Malaysia-Australia FTA

Malaysia and Australia concluded negotiations on the Malaysia-Australia Free Trade Agreement (MAFTA) on 30 March 2012. MAFTA is expected to commence implementation on 1 January 2013. 

MAFTA is a comprehensive agreement, which comprises 21 chapters encompassing trade, 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 Agreement outlines commitments of both countries on liberalisation of trade in goods. Australia will eliminate 100% of its import tariffs on all originating goods upon entry-into-force while Malaysia will progressively reduce or eliminate import tariffs on 99% of its tariff lines by 2020. 

How does your product enjoy the Preferential Duties

In order to benefit from the preferential tariff rates under MAFTA, exporters need to fulfill the requirement on Rules of Origin (ROO) which determines the origin of a product.  

For textile and apparel products to enjoy preferential treatment it must undergone substantial transformation in Malaysia or Australia. Most major items are to comply with the Change of Chapter (CC) rule.  

In order for a product exported from Malaysia to enjoy preferential treatment in Australia, you will need to obtain a certificate of origin. Details on how to apply for certificates of origin, the schedules of commitments on goods and services and the full text of the MAFTA will be available on the website of the Ministry of International Trade and Industry, www.miti.gov.my.

 

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