FTA / APSA SUBMISSIONS Illegal tobacco and Free Trade Agreement reform

Wednesday, April 15, 2026

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FTA / APSA SUBMISSIONS

Illegal tobacco and Free Trade Agreement reform

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have recently lodged a series of submissions addressing critical integrity and cost pressures across Australia's trade system, with a particular focus on illegal tobacco importations and practical barriers limiting effective use of Free Trade Agreements (FTAs).

Illegal tobacco crisis 

FTA and APSA lodged a submission to the Senate Legal and Constitutional Affairs Committee outlining targeted, practical reforms to address the escalating illegal tobacco trade, which is increasingly driven by organised and sophisticated criminal networks exploiting supply chain vulnerabilities.

The submission highlights that while industry supports robust enforcement, current intervention models are creating significant and often disproportionate impacts on legitimate trade, particularly through extended container holds, storage and detention costs.

Key positions and recommendations advanced by FTA/APSA include:
  • introducing a direct payment model for duty and GST in sea cargo, requiring cargo owners to provide banking details directly to Australian Border Force (ABF), reducing reliance on intermediaries and mitigating identity theft and 'piggybacking' risks
  • convening a targeted ABF–industry roundtable (including stevedores and shipping lines) to establish clearer, more consistent frameworks for managing the downstream impacts of cargo interventions
  • ensuring adequate ABF resourcing to match increased inspection volumes, maintaining enforcement effectiveness while avoiding unnecessary disruption to compliant trade
  • reforming the BorderWatch program to restore trusted, two-way engagement between industry and ABF officers, encouraging proactive and informed reporting of suspected illicit activity
Formal Submission - Illegal Tobacco
Free Trade Agreements - removing practical barriers to utilisation 

FTA also made submissions to the General Reviews of ChAFTA and IA-CEPA, focusing on real-world impediments preventing industry from effectively accessing preferential outcomes under both agreements.

While members recognise the value of FTAs in supporting bilateral trade growth, the submissions note that outdated and inflexible origin certification requirements are undermining utilisation, increasing costs and creating unnecessary administrative burden.

ChAFTA - Key points include: 
  • restricted and impractical reliance on advance rulings for self-certification
  • excessive rigidity where minor product variations invalidate existing rulings
  • misalignment between 12-month Certificate of Origin validity and ABF's four-year review powers
  • support for retrospective issuance of origin documentation, ensuring legitimate claims to preference are not lost due to procedural constraints
IA-CEPA - Key points include: 
  • lack of streamlined and consistent approaches to certificates of origin
  • need to expand self-certified origin declarations, aligning IA-CEPA with other modern FTAs
  • allowing greater flexibility for retrospective claims, better reflecting the reality of compliance reviews and post-import verification timeframes
Formal Submission - General Reviews of ChAFTA and IA-CEPA
FTA /APSA will continue to advocate for practical, risk-based reforms that strengthen border integrity, reduce systemic cost pressures and ensure Australia's trade framework remains fit for purpose.


Sal Milici - Licensed Customs Broker
General Manager Trade Policy & Operations - FTA / APSA

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