CargoWise now produces Certificates of Origin documentation for ChAFTA exports from Australia to China.
What is ChAFTA?
ChAFTA is short for the China-Australia Free Trade Agreement. It was a trade agreement signed between the 2 economic powerhouses on the 20th of December 2015 which has greatly improved trade between the 2 countries by eliminating tariffs on the vast majority of goods moving between them.
Only goods that originate in either China or Australia are eligible for the preferential tariff rates. A ChAFTA Certificate of origin is a document that confirms that the goods originated in Australia or China in accordance with the provisions of the China-Australia Free Trade Agreement.
What are the ChAFTA Preferential Rules of Origin?
ROO which stands for ChAFTA Preferential Rules of Origin are agreed criteria used to ensure that only goods originating from Australia and China end up getting the preferential treatment under the agreement. One of the main aims of these rules is to prevent goods from a 3rd party transshipping through Australia or China to take advantage of the FTA.
Any imports into Australia or China that do not comply with the ROO will be subject to the general MFN rate of duty.
Goods are identified by reference to Harmonized System (HS) in ChAFTA. Australia and China both use 8-Digit tariff codes for customs duties.
When will the goods considered to be ‘Originating’?
If they are
- ‘Wholly obtained’ or produced from wholly obtained goods in Australia or China
- ‘Wholly produced’ in Australia or China, or both, from materials classified as ‘originating’ in either country under the ROO (ChAFTA Preferential Rules of Origin)
- Produced in Australia or China, or both, using inputs from other countries, while meeting the Product Specific Rule (PSR) applicable to that good, as set out in Chapter 3, Annex II.
Can Exporters & Importers get Advance Rulings?
Yes they can. When Exporters, Importers or any person with a justifiable reason makes a request both Australia and China are obliged to provide written advance rulings on tariff classification and origin. Businesses who are unsure on this can speak to their customs broker or relevant authorities to get this clarified as this will greatly increase their level of certainty on the trade.
Australian Exporters can get the Advance Rulings through the China Customs Service. If you’re an Importer bringing in goods into Australia you can get an Advance Ruling through the Australian Border Force.
You could check out the preferential FTA Tariff rate on your product here.
How can Cargowise and CargoDoc help?
CargoWise is now capable of producing Certificates of Origin documentation for ChAFTA exports from Australia to China.
BorderWise provides single window access to the full breadth of World Customs Organization publications including Harmonized Commodity Coding system and Valuation principles, Country specific law, Global free trade agreements, Treaties and so much more.
CargoWise adds further auditing capabilities, ensuring the declarations you handle on behalf of your customers are accurate and legally compliant.
Cargodoc is a smart OCR AI software that will help automate your data entry CargoWise more accurately and cost-effectively. For more information and a product demo email us at email@example.com
FTA – Free Trade Agreement
ChAFTA – China-Australia Free Trade Agreement
MFN – Most Favoured Nation
OCR – Optical Character Recognition