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Digest No. 1680

ASEAN-Australia-New Zealand Free Trade Area Bill 2009

Date of Introduction: 09 April 2009
Portfolio: Trade
Select Committee: As at 28 April, 1st Reading not held.
Published: 28 April 2009Prepared by John McSoriley BA LL.B, BarristerLegislative AnalystP: (04) 471-9626 (Ext. 9626)F: (04) 471-1250 Caution: This Digest was prepared to assist consideration of the Bill by members of Parliament. It has no official status.Although every effort has been made to ensure accuracy, it should not be taken as a complete or authoritative guide to the Bill. Other sources should be consulted to determine the subsequent official status of the Bill.

Purpose

The aim of this Bill is to implement the Agreement Establishing the ASEAN (Association of South East Asian Nations)-Australia-New Zealand Free trade Area done at Cha-am, Phetchaburi, Thailand on 27 February 2009 (the AANZFTA).

The Bill is an omnibus Bill in terms of Standing Order 259(a) of the Standing Orders of the House of Representatives. "It is intended that the Bill will be divided into separate Bills at the committee of the whole House stage" [1]   .

Background

National interest analysis

The New Zealand Treasury has prepared a national interest analysis on the AANZFTA which sets out the background to the arrangement and its advantages and disadvantages for New Zealand [2]   .

Main Provisions

Commencement

The Bill provides that it will commence on a date appointed by Order in Council (Clause 2).

Amendments to the Tariff Act 1988

Different Tariff rates of duty for a specified AANZFTA

The Bill add definitions to the Tariff Act 1988 relating to the AANZFTA including a definition of "specified AANZFTA party". The Bill then provides for the application of preferential tariffs in the case of goods that are the produce or manufacture of specified AANZFTA parties, and for the ability to set different Tariff rates of duty for a specified AANZFTA party (Part 1, Clause 4, Clause 5, Clause 6 (inserting New Sections 7, 7A and 7B into the Tariff Act 1988) and Clause 10 and Schedule, inserting new note 3 in Schedule 1 of the Tariff Act 1988).

Transition measures

The Bill amends the definition of "free trade agreement" in Section 15A of the Tariff Act 1988 in order to provide for the application of transitional safeguard measures (including provisional measures) in relation to the AANZFTA (Part 1, Clauses 7, 8, and 9, amending Sections 15A and 15H of the Tariff Act 1988).

Amendments to Customs and Excise Act 1996

The Bill provides that the chief executive of the New Zealand Customs Service (the chief executive) to designate (after being satisfied that any prescribed criteria are met) certain bodies as certification bodies (subject to terms and conditions prescribed by regulation or imposed at the discretion of the chief executive) that are authorised to issue a New Zealand certificate of origin in respect of goods for export to countries that are party to the AANZFTA. The Bill further provides that a certificate of origin would identify the goods and certify that they are of New Zealand origin in terms of the AANZFTA and also provides for the making of regulations prescribing:

  • criteria to be met by bodies wishing to be designated as certification bodies;
  • forms and fees and the manner in which applications for designation as a certification body must be made; and
  • terms and conditions of designations (Part 2, Clause 12 and Clause 13 (amending Section 64A of the Customs and Excise Act 1996, to apply Sections 64A - 64C of that Act to the AANZFTA).

Copyright: © NZ Parliamentary Library, 2009
Except for educational purposes permitted under the Copyright Act 1994, no part of this document may be reproduced or transmitted in any form or by any means, including information storage and retrieval systems, other than by Members of Parliament in the course of their official duties, without the consent of the Parliamentary Librarian, Parliament Buildings, Wellington, New Zealand.This document may also be available through commercial online services and may be viewed and reproduced in accordance with the conditions applicable to those services.

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  1. ASEAN-Australia_New Zealand Free Trade Area Bill, 2009 No 26-1, Explanatory note, General policy statement, clause by clause analysis, p. 2.   [back]
  2. Agreement Establishing the ASEAN – Australia – New Zealand – Free Trade Area (and associated instruments), National Interest Analysis, The Treasury, 2009.   [back]