The IA-CEPA will enter into force this Sunday, allowing importers to claim preferential tariff treatment on eligible goods, and presenting new trade opportunities for Australian exporters.
We reported on the impending Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) back on 15 May and it will now enter into force this Sunday, 05 July 2020.
Indonesian originating goods
Indonesian originating goods are those that meet the requirements of Division 1HA of Part VIII of the Customs Act 1901 (Customs Act). Further information about determining the originating status of goods and materials for the purposes of the IA-CEPA is available at the link shown below.
Preferential rates of customs duty
Schedule 9A of the Customs Tariff Act 1995 (Customs Tariff Act) sets out the preferential rates of customs duty that apply to goods deemed to be Indonesian originating. Indonesian originating goods classified to any tariff subheadings that are not listed in Schedule 9A have a ‘Free’ rate of customs duty from the date on which IA-CEPA enters into force.
All Indonesian originating goods, other than those which are excise-equivalent goods, are entitled to a ‘Free’ rate of customs duty from the date of IA-CEPA’s entry into force. Excise-equivalent goods which are listed in Schedule 9A and are Indonesian originating goods will be indexed with the equivalent rates listed in Schedule 3 of the Customs Tariff Act.
The Customs Online Tariff will reflect the updated rates for Indonesian originating goods from the commencement of IA-CEPA – please contact us for information about your specific goods and classifications.
The Australian Border Force (ABF) has issued the IA-CEPA Guide, which is a 56 page PDF document and can be accessed at this link: https://www.abf.gov.au/free-trade-agreements/files/indonesia-australia-comprehensive-economic-partnership-agreement.pdf
As licensed Customs Brokers and International Freight Forwarders, Colless Young offers you professional advice on all you shipping and customs clearance needs. We are based in Brisbane and handle import and export cargo by air and sea, Australia-wide.