China-Australia Free Trade Agreement (ChAFTA)

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What Is ChAFTA?

ChAFTA is the China–Australia Free Trade Agreement, a bilateral trade deal between China and Australia. It has been in force since December 2015, and it sets lower — mostly zero — tariffs on goods traded between the two countries.

The main benefit for importers: under ChAFTA, 95%+ of Chinese-origin goods enter Australia duty-free, instead of the standard 5–10% MFN duty. The concession only applies when the importer holds a valid Certificate of Origin; without it, the standard duty is charged.

ChAFTA covers goods, services and investment. On the goods side it works like most modern free trade agreements: a product qualifies when it meets the agreement’s rules of origin, and the importer claims the preferential rate at clearance by presenting the certificate.

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