Duty Preferences Change in New Year

Australian Customs will reduce tariffs on certain goods in the new year, in accordance with free trade agreements, while extending concessional duty rates on COVID-19 medical and hygiene products.


The Australian Border Force (ABF) has issued notices ACN2020/53 and 2020/54 about important changes to duty rates which will take effect from 01 January 2021.

Scheduled Reduction of Preferential Rates of Customs Duty:

From 01 January 2021, the preferential rates of customs duty for certain originating goods will be reduced in accordance with the schedules of the following Free Trade Agreements (FTA):
- Peru-Australia FTA
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership
- Korea-Australia FTA

Extension of Concessional Rate of Customs Duty on COVID-19 Medical and Hygiene Products:

The ABF will extend the ‘Free’ rate of customs duty for eligible medical and hygiene products capable of combating COVID-19 to 30 June 2021 under Item 57B of Schedule 4 of the Customs Tariff Act.

Eligible goods must be imported medical products or hygiene products that can be used to combat COVID-19. These goods must be of a type listed in by-law no. 2020321, and the rate of customs duty for these goods must be determined between 1 January 2021 and 30 June 2021.

Description of goods comply with Item 57B Rate Goods, as prescribed by by-law, if:
(a) the goods are medical products or hygiene products; and
(b) the goods are capable of use in combating the novel coronavirus that causes the disease known as COVID-19; and
(c) the time for working out the rate of duty on the goods is in the period beginning on 1 January 2021 and ending at the end of 30 June 2021.

Imports meeting these requirements will be entered as DUTY FREE.

Contact us here at Colless Young for further details of the by-law description, or more information about the FTAs mentioned above.
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