The China-Australia Free Trade Agreement, also known as CHAFTA, is a bilateral agreement that was signed in 2015 between China and Australia. The agreement has opened up opportunities for businesses in both countries to trade with each other with reduced tariffs on goods exported and imported. To benefit from this agreement, businesses need to prove the originating status of their products by obtaining a CHAFTA certificate of origin. This article will explore the process of obtaining the CHAFTA certificate of origin for trade between China and Australia.

What is CHAFTA?

The China-Australia Free Trade Agreement is a comprehensive bilateral agreement that has reduced tariffs on goods exported and imported between China and Australia. This agreement covers a wide range of sectors, including agriculture, technology, and financial services. The agreement has opened up opportunities for Australian businesses to export their goods to China and vice versa without facing high tariffs and trade barriers.

What is a CHAFTA Certificate of Origin?

A CHAFTA Certificate of Origin is a document that certifies the originating status of goods that are exported from China or Australia. This certificate enables goods to qualify for reduced tariffs or duty-free treatment under the CHAFTA agreement. This document is required for goods that are exported or imported between China and Australia that are valued at over AUD 5,000.

Process of obtaining CHAFTA Certificate of Origin:

The process of obtaining a CHAFTA Certificate of Origin can be done by an authorized signatory or by an accredited certification body. If the exporter opts to apply for the certificate on their own, they must follow the steps outlined below:

Step 1: Ensure that the goods meet the origin requirements specified in the CHAFTA agreement.

Step 2: Review and complete the CHAFTA Certificate of Origin form. The form must be completed accurately and in full.

Step 3: Obtain the necessary supporting documents for the goods. These supporting documents include commercial invoices, bills of lading, and packing lists.

Step 4: Submit the completed CHAFTA Certificate of Origin form and supporting documents to the China Council for the Promotion of International Trade (CCPIT) or its designated offices for processing.

Step 5: CCPIT or its designated offices will review and verify the documents submitted.

Step 6: After CCPIT or its designated offices have verified the documents, they will issue the CHAFTA Certificate of Origin.

Process of obtaining CHAFTA Certificate of Origin through a certification body:

If the exporter prefers to engage an accredited certification body to assist with the process, the process would typically involve the following steps:

Step 1: Find an accredited certification body to process your application.

Step 2: Complete the necessary forms and provide the supporting documents to the certification body.

Step 3: The certification body will review and verify the documents submitted.

Step 4: After verification, the certification body will issue the CHAFTA Certificate of Origin.

Benefits of obtaining CHAFTA Certificate of Origin:

The benefits of obtaining a CHAFTA Certificate of Origin are numerous. Below are some of the advantages that businesses stand to gain:

1) Access to reduced tariffs or duty-free treatment for goods exported or imported between China and Australia

2) Easier customs clearance processes

3) Improved competitiveness in the export market

Conclusion:

In conclusion, obtaining a CHAFTA Certificate of Origin is a critical process for businesses that export or import goods between China and Australia. The certificate helps businesses to qualify for reduced tariffs or duty-free treatment under the CHAFTA agreement, which is essential for improving competitiveness in the global market. Businesses may choose to apply for the certificate through an authorized signatory or an accredited certification body. Either way, it is essential to ensure that the application is completed accurately and in full to avoid any delays or rejections.