3 WHERE? Typically these are agricultural goods and 3: natural resources. The table on page 12 sets out the categories of goods which ChAFTA treats as wholly obtained. ChAFTA preferential rules of origin (ROO) ChAFTA also treats goods that are made are agreed criteria used to ensure that exclusively from wholly obtained goods as only goods originating in either China or being wholly obtained (). Australia enjoy the benefits of the Agreement. These rules prevent goods Goods produced entirely in Australia or from a third party being transshipped China through either China or Australia to take Goods produced entirely in either China or advantage of the FTA to access lower, Australia, or both, from materials classified preferential import tariffs. Any imports into as or under ‘wholly obtained’ ‘originating’ China or Australia that do not comply with the Rules of Origin (ROO), will qualify as the ROO as set out in and (Product under ChAFTA and qualify for ‘originating’ Specific Rules of Origin) will be subject to preferential tariff treatment. the general (MFN) rate of duty, instead of the preferential rates available under Goods containing inputs from outside ChAFTA. China or Australia A good will be considered if it ‘originating’ Goods made from inputs sourced from is: outside China or Australia may still qualify as originating, as long as the or produced from ‘wholly obtained’ inputs have undergone a wholly obtained goods in China or substantial transformation in the process Australia; or of production in China or Australia, or produced entirely in China or both. Australia, or both, from materials Product Specific Rules (PSRs) set out in classified as in either ‘originating’ ChAFTA Chapter Three- , provide rules by country under the ROO; or which Chinese and Australian customs produced in China or Australia, or authorities will determine whether a good both, using inputs from other has undergone a substantial countries, while meeting the Product transformation. If your good contains Specific Rule (PSR) applicable to inputs from outside Australia or China, you that good, as set out in . will need to check the applicable PSR to determine whether your good qualifies as Wholly Obtained Goods originating. Wholly obtained goods are goods which are exclusively derived from one country.
3 WHERE? 3: ChAFTA preferential rules of origin (ROO) are agreed criteria used to ensure that only goods originating in either China or Australia enjoy the benefits of the Agreement. These rules prevent goods from a third party being transshipped through either China or Australia to take advantage of the FTA to access lower, preferential import tariffs. Any imports into China or Australia that do not comply with the ROO as set out in and (Product Specific Rules of Origin) will be subject to the general (MFN) rate of duty, instead of the preferential rates available under ChAFTA. A good will be considered ‘originating’ if it is: ‘wholly obtained’ or produced from wholly obtained goods in China or Australia; or produced entirely in China or Australia, or both, from materials classified as ‘originating’ in either country under the ROO; or produced in China or Australia, or both, using inputs from other countries, while meeting the Product Specific Rule (PSR) applicable to that good, as set out in . Wholly Obtained Goods Wholly obtained goods are goods which are exclusively derived from one country. Typically these are agricultural goods and natural resources. The table on page 12 sets out the categories of goods which ChAFTA treats as wholly obtained. ChAFTA also treats goods that are made exclusively from wholly obtained goods as being wholly obtained (). Goods produced entirely in Australia or China Goods produced entirely in either China or Australia, or both, from materials classified as ‘wholly obtained’ or ‘originating’ under the Rules of Origin (ROO), will qualify as ‘originating’ under ChAFTA and qualify for preferential tariff treatment. Goods containing inputs from outside China or Australia Goods made from inputs sourced from outside China or Australia may still qualify as originating, as long as the inputs have undergone a substantial transformation in the process of production in China or Australia, or both. Product Specific Rules (PSRs) set out in ChAFTA Chapter Three- , provide rules by which Chinese and Australian customs authorities will determine whether a good has undergone a substantial transformation. If your good contains inputs from outside Australia or China, you will need to check the applicable PSR to determine whether your good qualifies as originating.
guide-to-using-chafta-to-export-and-import-goods.docx