Australia-India Economic Cooperation and Trade Agreement
Australia and India have developed an Economic Cooperation and Trade Agreement (ECTA) that will enter into force on 29 December 2022.
The Australia-India Economic Cooperation and Trade Agreement (AI-ECTA) was signed virtually on 02 April 2022 by the Hon Dan Tehan MP, Minister for Trade, Tourism and Investment and Piyush Goyal, Minister of Commerce and Industry.
The implementing legislation received the Royal Assent on 23 November 2022 and will enter into force on 29 December 2022.
Further information from Australian Border Force on the AI-ECTA is available here
Benefits for Australian Exporters
The AI-ECTA has been designed to create new opportunities for Australian goods and service exporters. Australian services suppliers across a range of sectors will receive preferential treatment, specifically in:
- Higher education and adult education
- Business services (tax, medical and dental, architectural and urban planning
- Research and development
- Communication, construction and engineering
- Insurance and banking
- Hospital, audiovisual and tourism and travel.
Australian exporters of certain goods will receive preferential tariffs:
- Sheep Meat – elimination of tariffs on entry into force (EIF).
- Wool – elimination of tariffs on EIF.
- Seafood – elimination of tariffs on entry into force for fresh rock lobster and elimination of tariffs over 7 years for other fresh, frozen and processed seafood products.
- Infant formula – elimination of tariffs over 7 years.
- Barley, oats and lentils – locked-in duty-free entry for barley and oats and immediate 50% reduction for in- quota exports of lentils.
- Nuts – elimination of tariffs over 7 years on cashews, macadamias, shelled pistachios and hazelnuts. For almonds, immediate 50% tariff reduction on in-quota exports.
- Fruit and vegetables – elimination of tariffs over 7 years for avocados, onions, cherries and berries. Reduction of tariffs over 7 years for apricots and strawberries. For oranges, mandarins and pears, immediate 50% tariff reduction for in-quota exports.
- Wine – tariff reductions over 10 years for bottles over import prices of US$5 and US$15 and guaranteed best market access by India in any future FTA.
- Resources – elimination of tariffs on entry into force for coal, alumina, metallic ores such as copper, manganese and zirconium, titanium dioxide and certain non-ferrous metals. Tariffs on LNG will also be bound at 0 per cent on EIF.
Further information on AI-ECTA benefits for Australian goods exporters is available here
Australian manufacturers of certain goods will receive enhanced trade facilitation:
- Pharmaceutical products – Elimination of 10% tariff
- Cosmetics – Immediate elimination of 20% tariff
- Vitamins – Elimination of 7.5% tariff
- Wood and paper products – Elimination of tariffs of up to 20%
- Liquid Pumps – Elimination of tariffs of up to 10% on a range of pumps
- Furniture and bedding – Elimination of 25% tariff on furniture and bedding, including immediate removal of the tariff on spring mattresses
- Water filters – Elimination of tariffs of up to 10%
- Lifting machinery for mines – Elimination of tariffs of up to 7.5%
- Excavating and boring parts – Elimination of tariffs on most parts for excavating and boring machines
- Railway equipment parts – Immediate elimination of 10% tariff
- Processed foods – Elimination of tariffs up to 50% for a wide range of food products including infant formula, certain chocolates, breakfast cereals, pasta, olive oil, protein concentrates, prepared nuts, coffees and teas
- Processed fibres – Elimination of tariffs of up to 10% on processed wool and cotton fibres
- Processed minerals – Elimination of tariffs of up to 10% on a wide range of processed minerals including alumina, titanium dioxide and critical minerals
Further information on AI-ECTA benefits for Australian manufacturers is available here
Benefits for Australian Importers
Australian importers of certain goods will receive preferential tariffs under the AI-ECTA product specific rules of origin, and in many instances would be duty free.
A comprehensive tariff list under the AI-ECTA product specific rules of origin is available here
Certificate of Origin
There are requirements under the rules of origin to qualify for the Australia-India ECTA.
An AI-ECTA certificate of origin must be issued by an official issuing body or authority of the exporting party. A written application for this document must be submitted by an exporter, producer or their representative and needs to meet the requirements of Article 4.15 of the agreement.
A certificate of origin must contain the data elements listed in Annex 4A (Minimum Information Requirements). The field Export Document Number in Box 12 of the certificate of origin only needs to be completed on a certificate of origin issued retrospectively.
A comprehensive list of the AI-ECTA Rules of Origin is available here
A comprehensive list of official issuing bodies is available here
Claiming a Duty Refund
The Australia-India ECTA will apply to import shipments with a valid AI-ECTA Certificate of Origin and where the customs entry is lodged after 29 December 2022.
Claiming a duty refund under the ECTA is possible in instances where an importer has paid customs duty because a valid certificate of origin was not available at the time of entry. The importer would need a valid AI-ECTA Certificate of Origin to claim a refund under section 23 of the Customs (International Obligations) Regulation 2015.
Further information on claiming a refund under the ECTA is available here
Note – a customs entry lodged before 29 December 2022 cannot be amended to apply for a duty refund, even if a valid AI-ECTA Certificate of Origin is presented.