G/RO/LDC/N/NZL/1  
 
5 September  2017 
(17-4723) Page: 1/8 
Committee on Rules of Origin  Original: English  
 
 NOTIFICATION OF PREF ERENTIAL RULES OF OR IGIN FOR  
LEAST DEVELOPED COUN TRIES  
NEW ZEALAND  
The following communication, dated 1 September  2017, is being circulated at the request of the 
delegation of New Zealand.  
_______________  
 
 
Paragraph 4.3 of the 2015 Mi nisterial Decision on preferential rules of origin for least developed 
countries (WT/L/917/Add.1) requires preference -granting Members to notify preferential rules of 
origin as per the established procedures1.  In addition, as mandated by the Ministerial D ecision, 
the Committee on Rules of Origin agreed, at its meeting of 2 March 2017, to a template for such 
notifications (G/RO/84).  
 
Following such requirements, the following notification has been received from: New Zealand . 
A. BASIC INFORMATION  
1)  Notifying  member  New Zealand  
2)  Date of entering into force of 
Rules of origin and any 
substantive  modification 
thereof  1974 
3)  Date of expiration of Rules of 
origin if applicable  N/A. 
4)  Title of the preferential scheme 
for which legislation on Rules of 
origin is app licable  Generalised System of Preferences Scheme.  
5)  Authority(ies) granting the 
preferential treatment  The Ministry of Business Innovation and Employment has 
responsibility for tariff policy under the Tariff Act 1988. However, 
all information pertaining t o the GSP is maintained on the 
Customs website.  See below.  
6)  National authorities in charge 
of Rules of origin 
administration  
 New Zealand Customs Service;  
Phone: calling from outside New Zealand +64 9 927 8036 ;  
Email: feedback@customs.govt.nz ;  
General factsheet:  
http://www.customs.govt.nz/news/resources/factshe ets/Docume
nts/Fact%20Sheet%2008.pdf  
                                                
1 The relevant notification requirements are contained in Paragraph 2(d) of Annex 1 of the Transparency 
Mechanism for Preferential Trade Arrangements (WT/L/806) and in P aragraph 4 of Annex II of the Agreement 
on Rules of Origin.  G/RO/LDC/N/NZL/1  
 
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  B. INFORMATION ON RULES OF ORIGIN  
I.  BENEFICIARIES  
1) List of Beneficiaries  
 The Least Developed Countries entitled to preferential tariff 
treatment under the Generalised System of Preferences are set 
out in Schedule 2 to the Tariff (Less Developed Countries and 
Least Developed Countries) Order 2005. A list of these countries 
is also located in The Workin g Tariff Document of New Zealand  
under "New Zealand Alphabetical Country List and Codes".  
The tariff duty rates for Least Developed Countries are identified 
under the abbreviations "LLDC" in The Working Tariff Document  
of New Zealand.  
http://www.legislation.govt.nz/regulation/public/2005/0018/late
st/DLM312430.html?src=qs  
http://www.customs.govt.nz/news/resources/tariff/theworkingtar
iffdocument/Pages/default.aspx  
See also Annex to this docum ent. 2) Eligibility  
 
