[FTA HONG] Summary of the Korea-Australia FTA (FTA utilization rate, FTA utilization by industry, and summary of highlights)

 

As Australia already has FTAs with many ASEAN countries, competition among Asian countries in the Australian market is fierce, and the Korea-Australia FTA has secured the competitiveness of Korean companies in the Australian market.

 

In Korea, the Korea-Australia FTA Certificate of Origin can only be self-issued. However, in the case of Australia, experter can choose to issue a self-issued or authority - issued certificate. In addition, Australia has recently added additional certificate of origin issuing authorities, including the International Export Certification Service (IECS) and Trade Window Origin Pty Limited, in addition to the Australian Chamber of Commerce and Industry (ACCI) and Australian Industry Group (AIG).

 

CHAPTER 3 (RULES OF ORIGIN AND ORIGIN PROCEDURES)   ARTICLE 3.15: CERTIFICATE OF ORIGIN   2. The Certificate of Origin shall be completed by the exporter or the producer and shall:   ARTICLE 3.16: AUTHORISED BODIES 1. Further to Article 3.15, for Australia, a Certificate of Origin may be issued by an authorised body following a written application submitted by an exporter or producer.

 

As of 2022, the export utilization rate of the Korea-Australia FTA is 81.8% and the import utilization rate is 85.7%. In terms of FTA utilization by industry, machinery is the highest at 89.3% for exports and miscellaneous products is the lowest at 40.5%. For imports, agriculture, forestry and fishery products have the highest utilization rate of 97.6%, while machinery has the lowest utilization rate of 70.0%.

 

(Unit: Thousands of dollars)

Category	FTA	total amount	FTA preference eligible exports and imports	Apply actual FTA preferential tariffs	utilization rate(%)
			amount	amount
Export	Korea-Australia FTA	18,764,213	5,429,902	4,443,390	81.8
Import		44,907,702	12,041,950	10,325,768	85.7

 

 

A brief summary of the provisions of the Korea-Australia FTA related to trade in goods is as follows. However, it is intended as a guide only and companies should refer to the Agreement for the exact Agreement-specific interpretation.

 

Category		Contents
into force date		2014. 12. 12.
Agreement other party		Australia
Certificate of Origin	Issuing Modality C/O	Korea : Self – Issued Australia : Self – Issued Authority - Issued International Export Certification Service (IECS) , Trade Window Origin Pty Limited, Australian Chamber of Commerce, Industry (ACCI) and Australian Industry Group (AIG)
	Issuer	Exporter, Producer (Authority – Issued : a written application submitted by an exporter or producer)
	Government Authorities	-
	Form of Certificate	A model format for a Certificate of Origin (Variations in the format of the Certificate of Origin from the model format set out in Annex 3-D shall not invalidate the Certificate of Origin, provided that the Certificate of Origin contains the data elements set out in Annex 3-C.)
	Validity Period (yrs)	2
	Submission Exemption	customs value does not exceed 1,000 US dollars or its equivalent amount for Korea or 1,000 Australian dollars for Australia, or such higher amount as each Party may establish
Value- Content Rule	Requirement	RVC(Regional Value Content)
	Product Price	Adjusted Value
	Calculation Modality	Build-down Method(BD), Build-up Method(BU)
Origin Verification	Verification method	Direct or Indirect verification (Request to the issuing authority or the customs authority of the exporting party – Indirect) (Information request or verification visit - Direct)
	Replied within	30 days
	Replied by	Issuing authority, etc (indirect) Exporter, etc (direct)

 

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