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3 Steps to Get FTA Preferential Tariffs While Exporting from Australia

The free trade agreements (FTAs) benefit both importers and exporters in getting reduced tariffs on various goods. However, there is a definite procedure that you must follow to enjoy these benefits. If you are an exporter from Australia exporting goods to the countries like China, Thailand, Korea, Japan and others, you must study the FTAs and prepare documents like a certificate of origin. In order to understand the procedure, here are three steps to go through.

Number 1: Refer to the Right FTA to Know Tariff Cuts

Australia has many FTAs that are currently in force. For example, the country’s FTA with Japan is officially known as JAEPA. Likewise, the FTAs with Korea, Thailand and various ASEAN countries are respectively called KAFTA, TAFTA and AANZFTA. You can access the content of these FTAs from FTA portals.

Once you open the FTA portal, you would be required to search for the goods you wish to search the current tariffs for. There are two ways of doing it:

  1. Type the name of the product as the search keyword 
  2. Provide the HS (Harmonised Community Description and Coding System) code
Generally, an HS code is a six-digit number, though it can have eight digits or more for sub-categories of products. After the search is successful, you would be able to find the preferential tariffs for the product you wish to export.

Number 2: Find Out the Eligibility of Your Goods

In order to get the reduced tariff benefits, your goods must meet the rule of origin conditions. It should be noted that the goods you wish to export meet these conditions if they:
  1. Are wholly obtained in Australia
  2. Are whole produced in Australia
  3. Have been transformed from inputs that didn’t originate in Australia
To know more, you can again refer to the FTA portal. Search for the good and switch to the ‘rule of origin’ section. There, you may be required to answer a few questions to know whether your goods stand eligible for the tariff cut or not.

Number 3: Prepare a Certificate of Origin

Finally, you need to prepare a certificate of origin if your goods are entitled for preferential tariffs. For this, you must:
  1. Know the chamber of commerce from which you need to get the certificate stamped 
  2. Register with the chamber 
  3. Type the certificate as per the format prescription from the chamber
  4. Include the HS code and other important details in the certificate
  5. Submit the certificate for stamping. It can be done manually, via post or electronically using a software
  6. Once stamped, the chamber would return the certificate that you may attach with other trade documents
Overall, the procedure is same for different FTAs and certificate of origin, including ChAFTA, TAFTA, AANZFTA, KAFTA, JAEPA certificate of origin and others. In contrast to submitting the certificate for stamping manually, it is better to do it electronically. In fact, you may use a software not only to submit the certificate but also to receive it back and print it right at your office.
Location: Australia

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