II.  CRITERIA FOR DETERMINING SUBSTANTIAL TRANSFORMATION  
1) General criteria, if applicable for 
all products  Goods must meet an added -value threshold of 50%. The last 
process in the manufacture of the goods must be performed in a 
Least Developed Country.  "Manufacture" in this context must 
involve a significant change in the form or function of the thing 
said to be manufactured when compared with its 
unmanufactured or previously manufactured state.  
 (a) Definition of wholly 
obtained  products  The following goods are considered wholly obtained in any of the 
countries included in Group 3(Least Developed Countries):  
(i)  mineral products extracted from its soil or from its seabed ; 
(ii)  vegetable products harvested there ; 
(iii)  live ani mals born and raised there ; 
(iv)  products obtained there from live animals ; 
(v)  products obtained by hunting or fishing conducted there ; 
(vi)  products of sea fishing and other products taken from the 
sea by its vessels ; 
(vii) products made on board its factory ships exclusively from 
the products referred to in subparagraph (vi) ; 
(viii) used articles collected there that are fit only for the 
recovery of raw materials ; 
(ix)  waste and scrap resulting from manufacturing operations 
conducted there ; 
(x)  products obtained there exclusively from products 
specified in subparagraphs (i) to (ix) . 
 (b)  Describe the criteria for 
not-wholly produced 
products  Goods partly manufactured in the Least Developed Countries are 
subject to the following conditions:  
(i)  that the process last performed in the manufacture of the 
goods was performed in a Least Developed Country; and  
(ii)  that, in respect of the goods, the expenditure for the 
following is not less than half of the factory or works cost 
of the goods in their fin ished state:  
 (A) expenditure in material that is the origin of 1 or more 
Least Developed Countries or of New  Zealand; or  
 (B)  expenditure in other items of factory or works cost 
incurred in 1 or more Least Developed Countries or in 
New Zealand; or  
 (C)  expenditure partly in any material referred to in sub -
sub-paragraph (A) and partly in any other items 
referred to in sub -sub-paragraph (B).  G/RO/LDC/N/NZL/1  
 
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   (c)  Insert the formula for 
calculating ad valorem  
percentage  The factory or works cost of any article must be th e sum of the 
following items:  
(a)  the cost of materials as received into the factory, 
excluding customs duty or excise duty or other duties paid 
or payable for those materials;  
(b)  manufacturing wages;  
(c)  the following factory overhead expenses:  
 (i)  all expenses directly or indirectly connected with 
manufacture, for example, rent, rates, and taxes for 
the factory;  
 (ii)  motive power, gas, fuel, water, lighting, and heating;  
 (iii)  expenses of supervision, for example, wages and 
salaries of managers,  supervisors, timekeepers, and 
guards;  
 (iv)  repairs, renewals, and depreciation of plant, 
machinery, and tools;  
 (v)  interest on capital outlay on plant, machinery, tools, 
and factory buildings;  
 (vi)  royalties payable for patented machines or processe s 
used in the manufacture of the goods;  
(d)  the cost of containers other than the outside package.  
In calculating the factory or works cost, and in calculating the 
expenditure in any item of factory or works cost, none of the 
following items must be inclu ded or considered : 
(a)  manufacturer 's profit, or the profit or remuneration of any 
trader, agent, broker, or other person dealing in the article 
in its finished condition;  
(b)  royalties payable for the finished goods;  
(c)  the cost of outside packages or  any cost of packing the 
goods into them;  
(d)  administrative and general office expenses;  
(e)  any cost of conveying, insuring, or shipping the goods 
after their manufacture;  
(f)  any other charges incurred after the completion of the 
manufacture of the g oods.  
2)   Product specific rules of origin, 
where applicable  Not applicable, the GSP provides only for a general 50% added -
value rule applied to all products.  
 (a)  Insert  the link where the 
complete list of product 
specific rules of origin can 
be found . 
 (b) Insert the formula for 
calculating ad valorem  
percentage, when applied 
for product specific rule  
3) Definition of non -originating 
material and originating material, 
if any  There is no specific definition of a non -originating or originating 
mater ial.  Goods are deemed the produce or manufacture of a 
Least Developed Country if they meet either the wholly obtained 
criteria, the partly manufactured criteria, and any other 
applicable rules (e.g. direct consignment).  
4) List of insufficient working 
process, if any  There is no specific list.   
However, the last process in the manufacture of the goods must 
be performed in the preference country. In the context of the 
Customs Act "manufacture" must involve a significant change in 
the form or function of the thing said to be manufactured when 
compared with its unmanufactured or previously manufactured 
state. In essence, manufacture involves the making of 
something different from the materials or component parts out 
of which it was made. Only in situations where such change has 
been brought about can manufacture be said to have taken 
place.  Certain "minimal operations or processes" will generally 
not, by themselves, be considered to constitute manufacture. 
Examples of "minimal operations or processes" inclu de affixing of 
marks and labels, dilution with water or another substance that 
does not materially alter the characteristics of the goods, G/RO/LDC/N/NZL/1  
 
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  packaging or presenting goods for sale, and simple processes 
such as cleaning, washing, crushing, husking and other s imilar 
operations.  
5) Rules for application of 
cumulation and related 
procedures if any  Work and expenditure carried out within the Least Developed 
Countries may be cumulated between members of that Group 
and with New Zealand.  
6) Any other information t hat 
member deems necessary  N/A. 
 
