Alcohol - Australia and UK Free Trade Agreement (A-UKFTA)

Some good news for drinkers - The Australia United Kingdom FTA (A-UKFTA) is expected to enter into force on 31st of May based on the expected completion of UK domestic processes. On that date all tariffs on alcohol traded between the two countries will be eliminated. Previously alcoholic products made in the UK were subject to a 5% duty when exported to Australia, while Australian products faced customs duties of between £10 per Hectolitre to £26 per Hectolitre when imported into the UK.

There will also be changes to rules of origin which specify how much of a product must “originate” in the UK to qualify for the lower tariff when exported to Australia and vice versa. Under the agreement alcoholic goods such as wines shall be regarded as originating if produced entirely in the territory of one or both of the Parties.

The origin rules for Spirits requires a change in commodity code at a 4 digit level for any non-originating materials used, while non-originating materials used in most wines must change the 2-digit level code.

UK businesses will not be subject to visits by Australian authorities to investigate the source of parts and ingredients for exported goods.

The UK legislation also incorporates the terms of the UK’s Agreement with New Zealand. In some cases, non-Australian materials may count as Australian under “Regional Value Content” rules.