4th April, 2022
Dear Valued Gava Customers,
The Australian Government is taking further action to increase the economic costs to Russia following its illegal invasion of Ukraine, supported by Belarus, by applying an additional tariff of 35 per cent for all imports from Russia and Belarus.
On 1 April 2022, Australia issued a formal notification withdrawing entitlement to the Most-Favoured-Nation (MFN) tariff treatment and applying an additional tariff of 35 per cent to all imports from Russia and Belarus. This will take effect from 25 April 2022 and will be in addition to general duty rates that currently apply.
This action follows Australia’s joint statement with other like-minded members of the World Trade Organisation, strongly condemning Russia’s actions and committing to take all actions we consider necessary, as WTO members, to protect our essential security interests.
As a member of the WTO, Russia is entitled to the lowest tariff Australia offers other WTO members. Australia could only impose the 35% tariff if Russia’s most favoured nation status was revoked. Belarus is not a WTO member, so it is not accorded most favoured nation status.
In addition to the 35% special tariff, normal customs duties will apply. For many imports, this will mean a duty rate of 40%. Where a tariff concession applies, we expect this will only apply to the general 5% duty and not the new 35% duty.
Should you have any questions, please don’t hesitate to contact us at Gava Australia. For additional updates and information on the Latest News in the industry, please visit our new Gava Website: www.gava.com.au/blog.