RCEP Enters into Force

On 01 January 2022, the Regional Comprehensive Economic Partnership Agreement (RCEP) will enter into force for Australia, Brunei, Cambodia, China, Japan, Laos, New Zealand, Singapore, Thailand and Vietnam.

It is to become the world’s largest trade deal – which includes China but excludes the USA. It is also larger than other regional trading blocs such as the United States-Mexico-Canada Agreement (USMCA) and the European Union.

The Australian Border Force (ABF) has issued Australian Customs Notice No. 2021/49, which is 182 pages long and includes a full list of applicable tariff items and rates.

From 01 January 2022, only materials sourced from Australia, Brunei, Cambodia, China, Japan, Laos, New Zealand, Singapore, Thailand and Vietnam are considered as originating materials for the purposes of determining whether a good is an RCEP originating item.

Goods and materials from the remaining RCEP signatories, namely Indonesia, Korea, Malaysia, Myanmar and the Philippines are not considered as originating materials until RCEP enters into force for that signatory. Those will be announced by the government minister as they come into effect.

Schedule 14 provides the preferential rate that will apply for each relevant tariff subheadings on 01 January 2022, any incremental reductions to the preferential customs duty rate, and the day on which those reductions commence.

All RCEP originating goods classified to tariff subheadings that are not listed in Schedule 14 have a ‘Free’ rate of customs duty at entry into force of RCEP.

The RCEP will cover a market of 2.2 billion people and $26.2 trillion of global output. Ultimately the partnership will create a trade grouping that covers about 30% of the world’s population, as well as the global economy.

As licensed Customs Brokers and International Freight Forwarders, Colless Young offers professional service and advice on all your international trade and transport. We provide a complete range of import and export logistics services, by air and sea cargo, at all major Australian ports and airports. Call us for correct information, including Customs tariffs and shipping freight rates.