The Certificate of Origin is important documentary evidence indicating that goods imported originate from Australia. It certifies the place of production, growth, and manufacture of goods. It is a mandatory document for exporting good to specific countries for customs clearance and when it is mentioned in the letter of credit.
Why is a Certificate of Origin needed?
- To export certain goods from the state
- For customs clearance at the destination
- As mentioned in the letter of credit
- As an evidence of the origin of goods
- Different Types of Certificates of Origin
#1: AANZFTA Certificate of Origin
AANZFTA Certificate of Origin stands for ASEAN-Australian-New Zealand Free Trade Agreement. It is applicable for trades between Australia, Brunei, New Zealand, Myanmar, Indonesia, Cambodia, Laos, the Philippines, Malaysia, Thailand, Singapore, and Vietnam.
AANZFTA provides certain benefits for exporters and importers. It provides progressive reduction and/or elimination of tariffs facing Australian goods exported to the ASEAN countries. However, this only applies to goods imported or exported from AANZFTA party meet the Agreement’s Rules of Origin.
#2: TAFTA Certificate of Origin
TAFTA stands for Thailand-Australia Free Trade Agreement. It is one of the two Free Trade Agreement that Australian businesses can use in order to trade with Thailand. TAFTA certificate of origin reduces or eliminates barriers to trade in goods between Thailand and Australia. As a result, Australian businesses intending to export Australian origin goods to Thailand, or importing Thailand origin goods for sale in Australia can benefit from this documentary evidence.
TAFTA eliminates the majority of the Thai tariffs on products imported from Australia.
#3: KAFTA Certificate of Origin
KAFTA stands for Korea-Australian Free Trade Agreement, which came into force on December 12, 2014. KAFTA was aimed to eliminate barriers to trade in goods between Korea and Australia. As a result, Australian businesses exporting or planning to export native goods to Korea and vice versa can benefit from this agreement. Rapid reduction of tariffs and/or complete elimination is one of the same across all range of products.
#4: JAEPA Certificate of Origin
JAEPA stands for Japan-Australian Economic Partnership Agreement, which came into force on January 15, 2015. The aim of this certificate is to reduce or eliminate the barriers of trade in goods between the second-largest trading partner, Japan, and Australia. This is definitely beneficial for Australian businesses intending to or currently exporting goods of Australian origin to Japan, or aiming to or importing goods of Japanese origin in Australia for sale.
With the JAEPA certificate of origin, tariffs across all range of products are reduced and/or eliminated.
Are all goods Eligible?
Only goods originating in either Australia or the specific country enjoys preferential tariff rates. Preferential rules of origin are agreed criteria used to make sure that is the best case. These criteria are mandatory to prevent trans-shipment, where goods/products from a third party are redirected through the specific country or Australia to avoid higher tariff payment.