The bill amends the Customs Tariff Act 1995 to give effect to the preferential tariff treatment agreed under the Australia–United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA). It provides a ‘Free’ rate of duty for most UAE-originating goods, phases down duties on specified products over five years, and preserves excise-equivalent charges on certain alcohol, tobacco and fuel goods.

The Customs Tariff Amendment (Australia-United Arab Emirates Comprehensive Economic Partnership Agreement Implementation) Bill 2025 amends the Customs Tariff Act 1995 to implement Australia’s tariff commitments under the CEPA signed on 6 November 2024.

Specifically, the bill:

• introduces a ‘Free’ rate of customs duty for all UAE-originating goods not listed in new Schedule 16, effective on entry into force of the Agreement;
• inserts new Schedule 16 to:
  • set out phasing rates of customs duty on specified UAE-originating goods, reducing ad valorem duties to zero by the fifth calendar year after entry into force; and
  • maintain customs duties on certain alcohol, tobacco, fuel and petroleum products at rates equivalent to domestic excise duties;
• amends Schedule 4 to ensure existing concessional rates apply only when lower than Schedule 16 rates; and
• aligns commencement with the Customs Amendment (Australia–United Arab Emirates Comprehensive Economic Partnership Agreement Implementation) Bill 2025, which inserts origin rules in the Customs Act 1901.

The amendments take effect on the later of Royal Assent and the Agreement entering into force for Australia.