TRANS PACIFIC PARTNERSHIP ( TPP )
BR International would like to inform you of a proposed Free Trade Agreement ( FTA ) known as the “Trans Pacific Partnership” ( TPP ). If implemented, the TPP will cover 40% of global GDP and potentially make the claiming of preferential duty rates easier for Australian importers. Member countries are Australia, the USA, Japan, Canada, Mexico, Vietnam, Singapore, Brunei, Malaysia, New Zealand, Chile and Peru.
A certificate of origin will be required in order claim preferential rates of duty under the TPP however such certificates will be prepared by the manufacturer, exporter or, in some cases, even the importer and will not have a particular format to be used. Furthermore, the one certificate of origin may be used as an “annual” declaration. Such requirements will make use of the TPP more attractive than some of the current FTA agreements.
Not all imports will be immediately reduced to zero, some areas of goods will be “phased” down over a specific time period. Some examples are footwear ( reduced over 4 years ), clothing and textile items ( 5% for three years, then reduced to zero ), motor vehicle components ( reduced over 3 years ) and certain irons and steels ( reduced over 3 years ).
The implementation of the TPP is still a little way off as each member country will need to obtain domestic approval of the agreement. In the meantime, BR International suggests continuing with the FTA’s currently operative until the TPP is introduced.
BR International will keep our clients updated on any developments in relation to the TPP.
Keeping you updated,
BRi Customs Department
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