10 September 2014
Update on the Korea-Australia Free Trade Agreement (previous update 25 Mar2014)
Legislation which gives effect to the Korea-Australia Free Trade Agreement (KAFTA) has been introduced into the Australian House of Representatives.
This legislation foreshadows a commencement date of 1 December 2014.
Assuming that the Australian legislation passes, the FTA will only be applicable to imports from 1 December 2014 if both Australia and Korea complete their domestic treaty making approval process and exchange diplomatic notes prior to 1 December 2014.
On commencement of the FTA, over 90% of tariff lines will be immediately reduced to 0% with almost all remaining lines reducing to zero over the next 5 years.
What to do next:
» Where duty currently applies, ask the exporter/manufacturer to assess now whether the goods will meet the rules of origin (they probably have reviewed the local content etc. for other FTAs)
» If the goods are Korean originating goods, ask the exporter/manufacturer to be prepared to have certificates of origin issued for all exports to Australia expected to qualify for preferential treatment under the FTA
To take advantage of the FTA and be a qualifying good, a certificate of origin must be held in respect of the goods.
Transtar will continue to provide updates on this Agreement as they come to hand. Should you have any questions in relation to this or for any other matter, please feel free to contact your Account Manager or a member of the Transtar Team.
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