WT/REG348/2  
 
28 October 2014  
(14-4689)  Page: 1/5  
Committee on Regional Trade Agreements  Original: English  
 
 AGREEMENT BETWEEN NEW ZEALAND AND THE SEPARATE CUSTOMS 
TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU ON ECONOMIC COOPERATION 
(GOODS AND SERVICES) 
 QUESTIONS AND REPLIES  
 The following communication, dated 24 October 2014, is being circulated at the request of 
the delegations of New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu. 
 
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 This document reproduces the questions addressed to the Parties and the responses 
submitted. 
 
Questions from the delegation of the EU 
Page 32, paragraph 4.80: The Factua l Presentation mentions that the 
Implementing Arrangement sets out the Part ies' competent authorities for Chapter 18, 
outlines the approval process, and provid es details of the contract between the 
co-producers governing the making of a co-production film. 
1.1.  How did the parties implement th e Arrangement on Film and Television 
Co-Production? 
The Arrangement is already in force, but will be implemented when a co-producer applies to 
one of the two competent authorities, the New Zealand Film Commission for New Zealand or the 
Bureau of Audiovisual and Music Industry Development for Chinese Taipei, with a film or television 
project that they want to make as an official co-production. At this early stage of implementation of the Agreement, the Parties have yet to consider a proposal. 
1.2.  Are there concrete examples  of this cooperation already? 
At the Cannes Film Festival in May 2014 representatives from the New Zealand Film 
Commission, the Bureau of Audiovisual and Music Industry Development and the Taipei Film Commission met to discuss ways to encourage official co-productions between New Zealand and 
Chinese Taipei. A joint Producer Roundtable and Networking Function was also held at that time. 
Both sides are considering options for further engagement this year. 
Questions from the delegation of Singapore 
 
Chapter 4: Customs Procedures and Cooperation Article 6: Advance Rulings (page 34 of ANZT EC Legal Text, page 17-18 of ANZTEC Report 
by WTO Secretariat) 
 1.3.  Are advance rulings binding on the applicants?  
No, the Agreement does not make advance rulings binding on the applicant. WT/REG348/2 
 
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  Article 8: Express Consignments (page 36 of ANZTEC Legal Text) 
 1.4.  Is expedited clearance app licable to all modes? Is there a de minimis  for such 
expedited clearance? 
Yes, expedited clearance provisions are applicable to all modes of trade (by land, sea or air). 
ANZTEC does not impose a value, quantity or duty threshold (de minimis) on Express 
Consignments (Article 8). 
Chapter 9: Electronic Commerce 
Article 3: Paperless Trading (page 85 of ANZT EC Legal Text, page 32 of ANZTEC Report 
by WTO Secretariat)   
1.5.  What does ‘paperless trading’ refer to? Does it entail doing away with the need to 
present paper/hard-copy documents at custom s clearance or does it entail encouraging 
the exchange of electronic docume nts within the trading community? 
The provision on "paperless trading" in ANZTEC parallels closely the one which appears in 
the E-Commerce chapter of AANZFTA. It refers to working towards the implementation of initiatives providing for the use of paperless trading with respect to trade administration 
documents, as is made clear by the reference in the second paragraph to taking into account 
"…the methods agreed by international organisations including the World Customs Organisation." 
Questions from the delegation of Thailand 
Page 11, paragraph 3.5: As shown in ta ble 3.2, 29.5% of the tariff lines of 
Chinese Taipei were duty free on an MFN ba sis in 2013, corresponding to 23.2% of its 
total imports from New Zealand in 2010 - 2012. Following the Agreement's entry into force, it liberalized an additional 65% of lines, representing 44% of its imports from 
New Zealand between 2010 and 2012. Liberali zation continues until 2025 at which point 
99.9% of tariff lines, corresponding to 100% of imports from New Zealand will be duty free. A total of 11 lines will remain subject to duties. 
 
Page 13, paragraph 3.7: Table 3.4 shows Chinese Taipei's tariff liberalization by 
HS section. All industrial products are liberalized upon entry into force of the 
Agreement. Agricultural products not i mmediately liberalized are scheduled for 
liberalization in 2015 - 2025. The majority of lines are liberalized upon the Agreement's 
entry into force with the most of remain der scheduled to be liberalized by 2025. 
Eleven lines in HS Chapters 10 and 11 will re main dutiable (subject to specific duties) 
once the Agreement is fully implemente d; these are rice and rice products. 
 1.6.  Please provide more information ab out the above-mentioned eleven lines in 
HS chapters 10 and 11 which will remain dutiable, and its import procedures. 
11 rice and rice products in HS Chapter 10 and 11 will remain dutiable for the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu under ANZTEC (please see the table below). The import procedure of these products will be the same as current TRQ system which the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has committed to the WTO. 
11 Dutiable Rice Products for Separate Cu stoms Territory of Taiwan, Penghu, Kinmen 
and Matsu under ANZTEC 
Tariff No. Description of Goods Tariff Rate 
10061000 Rice in the husk(paddy or rough) NT$45/KGM 
10062000 Husked (brown) rice NT$45/KGM 
10063000 Semi-milled or wholly milled rice whether or not 
polished or glazed NT$45/KGM 
10064000 Broken rice NT$45/KGM 
11029011 Glutinous rice flour NT$49/KGM WT/REG348/2 
 
