The China Australia Free Trade Agreement, ChAFTA was ratified in December 2015.
Under the terms of ChAFTA, we will have the benefit of reducing import duties for our alpaca and wool quilts into China from December 2015
Under ChAFTA, the import duty rate for bedding categories reduces in stages and in 2018 the import duty is 4% which is a reduction of 16% in the import duties since the agreement was ratified. This is a significant reduction of a cost impost and the import duty on bedding products will be zero from 1st January 2019.
ChAFTA offers AABC a major opportunity to expand its export business into China with our alpaca and wool bedding ranges that are at the luxury premium end of the home wares market