Everything SMBs need to know about the ASEAN-Australia-New Zealand Free Trade Agreement — updated for the April 2025 Upgrade.
AANZFTA — the ASEAN-Australia-New Zealand Free Trade Agreement — is the primary trade framework governing commerce between Australia and Malaysia. Signed in 2009 and progressively upgraded since, it covers goods, services, investment, and intellectual property across all 10 ASEAN member states plus Australia and New Zealand.
For Australian businesses trading with Malaysia, AANZFTA is the agreement you'll use for the vast majority of exports and imports. It provides lower or zero tariffs on most goods, mutual recognition arrangements, and a framework for resolving trade disputes.
Following the AANZFTA Upgrade that entered into force April 2025, nearly all product lines face zero tariff when exported from Australia to Malaysia and other ASEAN countries.
The AANZFTA Upgrade Protocol was signed in November 2022 and entered into force on 1 April 2025 for Australia and most ASEAN members including Malaysia. This was the most significant update to the agreement since its original implementation.
Important: The Upgrade applies automatically to eligible goods — you don't need to re-register. However, you do need a valid Certificate of Origin (Form AANZ) to claim preferential tariff rates. See the CoO section below.
Below are major Australian export categories to Malaysia, with their tariff status under AANZFTA post-Upgrade. Tariff rates apply when a valid Certificate of Origin is presented at the Malaysian port of entry.
| Product Category | HS Code Range | AANZFTA Rate (MY) | MFN Rate (no FTA) |
|---|---|---|---|
| Wheat & Grain | Chapter 10 | 0% | 0–5% |
| Dairy Products (milk, cheese, butter) | Chapter 04 | 0% | 0–25% |
| Red Meat (beef, lamb) | Chapter 02 | 0% | 0–20% |
| Wine & Spirits | Chapter 22 | 0% | 0–25% |
| Iron & Steel Products | Chapters 72–73 | 0% | 0–30% |
| Machinery & Equipment | Chapters 84–85 | 0% | 0–30% |
| Education Services (private) | GATS Schedule | Open | Restricted |
| Wool & Raw Fibres | Chapter 51 | 0% | 0–10% |
| Vitamins & Supplements | HS 2936–2941 | 0–5% | 0–30% |
| Cosmetics & Personal Care | Chapter 33 | 0% | 0–20% |
For a precise tariff rate on your specific product, use the DFAT FTA Portal — enter your HS code to see the exact AANZFTA rate for Malaysia.
💡 Pro tip: Malaysia's MFN (most-favoured-nation) rates for some agricultural and processed food products can be 20–30%. If you're exporting without a Certificate of Origin, you could be paying that unnecessarily. Always present your CoO at customs.
To claim an AANZFTA preferential tariff rate, your goods need to "originate" in Australia under the agreement's Rules of Origin (RoO). This generally means one of:
AANZFTA allows for "cumulation" — meaning content from other AANZFTA parties (e.g., New Zealand, Singapore, Vietnam) can count toward the origin calculation. This is particularly useful for goods manufactured in AU-ASEAN supply chains.
A Certificate of Origin (Form AANZ) is the document that proves your goods qualify for preferential tariff rates under AANZFTA. Without one, Malaysian customs will apply the standard MFN tariff rate.
Confirm your product meets the Rules of Origin. Check the DFAT FTA Portal for the specific RoO applicable to your HS code.
Apply through the Australian Chamber of Commerce and Industry (ACCI) or a state Chamber of Commerce. You'll need a valid ABN and to register your export activity.
Gather your commercial invoice, packing list, and evidence of origin (production records, supplier declarations, cost breakdowns if RVC-based).
Submit your application online via the ACCI portal or your state Chamber. Post-Upgrade, electronic CoOs are accepted by Malaysian Customs (RMCD) — no need to courier physical documents for most shipments.
Your Malaysian importer presents the CoO to the Royal Malaysian Customs Department (RMCD) at the port of entry. Electronic verification is available at major ports (Port Klang, KLIA Cargo). The importer claims the preferential tariff rate on their import declaration.
CoO validity: AANZFTA Certificates of Origin are valid for 12 months from the date of issue. Blanket CoOs (covering multiple shipments of the same product) are available for regular exporters.
AANZFTA is the main agreement, but Australian businesses trading with Malaysia can also benefit from:
In most cases, AANZFTA or MAFTA will provide the most favourable rates for AU-MY trade — but it's worth checking all applicable agreements for your specific product.
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