(i) means the measure as amended, continued or renewed as of the date of entry into force of this Agreement; and
(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure;
(c) Description sets out the non-conforming aspects of the measures for which the limitation is necessary, or the basis on which the limitation is applied to a sector.
Annex 7.2.1. Limitations of New Zealand
A. All sectors
Type of Limitation: National treatment (Article 7.4)
Legal Citation: Fisheries Act 1996
Overseas Investment Act 1973
Overseas Investment Act Regulations 1995 Overseas Investment Amendment Act 1998
Description: 1. Under the Overseas Investment Act Regulations 1995, issued under the Overseas Investment Act 1973 Ministerial approval is required for the following investments by an overseas person:
(a) acquisition or control of 25 per cent or more of any class of shares or voting power in a New Zealand entity where either the consideration for the transfer or the value of the assets exceeds NZ$50 million, unless an exemption exists or an authorisation is granted;
(b) commencement of business operations, or acquisition of an existing business, including business assets, in New Zealand, where the total expenditure to be incurred in setting up or acquiring that business or those assets exceeds NZ$50 million, unless an exemption exists or an authorisation is granted;
(c) acquisition, regardless of dollar value, of:
(i) 25 per cent or more of any class of shares or voting power in a New Zealand entity that owns commercial fishing quota or annual catch entitlement;
(ii) commercial fishing quota or annual catch entitlement;
unless an exemption exists or an authorisation is granted;
(d) acquisition, regardless of dollar value of:
(i) New Zealand land outside of urban areas and exceeding five hectares or land wherever located worth more than NZ$ 10 million;
(ii) scenic reserve land (including land that encompasses or adjoins recreational, historic or heritage areas, the foreshore and lakes);
(iii) land over 0.4 hectares on specified off-shore islands;
(iv) any land on all other islands;
unless an exemption exists or an authorisation is granted;
(e) acquisition, regardless of dollar value, of 25 percent or more of any New Zealand entity that owns or controls:
(i) New Zealand land outside of urban areas and exceeding five hectares or land wherever located worth more than NZ$ 10 million;
(ii) scenic reserve land (including historic or heritage areas, the foreshore and lakes);
(iii) land over 0.4 hectares on specified off-shore islands;
(iv) any land on all other islands; unless an exemption exists or an authorisation is granted.
2. Ministers, in determining whether to grant approval, act in accordance with a screening regime (a non-legally binding description of which is appended to this Annex) which may be adjusted or replaced from time to time by New Zealand Government legislation, regulation or policy setting
B. Producer and Marketing Boards
Type of Limitation: National treatment (Article 7.4)
Legal Citation: Agriculture (Emergency Powers) Act 1934 Apple and Pear Export Regulations 1999 Apple and Pear Industry Restructuring Act 1999 Dairy Board Act 1961
Dairy Industry Restructuring Act 1999 Game Industry Board Regulation 1985 Hop Marketing Regulations 1939 Kiwifruit Export Regulations 1999 Kiwifruit Industry Restructuring Act 1999 Marketing Act 1936
Meat Board Act 1997
Pork Industry Board Act 1997
Primary Products Marketing Act 1953 Wool Board Act 1997
Description: More favourable treatment may be accorded to New Zealand nationals and permanent residents in respect of ownership of Producer and Marketing Board assets.
C. Fishing
Type of Limitation: National treatment (Article 7.4)
Legal Citation: Fisheries Act 1996
Description: 1. Without the permission of the Minister of Fisheries, and subject to any conditions that he or she thinks fit to impose, no vessel owned or operated by an overseas person may be registered to carry out commercial fishing or fish carrying activities.
2. No vessel that is not a New Zealand ship will be used for commercial fishing within the territorial sea of New Zealand.
3. Foreign fishing vessels or fish carriers are required to obtain the approval of the Minister of Fisheries before entering New Zealand internal waters. If the Minister of Fisheries is satisfied that the vessel has undermined international conservation and management measures he or she may deny the vessel approval to enter New Zealand internal waters.
