FPS Victoria - the FPS Group member covering the Australian states of Victoria, New South Wales, South Australia and Tasmania - is gearing up for an expected boom in freight traffic to and from China, when the Australian Government ratifies the China Australia Free Trade Agreement (ChAFTA) signed between the two countries on 17th June.  Talks on the treaty began in 2005. It now only remains for Australia’s Joint Standing Committee on Treaties to review the Agreement and report back to Parliament, which will consider if the  legislation requires amendment.  When both Australia and China have completed their respective processes, they will declare themselves ready, and the agreement should take effect 30 days later.  China currently levies tariffs on most imports from Australia, with only around 8% being duty free.  When the agreement comes into force more than 85% of Australian goods will be duty-free, increasing to 93% in four years, and eventually reaching 95%. Tariffs on 80% of imports from China will be removed immediately the agreement commences; the removal of remaining tariffs will happen in stages, with full removal in 4 years.  China is already Australia’s largest trading partner and its top export market for agricultural produce. The new ChAFTA agreement is expected to further enhance trade and investment and improve market access.  Although China is the world’s second largest economy it currently has few Free Trade Agreements with developed countries, so ChAFTA is likely to provide Australian business with an advantage over international competitors. FPS Customs Manager Karen Marsh, who has worked with the company for 10 years, is leading the preparations for ChAFTA. She says: “Our biggest trade lane is China, and since the announcement of the signing of the agreement we have been inundated with enquiries from both importers and exporters about how the agreement will benefit them. “For products to qualify, they must meet strict criteria on origin; so we are advising our clients if their products meet the criteria and, if so, what they need to do to prove eligibility. Because the agreement is not expected to commence until late this year, we are currently consulting with importers in order to determine if it’s in their best interests to apply for tariff concessions now - a process which can be costly and take considerable time - or wait until the FTA is fully implemented.” She concludes: “With the removal of Customs tariffs, goods will be cheaper for both countries, and this can only result in a healthy increase in shipments between Australia and China. FPS is meanwhile fully ready to support its customers as they prepare to take advantage of this major business opportunity.”