III.   DOCUMENTARY REQUIREMENTS  
1)  Certificate of origin and other proofs of origin  
 (a)  Requirement for certificate 
of origin and/or any other 
proof of origin, if any  Certificates of origin are not required.  An export er declaration or 
other evidence supporting the claim for preference must be 
supplied if requested.  
 (b)  Authority to be designated 
for issuance of certificate of 
origin  N/A. 
 (c)  Prescribed form of 
Certificate of origin and/or 
any other proof of origi n There is no prescribed form.  
 (d)  Any other procedures 
applied for certificate of 
origin and/or any other 
proof of origin, if any  N/A. 
2)  Direct shipment  
 (a)  Rules applicable for direct 
shipment, if any  The goods must be exported directly from a L east Developed 
Country without entering the commerce of another country 
(other than a another Least Developed Country after shipment 
from that country and before importation into New Zealand, 
unless the chief executive otherwise permits and subject to any 
conditions that he or she in any case approves.  
 (b)  Documentary requirement 
for proof of direct shipment 
including when the 
transport of consignment 
involves transit through 
one or more intermediate 
countries, if any  Not required at point of import.  An y normal 
transaction/commercial documents on request.  
 
IV.  VERIFICATION AND PENALTIES  
1) Procedure for verification of 
proofs of origin  There are no specific verification procedures under the GSP 
scheme.  Normal provisions and operational procedures und er 
the Customs & Excise Act 1996 apply.  
Section 66 and 67 of Customs and Excise Act 1996 set out  
-  that the chief executive of the New Zealand Customs 
Service may require the claim to be verified at the time of 
entry or at any subsequent time (including  any time after 
the goods have ceased to be subject to the control of the 
Customs); and  
-  that if, as a result of an investigation ,audit or examination 
origin cannot be verified due to lack of evidence, or the 
available evidence is inconclusive, prefere nce maybe 
denied.  
-  the importer must be advised by notice in writing.   G/RO/LDC/N/NZL/1  
 
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  2) Penalties for fraud and false 
declarations  General provisions under the Customs and Excise Act 1996 
apply.  
Sections 128A sets out that the chief executive may issue a 
penalty not ice to a person if the chief executive is satisfied that 
an import entry contains an error or omission which results in 
duty payable not being declared for payment or not being paid 
or the entry is otherwise materially incorrect.  
Section 128B sets out how the size of the penalty will be 
calculated.  
3) Authorities and procedures for 
appeal in the case of dispute on 
verification  General provisions under the Customs and Excise Act 1996 
apply.  
Section 128B sets out that an importer who is dissatisfied with a 
decision of the chief executive may, within 20 working days after 
the date on which notice of the decision is given, appeal to a 
Customs Appeal Authority against that decision.  
A Customs Appeal Authority decision may be appealed to the 
High Court.  Further recourse may be made to the Court of 
Appeal if the party considers that the decision is erroneous in 
point of law.  
4) Requirement for preserving the 
documents related to issuance of 
certificate of origin  Not applicable.  There is no prescribed certificat e of origin.  
General tax law requires business records (records of 
commercial transactions) to be kept and these would form the 
basis of any verification activity.  
5) Any other relevant information  Schedule 2 – Least -developed Countries  
Afghanistan; Ang ola; Bangladesh; Benin; Bhutan; Burkina Faso; 
Burundi; Cambodia; Cape Verde; Central African Republic; 
Chad; Comoros;  Democratic Republic Congo; Djibouti; 
Equatorial Guinea; Eritrea; Ethiopia; Gambia; Guinea; 
Guinea -Bissau; Haiti; Kiribati; Lao, People's D emocratic Republic 
of; Lesotho; Liberia; Madagascar; Malawi; Maldives; Mali; 
Mauritania; Mozambique; Myanmar; Nepal; Niger; Rwanda; 
Samoa; Sao Tome and Principe; Senegal; Sierra Leone; 
Solomon Islands; Somalia; Sudan; Tanzania; Timor -Leste; 
Togo; Tuvalu; U ganda; Vanuatu; Yemen; Zambia  
 
