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China – Australia (ChAFTA) – Now what?

The China–Australia Free Trade Agreement (ChAFTA) is a bilateral Free Trade Agreement (FTA) between the governments of Australia and China. Since the announcement of a joint feasibility study in early 2005, 21 negotiating rounds have been completed and the announcement of the conclusion of negotiations was made by Australia’s Prime Minister Tony Abbott and Chinese President Xi Jinping on 17th November 2014.

The long-awaited agreement was signed by Trade Minister Andrew Robb and Chinese Commerce Minister Gao Hucheng last Wednesday in Canberra.  The agreement is expected to open the vast Chinese market for Australian investment, primary products and services.

The agreement will ensure 85 per cent of all Australian exports will enter China tariff-free, rising to 93 per cent within four years and 95 per cent when it is in full force.

China is Australia’s largest trading partner, with the two-way flow of goods and services exceeding $160 billion last year.

Now that both sides have completed the legal review and translation of the text of the Agreement the signature of the Agreement;

What happens next…

  • The text of the Agreement, accompanied by a National Interest Analysis, will then be tabled in the Australian Parliament for 20 joint sitting days;
  • Following tabling, the Joint Standing Committee on Treaties (JSCOT) will conduct an inquiry into the Agreement and will report back to Parliament;
  • Legislation will be introduced to make any necessary amendments to existing legislation and will be considered by the Parliament;
  • Relevant Regulations would also be amended in due course;
  • During this time, the Chinese Government will undertake its own domestic treaty-making processes;
  • When Australia and China have completed their domestic processes, both countries will exchange diplomatic notes to certify that they are ready for the Agreement to enter into force;
  • 30 days after this exchange or on a date otherwise agreed, ChAFTA will enter into force.

Because it is expected that the above processes will take some time, the agreement is not anticipated to take effect until sometime in early 2016.
If you’d like some more information in this topic, please get in touch with Magellan on 1300 651 888.

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Magellan Logistics – a new resident has moved into the Surf Coast of Victoria.

Geelong is the largest regional city in the State of Victoria. Located only 55 minutes from Melbourne, the city is located on the shores of Corio Bay and the region boasts some of the world’s best surf beaches covered by the Surf Coast Shire including the towns of Aireys Inlet, Anglesea, Lorne, Moriac, Torquay and Winchelsea as well as the Bellarine Peninsula.

It’s an amazing place to live.

Well say hello to local resident Greg Healey, experienced in international freight who excitingly joined the Magellan Logistics’ Business Development team recently. He left the hustle and bustle of busy Melbourne, to raise his family in the friendly community and relaxing surrounds of Geelong over 6 years ago.

With Greg on the ground, not only is he closer than ever to the enviable sea breeze of the coastal region, but he is available to provide valued personal service and develop trusted relationships with Magellan’s locally based current and future clients. His attentive approach is to listen to his customer’s challenges and requirements, which then enables him to explore and provide the most suitable solution to meets his client’s needs.

Greg-Healey-son-fishing-magellan-logistics-geelong

In Greg’s spare time he enjoys spending time at the beach with family and friends. And why wouldn’t you, with that view?

Are you a business within the Geelong area or surrounds and would like to discuss your freight forwarding and customs clearance needs? Contact Greg Healey directly on 0402 775 816 or (+61) 03 8318 9600, or you can reach him by email on greg@maglog.com.au.

* Image source: http://www.workingin-australia.com/

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Australia Korea FTA in effect 12 December 2014

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/

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