New Zealand-Thailand FTA

Rules of Origin

The final product must meet the NZTCEP rules of origin in order to qualify for the preferential tariff treatment under NZTCEP. The exported product must be either

(a) 'wholly obtained or produced' in New Zealand or Thailand;

(b) produced entirely in the territory of either Thailand or New Zealand exclusively from materials originating in Thailand or New Zealand; or

(c) if it contains any imported materials that are not originating in Thailand 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 Thailand;

(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 Thailand:

(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 Thailand;

(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 Thailand;

(vi) RVC(XX) means that the good must have a Regional Value Content of not less than XX percent as calculated under Article 4.3 of Chapter 4 (Rules of Origin);

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 Thailand.

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.

Chemical Reaction Rule

NZTCEP also offers an alternative chemical reaction rule as a means of achieving origin. For more information on this please refer to the PSR Annex, Headnote and Chapter notes (chapters 27 through 40).