(b) any internal tax or other charge on a good exported to the other Party that is in excess of the tax or charge that would be imposed on like goods when destined for domestic consumption.
2. Nothing in this Article shall prevent a Party from imposing a fee or charge that is permitted under Article 2.8 (Fees and formalities) on the exportation of a good.
Article 2.8. Fees and Formalities
1. Each Party shall ensure, in accordance with Article VII:1 of GATT 1994, including its interpretative Notes and Supplementary Provisions, that all fees and other charges of whatever character imposed by a Party on, or in connection with, importation or exportation of goods are limited in amount to the approximate cost of services rendered, and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.
2. A Party shall not levy the fees and other charges of whatever character referred to in paragraph 1 on an ad valorem basis.
3. Each Party shall promptly publish all fees and other charges of whatever character it imposes on, or in connection with, importation or exportation of goods in such a manner as to enable governments, traders and other interested parties to become acquainted with them.
4. A Party shall not require a consular transaction, including related fees and other charges of whatever character, in connection with the importation of any good of the other Party.
5. For the purposes of this Article, fees or other charges of whatever character do not include export taxes, customs duties, charges equivalent to an internal tax, or other internal charges imposed consistently with Article II:2 of GATT 1994, or anti-dumping or countervailing duties.
Article 2.9. Repaired or Altered Goods
1. A Party shall not apply a customs duty to a good, regardless of its origin, that re-enters the Party's territory after that good has been temporarily exported from its territory to the territory of the other Party for repair or alteration, regardless of whether that repair or alteration could have been performed in the territory of the Party from which the good was exported for repair or alteration.
2. Paragraph 1 does not apply to a good imported in bond, into free trade zones, or in similar status, that is then exported for repair or alteration and is not reimported in bond, into free trade zones, or in similar status.
3. A Party shall not apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration.
Article 2.10. Remanufactured Goods
1. A Party shall not accord to remanufactured goods of the other Party treatment that is less favourable than that which the Party accords to equivalent goods, when new.
2. For greater certainty, Article 2.11 (Import and export restrictions) applies to import or export prohibitions or restrictions on the importation or exportation of remanufactured goods. If a Party adopts or maintains import or export prohibitions or restrictions on the importation or exportation of used goods, it shall not apply such measures to remanufactured goods.
3. A Party may require that remanufactured goods be identified as such for distribution or sale in its territory and that the goods meet all applicable technical requirements that apply to equivalent goods, when new.
Article 2.11. Import and Export Restrictions
1. A Party shall not adopt or maintain any prohibitions or restrictions on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of GATT 1994, including its interpretative Notes and Supplementary Provisions. To that end, Article XI of GATT 1994 and its interpretative Notes and Supplementary Provisions are incorporated into and made part of this Agreement, mutatis mutandis.
2. A Party shall not adopt or maintain:
(a) export and import price requirements (1), except as permitted in enforcement of countervailing and anti-dumping duty orders and undertakings; or
(b) import licensing conditioned on the fulfilment of a performance requirement.
Article 2.12. Origin Marking
1. If New Zealand requires a mark of origin on the importation of goods from the Union, New Zealand shall accept the origin mark "Made in the EU" under conditions that are no less favourable than those applied to marks of origin of a Member State.
2. For the purposes of the origin mark "Made in the EU", New Zealand shall treat the Union as a single territory.
Article 2.13. Import Licensing Procedures
1. Each Party shall adopt and administer any import licensing procedures in accordance with Articles 1 to 3 of the Import Licensing Agreement. To that end, Articles 1 to 3 of the Import Licensing Agreement are incorporated into and made part of this Agreement, mutatis mutandis.
2. A Party that adopts a new import licensing procedure or modifies an existing import licensing procedure, shall notify the other Party of such adoption or modification without delay and in any event no later than 60 days after the date of the publication of the relevant procedure. The notification shall include the information specified in Article 5(2) of the Import Licensing Agreement. A Party shall be deemed to be in compliance with this notification obligation if it notifies the adoption of a new import licensing procedure, or a modification of an existing import licensing procedure, to the WTO Committee on Import Licensing established by Article 4 of the Import Licensing Agreement, including the information specified in Article 5(2) of that Agreement.
3. Upon request of a Party, the other Party shall promptly provide any relevant information, including the information specified in Article 5(2) of the Import Licensing Agreement, regarding any import licensing procedure that it intends to adopt or that it maintains as well as any modification of an existing import licensing procedure.