V.  REFERENCE TEXTS  
(a) The legislative texts in one of the 
official WTO languages 
containing the preferential rules 
of origin applicable under a PTA 
granted under the Decision on 
Measures in Favour of Least -
Developed Countr ies (Annex F of 
the Hong Kong Ministerial 
Declaration)  Customs and Excise Regulations 1996; Part 6 - Determination of 
country of produce or manufacture (Provisions relating to least 
developed countries): 
http://www.legislation.govt.nz/regulation/public/1996/0232/late
st/DLM220752.html  
(b) The full text of the administrative 
regulations concerning 
modalities for issuance, 
acceptance, retrospective 
issuance and rep lacement of 
certificates of origin or any 
equivalent declarations to be 
made, including any 
requirements  related to stamps 
to be used along with notification 
of stamps  No stamps, no certificates:  General import entry requirements 
apply and an exporter de claration or other evidence supporting 
the claim for preference must be supplied if requested as per 
general requirements for all imports as per Customs and Excise 
Act 1996.  General legislative reference is Customs and Excise 
Act 1996, Part 4, sections 39  and 40 :  
http://www.legislation.govt.nz/act/public/1996/0027/latest/DLM
378408.html?search=ts_act_Customs+and+Exci se+Act_resel_2
5_af&p=1  G/RO/LDC/N/NZL/1  
 
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  (c) The full text and related 
administrative regulations of the 
modalities for the proof of 
movement of the consignment of 
the goods from the beneficiary 
countries to preference -giving 
countries including transit 
through third coun tries Customs and Excise Regulations 1996 ; Part 6 Determination of 
country of produce or manufacture, Provisions relating to least 
developed countries:  
http:// www.legislation.govt.nz/regulation/public/1996/0232/late
st/DLM220752.html  
Actual text:  
(3)  Subclause (2) applies only to goods exported directly from a 
country in Group 3 to New Zealand without entering the 
commerce of another country (other than a coun try also 
included in Group 3) after shipment from that country and 
before importation into New Zealand, unless the chief executive 
otherwise permits and subject to any conditions that he or she in 
any case approves.  
(d) The full texts of the modalities of  
the verification procedures and 
related penalties  There are no specific GSP verification procedures.  General 
powers to question goods as for all imports apply under the 
general provisions of the Customs and Excise Act 1996.  
Customs and Excise Act 1996; P art 6 Duties,  Origin and 
preferential Tariff provisions:  
66.  Conditions precedent to entry of goods at preferential 
rates of duty  
(1)  Where it is claimed in respect of any goods that they are 
entitled under this Act or any other Act or authority to be 
entered free of duty or at any rate of duty lower than that set 
forth in the Normal Tariff in respect of such goods, the chief 
executive may require the claim to be verified at the time of 
entry or at any subsequent time (including any time after the 
goods have ceased to be subject to the control of the Customs).  
(2)  Where the chief executive requires such a claim to be 
verified at the time of entry of the goods and the claim is not 
verified to the satisfaction of the chief executive at that time, 
the goods  in respect of which the claim has been made shall not 
be so entered.  
67.  Unsubstantiated preference claims  
(1)  If the chief executive is satisfied, whether as the result of an 
investigation carried out pursuant to section 155, or as the 
result of an aud it or examination carried out pursuant to 
section  159, or for any other reason, that the country of which 
goods are the produce or manufacture cannot be ascertained 
because no evidence can be found, or the available evidence is 
inconclusive as to that coun try, the goods are deemed, for the 
purposes of this Act or any other Act or authority to be the 
produce or manufacture of a country subject to the rates of duty 
set out in the Normal Tariff.  
(2)  An importer shall be advised by notice in writing of a 
decision of the chief executive under this section.  
(3)  An importer who is dissatisfied with a decision of the chief 
executive under this section may, within 20 working days after 
the date on which notice of the decision is given, appeal to a 
Customs Appeal Au thority against that decision.  
(4)  This section applies whether or not the goods have been 
released from the control of the Customs.  
http://www.legislation.govt.nz/act/public/1996/0027/latest/DLM
378605.html?search=ts_act_Customs+and+Excise+Act_resel_2
5_a&p=1  
Verification of entries  
Customs and Excise Act 1996; Part 12  Powers of Customs 
officers  
155.  Verification of entries  
(1)  The chief executive may require from a person making entry 
of goods proof by declaration or the production of documents (in 
addition to any declaration or documents otherwise required by 
this Act or by regulations made under this Act) of th e 
correctness of the entry, and may refuse to deliver the goods or  G/RO/LDC/N/NZL/1  
 
