If you an Australian company looking to take advantage of the newly negotiated Free Trade Agreements you need to be aware of Rules and Origin and Certificates of Origin. Here is a quick snapshot!
If you are exporting or importing goods, there are Rules of Origin set out in each Free Trade Agreement (FTA), which are specific to each particular good. These can differ from one FTA to another. The Rules of Origin are used to determine which goods qualify for preferential treatment under the FTA.
Certificates of Origin are used to specify goods that have been grown, produced or manufactured in Australia. Similarly, a Certified Declaration of Origin verifies the origin of goods manufactured outside Australia and or combined in a shipment with Australian originating products.
Why do I need a Certificate of Origin?
Certificates of Origin may be:
- Required for customs clearance at the destination country.
- Requested by the overseas buyer or the business receiving your goods.
- Required by the company receiving the goods before authorising their bank to issue a letter of credit and thus payment.
In accordance with some free trade agreements, Certificates of Origin are also required as part of the application for preferential tariffs e.g. AANZFTA, TAFTA, SAFTA, KAFTA, AUSFTA, JAEPA, KAFTA, CAFTA, ChAFTA.
Where can I obtain a Certificate of Origin?
The Australian Chamber of Commerce and Industry (ACCI) is authorised by the Australian Government to issue Certificates of Origin for Australian business, both for ordinary trade and for Australia's Free Trade Agreements. ACCI delegates the issuance role to agent chambers in each state and territory. If you need a Certificate of Origin for ordinary trade, or to take advantage of an Australian Free Trade Agreement please go to the ACCI Website for the relevant body in your State/region.
If you have any more questions on Free Trade Agreements or Certificates of Origin let me know.
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Lina Barfoot, Editor at SavvySME
Great info, this stuff can seem a bit daunting at times!