Free Trade Agreement changes for UK & India

Delays at Transhipment Ports on Australian Traffic

United Kingdom’s Accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership

The United Kingdom (UK) will officially join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on 24 December 2024.

This agreement will allow the UK’s goods to benefit from preferential duty rates under the CPTPP framework, expanding trade opportunities with member countries, including Australia.

Most products will be duty-free, but exceptions like specific cheese and steel products will face transitional tariffs. Safeguards on certain steel goods of Chapter 72 and 73 (refer Attachment A to ACN 2024/43) will suspend preferential rates, aligning with UK global safeguards until mid-2026.

 

Phasing duty rates in existing Free Trade Agreements

On 1 January 2025, preferential rates of customs duty under the following free trade agreements will be reduced:

  • India-Australia Economic Cooperation and Trade Agreement (ECTA)
  • Regional Comprehensive Economic Partnership Agreement (RCEP)
  • Free Trade Agreement between Australia and the United Kingdom of Great Britain and Northern Ireland (A-UKFTA)

For example, ECTA will see a reduction in duty rates for certain iron, steel, and aluminum products from 2% to 1%.

Additionally, the suspension of preferential duty rates under A-UKFTA is expanded from 24 December 2024 for certain steel products of Chapter 72 and 73 to align with the UK’s global safeguard measures on these goods.

For affected goods, duty rates will rise to 5% and remain in place until June 2026. However, refunds may be available for overpaid duties during the interim periods.

 

Impact of amendments and withdrawals on duty rates.

It is critical that importers and customs brokers are mindful of the impact of date of lodgment on phasing duty rates and where possible lodge the FID on a date that ensures that that the lower phasing rate is received, noting also the impact on date of entry for home consumption of advance entries.

Customs Act s.132 (2) provides that if an entry is withdrawn and the goods are subsequently entered on another import declaration, the rate of duty payable is the rate in force when the goods were first entered for home consumption, unless the goods are bonded after the first import declaration is withdrawn. In this case the rate of duty payable is the rate in force when the goods are ultimately entered for home consumption on the Nature 30.

For more information please refer to:

ACN 2024-43 – United Kingdom’s Accession to the CPTPP

ACN 2024-44 – Suspension and reduction of preferential rates of customs duty