Australia – United Kingdom Free Trade Agreement

What you need to know

Commencement

The Australia UK FTA will commence on 31 May 2023. For imports to Australia it will apply to goods imported after this date and goods imported before this date where the date for determining customs duty has not yet passed. This means goods that have landed in Australia but an import declaration is yet to be lodged.

Document requirements

The Australia UK FTA is not overly onerous in its documentation requirements compared to other FTAs. There is no requirement for a government issued certificate of origin. Rather, a declaration of origin produced by a manufacturer, producer or exporter.

Declaration of origin (example as per link )  https://mcusercontent.com/97c9aceed28a018634d748f9d/files/b7f6a4ff-cf4d-7fbd-6c83-25c040c07d71/A_UKFTA_example.docx

– there is no prescribed format

• it can be in electronic form
• it can be on an invoice or other commercial document;
• must meet specified data requirements. This includes a specifically worded declaration, a description
• of the goods, the tariff classification of the goods and specifying the rule of origin that applies.

A declaration can cover multiple consignments of identical goods over a 12 month period

A declaration of origin is valid for 12 months after the date that it is completed.

Direct shipment

Like most FTAs there is no requirement that the goods are directly shipped to Australia. However, it is a requirement that the goods are not released to free circulation in a country other than the UK or Australia. For instance, if UK goods are shipped to a European or Asian distribution center prior to shipment to Australia, the goods may lose their qualifying status.

It is also important that the goods do not undergo further processing once they leave the UK other than certain permitted acts such as storage, repacking, labeling or marking required by Australia.

Tariff outcomes

This FTA offers substantial benefits to both Australian and UK importers. In respect of UK imports into Australia, almost all UK goods will be duty free. The exceptions are goods subject to excise equivalent duties (fuel, tobacco, alcohol) and some steel products.

Australian exports to the UK have more mixed results. Some goods will have full duty reductions immediately on entry into force of the agreement. For other products the duty rates are phased down over time. There will also be some products that do not have any duty reductions.

Action to take

As with any FTA, the key is to look into the details of the FTA and how it applies to your particular products. As a starting point, determine whether you have any trade with the UK that is attracting duty. If there is, it is worth assessing whether those goods qualify for the FTA and the duty benefits that can be achieved.

If it makes sense to use the FTA, put in place procedures to ensure that the origin documentation requirements are being met. But don’t just forget about these procedures, regularly check to ensure that they are being followed.

For further information on this or any other Free Trade Agreement please contact our Customs Broker Kyle Havenstein on 0451 778 928.