|Malaysia's Free Trade Agreements||
Malaysia and Australia concluded negotiations on the Malaysia-Australia Free Trade Agreement (MAFTA) on 30 March 2012. MAFTA entered into force on 1 January 2013.
MAFTA is a comprehensive agreement comprising 21 chapters encompassing trade in goods, services and investment as well as economic cooperation. It also covers intellectual property rights, e-commerce and competition policy. MAFTA marks another important milestone in Malaysia - Australia economic relations, complementing the already established ASEAN-Australia-New Zealand FTA (AANZFTA).
The main text of the Agreement can be viewed via this link Malaysia-Australia Free Trade Agreement
TRADE WITH AUSTRALIA
Australia was Malaysia’s 13th largest trading partner. Among Oceania countries, Australia was Malaysia’s largest trading partner.
total trade with Australia contracted by 7.3% to RM42.35 billion (US$10.20 billion) compared with RM45.67 billion (US$11.75 billion) in 2015.
exports recorded a decrease of 4.8%, to RM26.74 billion (US$6.44 billion) from RM28.08 billion (US$7.21 billion) in 2015.
imports recorded a decrease of 11.3% to RM15.61 billion (US$3.76 billion) from RM17.59 billion (US$4.53 billion)) in 2015.
Major exports to Australia in 2016:
Electrical and electronic products
Manufactures of Metal
Machinery, equipment & parts
Major imports from Australia in 2016:
Manufactures of metal
Other Agricultures (cereals, coffee, fruits, live animal & meat, miscellaneous agricultures, pepper, vegetables, roots, tubers)
Metalliferous ores and metal scrap
Areas covered under MAFTA include:
Establishment of a Free Trade Area and General Definitions
Trade in Goods
Rules of Origin
Customs Procedures and Cooperation
Sanitary and Phytosanitary Measures
Standards, Technical Regulations and Conformity Assessment Procedures
Trade in Services
Movement of Natural Persons
Framework on Mutual Recognition Arrangements
General Provisions and Exceptions
Consultations and Dispute Settlement
TRADE IN GOODS
The Agreement outlines commitments of both countries on liberalisation of trade in goods.
Australia has eliminated 100 per cent of its import duties beginning 1 January 2013, upon entry into force. Malaysia on the other hand will progressively reduce or eliminate import tariffs on 99% of its tariff lines by 2020.
Exporting to Australia
If you are exporting to Australia, there is no duty for ALL products. This is because Australia has eliminated import tariffs for ALL products upon entry into force on 1 January 2013 which means the duty for ALL products is 0%.
Nevertheless, in order for your product to enjoy the preferential duty of 0%, it must fulfill the Rules of Origin (ROO) criteria under MAFTA.
Importing from Australia
If you are importing from Australia, please click this link to check on the preferential duties under MAFTA:
Nevertheless, in order for the product to enjoy the preferential duties, it must fulfill the Rules of Origin (ROO) criteria under MAFTA.
Products listed under Malaysia’s Exclusion List (EL) do not qualify for duty reduction or elimination under MAFTA. The Malaysian importer would need to pay the duty based on the current MFN rate.
RULES OF ORIGIN
In order to benefit from the preferential tariff rates under MAFTA, exporters need to fulfill the requirements under rules of origin (ROO) which are based on the product specific rules (PSR) as stipulated under Appendix B of the Agreement. You can view the PSR via this link (refer to page 32): Product Specific Rules (PSR)
Under Annex on Operational Certification Procedures (OCP) to Chapter 3 of the Agreement, the ROO requires that:
exports from Australia into Malaysia / Imports from Australia are supported by a declaration of origin (DOO); and
exports from Malaysia to Australia / Exports to Australia are supported by a certificate of origin (COO) issued by the Issuing Authority (MITI).
The importer must submit relevant documents to the Customs Authority of the importing Party (Malaysia or Australia) in order to claim for preferential tariff treatment. Imports into Australia require a COO; while imports into Malaysia require a DOO.
Declaration of Origin
The DOO can take the form of a declaration on the invoice or company letterhead (OCP Rule 1).
The MAFTA does not require a specific format to be used for the DOO on the invoice or company letterhead; provided that the Data Requirements are contained in the document.
The DOO or COO must contain data requirements as listed in the Appendix on Data Requirements, as follows:
name and details of the exporter/producer
declaration by the exporter/producer or their authorised representative that the goods are originating
description of the goods
HS Code (6 digits)
origin conferring criteria
documentation is valid for one year after the date on which the DOO was signed or the COO was issued (Article 3.15 of the Agreement).
Summary of both Malaysia's and Australia's offers for Services
Australia's Schedule of Movement of Natural Persons Commitments
Malaysia's Schedule of Movement of Natural Persons Commitments
For Preferential Certificate of Origin / Rules of Origin related matters, please contact:
For other enquiries, please contact the FTA focal point(s) as follows:
Ministry of Investment, Trade and Industry
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