Exporting to China and AANZFTA Countries

Practical FTA Session

Which trade agreement?

Where is the good being exported to?» China» AANZFTA country

» Singapore, TPSEPA (P4)» Thailand» Malaysia» Australia

Does the exported good meet the Rules of Origin Provisions?

NZ-Cn/FTA – Accessing Preference

September 20123 NEW ZEALAND CUSTOMS SERVICE

What are Rules of Origin? » Wholly Obtained Goods

» Produced from Wholly Obtained Goods

» Meets the Substantial Transformation Rules (Product Specific Rules)

» Regional Value Content (RVC)

» Change in Tariff Classification (CTC)

» Process Rule

NZ-Cn/FTA – Accessing Preference

September 20124 NEW ZEALAND CUSTOMS SERVICE

Checking the Tariff & Rule of OriginTariff Finder on MFAT’s ChinaFTA website:

http://www.chinafta.govt.nz/2-For-businesses/2-Tools-and-resources/3-Tariff-finder/index.php

Tariff Finder on AANZFTA website:

http://www.asean.fta.govt.nz/tariff-finder

Search by

» export tariff classification (HS-6) or

» common good’s description

NZ-Cn/FTA – Accessing Preference

September 20125 NEW ZEALAND CUSTOMS SERVICE

NZ-China FTA

Wine – tariff classification 220421

» Product Specific Rule: Change to heading 2204 from any other chapter

0806.00

220421

3502.11

NZ-Cn/FTA – Accessing Preference

September 20126 NEW ZEALAND CUSTOMS SERVICE

Exporting to Indonesia under AANZFTA

Fridge Freezer Tariff Classification – 8418.10

Product Specific Rule:

Regional Value Content (40) or

Change Tariff Sub Heading

Certificates of Origin

NZ-Cn/FTA – Accessing Preference

September 20128 NEW ZEALAND CUSTOMS SERVICE

Where do you obtain a FTA Certificate of Origin?

» New Zealand Certifying Bodies

» NZ Customs Fact Sheet #38 (Exporting to China) and #43 (Exporting under AANZFTA)

http://www.customs.govt.nz/news/resources/factsheets

What else may affect preference qualification?

NZ-Cn/FTA – Accessing Preference

September 201210 NEW ZEALAND CUSTOMS SERVICE

Shipping via third-countries – proving non-manipulation in transit

China Customs may require assurance that no manipulation occurred after export from NZ.

Other access issues that may arise:

Authenticity of the certificate of origin

Data mismatch – tariff classification or valuation

Your client / importer may be over-anticipating requirements and seek excessive evidence.

What traders can do when access issues arise?

NZ-Cn/FTA – Accessing Preference

September 201212 NEW ZEALAND CUSTOMS SERVICE

Who claims preference?

Prime responsibility preference rests with the importer – the one gaining direct benefit

What to do if the importer says preference has been declined?

Encourage the importer to:

– Seek written advice from China Customs on their reasons for denying preference

– Appeal within China

Opportunities for improvement

NZ-Cn/FTA – Accessing Preference

September 201214 NEW ZEALAND CUSTOMS SERVICE

What New Zealand Customs is doing:

Good working relationship with China Customs

• Improving transparency, risk assessment and consistency

• Project Group – transhipment and bonded storage

NZ-Cn/FTA – Accessing Preference

September 201215 NEW ZEALAND CUSTOMS SERVICE

New Zealand Customs is available assist in understanding access provisions.

For technical assistance with rules of origin contact:

Valuation, Origin and Classification section

Telephone: 64 9 927 8000

E-mail: VOC@customs.govt.nz

For general queries on the NZ-China FTA contact:

Trade Facilitation & Compliance, Wellington

Telephone: 64 4 901 4500

Email: trade.policy@customs