Australian Government Website Releases Tax Exemption List Of China Australia FTA

With the substantive conclusion of the Sino Australian free trade agreement negotiations, the Ministry of foreign affairs and trade of Australia issued the main outcome of the Sino Australian FTA negotiations on its official website and the Australian product's list of tax exemption for China exports.

At present, the tariff rates of raw and leather products exported to Australia are between 5% and 14%, and the Chinese market is the largest market for the leather industry in Australia.

After the implementation of the Sino Australian FTA, within 2 to 7 years, the tariff rates on raw and leather products of Australia will be gradually reduced.

The list shows that the tariffs on 5%-8.4% are exempt from 2 to 7 years; the tariff of 7% for sheepskin, 9% for kangaroo skin, 14% for kangaroo leather, and 5%-14% for other leather products, 4 years, are exempt.

According to press reports, in 2013, the total value of the Australian leather industry's exports to the Chinese market was $896 million, of which the gross export value of sheepskin was 389 million US dollars, accounting for about 43%, and the gross export value of cowhide was 450 million US dollars, accounting for about 50%.

List display, and domestic

The export tariffs on live animals, which are closely related to supply, will also be gradually eliminated in 4 years, including 10% of Australia's live cattle exports.

Earlier, China Leather net reported that the Australian agriculture minister said that the Sino Australian oxo export agreement, if signed, means Australia.

The total number of live cattle in China can reach 1 million per year.

According to China Leather net reporter, Australia has been exempt from the import of pure bred cattle into the Chinese market for reproduction.

Not only does the raw material export to China, but also the gross domestic product of wool products accounts for 75% of its total exports, and its market share in China is as high as 69%.

At present, China has only 1% tariffs on wool products imported from Australia in the WTO tariff quota (287 thousand metric tons), but China has the right to impose 38% tariffs on additional wool products.

According to the China Australia FTA, on the basis of the WTO quota, Australia will get the exclusive export quota of 30 thousand metric tons of clean wool from China (approximately equivalent to 43 thousand metric tons of fat wool) and grow at a rate of 5% per year.

All quotas of wool products enter the Chinese market without paying customs duties.