1. The classification of goods referred to in this Section shall be determined according to commodity codes as they are implemented in the laws and regulations of the United Kingdom. Commodity codes and indicative descriptions set out in this Section are those that were in use in June 2020.
2. Unless otherwise provided for in this Section, for the purposes of the elimination or reduction of customs duties in accordance with this Section, in the case of ad valorem duties any fraction less than 0.1 of a percentage point shall be rounded to the nearest one decimal place (in the case of 0.05 per cent, the fraction is rounded to 0.1 per cent), and in the case of specific duties any fraction smaller than 0.01 of one pound sterling shall be rounded to the nearest two decimal places (in the case of 0.005, the fraction is rounded to 0.01).
3. For the purposes of this Section, the term “Base Rate”, as specified in Column 3 of Part 2B-4 (Schedule of Tariff Commitments of the United Kingdom) is the starting point of elimination or reduction of customs duties.
4. Unless otherwise provided for in this Section, for the purposes of this Section, the term “year” means, with respect to the first year, the period from the date of entry into force of this Agreement until 31 December of the same year and, with respect to each subsequent year, the twelve-month period which starts on 1 January of that year.
5. For the purposes of implementing equal annual instalments, the annual instalments shall take place on the first day of each year (for the avoidance of doubt, for the first year the annual instalment will take place on the date of entry into force of this Agreement).
6. The following staging categories apply to the elimination or reduction of customs duties by the United Kingdom pursuant to Article 2.5 (Treatment of Customs Duties – Trade in Goods), as set out in Part 2B-4 (Schedule of Tariff Commitments of the United Kingdom):
(a) customs duties on originating goods provided for in the items in staging category ‘EIF’ shall be eliminated on the date this Agreement enters into force;
(b) customs duties on originating goods provided for in the items in staging category ‘B4’ shall be removed in four equal annual instalments beginning on the date of entry into force of this Agreement, and such goods shall be free of customs duty from 1 January of year four;
(c) customs duties on originating goods provided for in the items in staging category ‘B5’ shall be removed in five equal annual instalments beginning on the date of entry into force of this Agreement, and such goods shall be free of customs duty from 1 January of year five;
(d) customs duties on originating goods provided for in the items in staging category ‘B6’ shall be removed in six equal annual instalments beginning on the date of entry into force of this Agreement, and such goods shall be free of customs duty from 1 January of year six;
(e) customs duties on originating goods provided for in the items in staging category ‘B8’ shall be removed in eight equal annual instalments beginning on the date of entry into force of this Agreement, and such goods shall be free of customs duty from 1 January of year eight;
(f) customs duties on originating goods provided for in the items in staging category ‘B9’ shall be removed in nine equal annual instalments beginning on the date of entry into force of this Agreement, and such goods shall be free of customs duty from 1 January of year nine;
(g) customs duties on originating goods provided for in the items in staging category ‘C11’ shall remain at the applicable base rate set out in Part 2B-4 (Schedule of Tariff Commitments of the United Kingdom) from the date of entry into force of this Agreement until 31 December of year ten, and such goods shall be free of customs duty from 1 January of year eleven; and
(h) customs duties on originating goods provided for in the items in staging category ‘E’ shall remain at the applicable base rate set out in Part 2B-4 (Schedule of Tariff Commitments of the United Kingdom).
7. Originating goods provided for in the items with the note ‘TRQ’ in the Column headed ‘Notes’ in Part 2B-4 (Schedule of Tariff Commitments of the United Kingdom) shall be subject to the corresponding tariff rate quota set out in Part 2B-2 (Tariff Rate Quotas of the United Kingdom).
8. Originating goods provided for in the items with the note ‘PSS’ in the Column headed ‘Notes’ in Part 2B-4 (Schedule of Tariff Commitments: United Kingdom) may be subject to the corresponding product specific safeguard measures set out in Part 2B-3 (Product Specific Safeguard Measures).
Part 2B-2 Tariff rate quotas of the United Kingdom
Subsection 2B-2-1: General Provisions
1. This Part sets out the tariff rate quotas (“TRQs”) that the UK shall apply from the date of entry into force of this Agreement to certain originating goods of Australia.
2. The products covered by each TRQ set out in Subsection 2B-2-2 (Product Treatment) are informally identified in the title to the paragraph setting out the TRQ. These titles are included solely to assist readers in understanding this Part and shall not alter or supersede the coverage established through the identification of covered commodity codes in Subsection 2B-2-2 (Product Treatment).
3. For the purposes of this Part, the term “metric tonnes” shall be abbreviated as “MT”.
4. Australia shall allocate the TRQs provided for in Subsection 2B-2-2 (Product Treatment) to exporters or producers by issuing TRQ certificates up to the relevant quantity for each TRQ, in accordance with the procedures set out in this Section. The United Kingdom shall manage each TRQ in accordance with its laws and regulations, on the basis of the TRQ certificates issued by Australia for each export consignment.
