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Trade Barriers Australia

There are major following kinds of trade related barriers in Australia. 1. Trade Policy: For the Protection of industry for most of the past decades behind tariff protection, Australia began to reduce its tariff including in its most protected industries such as automobiles and textiles. The Australian economy has since reaped the rewards of tariff reduction through lower prices of imported business inputs, increased productivity and improved international competitiveness. 2. Import Controls: There are no special requirements for applying an import licence, nor are there any quotas on imports. However, under the Customs (prohibited Imports) Regulations, controls take the form of a) an absolute prohibition meaning that import of these goods is banned in any circumstances; and b) a restriction where imports are allowed only if written authorization is obtained from the relevant authorities, or if compliance with certain regulations is met. For some commodities, import permits are required to facilitate clearance of goods. 3. Customs Valuation and Tariff: Australia adopted the Harmonized Commodity Description and Coding System (HS). The Australian Government has planned for the progressive reduction of tariff protection for local industry. The tariff reduction programme has already reduced 48% of Australian tariff to zero and 35%. About 86% of tariff rates now range between zero and 5%, except certain automobile products and the textile, clothing and footwear commodities. The average applied most-favoured-nation (MFN) rate for industrial products is 4.6%, while the applied MFN tariff for agricultural products is less than 1%.

While there are several ways of valuing goods for customs purposes, the method most applied is the transaction value based on the price actually paid for the imported goods. 4. Customs Clearance (Permission): Importers who want to clear their own goods should contact the Customs Information and Support Centre for advice on Customs requirements and operating hours. Customers should be aware of their obligations and base on their assessments of import procedures. Penalties may be imposed for the submission of incorrect or misleading information. Customs advises that purchasing goods over the Internet or mail order are subject to customs controls. Restricted goods brought into the country require an import permit. Goods may be imported duty and tax free if their value is $1000 or less, with the exceptions of tobacco and alcoholic products. However, multiple packages to the same addressee from a single consignor arriving at the same time are liable for tax assessment. 5. Anti-dumping and Countervailing Duties : When a consignment of goods has been imported to Australia, or is likely to be imported, and an Australian industry producing the like goods believes there are reasonable grounds, an applicant may apply for a dumping duty and/or a countervailing duty notice to be published. Australia has initiated a number of anti-dumping proceedings against certain countries including China. Currently there are a number of mainland origin goods subject to Australia's anti-dumping measures, including preserved pineapples, preserved mushrooms and certain chemicals. 6. Marking and Trade Descriptions: Importers are required to ensure that goods entering Australia are correctly labeled. It is an offence to import goods that do not bear a required trade description, or bear a false trade description. Imported goods that require a trade description must be marked with the name of the country in which the goods are made and a true description of the goods in English language, with weight or quantity.

7. Documentary Requirements : Bill is required on all freight shipments. "To order" bills are permitted, Freight collect shipments are generally acceptable. Certificate of Origin is not usually required except it is specially requested by importers. Invoice should include name of vessel/carrier, shipper and consignee, country of origin of the goods, marks and numbers, quantity and weights, order date and number, selling price, method of payment etc. Other documents may include packing list to facilitate cargo clearance. 8. Product Standards and Consumer Protection: Australia has maintained some standards requirements particularly quarantine and health restrictions that have an impact on the free flow of goods. Laws provide consumers with a ready cause of action against the manufactures or importers of defective products. The Trade Practices Act prohibits restrictive or unfair trade practices, misleading or deceptive conduct, false representations, deceptive offering of gifts and prizes in connection with the sale or promotion of the goods and services. 9. Custom Services: The Australian Customs Service (ACS) for both barrier surveillance and commercial compliance. Along with a range of obligations associated with goods procured from overseas, an Australian importer is subject to import duty liability at a rate directly linked with the tariff classification of the goods. These may vary depending on the nature of the goods. Some industry sectors (such as the motor vehicle and textile clothing and footwear) are given higher protection through tariffs than other industries. Australia already has many tariff classifications (product categories) that are duty free (zero rated) or, if not duty free in own right, most manufactured items imported from overseas will only have a maximum of 5% levied on the export value or "free on board" cost (FOB). The FOB being the basis, applying to Australia, with certain additions or deductions, from which one compiles the Customs Value in arriving at the applicable duty. Moreover, The goods which is imported from the New Zealand is totally duty free.

