Dear Valued Customer,
C.H. Robinson would like to advise of the following updates to Australian Free Trade Agreements (FTA’s).
Australia-European Union Free Trade Agreement (A-EUFTA):
- While progress was delayed as a consequence of the reaction to the submarine projects decision, it now appears to be back on track following the Prime Minister's visit in July.
- Discussions continue on an estimated 30 chapters of the Agreement, including technical barriers to trade and intellectual property, including geographical indicators.
- Negotiations are set to be finalised mid 2023, with the operative date to be some time after that due to the treaty making process.
- Consignment rule still in discussion as are eligibility for goods made from imported parts and drawbacks. EU FTA commonly do not include these last two provisions.
- Further details can be found here on The Department of Foreign Affairs and Trade (DFAT) website.
Australia-India Economic Cooperation and Trade Agreement (AI-ECTA):
- The Australia-India Economic Cooperation and Trade Agreement (ECTA) will enter into force on December 29, 2022.
- Year 1 reductions will commence December 29, 2022. Year 2 reductions will then start January 1, 2023.
- Important to note that the tariff reduction provisions at this time only cover up to and include Chapter 72 of the tariff. Further negotiations will occur next year for the remaining chapters of the tariff and are scheduled to be concluded in 2023. This second agreement will be referred to as Australia-India Comprehensive Economic Cooperation Agreement (AI-CECA).
- Certificates of Origin will be required.
- Draft guide to this FTA can be found here on the DFAT website.
- Rules of Origin are contained in Chapter 4 of the above.
- Extract of the Consignment Rule:
- A good shall retain its originating status as determined under Article 4.2 (Originating Goods) if either of the following conditions have been met:
(a) the good has been transported directly from the exporting Party to the importing Party; or
(b) the good has been transported through one or more non-Parties provided that the good has not undergone any subsequent production or other operation outside the territories of the Parties other than unloading, reloading, storing, repacking, relabelling in accordance with the laws and regulations of the importing Party, splitting up of loads, consolidation of loads or any other operation necessary to preserve it in good condition or to transport the good to the territory of a Party and the good has remained under customs control in the non-Parties.
- The Australian Border Force (ABF) has yet to publish its own guidance material but have been requested to provide an update.
Australia-United Kingdom Free Trade Agreement (A-UKFTA):
- On November 22, 2022, the A-UKFTA passed the Australian Parliament, with the commencement date yet to be announced. Once the domestic procedures have been completed, Australia and the UK will provide confirmation of their completion through an exchange of diplomatic note. The agreement will enter into force 30 days later, or on any other date that is mutually agreed.
- The text of the proposed FTA can be found here on the DFAT website.
- Rules of Origin are at Annex 4 above.
- Declarations of Origin from the producer or exporter will be permitted, with the required format and minimum mandatory information required details available here on the DFAT website.
- Extract from Consignment Rule:
An originating good transported through the territory of one or more non-parties shall retain its originating status provided that the good:
(b) does not undergo further production or any other operation outside the territories of the Parties, other than unloading, reloading, separation from a bulk shipment or splitting of a consignment, storing, repacking, labelling or marking required by the importing Party or any other operation necessary to preserve it in good condition or to transport the good to the territory of the importing Party.
AND
(b) is not released to free circulation in the territory of any non-party (Upon request FTA will provide guidance as to this term’s meaning).
ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) Upgrade ("Second Protocol")
- Substantial completion on November 13, 2022.
- Maintains existing FTA but new rules of origin, aimed at expediting the movement of humanitarian aid.
- New provisions for transport hubs with details to be confirmed at a later date.
- New self-certification provisions similar to Australia's recent FTAs. Details are to be advised.
- Further details can be found here on the DFAT website.
Thank you for being our Valued Customer. If you have any questions, please do not hesitate to contact your C.H. Robinson commercial representative for further information.
Sincerely,
C.H. Robinson.