The Chinese Australia Free Trade Agreement

February 09, 2018 2 min read

Shanghai China

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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