KAFTA implementation process underway

There have been a number of significant events in the process towards implementation of the Korea Australia Free Trade Agreement  with the apparent aim to do all things possible to have implementation commence in 2014.

The first was the introduction into Parliament of the two Customs Bills required to be passed to implement the “customs aspects” of the KAFTA, the first Bill being the amendment to the Customs Act 1901 to give effect to the required Rules of Origin. The second Bill comprises the amendments to the Customs Tariff Act 1995 to implement the KAFTA.

This includes:

• Providing free rates of duty for “Korean originating goods”.
• Amending Schedule 4 to the Customs Tariff to maintain customs duty rates for certain Korean originating goods.
• Phasing the preferential rates of customs duty for certain goods to ‘Free’ by 2021.
• Inserting a new schedule in the Customs Tariff to accommodate preferential and phasing rates of duty to maintain excise – equivalent rates of duty on certain alcohol, tobacco and petroleum products.

In addition, there will be new Regulations introduced to help effect KAFTA as well as legislation in other areas to make amendments required to implement the KAFTA.

The Bills were referred to the Senate Legal and Constitutional Affairs Legislation Committee for inquiry and report by 2 October 2014.

Photo by elsamuko