Further Liberalising Trade Between Australia and New Zealand

The Minister for Trade, Warren Truss said today that Australian companies trading in New Zealand are set to benefit from new rules of origin arrangements under Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) which came into effect on 1 January 2007.

Australian companies can export their products to New Zealand without attracting New Zealand customs duty where those products meet the specific ANZCERTA country of origin rules. New Zealand products that meet the rules can also be imported into Australia duty free.

“ANZCERTA is one of the world’s most successful free trade agreements, and the new rules of origin further liberalise trade across the Tasman. They promote trans-Tasman trade by simplifying the administration of the rules,” Mr Truss said.

“The reforms are the result of extensive negotiation with New Zealand and with industry on both sides of the Tasman. The new rules support the competitiveness of businesses and will greatly benefit Australian exporters by reducing the costs of compliance with origin rules,” Mr Truss said.

Under the new product specific rules, a product will generally be covered by ANZCERTA and gain duty free entry as long as the manufacturing process in Australia or New Zealand involves a specified change in its classification under the global Harmonized Commodity Description and Coding System. A secondary regional value requirement may also have to be met to confirm that significant transformation has taken place.

Mr Truss said the new arrangements improve certainty for business as the country of origin is generally not affected by price sensitivities or exchange rate movements. They also reflect similar rules adopted in Australia’s recent free trade agreements, enhancing consistency across FTAs which in turn is good for business.

Importers and exporters will have the option of continuing under the previous ANZCERTA rules until 2012. The old rules are based on a 50 percent regional value content threshold.

The Customs (New Zealand Rules of Origin) Regulations 2006, which contain the new product-specific rules, are available on the Australian Customs website at http://www.customs.gov.au under the import export directory heading.

ENDS

Media Inquiries: Minister Truss' office 02 6277 7420 - Departmental Media Liaison 02 6261 1555