North Asia wine exports flying high

North Asia wine exports flying high

Winemakers’ exporting to Northern Asia could see an increase in their bottom line when Australia’s Free Trade Agreement (FTA) with China delivered further tariff cuts on 1 January 2017.

Australia’s FTAs with China, Japan and South Korea are giving Australian wine makers a competitive edge, by reducing, and in many cases eliminating existing import tariffs on wine in comparison to our major competitors. This includes the tariff cut on 1 January 2017, when the tariff paid on Australian wine imports into China fell to 5.6 per cent compared to the 14 per cent most other wine imports will continue to pay.

‘The demand for our premium wines in China continues to grow and the latest tariff cut will give us a further advantage over European and US wine’ said Tony Battaglene, Chief Executive of the Winemakers’ Federation of Australia. ‘With a further tariff cut for bottled wine exports to Japan to come in on 1 April 2017 and South Korea having already eliminated tariffs for Australian wine, the Government’s Free Trade agenda is paying dividends for our industry’.

But getting these reduced tariffs is not automatic. Australian wine exporters will need an additional document- FTA-specific Certificate of Origin (CoO) or Declaration of Origin (DoO) for shipments. The Department of Foreign Affairs and Trade (DFAT) have produced a short guide to step wine and other exporters through how to use FTAs, including how to obtain an FTA-specific CoO/DoO.

Mr Battaglene added ‘Winemakers must actively take the steps to get the preferential tariff rates available under the FTAs, and we encourage all Australian winemakers to take advantage of them’.

This story was first published in Leading Agriculture magazine.

Featured Image: Tony Battaglene, Winemakers’ Federation of Australia Chief Executive