ANZCERTA Article 3 - Rules of Origin

On 11 December 2004, Australia and New Zealand agreed to reform the Rules of Origin under ANZCERTA.   After extensive consultations, a Change of Tariff Classification (CTC) approach for the rules came into effect on 1 January 2007, replacing the Regional Value Content approach.  Under the CTC approach, imports are required to undergo a specified change in tariff classification.  This usually occurs when a product is transformed from a collection of material and components into the finished good. The CTC approach simplifies the administration of ROOs and reduce compliance costs.  The CTC approach in ANZCERTA reflects a global trend to use this type of ROO in bilateral free trade agreements. It does not change the rules relating to the treatment of "wholly obtained goods" (i.e. goods that are obtained or produced entirely in the country, such as minerals extracted there, vegetable goods harvested there, and live animals born and raised there).

The 2007 rules also included a provision in ANZCERTA to review  the rules of origin within three years of the new rules taking effect. Australia and New Zealand commenced a review in late 2008. The review was completed in March 2010 resulting in an agreement to amend Article 3 of ANZCERTA and the related Product Specific Rules in Annex G. The amendments to Article 3 took effect from 30 April 2012, the date the governments of Australia and New Zealand notified each other by an exchange of notes that they had completed their respective domestic processes to bring the amendments into force.