As we outlined in our article on 05 May, the Australia-UK Free Trade Agreement becomes active on 31 May 2023. The government has released information through several avenues to give businesses access to the resources they will need to take full advantage of all the deal has to offer.
The Australian Border Force (ABF) has issued Australian Customs Notice No. 2023/21: “Australia-United Kingdom Free Trade Agreement Entry into Force 31 May 2023.” It announces that, “On 31 May 2023, the Australia-United Kingdom Free Trade Agreement (A-UKFTA) will enter into force in accordance with Customs (Australia-United Kingdom Free Trade Agreement Implementation) Notice 2023.”
The notice includes a link (see HERE) to the Federal Register of Legislation with the commercial instrument, signed by the Minister for Home Affairs.
The ABF has published a guide and other information to assist in using the agreement. However, we recommend that negotiating the complexities of the working tariff is best left to a licensed Customs Broker. Following is for the guidance of importers wanting more information.
UK Originating Goods
UK originating goods are goods that meet the requirements of the Customs Act.
Guidance on whether goods are UK originating goods for the purposes of the A-UKFTA is available on the ABF’s website at the following page: https://www.abf.gov.au/importing-exporting-and-manufacturing/free-trade-agreements/united-kingdom.
Finalised guide in PDF format: Australia-United Kingdom Free Trade Agreement (A-UKFTA) Rules of Origin;
Preferential Rates of Customs Duty
UK originating goods classified to tariff subheadings not specified in Schedule 15 of the Customs Tariff Act 1995, have a customs duty rate of ‘Free’ if entered for home consumption on or after 31 May 2023.
UK originating goods listed in Schedule 15 of the Customs Tariff Act 1995 may be eligible for preferential rates of customs duty.
For exporters, it should also be noted that the UKFTA will remove tariffs on over 99% of the $9.2 billion Australian goods exported to the UK annually, and tariff quotas will be eliminated within a decade. The agreement will help revitalise local manufacturing and provide new access to the UK’s government procurement market worth an estimated half a trillion dollars annually.
As licensed Customs Brokers and International Freight Forwarders, Colless Young offers you professional advice on all your international trade and shipping requirements. We provide a complete range of import and export logistics services, both air and sea cargo, including warehousing and trucking, at all major Australian ports and airports.
