Customs and Tariffs for 2015 and Beyond | Australia | December 2014
As this year comes to a close we are looking toward next year and want to share with you some important information regarding customs and tariffs for 2015.
Do you import clothing or garments?
The duty rate for clothing will fall from 10% to 5% on 1 January 2015. This is a change in the general rate so there will be no need to claim a preference to enjoy the lower rate. However, the falling rate does bring some important considerations:
- Are there any expected late December arrivals the clearance of which can be delayed until after 1 January?
- The developing country and ASEAN FTA rate for clothing will, after 1 January 2015, be the same as the general rate - will influence your clients procurement decisions?
- Have there been any customs duty driven decisions or supply chain structures that make less sense when the duty rate is reduced to 5%? If so, these decisions and structures should be reviewed in light of the new duty rates.
Free Trade Agreements
With all the excitement over the China FTA, it's easy to forget that there are already a number of FTAs between Australia and other countries already in place.
Under our existing FTAs rates will continue to fall each calendar year. For example, in 2015:
- Clothing under the US FTA will fall from 8% to 0%
- Plastics under the ASEAN FTA will fall from 5% to 0%
Imports from countries with falling tariff rates on 1 January 2015 should be monitored to identify potential late December arrivals. Where such goods are identified, an assessment should be made regarding the merits of delaying entry of the goods (with the resulting duty saving) compared to the costs of warehousing the goods until 1 January 2015.
The reducing duty rates are also a timely reminder that decisions not to utilise FTAs should be reviewed annually. Falling duty rates under FTAs means that the costs of not utilizing those FTAs increase.
Korea Free Trade Agreement
As previously advised the Korea Free Trade Agreement came into force 12th December, 2014.
Japan Free Trade Agreement
Japan Free Tree Agreement will enter into force on the 15th of January, 2015.
Below is Certificate of Origin (COO) required to be provided for preferential rates.
Please consult your licensed customs broker or Mainfreight account representative to find out more.