The Australian grape and wine community has benefited from the fourth tariff cut under the Japan-Australia Economic Partnership Agreement (JAEPA) on 1 April 2017.
The cut reduced tariffs to 7.5 per cent on Australian bottled table wine. Tariffs on bulk wine were reduced to zero on 15 January 2015.
Wine Australia General Manager, Market Access Steve Guy said the Australian grape and wine community has embraced the opportunities of reduced tariffs under JAEPA.
‘JAEPA is a valuable agreement for the wine sector and it provides preferential access for Australia's exports to Japan’, he said.
‘Since it came into force in January 2015, we have seen the 15 per cent import tariff on bulk wine shipments removed and the staged reduction of import tariffs on bottled wine continue.
‘For Australian wine exporters to access the preferential tariffs, exports must be accompanied by a self-certified origin certification document and exporters have been very active in completing this requirement.’
Before JAEPA, Australian wine exports to Japan had been in a general decline. The agreement immediately boosted bulk exports, however export value is now being driven by wine at higher price points.
The value of Australian wine exports to Japan fell by 0.4 per cent to $46 million in 2016. However, exports of wine at $10 or more per litre free on board grew by 17 per cent to $8 million, the highest level since 2009. Shiraz is fuelling the growth in this price segment, with exports up 15 per cent to $2 million.
Wine Australia recently released an updated Export Market Guide for Japan. The Export Market Guides gather the market-specific requirements and regulations to provide detailed information on duties and taxes, wine standards, labelling requirements, and import and certification requirements.
The recent updates to the Japan Export Market Guide include:
- Economic and demographic update
- JAEPA – latest round of tariff cuts
- Revised liquor tax rates
- Updated recycling fees
- Updated advice on allergens labelling
- Advice on the import of samples
The Export Market Guides are an essential reference point for Australian wine exporters and are free for wine grape and export levy payers, and licenced wine exporters, while others can purchase them.