5. A TRQ certificate for a TRQ must include the following information as a minimum:
(a) exporter’s name and address;
(b) importer’s name and address;
(c) a description of the good(s);
(d) quantity (alongside unit of measure); and
(e) validity period of TRQ certificate
6. Where this Agreement enters into force during a year, the TRQ quantities shall be pro-rated and calculated as a proportion of the annual TRQ quantity equal to the number of days remaining in the year.
7. Australia shall notify the United Kingdom of the identity of any body authorised to issue TRQ certificates and the format of the TRQ certificate used by Australia for the certification of TRQs.
8. The Parties shall take reasonable measures to avoid any counterfeiting of TRQ certificates.
9. If a matter arises concerning the application or administration of TRQs or any related matter, a Party may make a written request to the other Party to:
(a) hold a meeting of the Trade in Goods Committee;
(b) respond to specific questions; or
(c) provide information relating to the application or administration of TRQs.
10. A Party receiving a written request under paragraph 9 shall, to the extent permitted by its laws and regulations, respond to the request as soon as practicable and in any event within 14 days of receipt of the request, provided that a request under subparagraph 9(b) or subparagraph 9(c) is reasonable and proportionate to the matter.
Subsection 2B-2-2: Product Treatment
TRQ 1 – Beef
1. The aggregate quantity of originating goods of Australia described in paragraph 2 that shall be permitted to enter the United Kingdom free of customs duty in a particular year is specified below:
Year | Quantity (MT) |
---|---|
1 | 35,000 |
2 | 43,333 |
3 | 51,667 |
4 | 60,000 |
5 | 68,333 |
6 | 76,667 |
7 | 85,000 |
8 | 93,333 |
9 | 101,667 |
10 | 110,000 |
2. The commodity codes to which TRQ 1 applies are:
0201; 0202; 0206.10.95; 0206.29.91; 0210.20; 0210.99.51; 0210.99.59; 1602.50; 1602.90.61; 1602.90.69.
3. The out-of-quota customs duty rate on an originating good described in paragraph 2 entering the United Kingdom shall be subject to staging category ‘C11’ as described in Part 2B-1 (Notes for Schedule of the United Kingdom).
4. From year 11 until the end of year 15, originating goods described in paragraph 2 entering the United Kingdom may be subject to a product specific safeguard measure, as set out in Subsection 2B-3-2.
TRQ 2 – Sheep Meat
1. Subject to paragraph 5, the aggregate quantity of originating goods of Australia described in paragraph 2 that shall be permitted to enter the United Kingdom free of customs duty in a particular year (the “TRQ 2 Quantity”) is specified below:
Year | Quantity (MT) |
---|---|
1 | 25,000 |
2 | 30,556 |
3 | 36,111 |
4 | 41,667 |
5 | 47,222 |
6 | 52,778 |
7 | 58,333 |
8 | 63,889 |
9 | 69,444 |
10 | 75,000 |
2. The commodity codes to which TRQ 2 applies are:
0204.10; 0204.21; 0204.22; 0204.23; 0204.30; 0204.41; 0204.42; 0204.43; 0210.99.21; 0210.99.29; 1602.90.91.
3. The out-of-quota customs duty rate on an originating good described in paragraph 2 entering the United Kingdom shall be subject to staging category ‘C11’ as described in Part 2B-1 (Notes for Schedule of the United Kingdom).
4. From year 11 until the end of year 15, originating goods described in paragraph 2 entering the United Kingdom may be subject to a product specific safeguard measure, as set out in Subsection 2B-3-2 (Product Specific Safeguard Measures).
5. If:
(a) in any two consecutive years, excluding any year in which the TRQ 2 Quantity is reduced in accordance with this paragraph, the aggregate quantity of originating goods imported under TRQ 2 in a year is equal to or greater than 95% of the TRQ 2 Quantity; and
(b) no goods to which TRQ 2 applies have been subject to a bilateral safeguard measure, as defined in Article 1 of Chapter 3 (Definitions – Trade Remedies), during the two consecutive year period,
the TRQ 2 Quantity in only the following year shall be reduced by 25%.
TRQ 3 – Milk, Cream, Yoghurt and Whey
1. The aggregate quantity of originating goods of Australia described in paragraph 2 that shall be permitted to enter the United Kingdom free of customs duty in a particular year is specified below:
Year | Quantity (MT) |
---|---|
1 | 20,000 |
2 | 20,000 |
3 | 20,000 |
4 | 20,000 |
5 | 20,000 |
2. The commodity codes to which TRQ 3 applies are:
0401; 0402; 0403; 0404 (excluding 0404.10.48).
