What is the China Australia Free Trade Agreement?
If you read our recent article on the Value of the Certificate of Origin you will know the benefits of importing from countries with a Free Trade Agreement (FTA) in place. Free Trade Agreements are agreements between two or more countries that eliminate certain barriers to international trade and investment.
FTAs are entered into, in a bid to benefit Australian importers, exporters, producers and investors. The China Australia Free Trade Agreement is particularly beneficial to Australian trade with over 25% of imports originating from China. The agreement allows importers to avoid duties and taxes in Australia if goods are accompanied by a certificate of origin.
You can read more about FTAs on the Department of Foreign Affairs and Trade Website.
What is a Certificate of Origin?
A Certificate of Origin is a declaration that details the country in which your goods are made. The document will contain confirmation from a government authority that the goods being shipped are manufactured in a specific country.
Changes to the China Certificate of Origin
The China Australia Free Trade Agreement (CHAFTA) came into effect on 20 December 2015. Now the Chinese government has changed the authority that is in charge of issuing official government certification.
As of 21st August 2018, all entry-exit inspection and quarantine duties are managed by the General Administration of Customs of the People’s republic of China (GACC).
The former General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) has now been suspended. As a result, certificates and stamps have changed.
With the changes in place importers should now note:
- Certificates issued from 21 August 2018 should be issued by GACC
- If AQSIQ certificates are dated after 20 August 2018 they should be referred to the department as potentially fraudulent
- The security features have not changed
- GACC logo, letterhead and stamps will replace the AQSIQ logo, letterhead and stamps
Keep in mind
If you are preparing to import from China with a Certificate of Origin ensure your certificate is issued by GACC. It is always a good idea to have your customs consultant review all relevant shipping documentation prior to any cargo departing.
Should you have any questions regarding this please contact your ICE team member on 1300 CARGO1.