China: Free trade agreement with Australia

China: Free trade agreement with Australia

Representatives of the governments of China and Australia in June 2015 signed a free trade agreement.

Related content

Once the China-Australia free trade agreement enters into force and is effective, 85.4% of merchandise in both countries will be duty-free. The percentage of duty-free goods will ultimately be phased in for tariff items and trade value at 100% in Australia and at 96.8% and 97%, respectively, in China. These tariff reduction rates exceeded other free trade agreement tariff reduction rates (generally, approximately 90%).

Based on preliminary calculation, the customs duty of export merchandise from China to Australia will be reduced, with Chinese goods having a comparatively high reduction of customs duty to include clothes, leather, electronics and machines, other manufactures, steel and metal products, and chemicals. Australian goods that can have a comparatively high reduction of customs duty include energy, steel and metal products, and beef, wool, dairy, and other farm products.

Read a June 2015 report prepared by the KPMG member firm in China: China-Australia Free Trade Agreement (ChAFTA) Officially Finalised and Signed

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.