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  Tariff No. Description of Goods Tariff Rate 
11029019 Other rice flour NT$49/KGM 
11031930 Groats, meal of rice NT$45/KGM 
11032010 Pellets of rice NT$49/KGM 
11041910 Rolled of flaked rice NT$49/KGM 
11042920 Other worked rice NT$49/KGM 
11081910 Rice starch NT$49/KGM 
Page 35, paragraph 5.17: Article 3 of Chap ter 21 contains the definitions used in 
the Chapter. Article 2, on scope and coverage , provides that the Chapter applies to the 
avoidance or settlement of disputes between the Parties regarding the interpretation or 
application of the Agreement; wherever a Pa rty considers that an actual or proposed 
measure of the other Party is not or would no t be in conformity with the obligations of 
the Agreement or the other Party has otherw ise failed to carry out its obligations; or 
wherever a Party considers that any benefit it  could reasonably have expected to accrue 
to it under any provision of the Agreement is  being nullified or impa ired as a result of 
the application of any actual or proposed me asure, whether or not such measure is in 
conformity with the Agreement. Article 2.2 provides that (subject to the Choice of Forum provision) the Chapter is without prejudice to the rights of the Parties to have recourse 
to dispute settlement under other agreements to which they are party. 
1.7.  Could the Parties please provide more detail about the scope of the term "proposed 
measure"? When and under which conditions would a measure be considered as being 
"proposed" and thereby subject to the dispute settlement provision? 
ANZTEC does not provide specific definition for the term "proposed measure". For greater 
certainty, Article 2.2 of Chapter 20 (Transparency) of the Agreement provides that a proposed 
measure refers to "…any measure referred to in para graph 1 that it (the Party) proposes to adopt", 
which, in the practical context, also means any measure the competent authorities of a Party proposes to adopt. However, Articles 5 and 7.5 of Chapter 21 (Dispute Settlement) stipulate that a proposed measure can only subject to the consultations. An arbitral tribunal may not be 
established to review a proposed measure. 
1.8.  Could the Parties please affirm whether the dispute settlement under the 
agreement covers the non-violation claims in  the area of intellectual property rights? 
Please kindly explain the Parties' policy on this issue.  
Dispute settlement under ANZTEC will not include non-violation claims in relation to the 
provisions of the Intellectual Property Chapter until the moratorium on such claims under 
Article 64 of the TRIPS Agreement is lifted. This is because Article 2.1 of the Dispute Settlement 
Chapter commences with the phrase “[e]xcept as otherwise provided in this Agreement” and Article 3.2 of the IP Chapter provides otherwise by incorporating the TRIPS Agreement and making 
it part of ANZTEC, mutatis mutandis. 
Page 37, paragraph 5.28: The Chapter app lies to measures regarding government 
procurement by any contractual means, incl uding purchase, hire purchase, rental or 
lease, with or without an option to buy, as well as build-operate-transfer contracts and 
public works concessions contracts. Cove red entities are listed in Annex 3:1. 
New Zealand has listed 24 entities at central government level. All agencies subordinate 
to these entities are covered by the Agreem ent. For New Zealand, Chapter 11 applies to 
all goods and services (including constructi on) procured by the listed entities unless 
otherwise specified.40 For Chin ese Taipei the list of entities and covered goods and 
services under Chapter 11 are those listed in Annexes 1, 4, 5, and 6 including relevant 
notes in the "Final Appendix I Offer of the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu". For Chinese Taipei, Chapter 11 does not cover commercial 
sponsorship arrangements; the acquisition, de velopment, production or co-production of 
program materials by broadcasters an d procurement for broadcasting time; WT/REG348/2 
 
