The BCR Blog

Quick update: China-Australia Free Trade Agreement (ChAFTA)

Posted by David Simpson on 18-Jun-2015 17:09:00

BCR_Industry_Update_ChAFTAEarlier this year we shared details on the on-going Free Trade Agreement Australia has been negotiating with China.

Yesterday, The Hon. Andrew Robb AO MP, Minister for Trade and Investment published a media release announcing the China-Australia Free Trade Agreement (ChAFTA) has been signed by Australian Prime Minister the Hon Tony Abbott MP, Australia Trade and Investment Minister, Mr Andrew Robb AO MP, and the Chinese Commerce Minister, Mr Gao Hucheng in Canberra.

Read on to learn how the ChAFTA will impact Australian importers and exporters.



How the ChAFTA will impact Australian importers

Once the agreement comes into force, Australian importers will be entitled to import most goods duty free from China from day one.  Goods imported from China will need to be supported by a declaration or certificate of origin documentation to qualify as ChAFTA goods. Australian importers can start preparing for the ChAFTA by reviewing their past China based imports to determine how much duty they have previously paid on Chinese goods and then approaching their suppliers to see if the goods qualify.


What the ChAFTA means for Australian exporters

Australian exporters are now in a position to assess where their goods are classified and the product specific rules that will apply. Customers exporting goods to China will fall under the ChAFTA once in effect, but will also need to qualify against the relevant rules of origin. If customers' products don’t meet the local content level they have time to plan how to boost local content and prepare the relevant documentation.


How long until the ChAFTA goes into force

The ChAFTA is now undergoing the Australian treaty-making process where the Joint Standing Committee on Treaties (JSCOT) conducts an enquiry into the agreement over 20 joint sitting days and forwards onto Parliament. Once both countries have completed their domestic processes, both countries will exchange diplomatic notes to certify they are ready for the Agreement to enter into force 30 days later.


How freight forwarder BCR can assist customers importing from China

As a leading international freight forwarder, BCR keeps abreast of the duty rates for over 8,000 product lines and is available to assist customer queries on all of the staging categories that will be affected by the ChAFTA. BCR will continue to keep customers updated on the progress of the ChAFTA coming into force and any Chinese Goods rules that customers need to consider. More guidelines and fact sheets on the full agreement can be viewed here.


For more information about how BCR Customs Consultancy can assist with Customs Clearance for your goods or what impact ChAFTA will have on your business please contact us or call us on 1300 663 227.

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Topics: Sea Freight, Global Trade, Duties & Taxes, Freight & Transportation

David Simpson

David Simpson, Senior Consultant and Customs Broker at BCR, has more than 40 years of experience in the Customs industry. Having worked for Australian Customs as well as for various customs brokerage and consulting companies, he has a profound understanding of Australian Customs, regulations, and compliance procedures. David’s passion for solving complex Customs and Quarantine challenges and his in depth knowledge on a large range of products are two key reasons the BCR Customs department is so successful in ensuring our customers only pay the correct duty on their imported goods.

See all blogs posts written by David Simpson