Customs will not permit the goods if it is from following criteria

1. 2. 3. Have a value over AUD $1,000. Contain Alcohol or Tobacco of ANY quantity or value. Contain Prohibited Imports listed on customs governments site.

TAX Provisions
1. Sales Tax:

The Australian Taxation Office (ATO) whereby, generally speaking, a Sales Tax (known as various ad valorem rates) is levied on imports into Australia. While there are exemptions or concessions available through the various Tax Schedules or formal rulings from the ATO, imports are taxable dealings. This tax (involving an increase in the import cost level to arrive at a taxable value) is in addition to any Customs Duty. A standard formula is used by the ATO to establish the tax liability, which ordinarily is payable at time of importation. For wholesalers, a scheme operates to relieve this burden of liability until later in the supply chain. From 1st July, 2000 Sales Tax was transferred into Goods and Service Tax (GST) at rate of 10% on all the Goods & Services provided. This is a value added tax levied on goods and services throughout the supply chain, again with credits working to maintain equitability in the system. There are very few exemptions. 2. Australia Filing Requirements and Payment of Tax: A company is usually required by the Australian Taxation Office (ATO) to have a tax year of 12 months (except in its first year) synchronized with the end of the standard tax year, which ends on June 30 each year. Only companies that are foreign controlled will normally be allowed to vary their tax year dates to match that of their overseas controlling entity. Annual tax returns for most companies are due by February 28 each

year, and companies generally pay their tax under the pay-as-you-go (PAYG) system in either a single lump sum or in quarterly installments.

Other Trade Related Barriers with Trade between India and Australia
1. Tariff reduction for trade in goods: There are still major barriers to trade with India, despite recent reforms. Indian tariff rates and trade barriers more generally remain among the highest in the world. In addition to tariffs, India imposes various duties, such as safeguard and anti-dumping duties, and non-tariff restrictions such as import bans and standards or certification agreements. The Australia India Free Trade Agreement Feasibility study also identifies this as an area that can immediately improve the trade relationship between our countries, across a broad range of goods. Both India and Australia have committed to trade liberalization over recent decades, but there is still more work to be done. 2. Supporting the services sector: The Indian Government in recent times has committed to the deregulation of services sectors, including telecommunications and ICT. We also recognise the significant changes that have occurred in the financial sector although foreign investment in Banking and Insurance remains relatively less open. Education and Tourism as key services sectors would benefit from greater promotion and profiling in market in order for Australia to be considered a leading destination. Services and knowledge based exports for both India and Australia are important to our future growth and sustainability, any Agreement should recognise the importance the services sector. 3. Recognising the role of private sector: The role of the private sector and business community is critical to the success of any Agreement. It must be a driving force for Australia and India. Private sector investment and cooperation will drive the future of the Australia India relationship. There must beongoing recognition and engagement with the sector to reap the benefits of any

future bilateral agreement. AIBC is well regarded by the Australian and Indian Governments as having a significant role to play in facilitating the ongoing improvement in Australias trade and investment ties with India. 4. Facilitating investment : The investment opportunities in both India and Australia are significant. To date they have been hampered by significant bureaucratic overlaps. AIBC members have reported cross-sectoral problems, where various ministries and bureaucracies do not align in decision making and processing, which delays approvals and complicates the requirements for global investors. Hurdles to investment must be addressed if we are to build and grow the two way investment between our nations. Better understanding of the culture and business models from Indian investors in Australia is also important. 5. Resources and energy : There is no doubt that trade and investment in resources and energy are critical to the bilateral relationship. In many ways, Australian resources and energy exports to India serve as a crucial motor of Indian economic growth. Whilst the exports of resources and energy dominate Australias trade with India, we have an opportunity to add to this in expanding cooperation in mining services, expertise and technology to increase productivity on both sides. Inherent in this relationship is continued cooperation and investment between Australia and India in relation to low emission and renewable energy climate change and sustainable development.

Conclusion Thus, We can conclude the above all trade related barriers prevailing in the Australia.