A landmark agreement set to reshape international trade
In a significant development for international trade, the Australia-United Kingdom Free Trade Agreement (A-UKFTA) officially entered into force on May 31, 2023. As a global logistics company with a strong presence in both Australia and the UK, Seabridge is eager to help our clients navigate the changes and opportunities this agreement brings.
The A-UKFTA at a glance
The A-UKFTA has been designed to enhance the trade relationship between Australia and the United Kingdom, offering a more favourable environment for businesses and consumers alike. Here are the key provisions that may impact your operations:
1. UK Originating Goods: These are goods that meet the requirements of Division 1P of the Customs Act 1901. Under the A-UKFTA, such goods may be eligible for preferential rates of customs duty.
2. Preferential Rates of Customs Duty: Goods originating from the UK and listed in Schedule 15 of the Customs Tariff Act 1995 may be eligible for preferential rates of customs duty. Additionally, goods classified to tariff subheadings not specified in Schedule 15 will have a customs duty rate of ‘Free’ if entered for home consumption on or after May 31, 2023.
3. Cheese and Curd Products: From the date of enforcement, UK originating cheese and curd products, except those under tariff codes 0406.40.10 and 0406.90.10, will enjoy a preferential customs duty rate of $1.02 per kilogram on import.
4. Iron and Steel Goods: Certain goods under Chapters 72 and 73 of the Customs Tariff Act 1995 not entitled to a ‘Free’ rate of duty will now have a preferential duty rate of 4 per cent. However, goods subject to global safeguards by the UK will be subject to a duty rate of 5 per cent.
5. Safeguard Goods: UK originating goods imported into Australia that fall under the global safeguards applied to certain steel products imported into the UK from Australia will not be eligible for preferential rates of customs duty.
6. Suspension of Preferential Tariff: Safeguard Goods will be subject to a general rate of customs duty of 5 per cent until June 30, 2024, or beyond this date if the UK extends the application of global safeguards on the equivalent goods.
How Seabridge can help
At Seabridge, we understand the significant implications these changes could have on your business. Our team of experts is ready to provide comprehensive advice on how the A-UKFTA could impact your operations and offer new opportunities.
As your trusted logistics partner, we’re committed to providing the most accurate, timely, and relevant information. Our aim is to ensure your business can maximise the benefits of this new trade environment and adapt to any changes swiftly and efficiently.
Please don’t hesitate to reach out to us if you have any queries or require further clarification about the A-UKFTA. We’re always here to help.
Stay tuned for more updates and insights into the ever-evolving world of global logistics. At Seabridge, we remain dedicated to your business’s growth and success in these exciting times.