Importing products from China to Australia will be “tax-free” from April 2015

The China Australia Free Trade Agreement (ChAFTA) has made many importers excited about 2015 when importing products from China. In a joint statement given on November 17, both Prime Minister Tony Abbott and Minister for Trade Andrew Robb declared that ChAFTA will bring new benefits for Australians in the years to come. It is expected to:

• Add billions to the Australian economy
• Create jobs for Australians
• Promote higher living standards for Australian

Source: www.dfat.gov.au

How will Australian importers benefit from ChAFTA when importing products from China?

Businesses are optimistic ChAFTA will bring more revenue to Australian industries in 2015 when importing products from China. Read on to learn more about it:

Tax-free privilege on products imported from China to Australia

Beginning April 2015, full elimination of tariffs on Chinese imports will be implemented. This means reduced customs fees for businesses when importing products from China. Moreover, cost of imported goods from China will become cheaper.

Eliminated tariffs on about 80% of goods

Tariffs on about 80% of goods will be eliminated by mid 2015.This will include the following goods as per their scheduled implementation:

Tariffs eliminated after two years for these goods:

• Aluminium-related products
• Chemicals and paper
• Copper-related products
• Ground nuts and canned fruit
• Plastics and rubber
• Steel and steel-related products
• Some motor vehicles and automotive parts
• Textiles, clothing and footwear
• Water heaters

Tariffs eliminated after four years for these goods:

• Automotive parts
• Carpets
• Electrical products
• Glass

How will exporters benefit from ChAFTA?

Importers are not the only one rejoicing because of ChAFTA. Exporters are also eager to see its full implementation as it brings:

More than 85% of Australian goods will immediately be tariff free

On full implementation of ChAFTA over the four years, this will increase to 95% of Australian goods exports to China will be tariff free. Included in this list are goods currently subject to tariffs of up to 40% such as:

• Dairy
• Beef and sheep farming
• Horticulture

Elimination of tariffs on a wide range of Australian manufactured goods

Tariffs will be also eliminated on a wide range of Australian manufactured goods. This will bring additional benefits to:

• Mining and extraction industries
• Manufacturing services
• Architecture and urban planning
• Transport sectors

Reduced tariffs on fuel and energy sources

Businesses exporting thermal coal into China will have to wait two more years before tariffs on it will be completely phased out. However, aluminium oxides and coking coal will have an 8% tariff on the first day of ChAFTA.

How to take advantage of ChAFTA?

Do you want to take advantage of these ChAFTA benefits when importing products from China? Call our expert customs brokers about these recent customs rules, concessions, and free trade agreement changes to see how they can benefit you. Talk to us at 1300651233.

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Source:
http://www.export.org.au/eca-news/exporting-to-china-customs-insights-from-a-chinese-perspective
http://www.lse.co.uk/AllNews.asp?code=ickn6aaz&headline=Australia_China_Agree_Free_Trade_Deal