Review of the CER Rules of Origin (ROO): Renewed call for Public Submissions

Review of the CER Rules of Origin (ROO)
Call for Public Submissions

Draft schedule now available to aid feedback.

In accordance with Article 3 of the Australia New Zealand Closer Economic Relations Trade Agreement (CER), a review of the CER Rules of Origin (ROO) is currently being undertaken. As part of the review process, a draft schedule of CER ROO proposals has been prepared to identify areas within the current CER ROO that may require amendment. This draft schedule has been prepared by New Zealand in the first instance, and is made publically available for the purpose of consultation. The draft schedule does not reflect the negotiating position of either Party, is provided on a without-prejudice basis and may be subject to further change as the review progresses.

The Ministry of Economic Development and the Ministry of Foreign Affairs and Trade invite further responses on the review of the Rules of Origin (ROO) under the Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA), known as CER.

The New Zealand/Australia Trade Relationship

CER, signed in 1983, remains one of the world's most open and successful free trade agreements (FTAs). It has underpinned a mutually beneficial expansion and deepening of trans-Tasman economic links. Trade between the two countries has grown by an average of 9 per cent per annum over the life of the agreement.

Australia is New Zealand's largest trading partner, taking nearly 22 percent of our merchandise exports and providing nearly 21 percent of our merchandise imports, with two-way trade worth nearly NZ$17 billion in the year to December 2007. In turn, New Zealand is both Australia's fifth-largest individual export market, Australia's fifth largest merchandise trade partner overall and its largest market for elaborately-transformed manufactures.

For more information about the New Zealand/Australia Trade Relationship visit the Ministry of Foreign Affairs and Trade website.

The CER Rules of Origin (ROO)

Rules of Origin are the criteria used to define where a product was made. They are an essential part of CER. They determine whether a product qualifies for tariff-free entry when being traded between New Zealand and Australia. ROO are also used to compile trade statistics, and for "made in ..." labels that are attached to products. This can be complicated by globalisation because a product can be processed in several countries before it is ready for the market. The current CER ROO, and associated product-specific schedules, are available on the Ministry of Economic Development's website.

The current ROO were finalised in 2006 and entered into force on 1 January 2007. In general they reflect a move away from the previous, more restrictive "value added" approach to a "change in tariff classification" (CTC) approach. CTC recognises the transformation of a product undertaken in the trading party, regardless of the origin of inputs.

The current CER ROO Article provides that the ROO must be reviewed within three years from entry into force.

How to make your views known

Public consultation is critical to the review. The New Zealand Government sought submissions from interested parties in October 2008. A draft schedule is now available to assist further feedback. 

Please send any responses or comments, by Tuesday 17 February 2009, to:

By email to nick.kirton@med.govt.nz

By post to

CER ROO Review
The Ministry of Economic Development
PO Box 1437
Attn: Nick Kirton

You are also welcome to contact either the Ministry of Economic Development or the Ministry of Foreign Affairs and Trade with any questions regarding submissions or the review process.

Nick Kirton
Policy Analyst
Ministry of Economic Development
PO Box 1437
Phone: 04 462 4265
Email: nick.kirton@med.govt.nz

Ben Eckman
CER Policy Officer
Australia Division
Ministry Of Foreign Affairs and Trade
Private Bag 18 901
Phone: 04 439 8540
Email: ben.eckman@mfat.govt.nz

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