4. If a Party denies an application for an import licence with respect to a good of the other Party, it shall, on request, and within a reasonable period of time after receiving the request, provide the applicant with a written explanation of the reason for the denial.
Article 2.14. Export Licensing Procedures
1. Each Party shall publish any new export licensing procedure, or any modification of an existing export licensing procedure, in such a manner as to enable governments, traders and other interested parties to become acquainted with them. Such publication shall take place, whenever ptacticable, 45 days before the new export licensing procedure or any modification of an existing export licensing procedure takes effect, and in any event no later than the date on which the new export licensing procedure or any modification of an existing export licensing procedure takes effect.
2. Each Party shall ensure that it includes the following information in its publication of export licensing procedures:
(a) the texts of its export licensing procedures, or of any modifications the Party makes to those procedures;
(b) the goods subject to each export licensing procedure;
(c) for each export licensing procedure, a description of the process for applying for a licence and any criteria an applicant must meet to be eligible to apply for a licence, such as possessing an activity licence, establishing or maintaining an investment, or operating through a particular form of establishment in the territory of a Party;
(d) a contact point or points from which interested persons can obtain further information on the conditions for obtaining an export licence;
(e) the administrative body or bodies to which an application for a licence or other relevant documentation is to be submitted;
(f) a description of any measure or measures being implemented through the export licensing procedure;
(g) the period during which each export licensing procedure will be in effect, unless the export licensing procedure will remain in effect until withdrawn or revised, resulting in a new publication;
(h) if the Party intends to use an export licensing procedure to administer an export quota, the overall quantity and, if applicable, the value of the quota and the opening and closing dates of the quota; and
(i) any exemptions or exceptions that replace the requirement to obtain an export licence, how to request or use those exemptions or exceptions, and the criteria for granting them.
3. Within 30 days after the date of entry into force of this Agreement, each Party shall notify the other Party of its existing export licensing procedures. A Party that adopts new export licensing procedures, or modifications of existing licensing procedures, shall notify the other Party of such adoption or modification within 60 days after the publication of any new export licensing procedure or any modification of an existing licensing procedure. The notification shall include the reference to the source or sources where the information specified in paragraph 2 is published and, if appropriate, the address of the relevant government website or websites.
4. For greater certainty, nothing in this Article requires a Party to grant an export licence, or prevents a Party from implementing its commitments under United Nations Security Council resolutions, as well as under multilateral non-proliferation regimes and export control arrangements, including:
(a) the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, done at the Hague on 19 December 1995;
(b) the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction, done at Paris on 13 January 1993;
(c) the Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on their Destruction, done at London, Moscow and Washington on 10 April 1972;
(d) the Treaty on the Non-Proliferation of Nuclear Weapons, done at London, Moscow and Washington on 1 July 1968; and
(e) the Australia Group, the Nuclear Suppliers Group, and the Missile Technology Control Regime.
Article 2.15. Preference Utilisation Rates
1. For the purpose of monitoring the functioning of this Agreement and calculating preference utilisation rates, the Parties shall annually exchange comprehensive import statistics for a period starting one year after the date of entry into force of this Agreement until 10 years after the tariff elimination is completed for all goods in accordance with Annex 2-A (Tariff elimination schedules). Unless the Trade Committee decides otherwise, that period shall be automatically extended for five years, and thereafter the Trade Committee may decide to extend it further.
2. The exchange of import statistics shall cover data pertaining to the most recent year available, including value and, if applicable, volume, at the tariff line level for imports of goods of the other Party benefitting from preferential duty treatment under this Agreement and for the import of those goods that received non-preferential treatment including under the different regimes used by the Parties upon importation. Such statistics as well as preference utilisation rates may be presented for an exchange of views to the Trade Committee.
Article 2.16. Temporary Admission
1. For the purposes of this Article, the term "temporary admission" means the customs procedure under which certain goods, including means of transport, can be brought into the territory of a Party with conditional relief from the payment of import duties and taxes and without the application of import prohibitions or restrictions of an economic character, on the condition that the goods are imported for a specific purpose and are intended for re-exportation within a specified period without having undergone any change except normal depreciation due to the use made of those goods.
