You will recall earlier information from us on the provisions of
the Chile FTA ("FTA") . At the same time a number of you
would have attended CBFCA Member Forums during the last half of
2008 in which we provided an outline on the FTA and the provisions
of the Australian legislation implementing the FTA. You will also
recall from the update of late last year that the intended
commencement of the FTA had been delayed to allow Chile to pass its
corresponding domestic legislation to implement the FTA.
DFAT has now confirmed that Chile has passed its domestic
legislation and the 2 nations have exchanged Diplomatic Letters to
the effect that the FTA will commence on 6 March 2009.
For those affected here are a few immediate resources
The presentations I delivered for the CBFCA in late 2008
A couple of items worthy of recall right now
The FTA and the legislation allows goods to be entered into
bond or warehouse before 6 March 2009 to then be entered into home
consumption after 6 March 2009 and secure preferential tariff rates
under the FTA.
There are transshipment provisions which limit what can be done
to "Chile Originating Goods" en route to Australia before
they lose their originating status. Careful attention needs to be
paid to these provisions.
Parties can issue their own Certificates of Origin if they are
satisfied that the goods meet the Rules of Origin to be Originating
Goods of either country. However attention should be paid to
suggestions as to form in the FTA and from Customs website.
SPARTECA TCF Local Content Changes
Customs have issued ACN 2009/07 which announces that the
Minister for Trade has approved a reduction in the minimum local
content requirement for eligible TCF goods from 35% to 25% for the
SPARTECA TCF Scheme with effect from 23 February 2009. The ACN also
provides a revised form of Declaration which could be used by
manufacturers seeking duty- free entry under the SPARTECA TCF
Scheme. Those dealing with imports from SPARTECA countries should
be aware of the change in practice. It may also enable more TCF
goods to be imported from those countries.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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