(e) simple packaging operations, such as simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards;
(f) affixing or printing marks, labels, logos or other like distinguishing signs on products or their packaging;
(g) mere dilution with water or another substance that does not materially alter the characteristics of the goods;
(h) husking, partial or total bleaching, polishing, and glazing of cereals other than rice;
(i) operations to colour sugar or form sugar lumps.
Article 25. Direct Consignment
1. For the purposes of Article 18, the following shall be considered as consigned directly from the exporting Party to the importing Party:
(a) goods that are transported without passing through the territory of a non-Party;
(b) goods whose transport involves transit through one or more non-Parties with or without trans-shipment or temporary storage of up to 6 months in such non-Parties, provided that:
(i) the goods do not enter into trade or commerce there; and
(ii) the goods do not undergo any operation there other than unloading and reloading, repacking, or any operation required to keep them in good condition.
2. Compliance with the provisions set out in paragraph 1(b) shall be evidenced by presenting the customs authorities of the importing Party either with customs documents of the non-Parties or with any other documents.
Article 26. Packing and Containers for Transportation
Containers and packing materials used for the transport of goods shall not be taken into account in determining the origin of the goods.
Article 27. Packaging Materials and Containers for Retail Sale
Where goods are subject to a change in tariff classification criterion set out in Annex 5, the origin of the packaging materials and containers in which goods are packaged for retail sale shall be disregarded in determining the origin of the goods, provided that the packaging materials and containers are classified with the goods. However, if the goods are subject to an RVC requirement, the value of the packaging materials and containers used for retail sale shall be taken into account as originating materials or non-originating materials as the case may be when determining the origin of the goods.
Article 28. Accessories, Spare Parts and Tools
1. With regard to the change in tariff classification requirements for origin specified in Annex 5, accessories, spare parts, tools, instructional and information materials presented with the good upon importation shall be disregarded in the determination of the origin of the good, provided that these are classified with and not invoiced separately from the good.
2. Where the goods are subject to an RVC requirement, the value of the accessories, spare parts, tools, instructional and information materials shall be taken into account as originating materials or non-originating materials, as the case may be, in calculating the RVC of the goods.
3. This Article applies only where the quantities and values of said accessories, spare parts, tools, instructional and information materials are customary for the good.
Article 29. Neutral Elements
1. In determining whether a good is an originating good, the origin of any neutral elements as defined in paragraph 2 shall be disregarded.
2. Neutral elements are goods used in the production, testing or inspection of another good but not physically incorporated into the good, or goods used in the maintenance of buildings or the operation of equipment associated with the production of a good. These include: (a) fuel, energy, catalysts and solvents;
(b) equipment, devices and supplies used for testing or inspecting the goods;
(c) gloves, glasses, footwear, clothing, safety equipment and supplies;
(d) tools, dies and moulds;
(e) spare parts and materials used in the maintenance of equipment and buildings;
(f) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings;
(g) any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production.
Article 30. Interchangeable Materials
1. In determining whether a good is an originating good, any interchangeable materials shall be distinguished by:
(a) physical separation of the goods; or
(b) an inventory management method recognised in the generally accepted accounting principles of the exporting Party.
2. Interchangeable materials are goods or materials which are interchangeable for commercial purposes, whose properties are essentially identical, and between which it is impractical to differentiate by a mere visual examination.
Article 31. De Minimis
A good that does not meet tariff classification change requirements, pursuant to the provisions of Annex 5, shall nonetheless be considered to be an originating good if:
(a) the value of all non-originating materials, including materials of undetermined origin, that do not meet the tariff classification change requirement does not exceed 10% of the FOB value of the given good, determined pursuant to Article 22; and
(b) the good meets all the other applicable criteria of this Section.
Article 32. Compliance
Compliance with the requirements of this Section shall be determined in accordance with the provisions of Section 2 as applicable.
Section 2. Operational Procedures
Article 33. Definitions
For the purposes of this Section:
authorized body means any government authority or other entity authorized under the domestic legislation of a Party to issue a Certificate of Origin;
Certificate of Origin means a form issued by an authorized body of the exporting Party, identifying the goods being consigned between the Parties and certifying, for the purposes of Section 1 of this Chapter, that the goods to which the certificate relates originate in a Party;
competent authority means a government agency responsible for carrying out verification activities under Article 41, and notified by each Party to the other Party;
Declaration of Origin means a statement as to the origin of the goods made by the manufacturer, producer, supplier or exporter of those goods or by any other competent person;
origin document means a Certificate of Origin, a Declaration of Origin or other documentary evidence of origin;
other documentary evidence of origin means any other documentary evidence sufficient to substantiate the origin of the goods.
Article 34. Granting Preference
The importing Party shall grant preferential tariff treatment to goods imported from the other Party only in cases where an importer claiming preferential tariff treatment provides to the importing customs administration upon importation of the goods, in accordance with this Chapter, a Certificate of Origin, a Declaration of Origin, or any other documentary evidence of origin that the importing Party may decide.