D. Privatisation
Type of Limitation: National treatment (Article 7.4)
Legal Citation:
Description: More favourable treatment may be accorded to New Zealand nationals and permanent residents in respect of ownership of enterprises currently in State ownership.
E. Overseas Company Reporting Requirements
Type of Limitation: National treatment (Article 7.4)
Legal Citation: Companies Act 1993 Financial Reporting Act 1993
Description: Overseas companies are required to prepare audited financial statements on an annual basis. Legislation also requires financial statements in relation to an overseas companyâs New Zealand business. The following companies are required to deliver annual audited financial statements to the Registrar of Companies for registration:
(a) issuers – i.e. those who have raised capital from the New Zealand public ;
(b) overseas companies;
(c) subsidiaries of companies or bodies corporate incorporated outside New Zealand;
(d) companies in which 25 per cent or more of the shares are held or controlled by:
(i) a subsidiary of a company or body corporate incorporated outside New Zealand or a subsidiary of that subsidiary;
(ii) a company or body corporate incorporated outside New Zealand;
(iii) a person not ordinarily resident in New Zealand
F. All Sectors
Type of Limitation: National treatment (Article 7.4)
Legal Citation:
Description: More favourable treatment may be accorded to New Zealand nationals and permanent residents in the form of incentives or other programmes to help develop local entrepreneurs and assist local companies to expand and upgrade their operations.
G. Services
Type of Limitation: National treatment (Article 7.4) Most favoured nation status (Article 7.3)
Legal Citation:
Description: 1. Most favoured nation status and national treatment shall not apply where a services sector is not scheduled under Chapter 8 (Services).
2. Where a services sector is scheduled under Chapter 8 (Services), the terms, limitations, conditions and qualifications stated therein shall apply to investments in that sector.
3, Any horizontal commitments, limitations, conditions and qualifications scheduled under Chapter 8 (Services) shall apply to investments in the services sector concerned.
DESCRIPTION OF THE OVERSEAS INVESTMENT REGIME
1. The following is a brief, non-legally binding, description of the criteria applied to overseas investment that requires approval under New Zealand's Overseas Investment Act 1973 and the Fisheries Act 1996. The criteria may be adjusted or replaced from time to time by Government legislation, regulation or policy setting. A more detailed description of the criteria is set out in the Overseas Investment Regulations 1995.
Non-Land (Prudential Criteria)
2. Ministers must be satisfied that prospective investors:
(a) have business experience and acumen;
(b) demonstrate a financial commitment to the investment;
(c) are of good character and do not have a criminal record that would prevent
them from obtaining permanent residence in New Zealand.
Land and Fishing Quota
3. In addition to the applicable prudential criteria, in order to approve overseas investment in specific non-farm land and fishing quota, Ministers must consider whether the investment is in the national interest. In doing so, Ministers shall have regard to whether the investment is likely to result in:
(a) the creation of new job opportunities in New Zealand, or the retention of existing jobs in New Zealand that would otherwise be lost;
(b) the introduction to New Zealand of new technology or business skills;
(c) the development of new export markets, or increased export market access for New Zealand exporters;
(d) added market competition, greater efficiency, greater productivity, or enhanced domestic services, in New Zealand;
(e) the introduction of additional investment for development purposes; ff) increased processing in New Zealand of primary products; (g) in the case of an investment in land, whether an individual intends to reside permanently in New Zealand.
Additional Requirements for Farm Land
4. In addition to the prudential criteria, approval of overseas investment in farm land requires that the farm land has been offered for sale or acquisition on the open market to New Zealanders. Farm land is defined as land used exclusively or principally for the purpose of agricultural, horticultural, or pastoral purposes, or for the keeping of bees, poultry or livestock.
5. To approve overseas investment in farm land Ministers must also consider whether the overseas investment in farm land is in the national interest and likely to result in "substantial and identifiable benefits" to New Zealand. Ministers must have regard to the same matters as for fishing quota and other land and investment, as well as:
(a) whether experimental or research work will be carried out on the land;
(b) the proposed use of the land; and
(c) whether the overseas investor intends to farm the land for his or her own use and benefit, and is capable of doing so.
