any queries or concerns.

This entry was posted in Private Client News, Public News on by Aaron Poole.

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