2. Each Party shall grant temporary admission in accordance with its laws, regulations or procedures, to the following goods, regardless of their origin:
(a) professional equipment, including equipment for the press or television, software, and broadcasting and cinematographic equipment, necessary for carrying out the business activity, trade, or profession of a person visiting the territory of the other Party to perform a specified task;
(b) goods, including their component parts, ancillary apparatus, and accessories, intended for display or use at exhibitions, fairs, meetings or similar events;
(c) commercial samples and advertising films and recordings (recorded visual media or audio materials, consisting essentially of images or sound showing the nature or operation of goods or services offered for sale or lease by a person established or resident in the territory of a Party provided that such materials are of a kind suitable for exhibition to prospective customers but not for broadcast to the general public); and
(d) goods imported for sports purposes, including contests, demonstrations, training, racing or similar events.
3. For the temporary admission of the goods listed in paragraph 2, each Party shall accept A.T.A. camets issued in the other Party, endorsed there and guaranteed by an association forming part of the international guarantee chain, certified by the competent authorities and valid in the territory of the importing Party.
4. Each Party shall determine the period during which goods may remain under the temporary admissions procedure. The initial period may be extended autonomously by a Party.
5. Each Party may require that the goods benefiting from temporary admission:
(a) be used solely by or under the personal supervision of a national or resident of the other Party in the exercise of the business activity, trade, profession, or sport carried out by that national or resident;
(b) not be sold, leased, disposed of, or transferred while in its territory;
(c) be accompanied by a security that is consistent with the importing Party's obligations under the relevant international customs conventions to which it has acceded;
(d) be identified when imported and exported;
(e) be exported on or before the departure of the national or resident referred to in point (a), or within a period related to the purpose of the temporary admission that the Party may establish, or within one year, unless extended;
(f) be admitted in no greater quantity than is reasonable for its intended use; or
(g) be otherwise admissible into the territory of the Party under its law.
6. If any condition that a Party may impose under paragraph 5 has not been fulfilled, the Party may apply the customs duty and any other charge that would normally be owed on the good as well as any other charges or penalties provided for under its law.
7. Each Party shall allow a good temporarily admitted under this Article to be re-exported through a customs authorised point of departure other than that through which it was admitted.
8. A Party shall relieve the importer or other person responsible for a good temporarily admitted under this Article of liability for failure to export a good temporarily admitted under this Article on presentation of satisfactory proof to the importing Party that the good temporarily admitted under this Article has been destroyed or irretrievably lost, in accordance with the customs legislation of that Party.
Article 2.17. Duty-free Entry of Commercial Samples of Negligible Value and Printed Advertising Material
1. Each Party shall, in accordance with its laws, regulations or procedures, grant duty-free entry to commercial samples of negligible value and printed advertising material imported from the other Party, regardless of their origin.
2. A Party may define commercial samples of negligible value as:
(a) having a value, individually or in the aggregate as shipped, of not more than the amount specified in the law of a Party; or
(b) being so marked, torn, perforated, or otherwise treated that they are unsuitable for sale or use except as commercial samples.
3. Printed advertising materials are defined as goods classified in HS Chapter 49, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, tourist promotional materials, and posters, that are used to promote, publicise, or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge.
Article 2.18. Specific Measures Concerning the Management of Preferential Treatment
1. The Parties shall cooperate in preventing, detecting and combating breaches of customs legislation related to the preferential treatment granted under this Chapter in accordance with Chapter 3 (Rules of origin and origin procedures) and Titles I, III, IV and V of the CCMAA.
2. A Party may temporarily suspend the relevant preferential treatment of the goods concerned in accordance with the procedure laid down in paragraphs 3 to 5, if:
(a) that Party has made a finding, on the basis of objective, compelling and verifiable information, that systematic and sectoral breaches of customs legislation related to the preferential treatment granted under this Chapter, resulting in a significant loss of revenue to that Party, have been committed; and
(b) the other Party repeatedly and unjustifiably refuses or otherwise fails to cooperate with respect to the breaches of customs legislation referred to in point (a).
3. The Party that has made a finding as referred to in point (a) of paragraph 2 shall, without undue delay, notify the Trade Committee and enter into consultations with the other Party within the Trade Committee with a view to reaching a mutually acceptable solution.
4. If the Parties fail to agree on an acceptable solution within three months after the notification as referred to in paragraph 3, the Party that made the finding may decide to temporarily suspend the relevant preferential treatment of the goods concerned. The temporary suspension shall apply to only those traders that both Parties during the consultations referred to in paragraph 3 have identified and have agreed that those traders were involved in the breaches of customs legislation. Such temporary suspension shall be notified to the Trade Committee without undue delay.