Annex 7.2.2. Limitations of Singapore
A. Services
Type of Limitation: Most favoured nation status (Article 7.3) National treatment (Article 7.4)
Legal Citation:
Description: 1. Most favoured nation status and national treatment shall not apply where a services sector is not scheduled under Chapter 8 (Services).
2. Where a services sector is scheduled under Chapter 8 (Services), the terms, limitations, conditions and qualifications stated therein shall apply to investments in that sector.
3. Any horizontal commitments, limitations, conditions and qualifications scheduled under Chapter 8 (Services) shall apply to investments in the services sector concerned.
B. All Sectors
Type of Limitation: National treatment (Article 7.4)
Legal Citation:
Description: More favourable treatment may be accorded to Singapore nationals and permanent residents in the form of incentives or other programmes to help develop local entrepreneurs/technopreneurs and assist local companies to expand and upgrade their operations.
C. All Sectors
Type of Limitation: National treatment (Article 7.4)
Legal Citation: Companies Act, Cap 50 (1994)
Description: Compliance by Foreign Companies with the Companies Act as in establishing, reporting and filing of accounts.
(a) Commercial presence, right of establishment and movement of juridical persons are subject to compliance with the following provisions:
(i) a foreigner who wishes to register a business firm must have a local manager who should be:
(A) a Singapore citizen;
(B) a Singapore permanent resident;
(C) a Singapore employment pass holder; or
(D) a dependent’s pass holder and have written permission from the Singapore Immigration and Registration (SIR).
Provided that a foreigner who is a Singapore permanent resident or a Singapore employment pass holder or a dependent’s pass holder with written permission from SIR can register a business without appointing a local manager;
(ii) every company must have at least two directors, and one of whom must be locally resident;
(iii) all branches of foreign companies registered in Singapore must have at least two locally resident agents. (To qualify as locally resident, a person should be either a Singapore citizen or Singapore permanent resident or Singapore employment pass holder or dependent’s pass holder with written permission from SIR);
(b) establishment of a foreign company’s branch is subject to the filing of necessary documents.
D. All Sectors
Type of Limitation: National treatment (Article 7.4)
Legal Citation: Banking Act, Cap 19 (1985) Directive on Housing Loans to Financial Institutions issued by the Monetary Authority of Singapore (MAS) Residential Property Act, Cap 274 (1985)
Description: 1. Ownership of land:
(a) non-citizens cannot own land.
2. Ownership of property:
(a) non-citizens are restricted from purchasing landed property and residential property in a building of less than six levels;
(b) there are also restrictions on non-citizens owning Housing & Development Board (HDB) flats;
3. Housing loans:
(a) banks are:
(i) not allowed to extend Singapore Dollar (S$) loans to non-Singapore citizens (excluding permanent residents) and non-Singapore companies for the purpose of purchasing residential properties in Singapore. A company incorporated outside Singapore or majority-owned by non-Singapore citizens and/or permanent residents is considered a non-Singapore company;
(ii) allowed to extend only one S$ loan to permanent residents for the purchase of residential property which must be owner-occupied.
E. All Sectors
Type of Limitation: National treatment (Article 7.4)
Legal Citation: Banking Act, Cap 19 (1985) MAS Notice No. 757
Description: 1. Banks are not allowed to extend S$ credit facilities to non- residents (1) for the following purposes:
(a) speculating in the S$ currency and interest rate markets;
(b) financing third-party trade between countries not involving Singapore;
(c) financing the acquisition of shares of companies not listed on the Stock Exchange of Singapore or Central Limit Order Book (CLOB);
(d) financing activities outside Singapore except when approved by MAS.
2. Banks must consult MAS before extending S$ credit facilities to non-residents (2) for, inter alia:
(a) amounts exceeding S$5 million for financing investments such as shares, bonds, deposits, and commercial properties;
(b) amounts exceeding S$20 million via repurchase agreements of Singapore Government Securities with full delivery of collateral; and
(c) all activities not explicitly mentioned in the MAS Notice 757.