Engineered Stone Banned, new controls in place

• Effective 1^st January 2025 a prohibition on the importation of engineered stone benchtops, panels and slabs has been implemented
• Certain sampling sizes are permitted provided they are no larger than 250mm by 250mm and 40mm thick
• Permits can be issued in certain circumstances, but must be arranged prior to shipment
• ABF have issued new CP Questions (Community Protection) to ensure any prohibited goods are identified at the time of importation
• ABF further advise Customs Brokers and Importers are to perform due diligence prior to answering CP questions, ensuring the information provided to ABF is accurate
• Further information, including due diligence steps are available: Engineered stone ban information for industry

Changes to HS Codes – Ceramic (Porcelain) Slabs

• The last 6 months of 2024 has brought about tariff concession uncertainty to ceramic tile importers who were looking to apply concessions against imported tiles
• On December 16, 2024, Australian Customs officially revoked tariff concessions from the Porcelain Tiles classification 6907.21
• Customs Tariff classification 6907.21 (Porcelain Tiles) no longer has any relevant concessions linked, the classification now applies 5% duty to all items except those covered under a free trade agreement
• Porcelain Slabs have been re-classified by ABF to chapter 6914, with relevant concessions re-assigned to this tariff.
• There are still questions around the tariff codes, for example “what defines a slab” and “what differentiates a slab and a tile”. 
• Key among these questions is that Tariff 6914 (Other Ceramic Articles) is made up of two parts – “Of porcelain or china” and “other”
• ABF have keyed porcelain slab concessions to “other”, which under truest application of Tariff Interpretation Rules is incorrect, and leave questions around the motives of ABF
• It is strongly recommended any importer seeking to use concessions keyed to chapter 6914 seek a tariff advice from ABF prior to application.

ABN Fraud – Piggybacking

• Importer fraud has been a concern for many years, with ABN fraud growing significantly since the first ABF notice in 2014. 
• Piggybacking is where an unscrupulous importer steals the identity of a legitimate imported to smuggle or import prohibited goods into Australia
• Recently ABF have identified piggyback consignments where steps were taken to create false web domains and email addresses to further mimic the identity of the stolen ABN
• In further changes made in 2024, Customs Brokers have mandatory requirements to perform due diligence checks on all importers prior to lodging Customs Declarations
• Further information: ABN_fraud_v2.pdf
• Piggyback example: $94 million cocaine import plot foiled in Brisbane

Free Trade Agreement Changes

• United Kingdom joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on 24^th December 2024
• This change opens the scope of free trade eligible to imports from UK, expanding the allowed area for UK origin goods to multiple countries
• The CPTPP now allows free trade (subject to conditions) between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, Vietnam, and United Kingdom
• Further Information: Comprehensive and Progressive Agreement for Trans-Pacific Partnership
• Effective 1^st January 2025, phasing duty rates for the following agreements reduced:
  • India-Australia Economic Agreement (ECTA)
  • Regional Comprehensive Economic Partnership Agreement (RCEP)
  • Australian, United Kingdom and Northern Ireland (A-UKFTA)
• Further information on Free Trade Agreements: Free Trade Agreements