The Pacific Agreement on Closer Economic Relations Plus – or PACER Plus – entered into force on 13 December. It is a comprehensive Free Trade Agreement (FTA) covering goods, services and investment and is a milestone for Pacific regional development.
As a regional development-centred trade agreement, PACER Plus provides a new platform to support economic recovery. During this period of uncertainty as a result of the Corona virus and our trade relationship with China, the agreement is an important part of Australia’s engagement in the Pacific and provides an avenue to help foster a secure, stable and prosperous region.
PACER Plus has been signed by Australia, New Zealand and nine Pacific island countries: Cook Islands, Kiribati, Nauru, Niue, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.
Claiming preferential rates of customs duty Goods must meet the requirements outlined in Division 1GA of Part VIII of the Customs Act 1901 (Customs Act) to be considered Pacific Islands originating goods. Schedule 8A of the Customs Tariff Act 1995 (Customs Tariff Act) outlines the preferential rates of customs duty that apply to Pacific Islands originating goods.
All Pacific Islands originating goods classified to tariff subheadings that are not listed in Schedule 8A have a ‘Free’ rate of customs duty at entry into force of PACER Plus. Excise-equivalent goods that are classified to tariff subheadings listed in Schedule 8A will be indexed with the equivalent rates listed in Schedule 3 of the Customs Tariff Act.
Talk to us here at Colless Young if you have any queries regarding trade and shipping in the Pacific region. The Australian Border Force ABF has also issued notices on their website.
The updated Customs Tariff Working Pages for Schedule 8A are at: https://www.abf.gov.au/help-and-support-subsite/CustomsNotices/2020-49.pdf
Colless Young is an International Freight Forwarder and Licensed Customs Broker. We are based in Brisbane and offer professional advice on air and sea freight through all Australian ports and airports. Our services cover every aspect of logistics, including exports, and clearance of import consignments through customs and quarantine, warehousing and trucking.
