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Australia: New free trade agreements with Hong Kong, Peru, Indonesia, China

Australia: New free trade agreements

The Australia-Hong Kong free trade agreement has entered into force, and other free trade agreements with Peru and Indonesia are expected to be effective soon.

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Legislation in Australia—the Customs Tariff Amendment (Growing Australian Export Opportunities Across The Asia-Pacific) Act 2019—will give effect to the implementation of Australia’s newest free trade agreements with Hong Kong, Peru, and Indonesia.

  • The Australia-Hong Kong free trade agreement entered into force from 17 January 2020.
  • The free trade agreement between Peru and Australia will enter into force on 11 February 2020.
  • The Indonesia-Australia comprehensive economic partnership agreement is expected to enter into force in the first half of 2020 once Indonesia has completed its domestic ratification processes.

Each of these agreements will provide benefits for Australian importers, including reduced tariffs on a broad range of products. The agreements will deepen economic cooperation between Australia and its treaty partners, increase certainty in trading with these countries, and in the case of Peru, will expand opportunities in the Latin American region for Australian exporters. 

The agreement with Hong Kong does not require certification to access preferential duty rates into Australia. However, importers need to determine that they hold written confirmation that the subject goods meet the relevant rules of origin. It may be prudent to obtain a declaration of origin from the exporter or producer to support the use of the free trade agreement to reduce or eliminate customs duty.

Regarding the agreement with Peru, a certificate of origin is required in order to claim preferential treatment. However unlike the rules in many of Australia’s free trade agreements, this certificate will be able to be completed by the exporter or producer and does not require an authorised body’s approval.

Finally, effective 1 January 2020, Australian importers may benefit from a new range of tariff reductions under the China-Australia free trade agreement.

 

For more information contact a KPMG professional in Australia:

Leonie Ferretter | +61 2 9455 9330 | lferretter@kpmg.com.au

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