5. If a Party has made a finding as referred to in point (a) of paragraph 2 and within three months following the notification as referred to in paragraph 4 has established that the temporary suspension as referred to in paragraph 4 has been ineffective in combatting breaches of customs legislation related to the preferential treatment granted under this Chapter, the Party may decide to temporarily suspend the relevant preferential treatment of the goods concerned. The Party may also decide to temporarily suspend the relevant preferential treatment of the goods concerned if, during the consultations referred to in paragraph 3, the Parties were unable to identify and agree on the traders involved in the breaches of customs legislation. This temporary suspension shall be notified to the Trade Committee without undue delay.
6. The temporary suspensions referred to in this Article shall apply only for the period necessary to protect the financial interests of the Party concerned, and in any case they shall not apply longer than six months. If the conditions that gave rise to the initial temporary suspension persist at the expiry of the six month period, the Party concerned may decide to renew the temporary suspension after notifying the other Party. Any such suspension shall be subject to periodic consultations within the Trade Committee.
7. Each Party shall publish, in accordance with its internal procedures, notices to importers about any decision concerning temporary suspensions referred to in this Article.
8. Notwithstanding paragraph 5, if an importer is able to satisfy the customs authority of the importing Party that the goods concerned are fully compliant with the customs law of the importing Party, the requirements of this Agreement, and any other conditions related to the temporary suspension established by the importing Party in accordance with its law, the importing Party shall allow the importer to apply for preferential treatment and recover any duties paid in excess of the applicable preferential tariff rates when the goods concerned were imported.
Article 2.19. Committee on Trade In Goods
1. This Article complements and further specifies Article 24.4 (Specialised committees).
2. The functions of the Committee on Trade in Goods, with respect to this Chapter, shall include:
(a) promoting trade in goods between the Parties, including through consultation on accelerating tariff elimination under this Agreement;
(b) promptly addressing barriers to trade in goods between the Parties;
(c) without prejudice to Chapter 26 (Dispute settlement), consulting on and endeavouring to resolve any issues relating to this Chapter, including differences that may arise between the Parties on matters related to the classification of goods under the Harmonized System and Annex 2-A (Tariff elimination schedules), or to an amendment to the Harmonized System Code Structure or each Party's respective nomenclatures, to ensure that the obligations of each Party pursuant to Annex 2-A (Tariff elimination schedules) are not altered;
(d) monitoring preference utilisation rates and statistics, the data of which may be presented for an exchange of views by the Committee on Trade in Goods to the Trade Committee; and
(e) working with any specialised committee or other body established or granted authority to act under this Agreement on issues that may be relevant to that specialised committee or other body, as appropriate.
Article 2.20. Contact Points
Within 90 days after the date of entry into force of this Agreement, each Party shall designate a contact point to facilitate communication between the Parties on matters covered by this Chapter and shall notify the other Party of the contact details for the contact point. Each Party shall promptly notify the other Party of any change of those contact details.
Chapter 3. RULES OF ORIGIN AND ORIGIN PROCEDURES
Section A. RULES OF ORIGIN
Article 3.1. Definitions
For the purposes of this Chapter, the following definitions apply:
(a) "consignment" means a product that is either sent simultaneously from a consignor to a consignee or covered by a single transport document covering a shipment from the consignor to the consignee or, in the absence of such a document, by a single invoice;
(b) "exporter" means a person, located in a Party, who, in accordance with the requirements laid down in the law of that Party, exports or produces the originating product and makes out a statement on origin;
(c) "importer" means a person who imports the originating product and claims preferential tariff treatment for it;
(d) "material" means any substance used in the production of a product, including any ingredient, raw material, component or part;
(e) "non-originating material" means a material that does not qualify as originating under this including a material whose originating status cannot be determined;
(f) "product" means the result of production, even if it is intended for use as a material in the production of another product; and
(g) "production" means any kind of working or processing, including assembly.
Article 3.2. General Requirements for Originating Products
1. For the purpose of applying preferential tariff treatment by a Party to an originating good of the other Party in accordance with this Agreement, provided that a product satisfies all other applicable requirements of this Chapter, a product shall be considered as originating in the other Party if it is:
(a) wholly obtained in that Party within the meaning of Article 3.4 (Wholly obtained products);
(b) produced in that Party exclusively from originating materials; or
(c) produced in that Party incorporating non-originating materials provided that the product satisfies the requirements set out in Annex 3-B (Product-specific rules of origin).
