final trade barriersguided by ab & kkb

8/13/2019 Final Trade BarriersGuided by AB & KKB

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Trade Barriers Australia

Introduction

There are major following kinds of trade related barriers in Australia.

1. Trade Policy:

For the Protection of industry for most of the past decades behind tariff protection,

Australia began to reduce its tariff including in its most protected industries such as

automobiles and textiles. The Australian economy has since reaped the rewards of tariff

reduction through lower prices of imported business inputs, increased productivity and

improved international competitiveness.

2. Import Controls:

There are no special requirements for applying an import licence, nor are there any

quotas on imports. However, under the Customs (prohibited Imports) Regulations,

controls take the form of a) an absolute prohibition meaning that import of these goods

is banned in any circumstances; and b) a restriction where imports are allowed only if

written authorization is obtained from the relevant authorities, or if compliance with

certain regulations is met. For some commodities, import permits are required to

facilitate clearance of goods.

3. Customs Valuation and Tariff:

Australia adopted the Harmonized Commodity Description and Coding System (HS).

The Australian Government has planned for the progressive reduction of tariff protection

for local industry. The tariff reduction programme has already reduced 48% of

Australian tariff to zero and 35%. About 86% of tariff rates now range between zero and

5%, except certain automobile products and the textile, clothing and footwear

commodities. The average applied most-favoured-nation (MFN) rate for industrial

products is 4.6%, while the applied MFN tariff for agricultural products is less than 1%.


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While there are several ways of valuing goods for customs purposes, the method most

applied is the transaction value based on the price actually paid for the imported goods.

4. Customs Clearance (Permission):

Importers who want to clear their own goods should contact the Customs Information

and Support Centre for advice on Customs requirements and operating hours.

Customers should be aware of their obligations and base on their assessments of

import procedures. Penalties may be imposed for the submission of incorrect or

misleading information. Customs advises that purchasing goods over the Internet or

mail order are subject to customs controls. Restricted goods brought into the country

require an import permit. Goods may be imported duty and tax free if their value is

$1000 or less, with the exceptions of tobacco and alcoholic products. However, multiple

packages to the same addressee from a single consignor arriving at the same time are

liable for tax assessment.

5. Anti-dumping and Countervailing Duties :

When a consignment of goods has been imported to Australia, or is likely to be

imported, and an Australian industry producing the like goods believes there are

reasonable grounds, an applicant may apply for a dumping duty and/or a countervailing

duty notice to be published. Australia has initiated a number of anti-dumping

proceedings against certain countries including China. Currently there are a number of

mainland origin goods subject to Australia's anti-dumping measures, including

preserved pineapples, preserved mushrooms and certain chemicals.

6. Marking and Trade Descriptions:

Importers are required to ensure that goods entering Australia are correctly labeled. It is

an offence to import goods that do not bear a required trade description, or bear a false

trade description. Imported goods that require a trade description must be marked with

the name of the country in which the goods are made and a true description of the

goods in English language, with weight or quantity.


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7. Documentary Requirements :

Bill is required on all freight shipments. "To order" bills are permitted, Freight collect

shipments are generally acceptable. Certificate of Origin is not usually required except it

is specially requested by importers. Invoice should include name of vessel/carrier,

shipper and consignee, country of origin of the goods, marks and numbers, quantity and

weights, order date and number, selling price, method of payment etc. Other documents

may include packing list to facilitate cargo clearance.

8. Product Standards and Consumer Protection:

Australia has maintained some standards requirements particularly quarantine and

health restrictions that have an impact on the free flow of goods. Laws provide

consumers with a ready cause of action against the manufactures or importers of

defective products. The Trade Practices Act prohibits restrictive or unfair trade

practices, misleading or deceptive conduct, false representations, deceptive offering of

gifts and prizes in connection with the sale or promotion of the goods and services.

9. Custom Services:

The Australian Customs Service (ACS) for both barrier surveillance and commercial

compliance. Along with a range of obligations associated with goods procured from

overseas, an Australian importer is subject to import duty liability at a rate directly linked

with the tariff classification of the goods. These may vary depending on the nature of the

goods. Some industry sectors (such as the motor vehicle and textile clothing and

footwear) are given higher protection through tariffs than other industries. Australia

already has many tariff classifications (product categories) that are duty free (zero

rated) or, if not duty free in own right, most manufactured items imported from overseas

will only have a maximum of 5% levied on the export value or "free on board" cost

(FOB). The FOB being the basis, applying to Australia, with certain additions or

deductions, from which one compiles the Customs Value in arriving at the applicable

duty. Moreover, The goods which is imported from the New Zealand is totally duty free.


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Customs will not permit the goods if it is from following criteria

1. Have a value over AUD $1,000.

2. Contain Alcohol or Tobacco of ANY quantity or value.

3. Contain Prohibited Imports listed on customs governments site.

TAX Provisions

1. Sales Tax:

The Australian Taxation Office (ATO) whereby, generally speaking, a Sales Tax (known

as various ad valorem rates) is levied on imports into Australia. While there are

exemptions or concessions available through the various Tax Schedules or formal

rulings from the ATO, imports are taxable dealings. This tax (involving an increase in

the import cost level to arrive at a taxable value) is in addition to any Customs Duty. A

standard formula is used by the ATO to establish the tax liability, which ordinarily is

payable at time of importation. For wholesalers, a scheme operates to relieve thisburden of liability until later in the supply chain. From 1st July, 2000 Sales Tax was

transferred into Goods and Service Tax (GST) at rate of 10% on all the Goods &

Services provided. This is a value added tax levied on goods and services throughout

the supply chain, again with credits working to maintain equitability in the system. There

are very few exemptions.

2. Australia Filing Requirements and Payment of Tax:

A company is usually required by the Australian Taxation Office (ATO) to have a tax

year of 12 months (except in its first year) synchronized with the end of the standard tax

year, which ends on June 30 each year. Only companies that are foreign controlled will

normally be allowed to vary their tax year dates to match that of their overseas

controlling entity. Annual tax returns for most companies are due by February 28 each


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future bilateral agreement. AIBC is well regarded by the Australian and Indian

Governments as having a significant role to play in facilitating the ongoing improvement

in Australias trade and investment ties with India.

4. Facilitating investment :

The investment opportunities in both India and Australia are significant. To date they

have been hampered by significant bureaucratic overlaps. AIBC members have

reported cross-sectoral problems, where various ministries and bureaucracies do not

align in decision making and processing, which delays approvals and complicates the

requirements for global investors. Hurdles to investment must be addressed if we are to

build and grow the two way investment between our nations. Better understanding of

the culture and business models from Indian investors in Australia is also important.

5. Resources and energy :

There is no doubt that trade and investment in resources and energy are critical to the

bilateral relationship. In many ways, Australian resources and energy exports to India

serve as a crucial motor of Indian economic growth. Whilst the exports of resources and

energy dominate Australias trade with India, we have an opportunity to add to this in

expanding cooperation in mining services, expertise and technology to increase

productivity on both sides. Inherent in this relationship is continued cooperation and

investment between Australia and India in relation to low emission and renewable

energy climate change and sustainable development.

Conclusion

Thus, We can conclude the above all trade related barriers prevailing in the Australia.

final trade barriersguided by ab & kkb

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