Trade and Investment Minister Andrew Robb has announced that Australia’s Free Trade Agreement with South Korea will enter into force on 12 December 2014.
The Korea-Australia Free Trade Agreement (KAFTA) was signed in Seoul, South Korea, on 8 April 2014 and KAFTA will enter into force when both Korea and Australia have completed their domestic legal procedures.1
Below is an outline of top imports from Korea into Australia in 2012-2013.2 For Magellan customers, this agreement may also affect those importing textiles or other similar products from Korea.
There are a range of products that will have reduced duty rates under this agreement, and to get access to these lower rates, suppliers will have to provide importers a KAFTA certificate.
Four steps to using KAFTA
Step 1: WHAT goods am I exporting or importing? (tariff classification)
Step 2: HOW are these goods treated under KAFTA? (tariff treatment)
Step 3: WHERE are my goods produced? (rules of origin)
Step 4: CERTIFY your goods with a Certificate of Origin
For further information on what items will have reduced rates and the detail behind the KAFTA stepped process above please refer to this media release and/or speak to your friendly Magellan Logistics Customs Broker who can provide more detail on 1300 651 888.
To read more about Free Trade Agreements and how they help Australian exporters, read our recent blog
Sources:
1 Customs Brokers & Forwarders Council of Australia Inc. – CBFCA
.2 Department of Foreign Affairs and Trade http://www.dfat.gov.au/fta/kafta/
