Australia-UK free trade agreement expected to enter into force May 31, 2023
Following expected completion of UK domestic processes
Expected to enter into force 31 May 2023
The Australian Ministry of Trade and Tourism on May 4, 2023 issued a release announcing that the Australia-United Kingdom free trade agreement is expected to enter into force May 31, 2023, following the expected completion of UK domestic processes.
Notable aspects of the Australia-United Kingdom free trade agreement include:
- More than 99% of Australian exports will be duty free upon entry into force; while beef, sheep meat, sugar and dairy are subject to tariff quotas (to be phased out over 8-10 years).
- Australian importers will benefit from duty free rates on almost all goods upon entry into force (excluding certain cheese and steel products to be phased out over 5-6 years).
- To qualify as originating, goods will need to be either, (1) wholly obtained, (2) produced exclusively from originating materials, or (3) meet the product specific rules, which include both change of tariff classification and regional value content.
- Goods transported through a non-party will only maintain originating status where they do not enter free circulation and undergo limited operations relating to transportation.
- To facilitate use of the agreement, claims for preferential tariff treatment under the Australia-United Kingdom free trade agreement can be made with either:
- A declaration of origin completed by the producer or exporter
- The importer’s knowledge that a good is originating (where they have, or are relying on, supporting documentation that the good is originating).
For more information, contact a KPMG trade and customs professional in Australia:
Daniel Rae | drae1@kpmg.com.au
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