Australian Wine Benefits Lower Import Duty to China under FTA

Australia, following Chile and New Zealand, was the third major wine producing country signed the bi-lateral Free Trade Agreement (FTA) with China last June and the Agreement was effective 1 December, 2015.

Australian wine would enjoy a cut of 2.8% on custom duty each year and will become zero rate import duty in 5 years (2019). The custom duty to Australian wine will be 8.4% (2016), 5.6% (2017), 2.8% (2018) in the next few years.

China has entered FTAs with Chile and New Zealand in November 2005 and April 2008 respectively. Both countries now enjoy 0% import custom duty which definitely increase their competitiveness in the fierce wine market in China.

At zero custom duty rate, it is a saving of 37.76% in terms of the total aggregate tax rate (custom duty + consumption tax + value-added tax) from 48.2% to 30%, i.e. consumption tax and value-added tax only.

#FTA #import #Australia #Chile #NewZealand #customduty #consumptiontax #VAT

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