A Guide to the Peru-Australia Trade Agreement (PAFTA)

The Free Trade Agreement between Peru and Australia has just come into force, starting on February 11, 2020.

This post aims to give you all the information you need in relation to new trade agreement titled The Peru-Australia Free Trade Agreement (PAFTA), and what it might mean for you. 

The Department of Foreign Affairs and Trade has just issued a detailed review of the agreement and PAFTA, which you can find HERE. PAFTA enables Australian businesses to take advantage of Peru’s growing market and strengthens the economic relationships with Latin America.

A guide has been prepared and explains how to determine whether goods that are imported to Australia are eligible for preferential rates of customs duty under the PAFTA in accordance with the Customs Act 1901 and the PAFTA rules of origin. The Guide to Origin advice referred to in the document can be found HERE

Some key points to note outside of the government docs are as follows: 

  1. A claim for preference under PAFTA must be supported with a Certificate of Origin (COO) (self-certified) However, at present there is no prescribed format for that COO.

PAFTA does not require third-party certification.

An authorised representative of the exporter or producer may complete a PAFTA COO and need not follow a prescribed format but must contain the prescribed data elements at Annex 3-A of the Agreement and cross-referenced at page 42 and 43 of this Guide.

The content of Attachment B to the PAFTA Guide on the DFAT website provides examples that producers, exporters and authorised representatives may use, to assist in meeting PAFTA Certificate of Origin requirements, but they are not prescriptive.

  1. For importers that are Trusted Traders, the Australian Border Force (ABF) has waived the requirement for the production of a COO.  However, it is still of utmost importance that the importer has a reasonable basis for its belief that the goods meet the requirements of PAFTA; and
  1. Like many FTAs, the consignment rules mean the FTA does not apply where the goods enter a third country and do not remain under customs control.  This needs to be carefully considered if the goods have travelled from Peru to a different South or Central American port and not remained under Customs control.



The ACF Team