It’s great to hear that New Zealand exporters are being offered an easier trading option with China through the self-certification process. This development is a result of the upgraded New Zealand-China Free Trade Agreement (FTA), which aims to enhance trade relations between the two countries.

The self-certification option through the Joint Electronic Verification System (JEVS) managed by the New Zealand Customs Service is designed to simplify the process for exporters and customs brokers. Instead of going through a lengthy certification process, they can now complete and directly send Certificates of Origin to China Customs.

These certificates are crucial as they provide evidence that the exported goods are indeed from New Zealand. This proof of origin enables exporters to take advantage of preferential, lower tariffs, ultimately making their products more competitive in the Chinese market.

This development marks another positive step in the trade relationship between New Zealand and China, which is New Zealand’s largest trading partner. It streamlines the export process and reduces administrative burdens, which can ultimately contribute to increased trade volumes and economic benefits for both countries.

As trade continues to play a vital role in the global economy, efforts to simplify and enhance trade processes like this self-certification option can have a positive impact on businesses, economic growth, and bilateral relationships.

The upgraded Joint Electronic Verification System (JEVS) brings several tangible benefits for exporters and the promotion of paperless trade. The enhancements made to JEVS go beyond just facilitating the self-certification process and have broader implications for trade efficiency and security.

Some key points about the upgrade and self-certification process include:

• Paperless Trade Support: The upgraded JEVS supports paperless trade by allowing exporters and customs brokers to electronically complete and send Certificates of Origin directly to China Customs. This reduces the need for physical paperwork and streamlines the export process.
• Improved Connectivity and Data Security: The upgrade includes improvements in connectivity and data security. This is essential for maintaining the integrity of trade data and ensuring that information is transmitted securely between relevant parties.
• Capacity for Future Trade Negotiations: The upgraded JEVS is designed with the capacity to process trade data that can be used in future trade negotiations. This indicates a forward-looking approach to trade relations and the system’s adaptability to evolving trade requirements.
• Eligibility and Contact Information: Self-certification is available for exporters who have been approved by the New Zealand Customs. Exporters interested in utilizing the self-certification option can reach out to New Zealand Customs’ Export team for more information. The provided contact email, feedback@customs.govt.nz, can be used for inquiries.
• Regional Comprehensive Economic Partnership (RCEP): Approved exporters can also utilize JEVS for self-certifying Certificates of Origin to claim preferential tariffs in China under the Regional Comprehensive Economic Partnership (RCEP). This further expands the benefits of the system beyond just the New Zealand-China Free Trade Agreement.
• Choice for Exporters: Importantly, the upgrade to JEVS provides flexibility for exporters. Those who prefer to continue with their current Certificate of Origin process can do so, as no changes are required. This accommodates different preferences and trade practices.

Overall, the upgrades and self-certification option represent a positive development in New Zealand’s trade relationship with China. The improvements in efficiency, security, and flexibility are likely to contribute to smoother trade operations and increased economic benefits for both countries.

 

Certification of New Zealand Origin

A Certificate of Origin is a crucial document used in international trade to provide assurance about the origin of goods. In the context of the New Zealand-China Free Trade Agreement (FTA), the Certificate of Origin serves to confirm that the goods covered by the certificate are indeed produced or manufactured in New Zealand and adhere to the rules of origin specified in the FTA.

Here are some important points to note about Certificates of Origin in the context of the FTA:

• Assurance of Origin: The primary purpose of a Certificate of Origin is to assure China Customs that the goods mentioned in the certificate originate from New Zealand. This assurance is essential for claiming preferential tariffs and other benefits provided under the FTA.
• Rules of Origin: Rules of origin are criteria used to determine the origin of goods for the purpose of applying preferential trade measures, such as reduced tariffs or duty exemptions. These rules are outlined in the FTA and specify the conditions under which a product can be considered as originating in New Zealand.
• Required Format: Certificates of Origin must adhere to a specific format as prescribed by the FTA and relevant regulations. This format ensures consistency and clarity in communicating the origin of the goods.
• Certifying Bodies: Only organizations that have been designated by the New Zealand Customs Service as certifying bodies for the FTA are authorized to issue Certificates of Origin. These organizations are recognized as having the necessary expertise and credibility to verify the origin of goods.
• Designated Template: The New Zealand Customs website provides a template for the Certificate of Origin that exporters can use. This template ensures that the required information is presented in a standardized manner.
• Submission to China Customs: The Certificate of Origin, once issued by an authorized certifying body, is submitted to China Customs along with other relevant trade documents. It serves as evidence for claiming preferential treatment under the FTA.
• Claiming Preferential Tariffs: A properly issued and authenticated Certificate of Origin is crucial for exporters to claim preferential tariffs or other trade benefits granted under the FTA. This can significantly impact the competitiveness of New Zealand goods in the Chinese market.

