The Australian Government has announced it will remove tariffs on imports to Australia from Ukraine. The measure, which is part of the package of support announced by the Prime Minister following his visit to Kyiv, follows similar actions by our international partners, such as the European Union and the United Kingdom.
Three months ago, we reported on measures taken by the Australian government to increase tariffs on imports from Russia, in response to its invasion of Ukraine. Of course, that did not benefit Ukraine, but the latest measures being put in place will serve to support their economy and expand trade opportunities that are vital to their recovery and reconstruction in the short and long term.
Australia’s trade relationship with Ukraine is modest. Our imports from them amounted to US$61.33 Million during 2021, according to the United Nations COMTRADE database on international trade. This mainly consisted of vegetable oils and fats. Merchandise exports from Australia back to Ukraine consisted mainly of coal.
The new deal will see tariffs of up to 5% reduced to zero for a period of 12 months 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.
The Australian Border Force (ABF) has issued Australian Customs Notice No. 2022/32:
“Temporary duty reduction for goods from Ukraine”. It announces that, commencing on 04 July 2022 and for a 12-month period, goods that are the produce or manufacture of Ukraine, will have a ‘Free’ rate of duty.
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.
The Autonomous Sanctions Regulations 2011 bans the importation of goods from specified regions of the Ukraine. These arrangements are administered by the Department of Foreign Affairs and Trade, further information is available at Specified Ukraine regions sanctions regime | Australian Government Department of Foreign Affairs and Trade (dfat.gov.au). The temporary duty reduction on goods from Ukraine does not alter the operation of the sanctions.
Concessional Tariff Treatment: Goods that are the produce or manufacture of Ukraine can claim Schedule 4 concessions where appropriate. Arrangements for goods valued at, or less than, AUD 1,000 are not impacted by this change.
The temporary rates for Ukraine will be entered into the Integrated Cargo System (ICS) as soon as practical following the registration of the Customs Notice. The rates will retrospectively commence on 04 July 2022. Any goods entered for home consumption on or after 04 July 2022 until the time the temporary rates have been entered into the ICS will need to apply for a refund.
Excise-equivalent customs duties applied under Chapters 22, 24, 27, 29, 34 and 38 of Schedule 3 to the Customs Tariff Act 1995 will continue to apply to goods that are the produce or manufacture of Ukraine. The temporary reduction to the excise-equivalent rates that apply to certain imported fuels made by the Customs Tariff Amendment (Cost of Living Support) Act 2022, will also apply to goods from Ukraine.
A media release from the Australian Minister for Trade and Tourism, Don Farrell, has also confirmed the agreement. It says the elimination of tariffs on imports into Australia from Ukraine is a key part of the Australian Government’s ongoing efforts to further deepen our bilateral trade and investment relationship.
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.
