The China Australia Free Trade Agreement (ChAFTA) was ratified in December 2015 and offers a great opportunity for Australian manufacturers to export to P R China.
ChAFTA, will over 5 years result in the progressive reduction of import duties on various categories of products exported from Australia into P R China. Quilts, pillows and similar bedding products are a designated category under the ChAFTA agreement which were previously subjected to a 20% import duty payable on importation.
Under ChAFTA, the import duty rate for bedding categories reduces in stages and in 2018 the import duty is 4% which is a reduction of 16% in the import duties since the agreement was ratified. This is a significant reduction of a cost impost and the import duty on bedding products will be zero from 1st January 2019. Under ChAFTA only certain categories of products are part of the agreement and bedding quilts, doonas, pillows, which are described under section 9404.90 of the International HS Tariff code protocol, are included in ChAFTA.
This creates a significant opportunity for a high quality Australian made home wares brand to be exported to the growing and more affluent middle class in China especially where locally made high quality exclusive luxury manufactured bedding products are not available.
We are excited by the rapidly changing demographics in China where discerning consumers are looking to buy high quality, imported products especially in the middle to high end segments of the homewares market. Our recent export market promotion plans for expansion into China are handled through our associate company, The Australian Alpaca Bedding Company. Please click here to go the AABC web site for further information.
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We are donating a day's production to make wool quilts and pillows which we will give to the Father Bob Maguire Foundation so that they can help and support those who are in need in our local community.
We are very proud to support such a great cause and look forward to another Father Bob day.
As part of our giving back philosophy, we are excited to announce that Kelly & Windsor Australia and the Alpaca Bedding Company has recently partnered with The Lung Foundation of Australia in a cause related marketing program.
Our goal is to contribute to a very worthy cause by donating to their resreach programs.
First launched in 2006, our alpaca underblankets have been very popular but unfortunately in 2015 we encountered some technical manufacturing problems that we just couldn't resolve and we reluctantly had to discontinue their production.
Today we are advising that they are coming back in winter 2021.