Free Trade Agreements
FTAs promote stronger trade and commercial ties between participating countries, and open up opportunities for Australian exporters and investors to expand their business into key markets. They can speed up trade liberalisation by delivering gains faster than through multilateral or regional processes.
In addition to achieving wider multilateral trade objectives, FTAs can provide importers of goods into Australia with customs duty concessions for specific importations from member party states. However, the rates of concession vary between each FTA and depend upon the type of goods imported. Currently, Australia is party to the following FTAs:
• Malaysia-Australia FTA
• ASEAN-Australia-New Zealand FTA
• Singapore-Australia FTA
• Thailand-Australia FTA
• Australia-United States FTA
• Australia-New Zealand Closer Economic Relations
• Australia-Chile FTA
• Korea-Australia FTA (signed but not yet in force)
• Japan-Australia Economic Partnership Agreement (signed but not yet in force)
It is also worthwhile to note that Australia is currently involved in FTA discussions, negotiations and feasibility studies in relation to the establishment of FTAs with a number of other parties, including China, the Gulf-Cooperation Council, Indonesia, India, Japan, Korea, Indonesia and various Pacific Island Nations.
If you are importing goods from one of the countries with which Australia has a current FTA, PPM Tax & Legal can help you to:
• help you to achieve savings of up to $50,000 for every million dollars worth of eligible imported goods
• assist you to determine whether a concessional rate of duty will apply to your goods in accordance with the applicable rules of the relevant FTA;
• provide advice regarding the applicable rules of origin applicable for your importation;
• assist you to prepare and obtain certificates of origin from international suppliers to confirm that the goods originate in a country which is party to the relevant FTA;
• provide advice regarding effective supply chain structuring to best take advantage of FTA concessions.