Second Reading Speech
Mr Ruddock (Attorney-General)I present the explanatory memorandum, and I move:
That this bill be now read a second time.
The Customs Legislation Amendment (New Zealand Rules of Origin) Bill 2006 contains amendments to the Customs Act 1901, the Customs Tariff Act 1995, the Customs Tariff (Anti-Dumping) Act 1975 and the Legislative Instruments Act 2003 which would implement the recent amendments to the Australia-New Zealand Closer Economic Relations Trade Agreement, ANZCERTA.
In accordance with one of the current rules, manufactured goods imported from New Zealand are originating, and therefore eligible for a preferential rate of duty if the last process of manufacture occurs in New Zealand and the goods satisfy a regional value content requirement.
This bill implements amendments to the ANZCERTA that would also allow the 'change in tariff classification' method to be used, along with a regional value content requirement, to determine whether goods from New Zealand are New Zealand-originating goods. The new rules would only apply to goods imported on or after 1 January 2007.
As announced by the Minister for Trade and his New Zealand counterpart in February 2006, the last process of manufacture method will continue to be available alongside the new 'change in tariff classification' method until 31 December 2011, to allow importers, exporters and manufacturers time to adapt to the changes.
This bill also contains minor consequential amendments to customs related legislation and the Legislative Instruments Act.
This bill is designed to simplify the process of determining whether a good from New Zealand is a New Zealand originating good and therefore eligible for a preferential rate of duty.
Debate (on motion by Mr Crean) adjourned.