Appendix 1 – Exporting and importing goods under the FTA

This step-by-step guide is designed for individual exporters and importers who want to determine how their goods will be treated under the FTA.

A tariff finder tool can be found on this website.

There are 4 key steps.

1. Establish the tariff classification of a good
2. Check the tariff commitments for the good in the relevant tariff schedule
3. Determine the Rules of Origin (ROO) applying to the good
4. Obtain a Certificate of Origin (minor exceptions apply)

Step 1: Establish the tariff classification of a good

Tariff classification determines the specific Rule of Origin (ROO) for each good and what tariff preferences might apply. It is therefore critical to establish the tariff classification first.

Classification

You can get an indication of the tariff classification of a good by entering a description of the good into the tariff finder tool on this website.

If you or your broker are not confident with your classification of a good, you can apply for a binding tariff classification or ‘advance ruling' which is only relevant to the applicant when the domestic laws, regulations and administrative determinations applicable to the importing Party provide for the issuing of advance rulings.

Exporters

If you are exporting to an AANZFTA agreement Party and would like an advance ruling, you, or the importer, will need to contact the relevant authority in the importing Party.

You may also seek advice from the New Zealand Customs Service on the likely tariff classification in the importing Party. However, the New Zealand Customs Service cannot provide a guaranteed tariff classification ruling for an importing Party.

Importers

If you are importing goods into New Zealand and would like an advance ruling on the classification or origin status of a good, please contact the New Zealand Customs Service. The Customs NZ contact for AANZFTA enquiries is Graham Webb: graham.webb@customs.govt.nz

Step 2: Check the tariff commitments for the good in the relevant tariff schedule

Please note, tariff preference is only applicable to ‘originating goods' - see step 3

If you are exporting to an AANZFTA agreement Party, you need to check their tariff schedule. If you are importing from an AANZFTA agreement Party, you need to check New Zealand's tariff schedule. Both tariff schedules are contained in annex 1 to the FTA and are available on this website. The schedules contain lines that show the year-by-year tariff phase-out arrangements for every tariff item. You can use the tariff finder tool to search for tariff lines.

Each tariff line contains the following details:

• A ‘base rate' column showing the tariff that applied in 2005
• The preferential rates under the FTA for each year over the 12-year tariff phase-out period

The tariff cuts shown will take effect on 1 January of the relevant year, except for the 2009 tariff cut, which it is expected will take effect from 1 July 2009 for imports into New Zealand. The dates of the first tariff cuts for ASEAN countries will depend on the dates of implementation by each ASEAN country.back to top

Step 3: Determine the Rules of Origin applying to the good

Goods must qualify as ‘originating' to gain preferential tariff treatment under the FTA.

Any imports into one of the member countries that do not meet the Rules of Origin (ROO) set out in Chapter 3 and Annex 2 to the FTA will be subject to normal tariff rates and not the preferential rates that apply under the FTA.

A good can qualify as ‘originating' under the FTA if:

• The good is wholly obtained or produced in the territory of a Party

These goods receive the tariff preference as of right.

To qualify as wholly obtained or produced the good must be:

• ‘obtained entirely from within either another AANZFTA agreement Party or New Zealand from specified natural resource-based goods: for example farmed or fished in that country
• ‘produced' entirely from within either another AANZFTA agreement Party or New Zealand from such goods: for example products made from goods farmed or fished in that country

OR

• The good is produced entirely in the territory of either or both of another AANZFTA agreement Party and New Zealand, exclusively from materials whose origin conforms to the provisions of the ROO Chapter and the ROO schedule (Chapter 3 and Annex 2 of the FTA)

OR

• The good is manufactured in the territory of either or both another AANZFTA agreement Party and New Zealand, using inputs from countries not party to the AANZFTA , but meets the product-specific ROO in Chapter 2 and Annex 3, and the other requirements specified in the ROO Chapter

In all circumstances above, to claim the preferential tariff rate, the good must not enter the commerce of a country that is not a member of the FTA after export or before import. Simple trans-shipment is allowed, however.

As with tariff classification, you may seek an ‘advance ruling' on the origin of the good when that particular country's domestic laws, regulations and administrative determinations permit the issuing of such advance rulings.

For any queries or questions on rules of origin, contact: Valuation and Origin section, New Zealand Customs Service, PO Box 29, Shortland Street, Auckland. Ph: 09 359 6655. Fax: 09 359 6586. Email: v&o@customs.govt.nz or graham.webb@customs.govt.nz

Step 4: Exporters obtain a Certificate of Origin

Goods from New Zealand to another AANZFTA agreement Party require a Certificate of Origin (minor exceptions apply) in order to obtain the preferential tariffs under the FTA.

Appendix 2 contains an example of a Certificate of Origin. The form for the Certificate is also set out in Annex 6 of the FTA and on this website.

Either the exporter or the producer must apply for a Certificate of Origin from an "Issuing Body" in New Zealand. If the goods comply with the ROO, the Issuing Body will issue a Certificate of Origin.

The Certificate of Origin supports a claim for obtaining a preferential tariff. However, the Customs administration of either country may request additional information which they consider necessary to satisfy them that a good complies with the ROO.back to top