GTRI Suggests Seven Steps For Traders To Fully Utilise Indo-Australian FTA

In order to fully benefit from the recently implemented free trade agreement, Indian traders should adhere to seven procedures, including being aware of Australia's trade policies and laws of origin for their specific products, says a study by Global Trade Research Initiative (GTRI).

The India-Australia Economic Cooperation and Trade Agreement (ECTA) offers many concessions to exporters and importers of both countries, according to the GTRI, but the concessions are product-specific, so businesses must determine whether their products benefit from the agreement.

To make sure the businesses do not overlook important facts when exporting or importing under ECTA, we have proposed a seven-step approach, it stated.

Knowing the appropriate HSN codes is one of the procedures because a product's tariff classification in Australia and India may change.

Every product is labelled with a Harmonised System of Nomenclature (HSN) code in trade jargon. It aids in the global classification of items in a methodical manner.

The "rules of origin" section specifies the minimum amount of processing that must take place in the FTA country before the final produced commodity may be referred to as originating in that nation.

According to the clause, a nation that has signed an FTA with India is not permitted to merely label goods imported from a third country and dump them on the Indian market. In order to export the goods to India, it must add a specific amount of value. Rules of origin regulations aid in preventing product dumping.

Indian exporters need to be aware of Australia's import regulations as well as India's export regulations. On the grounds of public health, safety, and morality, India does not permit the entry of products made from wild animals or ivory, according to GTRI, who added that trade agreements only grant duty concessions and do not loosen the rules governing imports.