Engineering Exporter Saves AUD 420,000 Annually After India-Australia ECTA Utilisation

Curated by Vinod Kumar Jain & Amit Jain · All Frontier Global · free, no login

India-Australia

Challenge

A Pune-based engineering goods manufacturer (precision machined components, industrial valves) had been exporting to Australian mining and energy companies. Annual Australia exports: AUD 6M. Average Australia MFN duty on their HS codes: 7%. India-Australia ECTA entered force on 29 December 2022 with immediate 0% duty on most manufactured goods. The manufacturer had not claimed ECTA preference in the first 12 months.

Solution

AJG FTA audit identified AUD 420,000 in annual unclaimed ECTA duty savings (7% of AUD 6M). India-Australia ECTA Rules of Origin for their components: 30% qualifying content (India value addition) — the manufacturer had 68% India value addition. COO (Certificate of Origin for ECTA) was obtained from EEPC India. The Australian importer was provided with COO and instructed to present at Australian Border Force for preference claim.

Outcome

ECTA preference claimed from month 13 onward. Annual AUD 420,000 duty saving shared between Indian manufacturer (price competitiveness improvement) and Australian importer (cost reduction). Australian importer secured two additional purchase orders on the basis of improved cost position. Year 2 Australia revenue grew to AUD 8.2M.

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