In summary, Certificates of Origin play a pivotal role in international trade agreements like the New Zealand-China FTA. They ensure compliance with rules of origin and provide the necessary assurance to customs authorities in the importing country that the goods originate from the exporting country. This, in turn, allows exporters to access favorable trade terms and enhance their competitiveness in the global marketplace.

 

Other Requirements

The direct consignment rule is an important aspect of the New Zealand-China Free Trade Agreement (FTA) that determines whether New Zealand-origin goods are eligible for preferential duty rates in China. This rule ensures that goods must be shipped directly from New Zealand to China without entering the commerce of another country, with some allowances for transit through third countries for logistical reasons.

Here’s a breakdown of the key points related to the direct consignment rule:

• Direct Consignment Requirement: To qualify for preferential duty rates in China, New Zealand-origin goods must be consigned directly from New Zealand to China. This means that the goods should not be diverted or enter the commerce of any other country during the shipping process.
• Transit through Third Countries: While the goods should be directly consigned, transit through third countries is allowed for logistical reasons. However, there are specific conditions that need to be met to maintain the goods’ eligibility for preferential treatment:
  • Limited Operations: Goods transiting through third countries should not undergo any additional processing or operations in those countries, except for actions necessary to keep the goods in good condition.
  • Storage Conditions: If the goods are stored during transit in a third country, they should remain under the administration and supervision of Customs. Moreover, the storage period in the third country should not exceed six months.
• Documentation and Compliance: China Customs may require specific documents to confirm that the goods still meet the rules of origin, especially if the goods transit through third countries. These documents can include commercial invoices, a through bill of lading, and additional documents when transiting through specific locations such as Hong Kong or Macau. For instance, documents issued by the China Inspection Company Limited (Hong Kong) or CCIC Macau Company may be required.
  • Inspection: If the necessary documents are not provided, China Customs may conduct an inspection of the container to verify the goods’ compliance with origin requirements.
    • Container Seal and Matching Information: Exporters who are unable to provide the required documents should ensure that the container’s seal is intact and that the seal numbers and container numbers match the information on associated documents like the bill of lading and certificate of origin. This serves as a way to demonstrate the integrity and traceability of the shipment.

    Complying with the direct consignment rule is essential for exporters to access the preferential duty rates and benefits offered by the FTA. By maintaining the direct consignment of goods and meeting the specified conditions during transit, exporters can ensure that their products are eligible for favorable treatment in the Chinese market.

     

    Release of Imported Goods

    China’s decision to release New Zealand-origin goods within 48 hours of arrival is a significant development that streamlines the customs clearance process and promotes efficient trade between New Zealand and China. This commitment to expedite customs release is subject to certain conditions and exceptions, as you’ve outlined. Here’s a breakdown of the key points:

    China Customs has agreed to release New Zealand-origin goods within 48 hours of their arrival at the Chinese port of entry. This rapid release timeframe is designed to facilitate quicker clearance of goods through customs procedures.

    There are specific conditions outlined under which the 48-hour release commitment applies. These conditions include:

    1. Importer Information: The importer must provide all necessary information required by China Customs at the time of the goods’ first entry into China. This emphasizes the importance of providing accurate and complete documentation to facilitate the customs clearance process.
    2. Risk Management: The commitment doesn’t apply if China Customs selects the goods for closer examination based on risk management techniques. This means that if certain factors raise concerns about the goods’ compliance or origin, they might undergo additional scrutiny.
    3. Examination by Other Agencies: If the goods are to be examined by agencies other than China Customs, and these agencies have the authority to examine under China’s domestic legislation, the commitment might not apply. This ensures that the examination procedures of other relevant authorities are respected.
    4. Customs Formalities: If all necessary customs formalities cannot be completed, or if events outside the control of China Customs lead to delays in release, the 48-hour commitment may not apply. This accounts for unforeseen circumstances that might hinder the clearance process.

    This commitment by China Customs reflects their willingness to facilitate trade with New Zealand and reduce unnecessary delays in the customs clearance process. It aligns with the broader goal of promoting efficient international trade by streamlining administrative procedures.

    It’s important for exporters and importers to be aware of the conditions and exceptions to this release commitment to ensure a smooth customs clearance process. Proper documentation, adherence to customs regulations, and collaboration with customs authorities are key factors in benefiting from this streamlined release process and maintaining a positive trade relationship between New Zealand and China.