Article 35. Refund of Import Duties or Deposits
1. Where a Certificate of Origin or a Declaration of Origin, as the case may be, is not provided at the time of importation of a good from a Party pursuant to Article 34, the importing Party may impose the applied non-preferential import customs duty or require payment of a deposit on that good, where applicable. In such a case the importer may apply for a refund of any excess import customs duty or deposit paid within one year of the date on which the good was imported, provided that:
(a) a written declaration that the good presented qualifies as an originating good was provided to the customs administration of the importing Party at the time of importation; and
(b) a valid Certificate of Origin or Declaration of Origin, as the case may be, is provided in relation to the good imported.
2. The requirement in paragraph 1(a) shall not apply for the first 12 months following entry into force of this Agreement.
Article 36. Certificate of Origin
1. A Certificate of Origin shall be in the format as set out in Annex 6, and shall:
(a) contain a unique certificate number;
(b) cover the goods presented under a single import customs declaration;
(c) state the basis on which the goods are deemed to qualify as originating for the purposes of Section 1 of this Chapter;
(d) contain security features, such as specimen signatures or stamps as advised to the importing Party by the exporting Party; and
(e) be completed in English.
2. A Certificate of Origin shall remain valid for 12 months from the date of issue.
3. Only the original Certificate of Origin marked "ORIGINAL" shall be submitted within the said period to the importing customs administration.
4. In the event of theft, loss or damage of a Certificate of Origin, the exporter or manufacturer may make a written request to the authorized bodies of the exporting Party for issuing a certified copy, provided that the exporter or manufacturer makes sure that the original copy previously issued has not been used. The certified copy shall bear the words "CERTIFIED TRUE COPY of the original Certificate of Origin number ___ dated ___". If the importing customs administration ascertains that the original copy has been used, the certified copy shall be invalid and vice versa.
5. The format and any requirements set out in Annex 6 may be revised or modified by joint decision through an exchange of letters between the Parties.
Article 37. Declaration of Origin
1. A Declaration of Origin shall be in the format as set out in Annex 7, and shall be accepted in place of a Certificate of Origin:
(a) for any consignment whose aggregate customs value does not exceed US$1,000 or its equivalent in the currency of the importing Party, or such higher amount as that Party may establish;
(b) for any consignment of goods covered by an advance ruling in accordance with Article 52 that deems the good to qualify as originating, so long as the facts and circumstances on which the ruling was based remain unchanged and the ruling remains legally valid; or
(c) when the importing Party otherwise decides, for any reason, that a Certificate of Origin is not required in relation to a specific consignment or in general.
2. Notwithstanding paragraph 1, where an importation forms part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purposes of circumventing the requirements of this Section, the importing Party may deny preferential tariff treatment.
3. A Declaration of Origin shall cover the goods presented under a single import customs declaration, and shall remain valid for 12 months from the date of issue.
4. The format and any requirements set out in Annex 7 may be revised or modified by joint decision through an exchange of letters between the Parties.
Article 38. Amendments to Origin Documents
1. Neither erasures nor superimpositions shall be permitted on any origin documents. Any amendment shall be made by striking out the erroneous information and making any addition which might be required. Such alterations shall be endorsed by the person who made them.
2. Any unused space shall be crossed out to prevent any addition subsequent to certification.
Article 39. Retention of Origin Documents
1. Each Party shall require its producers, exporters and importers to retain origin documents for a period specified in its domestic legislation.
2. Each Party shall ensure that its authorized bodies retain copies of Certificates of Origin and other documentary evidence of origin for a period specified in its domestic legislation.
Article 40. Authorized Bodies
1. A Certificate of Origin shall be issued only by an authorized body in the exporting Party.
2. Each Party shall inform the customs administration of the other Party of the name of each authorized body, as well as relevant contact details, and shall provide details of any security features for relevant forms and documents used by each authorized body, prior to the issuance of any certificates by that body. Any change in the information provided above shall be advised promptly to the customs administration of the other Party.
Article 41. Verification of Origin
1. For the purposes of determining whether goods imported into the territory of a Party from the territory of the other Party qualify as originating goods, the importing customs administration may verify any claims for tariff preference by means of:
(a) written requests for additional information from the importer;
(b) written requests for additional information from the exporter or producer in the territory of the exporting Party;
(c) requests that the competent authorities of the exporting Party verify the origin of a good; or
(d) such other procedures as the customs administrations of the Parties may jointly decide.
2. A verification process under paragraph 1 shall only be initiated when there are reasonable grounds to doubt the accuracy or authenticity of origin documents, the origin status of the goods concerned or the fulfilment of any other requirements under this Section, and when customs duty is sufficiently material to warrant the request.
3. A verification request to the competent authority of the exporting Party shall specify the reasons, and any documents and information obtained justifying the verification activities shall be forwarded to the competent authority of the requested Party.
4. The Parties shall develop an electronic verification system to ensure the effective and efficient implementation of this Section in a manner and within a timeframe to be jointly determined by the Parties.
