Are auto parts exempt from tariffs ?
Auto parts are generally subject to tariffs when imported into Australia, but there are several exemptions and concessions that may apply depending on the circumstances.
🇦🇺 Australia’s Import Tariffs on Auto Parts
Under Australian law, most imported goods, including auto parts, are liable for customs duties and Goods and Services Tax (GST), unless an exemption or concession applies.
However, there are mechanisms in place that can reduce or eliminate these costs:
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Tariff Concession Orders (TCOs): If there are no known Australian manufacturers of a particular auto part, importers can apply for a TCO. This order allows the goods to enter Australia at a reduced or zero customs duty rate.
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Tradex Scheme: This scheme provides an upfront exemption from customs duty and GST on imported goods intended for re-export or to be used as inputs to exported goods. It removes the need to claim for drawback duty after export, offering cash flow advantages for businesses.
🌍 Free Trade Agreements (FTAs)
Australia has several FTAs that may provide preferential treatment for auto parts: