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China-Australia Free Trade Agreements

Frequently asked questions

China-Australia FTA into the investor and host country dispute settlement mechanism (ISDS) What is the main content? What does it mean to Chinese companies?

Investors – host country dispute settlement mechanism has made detailed and definite provisions on dispute settlement procedures and substantive rules, and established an effective mechanism for resolving investment-related disputes.

For the Chinese investment enterprises in Australia, when the dispute with the Australian side, the mechanism will play a “reassurance” role for investors to provide adequate rights relief and a strong system of protection, to further enhance investor confidence.


What are the specific contents of the China-Australia FTA in the rules section?

The rules section of the China-Australia FTA includes initial terms and definitions, trade in goods, rules of origin and procedures, customs procedures and trade facilitation, sanitary and phytosanitary measures, technical barriers to trade, trade remedy, trade in services, investment , Natural person movement, intellectual property, e-commerce, transparency, mechanism clause, dispute settlement, general terms and exceptions, final terms and other specific content.


China-Australia FTA in the rules of origin what is the bright spot?

The rules of origin mainly include the criteria for determining the origin of goods, direct transport rules and certificates of origin and statements. With regard to the criteria for the determination of origin, the criteria for the “full acquisition” of goods adopt the generally accepted principle in the international community, stressing that the goods must be acquired or produced on either Contracting Party.

“Non-Completely Obtained” the determination criteria for the goods are taking into account the objective reality of the international production of goods, the specific use of tariff classification changes, regional value components and processing processes and other standards. With regard to the direct transport rules, in order to meet the needs of modern logistics development, the agreement allows the goods to be separated from the third party for transportation.

With regard to the certificate of origin and the declaration, the importer may submit a certificate of origin in lieu of the certificate of origin to apply for preferential tariff treatment.

For the same batch of Australian originating goods with a dutiable value not exceeding RMB6,000, the enterprise may be exempted from submitting a certificate of origin or a declaration of origin when importing.


China and Australia FTA in the implementation of customs procedures for the two companies made what facilities?

The customs procedures and trade facilitation sections under the China-Australia FTA are first included in the relevant provisions of the WTO Agreement on Trade Facilitation, which are rich in customs procedures and trade, as compared to other FTA agreements already signed by China The contents of the facilitation are mainly related to further simplification of customs clearance, strengthening of customs cooperation, the use of risk management and information technology and other means to speed up the release of goods for both companies to provide efficient and efficient customs clearance services.

Specifically, the agreement stipulates that both China and Australia should promptly publish on the Internet laws and regulations relating to bilateral trade between China and Australia; the two sides shall implement a pre-adjudication system to make pre-determination on matters such as tax classification and rules of origin.

The two sides should simplify the customs procedures, allow advance declaration, guarantee release, the perishable goods and temporary import goods according to the domestic law to speed up the release. Which will be for the two countries to provide greater trade convenience..


What are the provisions of the China-Australia FTA in animal and plant inspection and quarantine and technical trade barriers?

The Health and Phytosanitary Measures (SPS) section includes 11 terms, such as objectives, scope, transparency, regionalization and equivalence, and the Commission, which, while reaffirming the relevant principles of the WTO, further demands that transparency Bilateral cooperation, and incorporated technical assistance and capacity-building provisions to promote a common upgrade of technical capacity between the two sides.

The chapter also established the Health and Plant Health Committee, established a consultation mechanism to promote bilateral inspection and quarantine issues in a timely manner.

The technical trade barriers (TBT) section includes 13 terms, such as target, scope, transparency, international standards, committee, etc., which stipulate the corresponding disciplines in terms of technical regulations, standards and conformity assessment procedures, and encourage both sides to strengthen cooperation in this field. Technical assistance activities to enhance the transparency of technical trade measures.
The chapter also set up a trade facilitation clause to encourage the two sides through cooperation to improve the relevant technical regulations and standards to adopt the level of international standards to promote mutual recognition of conformity assessment results to facilitate bilateral trade.
The Committee on Technical Barriers to Trade under this chapter will be responsible for overseeing the implementation.


China-Australia FTA after the entry into force, if the Australian imports of a large number of products on China's domestic industry impact, whether there are measures to deal with and protection?

The China-Australia FTA includes trade relief chapters that can protect you against certain risks in response to the industry.

Trade relief section of a total of 10/31, covering bilateral safeguards, global safeguards, anti-dumping measures and subsidies and countervailing measures.

The Bilateral Safeguard provisions stipulate that if the importation of a party increases substantially and the other domestic related industries are seriously affected by the implementation of the China-Australia FTA, the other party may take bilateral safeguards in the transition period, The product tariff or suspension of further tariff reduction to appropriate restrictions on its imports, protection of domestic industry interests.

The FTA also retains the relevant rights and obligations under the WTO trade remedy rules.


What are the main contents of the China-Australia FTA in the field of intellectual property?

There are 24 intellectual property chapters in the China-Australia FTA, covering patents, trademarks, copyrights, geographical indications, new varieties of plants, trade secrets, and enforcement.

In general, this chapter embodies the inclusive characteristics, taking full account of the differences between the two countries’ intellectual property rules and the development of the status quo, leaving room for their own domestic development.

Specifically, this chapter also covers the copyright collective management, Internet service provider responsibility and some other new content, reflecting the importance of these issues in the moment, with a certain characteristics of the times.

In China has signed a free trade agreement, the China-Australia FTA includes intellectual property content is more rich, detailed, the protection level is also higher.


Does the China-Australia Free Trade Agreement deal with competition issues? What is the main content?

The maintenance of fair competition in the market order, for the realization of FTA goals to improve economic efficiency, is of great significance.

To this end, the Sino-Australian FTA has set up a competition clause to further strengthen cooperation between China and Australia’s competition law enforcement agencies.

The competition law enforcement agencies of the two sides may carry out the exchange of information, carry out relevant technical cooperation and coordinate and communicate in cross-border law enforcement affairs, subject to the confidentiality requirements.

Both parties to competition law enforcement agencies may establish mechanisms to ensure smooth cooperation.