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    to pass the entry before such proof is provided.  
(2)  This section extends and applies to entries made pursuant 
to section 70.  
(3)  Where the chief executive is not satisfied with the 
correctness of any entry in relation to any goods, or with any 
other aspect of the importation or exportation of those goods, as 
the case may be, he or she may detain the goods for a period 
that is reasonably necessary to enable the goods to be examined 
and, if necessary, to cause an investigation to be made, whether 
in New Zealand or elsewhere, into the importation or 
exportation, as the case may be, of those goods.  
159.  Audit or examination of records  
(1)  A Customs officer may at all reasonable times ent er any 
premises or place where records are kept pursuant to section 95 
and audit or examine those records either in relation to specific 
transactions or to the adequacy and integrity of the manual or 
electronic system or systems by which such records are c reated 
and stored.  
(2)  For the purposes of subsection (1), a Customs officer shall, 
subject to section 173, have full and free access to all lands, 
buildings, and places and to all books, records, and documents, 
whether in the custody or under the control  of the licensee, 
importer, or exporter, or any other person, for the purpose of 
inspecting any books, records, and documents and any property, 
process, or matter that the officer considers — 
(a) necessary or relevant for the purpose of collecting any duty 
under this Act or for the purpose of carrying out any other 
function lawfully conferred on the officer; or  
(b) likely to provide any information otherwise required for the 
purposes of this Act or any of those functions.  
(3)  The Customs officer may, withou t fee or reward, make 
extracts from or copies of any such books or documents.  
(4)  Notwithstanding subsection (2) and subsection (3), a 
Customs officer shall not enter any private dwelling except with 
the consent of an occupier or owner thereof or pursuant  to a 
warrant issued under this Act.  
http://www.legislation.govt.nz/act/public/1996/0027/latest/DLM
379226.html?searc h=ts_act_Customs+and+Excise+Act_resel_2
5_a&p=1  
Penalties  
There are no specific GSP penalty procedures.  General 
administrative penalties apply as for all imports under the 
general provisions of the Customs and Excise Act 1996.  
Part 10 Administrative Pena lties  
http://www.legislation.govt.nz/act/public/1996/0027/latest/DLM
378922.html?search=ts_act_Customs+and+Excise+Ac t_resel_2
5_a&p=1  
 G/RO/LDC/N/NZL/1  
 
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  ANNEX  
Schedule 2 - Least developed countries  
Afghanistan  
Angola  
Bangladesh  
Benin  
Bhutan  
Burkina Faso  
Burundi  
Cabo Verde  
Cambodia  
Central African Republic  
Chad 
The Comoros  
Democratic Republic of the Congo  
Djibouti  
Equatorial Guinea  
Eritrea 
Ethiopia  
The Gambia  
Guinea  
Guinea -Bissau  
Haiti 
Kiribati  
Lao People's Democratic Republic  
Lesotho  
Liberia  
Madagascar  Malawi  
Maldives  
Mali 
Mauritania  
Mozambique  
Myanmar  
Nepal  
Niger  
Rwanda  
Samoa  
Sao Tome and Principe  
Senegal  
Sierra Leone  
Solomon Islands  
Somalia  
Sudan  
Tanzania  
Timor -Leste  
Togo 
Tuvalu  
Uganda  
Vanuatu  
Yemen  
Zambia  
 
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