CHAFTA – duty rates decreasing Jan 1 2017

The third year of CHAFTA (China Australia Free Trade Agreement) comes into effect on 1 January 2017.

As a result, the duty rate on the majority of apparel items will reduce from 3.3% to 0% for goods imported into Australia from China

The amount of duty that is payable is calculated on the day the cargo arrives or the date the customs declaration is lodged whichever occurs last.

Cargo can arrive prior to 1 January but to take advantage of the reduced rates the customs import declaration must NOT be lodged until on or after this date.

Providing that the value of any additional costs associated with delaying the entry of the goods (e.g. wharf or airline storage) is less than the duty savings (and the goods are otherwise urgently required) delaying the entry of goods arriving around this time could result in significant savings.

For more information on the import requirements to qualify for the CHAFTA duty reductions visit the Department of Immigration and Border Protection or read an earlier post on this subject HERE

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