Although jewelry is duty-free, other fees and taxes that may be payable, such as Goods and Services Tax (GST), are not exempted by AUSFTA. “Under the Australian-USA free trade agreement, a piece of jewelry manufactured in the US has a preferential duty-free status under the free trade agreement (AUSFTA).
The burden of knowledge, in this case, rests on the person importing the goods. Customs would charge duty unless the recipient requests preferential tariffs. A shipping carrier’s broker will claim the duty-free status under AUSFTA when the shipment arrives. As long as the carrier is notified that the item is duty-free, the importer can avoid the extra charge by following a simple procedure when the item arrives in Australia.
Generally, this is a small brokerage fee and a GST fee. (In the past, customers paid a 10% GST fee). No duty. This Agreement applies practically to any article of jewelry manufactured in the USA from raw materials. The origin of the raw materials does not matter.
AUSFTA exerts: Article 5.12 Claims for Preferential Treatment
Each Party shall provide that an importer may claim preferential treatment under this Agreement based on the importer’s knowledge or on the information in the importer’s possession that the good qualifies as an originating good. Each Party may require that an importer be prepared to submit, on request, a statement setting forth why the good qualifies as an originating good, including pertinent cost and manufacturing information. The statement need not be in a prescribed format and may be submitted electronically, where feasible.
Article 5.12 of AUSFTA does not require a certificate of origin.
The information can be in any form that the manufacturer wishes to provide, so long as it shows that the imported goods meet the rules of origin requirements of AUSFTA.
“Customs operates in a self-assessment environment, where information provided is treated in the first instance as true and correct. When a customs entry states that a US preference rate of duty applies, this will indicate that the importer of the goods possesses the information, or knowledge, as required in Article 5.12, paragraph 1, above, that this declaration is correct.”