New Zealand - China Free Trade Agreement - Company Solutions New Zealand

China - New Zealand Free Trade Agreement

Company Solutions Clients’ Opportunities

Company Solutions clients have major business opportunities available by taking advantages provided by the introduction of this new Free Trade Agreement. Exciting new opportunities exist for New Zealand resident clients as well as offshore clients. Clients based in New Zealand from 1 October 2008 will have direct access into China and will require appropriate structures from Company Solutions to provide the best operational and tax advantages. Clients resident offshore, will be able to take advantage of this Free Trade Agreement by either purchasing an existing New Zealand business, or partnering with existing New Businesses in Companies, N.Z. Foreign Trusts and Limited Partnerships, which could enable them to qualify to export to China using the advantageous reduced tariffs and the access provisions. These clients will need to review the Articles in the Rules of Origin and Operational procedures (in the Agreement itself) to enable them to determine the specific opportunities available. Contact Managing Director, Garth Melville for specific enquiries at info@company-solutions.co.nz or complete the form below.

If you would like a tailored consultation with Garth Melville (the managing director) to gain valuable beneficial advice for your personal or company structure, trusts, limited partnerships, Land/or tax options to suit your circumstances, please complete the simple form below and we will get back to you ASAP.

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Key Outcomes and Summary

The Key Outcomes in the agreement are: Liberalised trade in goods and services, Movement of People and Facilitation of Investment. Measures to improve the business environment and reduce the barriers of business between the two jurisdictions include technical barriers to trade, and intellectual property, customs procedures, sanitary and phytosanitary procedures.

This Free Trade Agreement was signed in Beijing on the 7th of April 2008. This is a massive development in the relationship between New Zealand and China, making New Zealand the first OECD jurisdiction to sign a comprehensive Free Trade Agreement with China. This is the culmination of bilateral economic and trade relationship since the establishment of diplomatic relations in 1972. 1 October 2008 is the expected commencement date for this FTA.

This Free Trade Agreement liberalises and facilitates trade in goods and services and investment, and promotes cooperation between New Zealand and China in a wide range of economic areas.

Details of the full Agreement are available on www.chinafta.govt.nz. This web site includes a summary of the key outcomes, provides the full text of the New Zealand - China Free Trade Agreement and also additional associated publications and resources.

The Rules of Origin and Trade

The Rules of Origin and also rules to counter unfair trade or unexpected surges in imported products from the other jurisdiction are vitally important. Company Solutions Clients are recommended to carefully review the website Chapter 4 - Rules of Origin and Operational procedures to determine their opportunities Articles 17 to 32 inclusive. The Articles include Preferential Tariff Treatment, through to Regional Value Content. This Regional Value Content provides the formula for acceptable volume of non-originating content of goods when these are mixed with regional value content of goods. There are also other rules included in this Rules of Origin section..