IV. Operation of the Scheme Goods
4.1.1 Under this Arrangement, a Good that may legally be sold in the Jurisdiction of an Australian Party may legally be sold in New Zealand and a Good that may legally be sold in New Zealand may legally be sold in the Jurisdiction of any Australian Party. Goods need only comply with the standards or Regulations applying in the jurisdiction in which they are produced or through which they are imported. The understandings entered into under this principle are confined to the laws of each Party.
4.1.2 Under the principle referred to in sub-paragraph 4.1.1, mutual recognition will affect certain laws relating to the sale of Goods of the jurisdiction where the Goods are intended for sale. Such laws include:
(a) Requirements relating to production, composition, quality or performance of a Good;
(b) Requirements that a Good satisfy certain standards relating to presentation, such as packaging, labelling, date, or age stamping;
(c) Requirements that Goods be inspected, passed or similarly dealt with; or
(d) any other Requirement that would prevent or restrict, or would have the effect of preventing or restricting, the sale of the Good.
4.1.3 The Arrangement is not intended to affect the operation of any laws to the extent that they regulate:
(a) the manner of the sale of Goods or the manner in which sellers conduct or are required to conduct their business, so long as those laws apply equally to Goods produced or imported in the Jurisdiction of the Party. Examples include:
(i) the contractual aspects of the sale of Goods;
(ii) the registration of sellers or other persons carrying on occupations;
(iii) the requirements for business franchise licences;
(iv) the persons to whom Goods may or may not be sold; and
(v) the circumstances in which Goods may or may not be sold;
(b) the transportation, storage or handling of Goods, so long as those laws apply equally to Goods produced or imported under the laws of the Party and so long as they are directed at matters affecting public health and safety or at preventing, minimising or regulating environmental pollution (including air, water, noise or soil pollution); or
(c) the inspection of Goods, provided inspection is not a prerequisite to the sale of Goods, the laws apply equally to Goods produced or imported under the laws of the Party, and the laws are directed to protecting the health and safety of persons or to preventing, minimising or regulating environmental pollution.
4.1.4 Consistent with the mutual recognition principle set out above, the Parties intend that the Arrangement will not affect the operation of any law or regulation prohibiting or restricting the export of Goods from a Participating Party.
Temporary Exemptions
4.2.1 The Parties may temporarily exempt a Good or a law relating to a Good from the operation of the Arrangement where such exemptions are substantially for the purpose of protecting the health and safety of persons or preventing, minimising or regulating environmental pollution. Such Temporary Exemptions will apply only to the laws of the Party or Parties which invoke them. It is intended that a Party will not be able to have a Good banned or restricted from sale in the jurisdiction of another Party.
4.2.2 It is intended that a Temporary Exemption for such a Good or law, or a series of consecutive Temporary Exemptions for the same Good or law, not apply for a period exceeding an aggregate maximum of 12 months. Prior to the expiration of the exemption relating to the Good, the relevant Ministerial Council(s) will endeavour to determine whether a standard should apply to the Good, and, if so, that standard. Alternatively, the Ministerial Council may recommend to Heads of Government that the Good or law be Permanently Exempted from the Arrangement.
Referrals
4.3 A Participating Party may, at any time and substantially for the purpose of protecting the health and safety of persons or preventing, minimising or regulating environmental pollution, refer the matter of the standard applicable to any Goods under the Jurisdiction of another Participating Party to the Ministerial Council having responsibility for such Goods. The Ministerial Council will endeavour to determine, within 12 months of receiving such a referral, whether or not a standard should be set with respect to the Good, and if so, that standard.
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