Exporting to China and AANZFTA Countries Practical FTA Session.

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Presentation transcript:

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 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 NEW ZEALAND CUSTOMS SERVICE Checking the Tariff & Rule of Origin Tariff Finder on MFAT’s ChinaFTA website: Tools-and-resources/3-Tariff-finder/index.php Tariff Finder on AANZFTA website: Search by »export tariff classification (HS-6) or »common good’s description

NZ-Cn/FTA – Accessing Preference September NEW ZEALAND CUSTOMS SERVICE NZ-China FTA Wine – tariff classification »Product Specific Rule: Change to heading 2204 from any other chapter

NZ-Cn/FTA – Accessing Preference September NEW ZEALAND CUSTOMS SERVICE Exporting to Indonesia under AANZFTA Fridge Freezer Tariff Classification – Product Specific Rule: Regional Value Content (40) or Change Tariff Sub Heading

Certificates of Origin

NZ-Cn/FTA – Accessing Preference September 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)

What else may affect preference qualification?

NZ-Cn/FTA – Accessing Preference September 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 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 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 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: For general queries on the NZ-China FTA contact: Trade Facilitation & Compliance, Wellington Telephone: