On 02-April-2022, Australia and India signed an interim free trade deal (Australia-India Economic Cooperation and Trade Agreement (AI-CECA)) which on entering into force will provide significant tariff cuts. Once enacted, a free rate of duty will apply to more than 85% of Australian goods being exported to India and 96% of Indian goods being imported into Australia.

The FTA still needs to go through the local ratification process of each party and we expect the commencement to be in effect toward the end of 2022.

Whilst the details of the Free Trade Agreement (FTA) are still in its early stages, origin certification by way of a Certificate Of Origin (COO) will be required to validate a claim for preferential rates of duty. At this stage, Declarations Of Origin (DOO) are not provided for, however will be subject to review at a later time. The rules of origin particularly around product specific guidelines are being worked through with further negotiation required to produce a complete rules schedule.

Whilst this is an interim FTA, a full and comprehensive free trade deal is expected to proceed in an accelerated manner.

The full news release can be viewed at: Historic trade deal with India | Minister for Trade Tourism and Investment (trademinister.gov.au).

We will continue to provide updates as details present themselves. In the meantime, if you have any questions, please do not hesitate to contact your local Mondiale VGL representative for any further information or clarification.

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