Australia Set to Benefit From FTAs With Hong Kong, Peru, Indonesia

Australia’s trade agreements with Hong Kong, Peru and Indonesia will provide significant benefits for Australian importers, including a series of reduced tariffs on a “broad range” of goods, according to a Jan. 20 KPMG post. Deals with Hong Kong, which took effect Jan. 17; Peru, which takes effect Feb. 11; and Indonesia, which is expected to take effect during the first half of 2020, will “deepen economic cooperation” and “increase certainty in trading” with all three countries, KPMG said.

The Peru deal will expand Australian exporting opportunities in Latin America, the post said. Certificates of origin are required for traders to claim preferential treatments within the agreement, KPMG said, but the certificate can be completed by the exporter or producer and does not require approval from an authorized body.

The Hong Kong deal does not require certification to “access preferential duty rates into Australia,” KPMG said, but importers “need to determine that they hold written confirmation that the subject goods meet the relevant rules of origin.” KPMG said “it may be prudent” to secure declarations of origin from the exporter or producer to “support the use of the free trade agreement to reduce or eliminate customs duty.”