Where an importer is not in possession of a CO until post importation, and the goods are qualifying under TAFTA, there are opportunities to seek a refund of previous duty paid, through Customs Regulations 126B and 128B (6) and (7). Theseregulations allow for the application of a refund as long as a CO exists at the time the refund is being applied for. Limitations exist to the application of such refunds, which do not apply to safeguard goods. These regulations appears to contradict the Customs Act's requirements of a CO to be available at the time of importation to enable claims of preferential treatment and it remains to be seen how a court would regard this conflict. [FN25]

6 CONCLUSION

TAFTA provides avenues for markets in Thailand and Australia to become more open to bilateral trade. Preferential duty treatment to qualifying goods has the potential to increase exports sales on a sectoral basis in both countries.

To be able to claim any preferential treatment, traders need to ensure that they understand the prescriptive action that needs to be implemented before a consignment is despatched overseas. Counsel advising client should emphasise at least the following items:

• Classification of the product under HS codes must be accurate, including any intermediary inputs, for the purposes of classifying the goods as qualifying goods under TAFTA. If there is any doubt, an application for OA should be filed with the ACS immediately, with appropriate supporting documentation.

• The various tests for determining the origin of goods must be well understood and, as required, education of relevant staff may be an appropriate step to avoid errors that may result in financially painful and business destructive sanctions.

• Exporter Registration with an authorised TAFTA CO issuing body is recommended at the earliest opportunity. Registration is not limited to one authorised issuing body only, and it may be desirable to be registered with more than one body. Deeds are required to be signed, rendering the exporter organisation responsible for declaring any changes as soon as they occur. The Deed also requires signatories to be listed and it is recommended that more than one signatory be listed on the Deed, to overcome employee absences.

• A CO is required for every consignment where preferential treatment is sought, and allowances in the business processes should be made for this requirement. These allowances should build in the extra time taken to secure the CO, as well as the additional costs involved.

• The unavailability of a CO may place the importer in either Australia or Thailand in a disadvantaged position, as preferential duty treatment may be denied at the time of importation, with potentially serious financial and business relationship repercussions. It is recommended that procedures and policies be instigated by the client to avoid such situations. Although refunds may be available to traders post importation, this is not the preferred way to conduct business and it is certainly less financially efficient to disburse funds first then claim same back, rather than avoid the payment in the first instance.

• There are serious documentary evidence requirements and record keeping obligations in relation to goods subject to CO requirements and clients must understand and comply with such obligations to avoid penalties.

It is important to remember that whilst preferential treatment is available, it will only be achieved by following the prescribed path.

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[FN25]. Hudson (2005) Free Trade Agreements, CBFCA Web Communicator 2005, Issue 04, 9 March. Available at: http://www.cbfca.com.au/cbfca_ site/site/page.asp?s=100&viewBy=bulletin&page =2 (Accessed: 10 March 2005).