2. If a product has acquired originating status, the non-originating materials used in the production of that product shall not be considered as non-originating materials when that product is incorporated as a material in another product. 3. The acquisition of originating status shall be fulfilled without interruption in New Zealand or the Union.
Article 3.3. Cumulation of Origin
1. A product originating in a Party shall be considered as originating in the other Party if that product is used as a material in the production of another product in that other Party.
2. Production carried out in a Party on a non-originating material may be taken into account for the purpose of determining whether a product is originating in the other Party.
3. Paragraphs 1 and 2 do not apply if the production carried out in the other Party does not go beyond one or more of the operations referred to in Article 3.6 (Insufficient working or processing).
4. In order for an exporter to complete the statement on origin referred to in point (a) of Article 3.16(2) (Claim for preferential tariff treatment) for a non-originating material, the exporter shall obtain from its supplier a supplier's declaration as provided for in Annex 3-D (Supplier'sdeclaration referred to in Article 3.3(4) (Cumulation of origin)) or an equivalent document that contains the same information describing the non-originating materials concerned in sufficient detail to enable them to be identified.
Article 3.4. Wholly Obtained Products
1. The following shall be considered as wholly obtained in a Party:
(a) a mineral or naturally occurring substance extracted or taken from the soil or the seabed of a Party;
(b) a plant or vegetable grown or harvested in a Party;
(c) a live animal born and raised in a Party;
(d) a product obtained from a live animal raised in a Party;
(e) a product obtained from a slaughtered animal born and raised in a Party;
(f) a product obtained by hunting or fishing conducted in a Party, but not beyond the outer limits of the Party's territorial sea;
(g) a product obtained from aquaculture in a Party, if aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants, are born or raised from seed stock, such as eggs, roes, fry, fingerlings or larvae, by intervention in the rearing or growth processes to enhance production, such as regular stocking, feeding or protection from predators;
(h) a product of sea fishing and other product taken in accordance with international law from the sea outside any territorial sea by a vessel of a Party;
(i) a product made aboard a factory ship of a Party exclusively from a product referred to in point (h);
(j) a product taken or extracted by a Party or a person of a Party from the seabed or subsoil outside any territorial sea, provided that Party or person of that Party has the right to work that seabed or subsoil in accordance with international law;
(k) waste or scrap resulting from manufacturing operations conducted in a Party;
(l) a used product collected in a Party and which is fit only for the recovery of raw materials, including such raw materials; and
(m) a product produced in a Party exclusively from the products referred to in points (a) to (1).
2. The terms "vessel of a Party" and "factory ship of a Party" in points (h) and (i) of paragraph 1 respectively refer only to a vessel or a factory ship which:
(a) is registered in a Member State or in New Zealand;
(b) sails under the flag of a Member State or of New Zealand; and
(c) meets one of the following conditions:
(i) itis at least 50 % owned by nationals of a Member State or of New Zealand; or
(ii) it is owned by one or more juridical persons each of which:
(A) has its head office and main place of business in a Member State or in New Zealand; and
(B) is at least 50 % owned by public entities or persons of a Member State or of New Zealand.
Article 3.5. Tolerances
1. If non-originating materials used in the production of a product do not satisfy the requirements set out in Annex 3-B (Product-specific rules of origin), the product shall be considered as originating in a Party, provided that:
(a) for all products, except for the products classified under HS Chapters 50 to 63, the value of non-originating materials used in the production of the products concerned does not exceed 10 % of the ex-works price of those products;
(b) for the products classified under HS Chapters 50 to 63, the tolerances set out in Notes 7 and 8 of Annex 3-A (Introductory notes to product-specific rules of origin) apply.
2. Paragraph 1 does not apply if the value or weight of non-originating materials used in the production of a product exceeds any of the percentages for the maximum value or weight of non- originating materials as specified in the requirements set out in Annex 3-B (Product-specific rules of origin).
3. Paragraph 1 does not apply to products wholly obtained in a Party within the meaning of Article 3.4 (Wholly obtained products). If Annex 3-B (Product-specific rules of origin) requires that the materials used in the production of a product are wholly obtained in a Party within the meaning of Article 3.4 (Wholly obtained products), paragraphs 1 and 2 apply.