This week the Australian Border Force (ABF) has issued notices confirming changes that will come into effect from 01 January 2023. The first of these is Australian Customs Notice No. 2022/53 titled ‘Customs Tariff Changes 1 January 2023;’ the second is No. 2022/52, ‘Australia-India Economic Cooperation and Trade Agreement – Entry into Force.’
Peru-Australia Free Trade Agreement (PAFTA)
All goods that are Peruvian originating, other than excise-equivalent goods (certain tobacco, alcohol, fuel and petroleum products), will have a duty rate of ‘Free’ from 01 January 2023.
This final phasing down of duty rates under PAFTA applies to goods classified to approximately 75 subheadings. The duty rate for these goods will be phased down from a rate of 1.2% or 0.9% to ‘Free’. The goods affected by this reduction include preserved vegetables, chemicals, plastics, goods of plastics, rubber, leather, iron or steel, fibreboard, footwear and clothing accessories, machinery such as cameras and apparatus for radio-broadcasting, unmanned aircraft and furniture.
Regional Comprehensive Economic Partnership Agreement (RCEP)
From 01 January 2023 the preferential rates of customs duty for certain RCEP originating goods will be reduced to either 4%, 2% or 1%.
As there are a large number of staging categories importers are encouraged to check if there has been a change in the duty rate of their RCEP originating goods.
(See our related article on the previous ABF notice 2022/51 at https://collessyoung.com.au/rcep-starts-for-indonesia-02-january/ ).
Australia-India Economic Cooperation and Trade Agreement (ECTA)
From 01 January 2023 the preferential rates of customs duty for certain Indian originating goods will be reduced to 3%. This phase down applies to 115 subheadings. The goods affected by this reduction are certain types of steel and iron and articles of steel and iron.
As these phase downs are already incorporated into the relevant Online Tariff pages and Tariff Working Pages, new working pages will not be issued.
The ABF has also issued Australian Customs Notice No. 2022/52:
“Australia-India Economic Cooperation and Trade Agreement – Entry into Force’
The ECTA will enter into force on 29 December 2022.
(Also see our related article https://collessyoung.com.au/trade-deal-with-india-starts-29-december/ ).
Indian originating goods
Indian originating goods are those that meet the requirements of Division 1JA of Part VIII of the Customs Act 1901 (Customs Act). Further information about determining the originating status of goods and materials for the purposes of the ECTA is available on the Australian Border Force (ABF) ECTA webpage at: https://www.abf.gov.au/importing-exporting-and-manufacturing/free-trade-agreements/india
Preferential rates of customs duty
Schedule 10A of the Customs Tariff Act 1995 (Customs Tariff Act) sets out the preferential rates of customs duty that apply to goods deemed to be Indian originating. Indian originating goods classified to any tariff subheadings that are not listed in Schedule 10A have a ‘Free’ rate of customs duty from 29 December 2022.
Excise-equivalent goods that are classified to tariff subheadings listed in Schedule 10A and are Indian originating goods will be indexed with the equivalent rates listed in Schedule 3 of the Customs Tariff Act.
Customs Tariff Working Pages may be accessed online in PDF format. The Online Tariff will reflect the updated rates for Indian originating goods from the commencement of ECTA.
Claiming preferential rates of customs duty
The Integrated Cargo System (ICS) Preference Scheme, Preference Origin Country and Preference Codes for ECTA will be as outlined below.
Code Description
Preference Scheme: IECT Australia-India ECTA
Preference Origin Country IN India
Preference Rule { WO Goods wholly obtained or produced in a Party
{ PSR Goods produced from non-originating materials
For professional advice about international trade and shipping, contact us here at Colless Young. As licensed Customs Brokers and International Freight Forwarders, we handle all your imports and exports, reliably and economically. We are based in Brisbane and offer a complete range of logistics services, by airfreight and sea cargo, including trucking and warehousing, through all Australian ports and airports.
