CHINA-AUSTRALIA FREE TRADE AGREEMENT ( CHAFTA ) UPDATE

19/11/2015

Attachments

With this article are the following attachments

CHINA-AUSTRALIA FREE TRADE AGREEMENT ( CHAFTA ) UPDATE              

Please be advised that we are still awaiting a commencement date for the China-Australia Free Trade Agreement ( CHAFTA ).  Although we are hopeful of a December commencement date, the process of passing relevant legislation through parliament can be long and arduous and may present further delays to the start date.

In the meantime, the Department of Immigration and Border protection ( “Customs” ) have provided some additional information in relation to CHAFTA and the associated documentary requirements.  In order to claim preferential duty rates under CHAFTA, a valid Certificate of Origin ( COO ) or Declaration of Origin ( DOO ) must be presented. 

A COO must be based on the template provided in attachment 1. It must also be issued by an authorised body, must be completed in English, is valid for one year and can only cover a single shipment of goods.  Furthermore, a COO may include multiple goods but must not exceed 20 items.  We are still awaiting a list of authorised bodies in China and will update you once received.

A DOO may only be issued as documentary evidence in order to claim CHAFTA rates where goods are covered by an origin advance ruling. Such a ruling must be applied for with Customs and  must include sufficient supporting material with evidence showing the relevant goods qualify as Chinese origin goods. Customs will begin accepting applications for origin advance rulings from December 1st.  Upon receipt of a ruling, DOO’s must still be provided for each shipment of goods and may be completed by an exporter or producer. A sample DOO template is provided in attachment 2.

The same documentation will be required for export consignments being shipped to China.  Three Australian authorised bodies will be approved to issue Australian COO’s : -

 

  • Australian Industry group ( AIG )
  • Australian Chamber of Commerce and Industry ( ACCI )
  • Australian Grape and Wine Authority ( AGWA ) – for wine products only

 

It is BR International’s recommendation that importer’s utilise COO’s in order to claim CHAFTA preferential rates of duty, at least in the short term.  Although DOO’s may be provided by exporter’s or producer’s, the initial application process to obtain an advance ruling may take some time and not enable importer’s to immediately utilise CHAFTA rates.  We would strongly recommend that importer’s make contact with their Chinese supplier’s and inform them of the new CHAFTA documentary requirements.  We would further suggest that importers request such documents for shipments due to arrive into Australia during December as implementation of this agreement may be imminent.

 

Keeping you updated,

BRi Customs Department 

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