3. The out-of-quota customs duty rate on an originating good described in paragraph 2 entering the United Kingdom shall be subject to staging category ‘B6’ as described in Part 2B-1 (Notes for Schedule of the United Kingdom).
TRQ 4 - Butter
1. The aggregate quantity of originating goods of Australia described in paragraph 2 that shall be permitted to enter the United Kingdom free of customs duty in a particular year is specified below:
Year | Quantity (MT) |
1 | 5,500 |
2 | 7,000 |
3 | 8,500 |
4 | 10,000 |
5 | 11,500 |
2. The commodity code to which TRQ 4 applies is:
0405.
3. The out-of-quota customs duty rate on an originating good described in paragraph 2 entering the United Kingdom shall be subject to staging category ‘B6’ as described in Part 2B-1 (Notes for Schedule of the United Kingdom).
TRQ 5 - Cheese and Curd
1. The aggregate quantity of originating goods of Australia described in paragraph 2 that shall be permitted to enter the United Kingdom free of customs duty in a particular year is specified below:
Year | Quantity (MT) |
---|---|
1 | 24,000 |
2 | 30,000 |
3 | 36,000 |
4 | 42,000 |
5 | 48,000 |
2. The commodity code to which TRQ 5 applies is:
0406.
3. The out-of-quota customs duty rate on an originating good described in paragraph 2 entering the United Kingdom shall be subject to staging category ‘B6’ as described in Part 2B-1 (Notes for Schedule of the United Kingdom).
TRQ 6 – Wheat and Meslin
1. The aggregate quantity of originating goods of Australia described in
paragraph 2 that shall be permitted to enter the United Kingdom free of customs duty in a particular year is specified below:
Year | Quantity (MT) |
---|---|
1 | 80,000 |
2 | 80,000 |
3 | 80,000 |
4 | 80,000 |
2. The commodity code to which TRQ 6 applies is:
1001.99.
3. The out-of-quota customs duty rate on an originating good described in paragraph 2 entering the United Kingdom shall be subject to staging category ‘B5’ as described in Part 2B-1 (Notes for Schedule of the United Kingdom).
TRQ 7 – Barley
1. The aggregate quantity of originating goods of Australia described in
paragraph 2 that shall be permitted to enter the United Kingdom free of customs duty in a particular year is specified below:
Year | Quantity (MT) |
---|---|
1 | 7,000 |
2 | 7,000 |
3 | 7,000 |
4 | 7,000 |
2. The commodity code to which TRQ 7 applies is:
1003.90.
3. The out-of-quota customs duty rate on an originating good described in paragraph 2 entering the United Kingdom shall be subject to staging category ‘B5’ as described in Part 2B-1 (Notes for Schedule of the United Kingdom).
TRQ 8 - Long Grained Rice
1. The aggregate quantity of originating goods of Australia described in paragraph 2 that shall be permitted to enter the United Kingdom free of customs duty is 1,000 MT per year.
2. The commodity codes to which TRQ 8 applies are:
1006.30.25; 1006.30.27; 1006.30.46; 1006.30.48; 1006.30.65; 1006.30.67; 1006.30.96; 1006.30.98.
3. The out-of-quota customs duty rate on an originating good described in paragraph 2 entering the United Kingdom shall be the base rate for the relevant commodity code outlined in Part 2B-4 (Schedule of Tariff Commitments of the United Kingdom).
TRQ 9 – Broken Rice
1. The aggregate quantity of originating goods of Australia described in
paragraph 2 that shall be permitted to enter the United Kingdom free of customs duty in a particular year is specified below:
Year | Quantity (MT) |
---|---|
1 | 11,500 |
2 | 11,500 |
3 | 11,500 |
4 | 11,500 |
2. The commodity code to which TRQ 9 applies is:
1006.40.
3. The out-of-quota customs duty rate on an originating good described in paragraph 2 entering the United Kingdom shall be subject to staging category ‘B5’ as described in Part 2B-1 (Notes for Schedule of the United Kingdom).
TRQ 10 – Sugar
1. The aggregate quantity of originating goods of Australia described in paragraph 2 that shall be permitted to enter the United Kingdom free of customs duty in a particular year is specified below:
Year | Quantity (MT) |
---|---|
1 | 80,000 |
2 | 100,000 |
3 | 120,000 |
4 | 140,000 |
5 | 160,000 |
6 | 180,000 |
7 | 200,000 |
8 | 220,000 |
2. The commodity codes to which TRQ 10 applies are:
1701.13; 1701.14; 1701.91; 1701.99.
3. The out-of-quota customs duty rate on an originating good described in paragraph 2 entering the United Kingdom shall be subject to staging category ‘B9’ as described in Part 2B-1 (Notes for Schedule of the United Kingdom).
