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Free Trade Agreement between the European Union and New Zealand

TABLE OF CONTENTS

PREAMBLE

CHAPTER 1 –

INITIAL PROVISIONS

CHAPTER 2 –

NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS

CHAPTER 3 –

RULES OF ORIGIN AND ORIGIN PROCEDURES

SECTION A:

RULES OF ORIGIN

SECTION B:

ORIGIN PROCEDURES

SECTION C:

FINAL PROVISIONS

CHAPTER 4 –

CUSTOMS AND TRADE FACILITATION

CHAPTER 5 –

TRADE REMEDIES

SECTION A:

GENERAL PROVISIONS

SECTION B:

ANTI-DUMPING AND COUNTERVAILING DUTIES

SECTION C:

GLOBAL SAFEGUARD MEASURES

SECTION D:

BILATERAL SAFEGUARD MEASURES

SUB-SECTION 1:

PROCEDURAL RULES APPLICABLE TO BILATERAL SAFEGUARD MEASURES

CHAPTER 6 –

SANITARY AND PHYTOSANITARY MEASURES

CHAPTER 7 –

SUSTAINABLE FOOD SYSTEMS

CHAPTER 8 –

ANIMAL WELFARE

CHAPTER 9 –

TECHNICAL BARRIERS TO TRADE

CHAPTER 10 –

TRADE IN SERVICES AND INVESTMENT

SECTION A:

GENERAL PROVISIONS

SECTION B:

INVESTMENT LIBERALISATION

SECTION C:

CROSS-BORDER TRADE IN SERVICES

SECTION D:

ENTRY AND TEMPORARY STAY OF NATURAL PERSONS FOR BUSINESS PURPOSES

SECTION E:

REGULATORY FRAMEWORK

SUB-SECTION 1:

DOMESTIC REGULATION

SUB-SECTION 2:

PROVISIONS OF GENERAL APPLICATION

SUB-SECTION 3:

DELIVERY SERVICES

SUB-SECTION 4:

TELECOMMUNICATIONS SERVICES

SUB-SECTION 5:

FINANCIAL SERVICES

SUB-SECTION 6:

INTERNATIONAL MARITIME TRANSPORT SERVICES

CHAPTER 11 –

CAPITAL MOVEMENTS, PAYMENTS AND TRANSFERS

CHAPTER 12 –

DIGITAL TRADE

SECTION A:

GENERAL PROVISIONS

SECTION B:

CROSS-BORDER DATA FLOWS AND PERSONAL DATA PROTECTION

SECTION C:

SPECIFIC PROVISIONS

CHAPTER 13 –

ENERGY AND RAW MATERIALS

CHAPTER 14 –

PUBLIC PROCUREMENT

CHAPTER 15 –

COMPETITION POLICY

CHAPTER 16 –

SUBSIDIES

CHAPTER 17 –

STATE-OWNED ENTERPRISES

CHAPTER 18 –

INTELLECTUAL PROPERTY

SECTION A:

GENERAL PROVISIONS

SECTION B:

STANDARDS CONCERNING INTELLECTUAL PROPERTY RIGHTS

SUB-SECTION 1:

SUB-SECTION 2:

TRADEMARKS

SUB-SECTION 3:

DESIGNS

SUB-SECTION 4:

GEOGRAPHICAL INDICATIONS

SUB-SECTION 5:

PROTECTION OF UNDISCLOSED INFORMATION

SUB-SECTION 6:

PLANT VARIETIES

SECTION C:

ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS

SUB-SECTION 1:

CIVIL AND ADMINISTRATIVE ENFORCEMENT

SUB-SECTION 2:

BORDER ENFORCEMENT

SECTION D:

FINAL PROVISIONS

CHAPTER 19 –

TRADE AND SUSTAINABLE DEVELOPMENT

CHAPTER 20 –

MĀORI TRADE AND ECONOMIC COOPERATION

CHAPTER 21 –

SMALL AND MEDIUM-SIZED ENTERPRISES

CHAPTER 22 –

GOOD REGULATORY PRACTICES AND REGULATORY COOPERATION

CHAPTER 23 –

TRANSPARENCY

CHAPTER 24 –

INSTITUTIONAL PROVISIONS

CHAPTER 25 –

EXCEPTIONS AND GENERAL PROVISIONS

CHAPTER 26 –

DISPUTE SETTLEMENT

SECTION A:

OBJECTIVE AND SCOPE

SECTION B:

CONSULTATIONS

SECTION C:

PANEL PROCEDURES

SECTION D:

MEDIATION

SECTION E:

COMMON PROVISIONS

CHAPTER 27 –

FINAL PROVISIONS

ANNEX 2-A:

TARIFF ELIMINATION SCHEDULES

SECTION A:

GENERAL PROVISIONS

SECTION B:

ADMINISTRATION OF TARIFF RATE QUOTAS

SECTION C:

TARIFF RATE QUOTAS OF THE EUROPEAN UNION

SECTION D:

CONVERSION FACTORS

ANNEX 3-A:

INTRODUCTORY NOTES TO PRODUCT-SPECIFIC RULES OF ORIGIN

ANNEX 3-B:

PRODUCT-SPECIFIC RULES OF ORIGIN

APPENDIX 3-B-1:

ORIGIN QUOTAS AND ALTERNATIVES TO THE PRODUCT-SPECIFIC RULES OF ORIGIN IN ANNEX 3-B (PRODUCT-SPECIFIC RULES OF ORIGIN)

