Introduction

China is Australia’s largest seafood export market, especially for high-value species like lobster, abalone, and prawns. The rewards are high — but so are the risks. Exporting to China involves a complex mix of logistics, law, and diplomacy.

For fishers and exporters, understanding the legal implications of trade with China is as important as the quality of the catch.

Export Approvals and Permits

All seafood exports must pass through Australian government approvals.

• The Department of Agriculture, Fisheries and Forestry (DAFF) certifies products for export.
• Catch must be traceable back to legal, licensed operations.
• Health and safety standards are audited before shipments leave port.

Legal issues:

• False or incomplete documentation can see shipments rejected, damaging buyer confidence.
• Export licences can be suspended for repeated non-compliance.

Trade Agreements and Tariffs

The China–Australia Free Trade Agreement (ChAFTA) has lowered tariffs on many seafood exports.

• Rock lobster, prawns, and abalone benefit from reduced tariffs, improving competitiveness.
• However, exporters must prove compliance with “rules of origin” to access these benefits.

Legal issues:

• Misuse of tariff concessions risks penalties and exclusion from ChAFTA benefits.
• Exporters must keep detailed documentation to prove compliance.

Customs and Quarantine Issues in China

China imposes strict border controls on food imports.

• Labelling must be bilingual and comply with Chinese standards.
• Quarantine inspections can delay or block shipments.
• Rules may change with little notice, especially during political tensions.

Legal issues:

• Exporters must stay updated on constantly changing rules.
• Failure to meet packaging or labelling standards can mean seizure or destruction of goods.

Risks of Market Disruption

Australian exporters know too well that trade can be disrupted for political reasons.

• In 2020–21, Australian lobster exports were suddenly halted at Chinese ports.
• No clear legal breaches were identified, but political tensions triggered de facto bans.

Legal issues:

• Exporters should diversify markets to reduce dependency on China.
• Contracts should include force majeure clauses covering political disruptions.

Contractual Safeguards

International contracts must handle the risks of cross-border trade.

• Use INCOTERMS to clarify who bears risk at each stage of transport.
• Include arbitration clauses to manage disputes in neutral forums.
• Register trademarks in China to prevent counterfeiting or brand misuse.

Conclusion

Exporting to China offers huge opportunities, but also significant legal risks. Operators must:

• Stay compliant with Australian and Chinese rules
• Understand trade agreement obligations
• Prepare for sudden market disruptions
• Protect themselves with strong contracts and IP safeguards