4. For the purposes of TRQ 10 only, the term “year” in paragraph 1 of TRQ 10 and paragraph 6 of Subsection 2B-2-1 (General Provisions) shall mean, with respect to the first year, the period from the date of entry into force of this Agreement until the next 30 September and, with respect to each subsequent year, the twelve-month period which starts on 1 October of that year.
Part 2B-3 Product Specific Safeguard Measures
Subsection 2B-3-1: General Provisions
1. This Part sets out the originating agricultural goods that may be subject to product specific safeguard measures under paragraph 8 of Part 2B-1 (Notes for Schedule of the United Kingdom).
2. Notwithstanding Article 2.5 of Chapter 2 (Treatment of Customs Duties – Trade in Goods), the United Kingdom may apply a product specific safeguard measure on specific originating agricultural goods provided for in the commodity codes indicated with ‘PSS’ in column ‘Notes’ in Part 2B-4 (Schedule of Tariff Commitments of the United Kingdom). The United Kingdom may apply such a product specific safeguard measure only under the conditions set out in this Section 2B and only in accordance with the terms set out in this Section 2B.
3. Any product specific safeguard measure applied under Section 2B may be maintained only until the end of the year in which the trigger quantity was exceeded. The application of a product specific safeguard measure in a year does not affect the application of a product specific safeguard measure on the same product in any subsequent year.
4. The United Kingdom shall implement any product specific safeguard measure in a transparent manner. The United Kingdom shall, to the extent permitted by its laws and regulations, ensure that the volume of imports of originating agricultural goods referred to in paragraph 1 is published regularly in a manner which is readily accessible to Australian producers and exporters. The United Kingdom shall give notice in writing, including relevant data, to Australia as far in advance of the application of a product specific safeguard measure as may be practicable.
5. On request, the United Kingdom shall consult with Australia with respect to the application of a product specific safeguard measure.
Subsection 2B-3-2: Product Treatment
PSS 1 - Product Specific Safeguard Measure for Beef
1. From the start of year 11 to the end of year 15, the United Kingdom may increase the ad valorem customs duty rate on originating goods provided for in the commodity codes indicated with ‘PSS 1’ in Column ‘Notes’ in Part 2B-4 (Schedule of Tariff Commitments of the United Kingdom) (“PSS 1 goods”) to 20 percent if the aggregate quantity of PSS 1 goods imported into the UK in a year exceeds the annual aggregate trigger quantity for that year.
2. The annual aggregate trigger quantity for PSS 1 goods is:
(a) 122,000 metric tonnes for year 11;
(b) 134,000 metric tonnes for year 12;
(c) 146,000 metric tonnes for year 13;
(d) 158,000 metric tonnes for year 14; and
(e) 170,000 metric tonnes for year 15.
3. For the avoidance of doubt, annual aggregate trigger volumes are calculated based on aggregate imports of originating goods from Australia into the UK of products under the following commodity codes:
0201; 0202; 0206.10.95; 0206.29.91; 0210.20; 0210.99.51; 0210.99.59; 1602.50; 1602.90.61; 1602.90.69.
4. The product specific safeguard measure for beef as set out in this section shall no longer apply from year 16.
PSS 2 - Product Specific Safeguard Measure for Sheep meat
1. From the start of year 11 to the end of year 15, the United Kingdom may increase the ad valorem customs duty rate on originating goods provided for in the commodity codes indicated with ‘PSS 2’ in Column ‘Notes’ in Part 2B-4 (Schedule of Tariff Commitments of the United Kingdom) (“PSS 2 goods”) to 20 percent if the aggregate quantity of PSS 2 goods imported into the UK in a year exceeds the annual aggregate trigger quantity for that year.
2. Subject to paragraph 5, the annual aggregate trigger quantity for PSS 2 goods is:
(a) 85,000 metric tonnes for year 11;
(b) 95,000 metric tonnes for year 12;
(c) 105,000 metric tonnes for year 13;
(d) 115,000 metric tonnes for year 14; and
(e) 125,000 metric tonnes for year 15;
3. For the avoidance of doubt, annual aggregate trigger volumes are calculated based on aggregate imports of originating goods from Australia into the UK of products under the following commodity codes:
0204.10; 0204.21; 0204.22; 0204.23; 0204.30; 0204.41; 0204.42; 0204.43; 0210.99.21; 0210.99.29; 1602.90.91.
4. The product specific safeguard measure for sheep meat as set out in this section shall no longer apply from year 16.
5. From the start of year 11 to the end of year 15, if the aggregate quantity of PSS 2 goods imported into the UK in a year exceeds the annual aggregate trigger quantity for that year and the UK increases the ad valorem customs duty pursuant to paragraph 1, the annual aggregate trigger quantities set out in paragraph 2 in respect of each subsequent year shall be reduced by 25%.