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  procurement of agricultural products made  in furtherance of agricultural support 
program and human feeding programs; procur ement of goods relating to electricity 
projects; and procurement in respect of national security exceptions including 
procurements made in support of safe guarding nuclear materials, radwaste 
management or technology. 
 1.9.  Please advise whether "covered entities " listed in Annex 3:1 are entities at which 
government level (central, sub-central, stat e enterprise, etc.) for both New Zealand and 
Chinese Taipei. How many entities are listed at each government level? 
For the Separate Customs Territory of Taiw an, Penghu, Kinmen and Matsu, the covered 
entities are 32 central government entities listed in Annex 1 of the "Final Appendix I Offer of the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu" (WTO document 
number GPA/113 dated 2 April 2012). For New Zealand, the covered entities are 24 central government entities listed under Section A, Annex 3:1 to Chapter 11 of ANZTEC. 
1.10.  Footnote 40 states that "excepti ons are the procurement of research and 
development services; procurem ent of public health, educ ation and welfare services; 
and procurements relating to co mmercial sponsorship arrangements 
(for New Zealand)". Please advise whether such exceptions are covered both goods and 
services as specified, or services only. Pl ease also provide details of procurements of 
public health, education and welfare services ; and procurements relating to commercial 
sponsorship arrangements. 
The exceptions for research and development services and procurement of public health, 
education and welfare services are for services only.  
Commercial sponsorship arrangements are not covered by the Chapter, and as such, would 
exclude both goods and services from the Chapter. 
The public health, education and welfare services that are excluded are set out in WTO 
document MTN.GNS/W/120 under the specific CPC codes listed. An example of a public health 
service that is excluded would be the procuremen t of services from doctors and nurses in public 
hospitals. 
An example of a “commercial sponsorship arrangement” is where a private sector 
organisation contributes towards a public event (for example a sporting event) in return for the 
right to be associated with the event (for exampl e, identified as a sponsor or naming rights). 
Pages 37-38, paragraph 5.30: Article 2.2 of  Chapter 11 lists a number of instances 
to which the Chapter does not apply. Article 4 contains a general exceptions clause. The 
Parties agree to grant to goods, services and suppliers treatment no less favourable 
than that accorded to their domestic good s, services and suppliers. Rules of origin 
applied to goods or services for procurem ent covered by the Ch apter shall be no 
different from those applied in the normal course of trade. 
1.11.  Please advise how to determine wh ether "goods and services" are treated as 
"goods and services of a Party" or as "goo ds and services of the other Party"; and 
whether a supplier is a supplier of the other Party. 
Under Article 6, Chapter 11 (Government Procurem ent) of ANZTEC, the same rules of origin 
that would apply in the normal course of trade will apply with respect to the procurement of goods and services covered by the Chapter – i.e. goods which satisfied the preferential rule of origin 
could claim the preferential tariff rate and goods that did not would pay the “normal” tariff rate. 
1.12.  In case where a third country supplier who is interested in offering goods of the 
other Party to procuring entities of a Party,  please advise whethe r such third country 
supplier be allowed to enter into a Party's procurement procedure under this agreement 
and granted "no less favourable treatment" si milar to suppliers of the other Party.  WT/REG348/2 
 
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  The national treatment and non-discrimination provisions in Article 5 of Chapter 11 only 
apply between the parties to the agreement. Acco rdingly, third country suppliers would not be 
afforded “no less favourable treatment” under Article 5. 
1.13.  Please clarify what rules of origin are applied in the normal course of trade. 
"Normal" tariff rates are applied to all goods that do not otherwise qualify for preference 
under the rules of origin established under a preferential arrangement. For New Zealand, determinations as to origin for non–preferential purposes can be made under section 65 of the 
Customs and Excise Act 1996. In general terms this would include an assessment as to where the 
last substantial transformation had been carried out, but would rely on the specific circumstances surrounding the need for such a determination. For the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, determinations as to origin for non-preferential purposes can be made 
under Article 5 of Regulations Governing the Determination of Country of Origin of an Import 
Good, which stipulates that import good not applicable to the preferential tariff rate shall be regarded as originating in the country in which the good was wholly produced, or in which the 
good has undergone the last substantial transformation. 
Trade and Environment; page 40: The WT O has specified under the "chapeau" of 
Article xx that an environmental measure may not be "applied in a manner that would 
constitute a means of arbitrary or unjustifi able discrimination between countries where 
the same conditions prevail, or a disguised restriction on International Trade". The rule 
has been designed to prevent the misuse of trade-related measures that are allowed to be inconsistent with GATT rules. 
1.14.  Under the agreement, New Zealand and Chinese Taipei have decided to encourage 
the development and utilization of mechanis ms to protect natural resources and the 
environment, as well as encouraging en tities to apply environmental goals and 
standards. Therefore, Thailand would like to be informed as regards the approaches that 
will be adopted to ensure that such mechanisms are consistent with the 
above-mentioned rule of the WTO. 
Like all the other WTO members, New Zealand and the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu need to develo p environment-related technical regulations to 
maintain the environmental quality and protect the health of their residents. Both Parties will abide by the WTO Agreement on Technical Barriers to Trade, notwithstanding the commencement of the 
ANZTEC. As they formulate environmental regulations, both parties will comply with the 
notification and other provisions under the WTO Agreement on TBT.  
 
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