Article 42. Denial of Preferential Tariff Treatment
1. A Party may deny preferential tariff treatment to a good when:
(a) the name of the relevant authorized body or any security features for relevant forms and documents used by that authorized body, or any change in the above information, has not been advised to the customs administration of the other Party;
(b) the importer, exporter, manufacturer or producer, as appropriate, fails to provide information which the Party has requested in the course of a verification process under Article 41, or the requested competent authority is unable for any reason to respond to the request to the satisfaction of the importing customs administration, within 6 months of the date of request; or
(c) the good does not or did not comply with the other requirements of this Chapter, including where:
(i) the Certificate of Origin has not been duly completed and signed;
(ii) the origin of the goods is not in conformity with Section 1;
(iii) the data provided under the Certificate of Origin does not correspond to those of the supporting documents submitted; or
(iv) the description, quantity and weight of goods, marks and number of packages, number and kinds of packages, as specified, do not conform to the goods imported.
2. In the event preferential tariff treatment is denied, the importing Party shall ensure that its customs administration provides in writing to the exporter, the importer or producer, as the case may be, the reasons for that decision.
Article 43. Review
The competent authorities of the Parties shall review the procedures under this Section as they mutually deem necessary.
Chapter 5. Customs Procedures and Cooperation
Article 44. Definitions
For the purposes of this Chapter: customs administration means:
(a) in relation to New Zealand, the New Zealand Customs Service; and
(b) in relation to China, the General Administration of Customs of the People's Republic of China;
customs law means any legislation administered, applied, or enforced by the customs administration of a Party;
customs procedures means the treatment applied by each customs administration to goods and means of transport that are subject to customs control;
Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
means of transport means various types of vessels, vehicles, aircraft and pack-animals which enter or leave the territory carrying persons, goods or articles.
Article 45. Scope and Objectives
1. This Chapter shall apply, in accordance with the Parties' respective international obligations and domestic customs law, to customs procedures applied to goods traded between the Parties and to the movement of means of transport between the Parties.
2. The objectives of this Chapter are to:
(a) simplify and harmonise customs procedures of the Parties;
(b) ensure predictability, consistency and transparency in the application of customs laws and administrative procedures of the Parties;
(c) ensure the efficient and expeditious clearance of goods and means of transport;
(d) facilitate trade between the Parties; and
(e) promote cooperation between the customs administrations, within the scope of this Chapter.
Article 46. Competent Authorities
The competent authorities for the administration of this Chapter are:
(a) in relation to New Zealand, the New Zealand Customs Service; and
(b) in relation to China, the General Administration of Customs of the People's Republic of China.
Article 47. Facilitation
1. Each Party shall ensure that its customs procedures and practices are predictable, consistent, transparent and facilitate trade.
2. Customs procedures of each Party shall, where possible and to the extent permitted by their respective customs law, conform with the trade-related instruments of the WCO to which that Party is a contracting party, including those of the International Convention on the Simplification and Harmonization of Customs Procedures (as amended), known as the Revised Kyoto Convention.
3. Customs administrations of the Parties shall facilitate the clearance of goods in administering their procedures.
4. Each customs administration shall endeavour to provide a focal point, electronic or otherwise, through which its traders may submit all required regulatory information in order to obtain clearance of goods.
Article 48. Customs Valuation
The Parties shall apply Article VII of GATT 1994 and the Customs Valuation Agreement to goods traded between them.
Article 49. Tariff Classification
The Parties shall apply the International Convention on the Harmonized Commodity Description and Coding System to goods traded between them.
Article 50. Customs Cooperation
To the extent permitted by their domestic laws, the customs administrations of the Parties shall assist each other, in relation to: (a) the implementation and operation of this Chapter; and (b) such other issues as the Parties mutually determine.
Article 51. Appeal
1. The legislation of each Party shall provide for the right of appeal without penalty in regard to customs administrative rulings, determinations or decisions by the importer, exporter or any other person affected by that administrative ruling, determination or decision.
2. An initial right of appeal by a person described in paragraph 1 may be to an authority within the customs administration or to an independent body, but the legislation of each Party shall provide for the right of appeal without penalty to a judicial authority.
3. Notice of the decision on appeal shall be given to the appellant and the reasons for such decision shall be provided in writing.
Article 52. Advance Rulings
1. Each customs administration shall provide in writing rulings in respect of the tariff classification and origin of goods to a person described in paragraph 2(a).
2. Each customs administration shall adopt or maintain procedures, which shall:
(a) provide that an exporter, importer or any person with a justifiable cause may apply, in the national language of the issuing customs administration, for a ruling at least 3 months before the date of importation of the goods that are the subject of the application. An applicant for an advance ruling on tariff classification from China Customs shall be registered with China Customs;
(b) require that an applicant for a ruling provide a detailed description of the goods and all relevant information needed to issue a ruling;
(c) provide that its customs administration may, at any time during the course of issuing a ruling, request that the applicant provide additional information within a specified period;
(d) provide that any ruling be based on the facts and circumstances presented by the applicant, and any other relevant information in the possession of the decision-maker; and
(e) provide that the ruling be issued, in the national language of the issuing customs administration, to the applicant expeditiously on receipt of all necessary information, or in any case within:
(i) 60 days with respect to tariff classification; and