Australia has free trade agreements covering most of its major trading partners, and for many importers they can reduce duty to zero. Yet missed and invalid preference claims remain one of the most common ways Australian businesses overpay. The reason is rarely ignorance of the agreement — it is a documentation and classification failure.
Agreements Australian importers use most
| Agreement | Covers | Commonly relevant to |
|---|---|---|
| ChAFTA | China | Almost every category of manufactured goods. |
| AANZFTA | ASEAN and New Zealand | Vietnam, Thailand, Malaysia, Indonesia, Philippines. |
| AUSFTA | United States | Machinery, equipment, food, consumer goods. |
| JAEPA | Japan | Vehicles, machinery, electronics. |
| KAFTA | Korea | Vehicles, steel, electronics, chemicals. |
| AI-ECTA | India | Textiles, chemicals, agricultural products. |
| ANZCERTA | New Zealand | All goods, both directions. |
| CPTPP | Multiple Pacific economies | Where an alternative agreement gives a better outcome. |
| A-UKFTA | United Kingdom | Machinery, food and beverage, consumer goods. |
The three tests every claim must pass
Correct tariff classification
Origin rules are written at the tariff line level. If the classification is wrong, the origin rule you are applying is also wrong, and the claim fails even if the goods genuinely originate.
Genuine origin under the agreement
Origin is about where the goods were produced and how much value or transformation occurred there — not simply which port they shipped from. Goods assembled in one country from components made elsewhere may or may not qualify.
Valid documentation held before lodgement
A Certificate of Origin or Declaration of Origin that satisfies the specific agreement, matches the shipment and the classification, and is in your possession before the declaration is lodged.
Where claims fail in practice
- The certificate describes goods differently to the commercial invoice.
- The certificate references a tariff classification that does not match the one declared.
- The certificate is issued after the goods have already been entered.
- The consignee or exporter details do not match the shipment documents.
- The origin criterion field is blank, or cites the wrong rule.
- The importer assumed “made in China” on the packaging was sufficient evidence. It is not.
How to make it routine
The fix is a standing instruction to your supplier at the time of order, not a request when the cargo is on the water. Tell them exactly which document you need, in what form, and that it must be issued to match the invoice. Then have your broker check it against the classification before lodgement rather than after.
We do this as standard on every shipment where an agreement may apply, and we tell clients when a claim is not supportable rather than making it and hoping. A preference claim that cannot be substantiated is worse than no claim at all — it invites an audit and a demand for duty plus penalties.
If you think you have overpaid
Where duty was paid because a valid claim was not made, or because goods were misclassified, a refund may be available within the statutory time limit. It is worth reviewing the last few years of entries, particularly if you import consistently from an FTA partner. Send us your entries and we will look.
More detail is in our import duty and GST guide, and there is lane-specific guidance on importing from China and shipping from the USA.
This article is general information for Australian businesses and is not customs or legal advice. Free trade agreement rules and tariff classifications change; confirm the position for your specific goods.