The Australian Government has extended the temporary duty reduction on goods that are the produce or manufacture of Ukraine for a further twelve months. These goods will continue to have a “Free” rate of customs duty. We wrote about the original measure a year ago, which applied the duty reduction to eligible goods for a period of twelve months and was due to end on 03 July 2023. The measure has now been extended for another year to 03 July 2024.
Australia’s trade relationship with Ukraine has traditionally been modest, but has increased over the past year.
Export of goods from Ukraine to Australia reached US$60.9 million (43% increase), and imports at US$ 154.3 million (increased by three times), according to the Ukrainian Embassy figures.
Major import commodities from Ukraine included edible oils, metallurgy and machinery, floating vessels, fertilisers and tobacco.
Australia’s exports to Ukraine included coal, pharmaceutics, machinery, optics, jewellery, cartons and paper.
The Minister for Home Affairs has registered the Notice of Intention to Propose Customs Tariff Alterations (No. 2) 2023 in Parliament, and the Australia Border Force (ABF) has now issued Australian Customs Notice No. 2023/29, Extension of the temporary duty reduction for goods from Ukraine. [For PDF document follow this LINK].
Goods that are the produce or manufacture of Ukraine can claim Schedule 4 concessions where appropriate. Arrangements for goods valued at, or less than, AUD1,000 are not impacted by this change.
To ensure that a ‘Free’ rate of customs duty is accessible to goods that may be the produce or manufacture of Ukraine, goods containing inputs from Russia and Belarus can still be considered originating provided they meet the rules of origin requirements. Goods are determined to be the produce or manufacture of Ukraine, if they meet the requirements under Division 1A of Part VIII of the Customs Act 1901 as it applies to Developing Countries.
The deal continues to see tariffs of up to 5% reduced to zero on a range of goods that are produced or manufactured in Ukraine. Excise-equivalent duties, such as those that apply to fuels, alcohol and tobacco products, will remain in place.
For more information about international shipping and Customs clearance – no matter where your imports originate from – contact us here at Colless Young. As licensed Customs Brokers and International Freight Forwarders we offer correct, professional advice on all your import and export trade transactions. We are based in Brisbane and provide a complete range of logistics services, for both airfreight and sea cargo through all Australian ports and airports.
