The Australia USA Free Trade Agreement (AUSFTA) came into force on 1 January 2005. This agreement allows duty free entry of US origin goods imported into Australia direct from USA.

However there are specific rules of origin and / or requirements that must be met and documentation which needs to be produced to enable duty free entry. If an importer is unable to provide the information, then normal duty rates are applicable.

The documentation required is a statement on the manufacturer’s letterhead stating which rule applies to the product imported allowing duty free entry. The rules are dependant on the classification, therefore you will need to contact us to help you help your supplier determine the rule. The easier we make it for them, the more

co-operation you will receive. Some of your suppliers/manufacturers may have already dealt with similar requests as this agreement is similar/based on the

US-Canadian Agreement.

Sample of Statement

“Goods listed / Product ABC on Invoice 123 dated dd/mm/yy are of US Origin and fall under the Australia-US Free Trade Agreement under Rule………”

As previously mentioned, to determine the rule / rules that may be applicable, you will need to contact us. However to check if you wish to proceed, below is a brief outline of what may be eligible.

1)Goods must be shipped directly from the USA to Australia (transhipment is allowed).

2)Are the goods wholly obtained or produced in the US and Aust?

YES – Statement can read “Eligible under AUSFTA agreement as goods are wholly obtained/produced in the US and Aust”

NO – Go to the next step

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3)Are the goods produced in the US and Aust from non-originating materials and / originating and non-originating materials?

NO – Not eligible

YES – Go to next step

4)Do the goods meet the de-minimus rule?

De-minimus rule is where the total value of all non-originating materials (non US or Aust) is not more than 10% of the customs value.

YES – Statement can read “Eligible under AUSFTA under the de-minimus rule”.

NO – Need to contact us from here on to check tariff classification and advise of requirements.

There are of course exceptions to some of the above rules, but we hope you can at least start looking at your products and check if the basic criteria is in place.

If the supplier is not the manufacturer, they can still provide the statement as long as they have information kept on file to prove their statement and declare this fact in their statement. Customs have advised they will conduct random investigations and penalties will be applicable.

Please advise if you require any further information or need any part of the above clarified.