Revised ANZCERTA Rules of Origin (ROOs)

On 11 December 2004, Australia and New Zealand agreed to reform the Rules of Origin under ANZCERTA. After extensive consultations with industry and complex trans-Tasman negotiations, a Change of Tariff Classification (CTC) approach for the rules came into effect on 1 January 2007.

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. Adopting the CTC approach in ANZCERTA reflects a global trend to use this type of ROO in bilateral free trade agreements (it is the approach used in Australia’s FTAs with the USA and Thailand). The resulting consistency benefits export oriented industries in both countries.

The new rules provide for a five year transition period ending 1 January 2012, during which importers will be able to claim origin under the existing rules should they prefer. In accordance with the 1 January 2007 decision, a review of the revised rules is to be completed by end 2009.

The CTC approach does not change the rules relating to the treatment of “wholly obtained goods” (ie. 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).