20 Apr
The Japan Australia Economic Partnership Agreement (JAEPA) is one of the many free trade agreements (FTAs) that promise a competitive advantage to exporters in Australia. The FTA came into force in 2015 and has worked in the direction of improving trade ties between the two nations.
For example, Australia is the largest beef supplier to Japan. Before JAEPA, the beef export experienced a high tariff of 38.5% which dropped to 30.5% after the FTA was signed. Going further, it would go down to 19.5% over the period of 18 years.
So, what are the steps involved in exporting from Australia to Japan to get the benefits of JAEPA? Let’s find out.
Identifying Goods’ Tariff Classification
To begin with, you must identify the tariff codes for different goods that the Japanese Customs apply. For this, you will have to refer to the Harmonized System (HS) codes of good that you wish to export. It should be noted that Japan uses 9-digit HS codes that can be referred to from their official Customs website.
Read the Tariff Schedules
Once you recognize the HS code for the commodity you intend to export, the next step is to refer to how the JAEPA commits to treat that particular commodity. In order to do so, you must go through the agreement’s tariff schedule as outlined in its Annex 1. Tariff schedules provide details on both the countries commit to reduce the duty tariffs over the decided period of time.
Understand Rules of Origin
Next, you have to learn and understand whether your commodity meet the rules of origin or not. Obviously, only the goods that adhere to these rules are subject to preferential tariff rates. For example, a good whole produced or obtained in Australia would be considered as eligible for the reduced tariffs.
Certificate of Origin
Finally, you need to prepare a certificate of origin which certifies that the goods being exporters meet the rules of origin. The certificate must be submitted to a nearby Chamber of Commerce for stamping only after which it becomes a valid export document. In some cases, the exporter may have the power to self-certify this document.
It is worth mentioning that the Customs may require verifying the information included in the certificate. So, make sure that you take great care to prepare it. After obtaining it and other documents, your goods become ready for export to Japan.
