ChAFTA certificates of origin: paying 0% duty

The China–Australia Free Trade Agreement (ChAFTA) removes customs duty on most goods made in China, and that includes most furniture. The catch is that the goods have to qualify as originating in China, and you need to be able to prove it.

If you don't have a valid claim, the general rate of duty applies instead. For most furniture that's usually 5% of the customs value, and your customs broker can confirm the exact rate for your products' tariff classification.

The usual proof is a ChAFTA certificate of origin. It's issued in China by an authorised body when the exporter asks for it, which means the factory (or its export agent) has to apply. So ask for it when you place your order, rather than after the goods have sailed.

For low-value shipments, other kinds of evidence may be accepted. Your broker can tell you what they'll need for your shipment.

• The description, quantity and invoice number on the certificate should match the commercial invoice and packing list.
• The goods really do need to be made in China. Products the factory sources from elsewhere may not qualify, which is one more reason we label who actually makes each item.
• Your broker needs the certificate when they lodge your import declaration, so ask the factory to send you a copy as soon as it's issued.
• Keep copies with your import records, because the Australian Border Force can check a claim after the goods have been released.

You can still import the goods, but duty will be charged at the general rate. In some cases you can claim the preference later and get a refund, as long as it's within the time limits. Rather than assuming, have a chat with your broker straight away.

Your landed-cost estimate has a setting on each item for whether you expect a valid ChAFTA certificate, so you can see the cost both ways. When you request a quote, just ask us to check that the factory can provide a certificate and we'll put the question to them.