Digest No. 1617
Purpose
This Bill amends the Tariff Act 1988, the Customs and Excise Act 1996, the Fair Trading Act 1986, the Electricity Act 1992, and the Radiocommunications Act 1989 to enable the Free Trade Agreement between the Government of New Zealand and the Government of the People's Republic of China done at Beijing on 07 April 2008 to be brought into force.
Background
"Amendments to the Tariff Act 1988 will enable the implementation of preferential tariff rates on imported goods of Chinese origin and will enable transitional safeguard measures to be applied in appropriate circumstances on such imports. Amendments to the Customs and Excise Act 1996 will create a system for issuing certificates of origin for goods exported from New Zealand to China. Amendments to the Fair Trading Act 1986, the Electricity Act 1992, and the Radiocommunications Act 1989 will enable compliance by New Zealand with the Agreement between the Government of New Zealand and the Government of the People's Republic of China on Cooperation in the Field of Conformity Assessment in Relation to Electrical and Electronic Equipment and Components (Conformity Cooperation Agreement), which is an integral part of the China Free Trade Agreement. Among other things, these amendments will, to the extent required by the Conformity Cooperation Agreement, extend the application of:
the Fair Trading Act 1986 to misleading and deceptive conduct relating to goods exported from New Zealand for supply to China;
the Electricity Act 1992 and the Radiocommunications Act 1989 to provide for regulations to enable legal action to be taken against persons who do not fulfil the conformity assessment and certification requirements of the Conformity Cooperation Agreement while purporting to do so"
.
Main Provisions
Commencement
The Bill provides that Part 1 (amending the Tariff Act 1988) and Part 4 (amending the Fair trading Act 1989) come into force on a date to be appointed by Order in Council. The rest of the Bill comes into force on the day after assent (Part 2).
Preferential tariffs
The Bill amends the Tariff Act 1988 to enable the implementation of preferential tariffs for goods that are the produce or manufacture of China conferred on China under the Free Trade Agreement. Clause 4 states the purpose of Subpart 1 of Part 1 of the Bill. The Bill also provides for the application of transitional safeguard measures and provisional transitional safeguard measures. The Minister may extend a transitional safeguard measure if the extension is consistent with the provisions of the relevant free trade agreement (either the China Free Trade Agreement or the Thai Free Trade Agreement) and is not inconsistent with New Zealand’s other international obligations. Other consequential amendments to the Tariff Act 1988 are made (Part 1, Subparts 1 and 2, Clauses 4-11, amending Sections 7(1), 15A, 15B, 15F and 15H and substituting Section 15G of the Tariff Act 1988).
New Zealand certificates of origin
The Bill amends the Customs and Excise Act 1996 to provide for a system of issuing New Zealand certificates of origin in relation to goods being exported to China under the Free trade Agreement. The chief executive of the New Zealand Customs Service may designate bodies authorised to issue New Zealand certificates of origin in respect of goods. Before designating a body, the chief executive must be satisfied that the body meets any prescribed criteria. A designation may be subject to terms and conditions, prescribed by regulation or imposed at the discretion of the chief executive. Certain other consequential amendments are made including a regulation power for forms and fees (Part 2, Clauses 12-15, inserting New Sections 64A-64C into the Customs and Excise Act 1996 and amending Section 95(1) of that Act).
Electrical and Electronic Equipment and Components
The Bill amends the Radiocommunications Act 1989 to implement Annex 14 of the Free Trade Agreement (which relates to cooperation in the field of conformity assessment in relation to electrical and electronic equipment and components). There is also included a regulation-making power in relation to the export of interfering equipment, susceptible equipment, or certain other equipment to China (Part 3, Clauses 16-19, amending Section 134 of the Radiocommunications Act 1989 and adding a new Schedule 8 to that Act (in relation to regulations made in relation to exports as referred to above)).
Amendments to Fair Trading Act 1986 in relation to Annex 14
The Bill provides that the Fair Trading Act 1986 applies to conduct or representations relating to goods that are, or may be, exported from New Zealand pursuant to the Conformity Cooperation Agreement (Annex 14)). The Bill also provides for the application of Section 10 of the Fair Trading Act 1986 (misleading conduct in relation to goods) and Section 13 of the Fair Trading Act 1986 (false or misleading representations) to goods that are, or may be, exported from New Zealand for supply to China. Contravention of Sections 10 or 13 relating to goods that are, or may be, exported from New Zealand for supply to China is an offence under Section 40 of the Fair Trading Act 1986. The Bill authorises a warrant being issued in New Zealand under Section 47(2) to search a place in New Zealand (Part 4, Clauses 20-23, amending Section 3 of, and inserting New Section 51 into, the Fair Trading Act 1986).
Amendments to Electricity Act 1992 in relation to Annex 14
The Bill makes amendments to the Electricity Act 1992 also to implement the Conformity Cooperation Agreement. The Bill adds a new purpose to this Act. This new purpose is to provide for the regulation of fittings and electrical appliances that are, or may be, exported pursuant to an international trade instrument. The Bill provides that regulations may be made authorising, controlling, and prescribing conditions in respect of fittings and electrical appliances exported from New Zealand pursuant to the Conformity Cooperation Agreement and regulating fittings and electrical appliances intended to be used in China pursuant to the Conformity Cooperation Agreement. These regulations may specify requirements relating to the preservation of the quality of electricity supplied in China itself (Part 5, Clauses 24-28, amending Sections 1A and 169(1) of the Electricity Act 1992).
