ChAFTA has been in force since the 20th December 2015. In this time, there has been issues with Certificate of Origin (COO) requirements, where many certificates have been rejected. The Australian Border Force (ABF) have on the 10th of November 2016 released updated guidelines regarding requirements to accept a COO.
What has changed?
The HS code (Tariff Classification) is required on every COO. The ABF now requires that the HS code on the COO aligns with the Classification to 6 figures on the Import Declaration.
What does this mean?
Where there is a misalignment of the HS code to the Import Declaration, we cannot accept the COO. This means no preference can be claimed and duty must be paid. We are unable to change the classification on the Import Declaration to what is on the COO as this will cause a false statement to be made which may result in administrative penalties.
Where to from here?
We may need to reject some COOs due to the above or other reasons, and will need our clients to request either a new COO or further information for other changes to the requirements to allow us to claim the lower ChAFTA duty rates.
If you need further information, please contact your local BTi office.