. /.  WORLD TRADE  
ORGANIZATION  G/RO/N/51 
1 June 2007 
 (07-2258) 
Committee on Rules of Origin  
  
NOTIFICATION UNDER PARAGRAPH 4 OF ANNEX II TO 
THE AGREEMENT ON RULES OF ORIGIN 
 
Preferential Rules of Origin
 
  
1. Paragraph 4 of Annex II to the Agreement on Ru les of Origin envisages that Members shall 
provide to the Secretariat promptly their preferential rules of origin, including a listing of the preferential arrangements to which they apply, judicial decisions, and administrative rulings of general application relating to their preferential rules of origin in eff ect on the date of entry into force 
of the WTO Agreement for the Member concerned.  Members shall provide any modifications to their 
preferential rules of origin or new preferential rule s of origin as soon as possibl e to the Secretariat.  
Lists of information received and available within th e Secretariat shall be circulated to Members by 
the Secretariat. 
 
2. Previous notifications received are listed in th e G/RO/N/- series.  A further notification has 
been received:
1 
AUSTRALIA AND NEW ZEALAND 
(Notification in English)   Australia and New Zealand have introduced new rules of origin for goods traded under the 
Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERT A) with effect from 
1 January 2007.  The initiative is comprehensiv e and does not exclude sensitive sectors, although 
there are a limited number of tariff lines that w ill remain subject to phasing arrangements under the 
existing factory cost rules.     The rules in the ANZCERTA include provisions  that goods will qualify as originating goods 
where they meet the applicable product specific rule, which is generally based on a change in tariff 
classification.  A number of rules also contain a regional value content, or other product specific (e.g. 
chemical reaction), component.   The new product specific rules of origin will re place the existing factory cost rules, but both 
sets of rules will operate concurrently from 1 Janua ry 2007 until 1 January 2012, when the existing 
factory cost rules for preferential treatment of originating goods will cease. 
  Until 1 January 2012, the alternative ex-factory rules of origin require local content to be 
50 per cent or more of total factory cost, and that the last process of manufacture take place in Australia or New Zealand.  Ex porters can include input from Australia or New Zealand (the 
"qualifying area") in calculating the 50 per cent local content.   
  New Zealand and Australian exporters  are required to keep records.  
 
                                                     
 
1 The notifications are available for consultations  in the Secretariat (Market Access Division). G/RO/N/51 
Page 2  
 
 The operation of the new ANZCERTA Rules of Orig in arrangements is to be reviewed within 
three years following commencement.   
Australian legislation
 
 
 The Customs Legislation Amendment (N ew Zealand Rules Of Origin) Act 2006 
(ANZCERTA Act) at Annex A, which amends the Customs Act 1901 and related Acts, commenced on 1 January 2007.  The ANZCERTA Act inserts ne w Division 1E headed New Zealand Originating 
Goods into the Customs Act 1901.  Division 1E cont ains the rules for determining whether goods are 
New Zealand originating goods and therefore eligible  for a preferential rate of customs duty under the 
Customs Tariff Act 1995.  The amendments also im pose obligations on exporters of Australian goods 
to New Zealand and for which a preferential rate  of duty will be claimed, and on producers and 
manufacturers of such goods.  
 Customs (New Zealand Rules Of Origin) Regulations 2006 (ANZCERTA regulations) at 
Annex B, made for the purposes of new Division 1E, give affect to Annex G of ANZCERTA.  The ANZCERTA Regulations contain the product specific rules for goods imported from New Zealand and also came into effect on 1 January 2007.   Australian Customs Notice No. 2006/64 outlin es the rules for determining whether goods 
originate in New Zealand. 
  The Australian legislation and regula tions are appended to this notice. 
  
New Zealand legislation
 
  The Customs and Excise (Rules of Origin for Australian Goods) Amendment Regulations 2006, amending the Customs and Excise Regulations 1996, contain the rules for determining whether 
goods are Australian originating goods and therefore eligible for a preferential rate of customs duty 
under The Tariff Act 1988. These regulations also contain the product specific rules for goods 
imported from Australia.  The regulations came into effect on 1 January 2007. 
  The New Zealand regulations are appended to this notice.   
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