Which Goods Are Counted as ‘Originating’ under the China-Australia FTA?

The China-Australia Free Trade Agreement (ChAFTA) allows the traders from both countries to trade at preferential tariffs. To keep it simple, the agreement reduces or eliminates duty tariffs on different goods. In order to enjoy these benefits, the traders must meet a set of criterions, one of them being the proof that the goods being traded originated in China or Australia. For this, every trader must prepare a certificate of origin as per the prescribed format. 

Here, it is necessary to understand whether your goods classify as ‘originating’ or not. Find it out.

Goods Wholly Obtained in Either Country

First, the goods that are entirely obtained in the exporting country are eligible as the originating ones. For example, fruits and vegetables that the country produces in its farms are easily the wholly obtained goods.

Goods Wholly Produced in Either Country

Second, the goods that are produced using ingredients wholly obtained in the exporting country also meet the parameter. The jams produced using fruits produced in the country is the right examples to understand this.

Goods Meeting Product Specific Rules

Apart from the above-mentioned criterions, other goods that meet some prescribed product-specific rules may have a count among originating goods. Here are some examples:

•    Consider that a jewellery manufacturer in Australia imports gold from some other country. Now, in the process of making jewellery, gold undergoes a significant alteration. So, the resulting jewellery items may become ‘originating’ in Australia.
•    A raw agricultural item originally from some other country may undergo certain treatment in China to preserve it. If in the process, the item changes its taste, it may turn as ‘originating’ in China.

In the same way, the product-specific rules define many other measures that may grant the status of ‘originating’ to an otherwise non-originating product. Make sure that you read the ChAFTA provisions thoroughly. Once you are sure about the status of the goods you wish to export, the next step is to prepare a certificate of origin and submit it to a Chamber of Commerce for stamping. Besides, keep a watch on the FTA’s tariff schedule to know the tariff rates that may change from one year to another.