ASEAN-Australia-New Zealand free trade agreement (AANZFTA)

Rules of Origin

(a) 'wholly obtained or produced' in New Zealand or in Australia, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Thailand, Singapore or Viet Nam;

(b) produced entirely in the territory of either the above trading partners, or New Zealand exclusively from materials originating in the above trading partners or New Zealand; or

(c) if it contains any imported materials that are not originating in the above trading partners, or New Zealand, it must meet the Product-Specific Rule of Origin (PSR) listed for the good.

Explanations

(i) Wholly Obtained Or Produced Goods (WO) means goods that have been produced without any imported materials in them;

(ii) goods produced entirely (PE) means goods that are produced entirely from materials that originate either in New Zealand or the other Parties to the agreement;

(iii) Change of Chapter (CC) means that all non-originating materials used directly in the production of the final good must be classified in a different chapter from the final good. If materials classified in the same chapter are used, then they must have been produced in New Zealand or by the above trading partner(s):

(iv) Change of Tariff Heading (CTH) means that all non-originating materials used directly in the production of the final good must be classified in a different heading from the final good. If materials classified in the same heading are used, then they must have been produced in New Zealand or by the above trading partner(s);

(v) Change of Tariff Subheading (CTSH) means that all non-originating materials used directly in the production of the final good must be classified in a different subheading from the final good. If materials classified in the same subheading are used, then they must have been produced in New Zealand or by the above trading partner(s);

(vi) RVC(40) means that the good must have a Regional Value Content of not less than 40 percent as calculated under Article 5 of Chapter 3 (Rules of Origin);

(vii) CTSH + RVC (35%) means that the good must have a Regional Value Content of not less than 35 percent as calculated under Article 5 of Chapter 3 (Rules of Origin) and all non-originating materials used directly in the production of the final good must be classified in a different subheading from the final good. If materials classified in the same subheading are used, then they must have been produced in New Zealand or by the trading partner(s).

NOTE: If a rule has other exclusions, e.g. 'Change of chapter excluding Chapter XX', this means that the goods excluded (i.e. those classified the same chapter as well as those in the excluded Chapter XX) must have been produced either in New Zealand or by the trading partner(s).

Tolerance provision

If a good fails to meet a tariff shift requirement, but the value of the materials that do not meet the tariff shift is less than 10% of the value of the good, the good shall be regarded as originating.

• For textile goods classified in chapters 50 to 63 the producer/exporter can choose between a 10% value or a 10% weight based tolerance.

Chemical process rule

AANZFTA offers an alternative chemical reaction rule as a means to achieve origin for goods classified in Chapters 28, 29 and 32. This rule can only be used if the CTC rule or the RVC rule specified for the good cannot be met.

Need more help?

Further information is available in the New Zealand Customs Service's Fact sheet 42 on AANZFTA here(external link).