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Vietnam joins the Trans-Pacific Partnership!

What is the Trans-Pacific Partnership?

The Trans-Pacific Partnership (also known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)) is a free trade agreement (FTA) between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand and Singapore.

The agreement targets barriers to trade and eliminates 18,000 pre-existing tariffs whilst aiming to reduce more over the coming years. It also cuts the costs of customs clearance, rules of origin and compliance to a minor friction.

The goods news for importers is that as of the 14th January 2019 Vietnam has also joined the partnership. And that’s not all! Malaysia, Peru, Chile and Brunei are also going through the ratification process. Once confirmed this treaty will cover 13.5 per cent of global GDP. 

If you read our article on The Value of the Certificate of Origin you will know that FTAs can incentivise importing and exporting, to and from certain jurisdictions. Read on to find out more about how this can benefit you!

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, whilst identifying goods, contains a confirmation from a government authority that the goods being shipped are manufactured in a specific country.

And Free Trade Agreements?

Free Trade Agreements are treaties between two or more countries that reduce and can even eliminate certain barriers to international trade and investment. These agreements are entered into in a bid to benefit Australian importers, exporters, producers and investors. You can read more about FTAs on the Department of Foreign Affairs and Trade Website

So, who does Australia have FTAs with?

Australia has a number of FTAs in place. The links below provide examples of certificate of origin to support these FTAs. 

• New Zealand (ANZCERTA)
• Singapore (SAFTA)
• USA (AUSFTA)
• Thailand (TAFTA)
• Chile (ACIFTA)
• ASEAN countries (AANZFTA)
• Malaysia (MAFTA)
• Korea (KAFTA)
• Japan (JAEPA)
• China (CHAFTA)
• Canada (CANATA)

Most recently the CPTPP adds Mexico, Brunei Darussalam, Peru and Vietnam to this list.

How can these agreements benefit you?

These agreements can have a significant impact on businesses who are purchasing and selling internationally. These FTAs aim to lower trade barriers, the most common being reductions of tariffs and duties on imported goods. Firms can expect reduced or duty free passage of cargo and efficient clearance of goods. 

Wish you knew this sooner? Good News! If you have paid duty when importing from a country that has an FTA with Australia, you may be able to claim rebates on these duties using a Certificate of Origin.

Simply contact our customs brokers on 1300 CARGO1 and we will be on hand to assist. 

Keep in mind

If you are preparing to import or export, consider whether a Certificate of Origin may make the process more cost effective. It is always a good idea to have your customs consultant review all relevant shipping documentation prior to any cargo departure. They can provide invaluable advice and ensure you don’t get caught out with hidden charges or paperwork issues. 

Should you have any questions regarding this please contact your ICE team member on 1300 CARGO1.

Request a Free Quote or call us on 1300 227 461

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