To fully benefit from the recently implemented free trade agreement, Indian traders will need to comply with seven steps, including being aware of Australia’s trade policy and origin laws for certain products, it said. The Global Trade Research Initiative (GTRI) study states:
According to the GTRI, the Economic Cooperation and Trade Agreement (ECTA) between India and Australia offers many concessions to exporters and importers from both countries, but the concessions are product-specific, meaning companies can must determine whether they will benefit from the agreement.
It said it proposed a seven-step approach to ensure that businesses do not overlook key facts when importing or exporting under ECTA.
Knowing the appropriate HSN code is one step, as the tariff classification of products may change in Australia and India.
All products are labeled with an industry term Uniform Naming System (HSN) code. This helps to categorize items globally in an orderly manner.
The “Rules of Origin” section specifies the minimum amount of processing that must take place in an FTA member country before finally produced goods can be considered originating in the FTA member country.
According to this provision, countries that have FTAs with India are not allowed to simply label goods imported from third countries and dump them into the Indian market. A certain amount must be added in order to export the goods to India. Rules of origin rules help prevent product dumping.
Indian exporters should be aware of not only Indian export regulations but also Australian import regulations. According to GTRI, India does not allow the importation of products made from wild animals or ivory for public health, safety and moral reasons. The GTRI added that the trade agreement only provides tariff concessions and does not relax rules on imports.
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