ANNEX 3-C:

TEXT OF THE STATEMENT ON ORIGIN

ANNEX 3-D:

SUPPLIER’S DECLARATION REFERRED TO IN ARTICLE 3.3(4) (CUMULATION OF ORIGIN)

ANNEX 3-E:

JOINT DECLARATION CONCERNING THE PRINCIPALITY OF ANDORRA

ANNEX 3-F:

JOINT DECLARATION CONCERNING THE REPUBLIC OF SAN MARINO

ANNEX 6-A:

COMPETENT AUTHORITIES

ANNEX 6-B:

REGIONAL CONDITIONS FOR PLANTS AND PLANT PRODUCTS

ANNEX 6-C:

EQUIVALENCE RECOGNITION OF SPS MEASURES

ANNEX 6-D:

GUIDELINES AND PROCEDURES FOR AN AUDIT OR VERIFICATION

ANNEX 6-E:

CERTIFICATION

SECTION 1:

COMMODITIES WITH EQUIVALENCE SPECIFIED IN ANNEX 6-C (EQUIVALENCE RECOGNITION OF SPS MEASURES) – DECLARATIONS

SECTION 2:

ELECTRONIC DATA TRANSMISSION

SECTION 3:

CRISIS RESPONSE

ANNEX 6-F:

IMPORT CHECKS AND FEES

ANNEX 9-A:

ACCEPTANCE OF CONFORMITY ASSESSMENT (DOCUMENTS)

ANNEX 9-B:

MOTOR VEHICLES AND EQUIPMENT OR PARTS THEREOF

APPENDIX 9-B-1:

EXCLUDED VEHICLE CATEGORIES

ANNEX 9-C:

ARRANGEMENT REFERRED TO IN POINT (b) OF ARTICLE 9.10(5) FOR THE SYSTEMATIC EXCHANGE OF INFORMATION IN RELATION TO THE SAFETY OF NON-FOOD PRODUCTS AND RELATED PREVENTIVE, RESTRICTIVE AND CORRECTIVE MEASURES

ANNEX 9-D:

ARRANGEMENT REFERRED TO IN ARTICLE 9.10(6) FOR THE REGULAR EXCHANGE OF INFORMATION REGARDING MEASURES TAKEN ON NON-COMPLIANT NON-FOOD PRODUCTS, OTHER THAN THOSE COVERED BY POINT (b) of ARTICLE 9.10(5)

ANNEX 9-E:

WINE AND SPIRITS

APPENDIX 9-E-1:

NEW ZEALAND LAW AS REFERRED TO IN POINT (a) OF ARTICLE 6(1) (PRODUCT DEFINITIONS AND OENOLOGICAL PRACTICES AND PROCESSES)

APPENDIX 9-E-2:

NEW ZEALAND LAW AS REFERRED TO IN POINT (b) OF ARTICLE 6(1) (PRODUCT DEFINITIONS AND OENOLOGICAL PRACTICES AND PROCESSES)

APPENDIX 9-E-3:

OENOLOGICAL PRACTICES OF NEW ZEALAND

APPENDIX 9-E-4:

UNION LAW AS REFERRED TO IN POINT (a) OF ARTICLE 6(2) (PRODUCT DEFINITIONS AND OENOLOGICAL PRACTICES AND PROCESSES)

APPENDIX 9-E-5:

UNION LAW AS REFERRED TO IN POINT (b) OF ARTICLE 6(2) (PRODUCT DEFINITIONS AND OENOLOGICAL PRACTICES AND PROCESSES)

APPENDIX 9-E-6:

OENOLOGICAL PRACTICES OF THE EUROPEAN UNION

APPENDIX 9-E-7:

SIMPLIFIED VI-1 DOCUMENT

APPENDIX 9-E-8:

SIMPLIFIED CERTIFICATE

APPENDIX 9-E-9:

DECLARATIONS

ANNEX 10-A:

EXISTING MEASURES

ANNEX 10-B:

FUTURE MEASURES

ANNEX 10-C:

BUSINESS VISITORS FOR ESTABLISHMENT PURPOSES, INTRA-CORPORATE TRANSFEREES AND SHORT-TERM BUSINESS VISITORS

ANNEX 10-D:

LIST OF ACTIVITIES OF SHORT-TERM BUSINESS VISITORS

ANNEX 10-E:

CONTRACTUAL SERVICE SUPPLIERS AND INDEPENDENT PROFESSIONALS

ANNEX 10-F:

MOVEMENT OF NATURAL PERSONS FOR BUSINESS PURPOSES

ANNEX 13:

LISTS OF ENERGY GOODS, HYDROCARBONS AND RAW MATERIALS

ANNEX 14:

PUBLIC PROCUREMENT MARKET ACCESS COMMITMENTS

SECTION A:

SCHEDULE OF THE EUROPEAN UNION

SECTION B:

SCHEDULE OF NEW ZEALAND

SUB-SECTION 1:

CENTRAL GOVERNMENT ENTITIES

SUB-SECTION 2:

SUB-CENTRAL GOVERNMENT ENTITIES

SUB-SECTION 3:

OTHER ENTITIES

SUB-SECTION 4:

GOODS

SUB-SECTION 5:

SERVICES

SUB-SECTION 6:

CONSTRUCTION SERVICES

SUB-SECTION 7:

GENERAL NOTES

ANNEX 18-A:

PRODUCT CLASSES

ANNEX 18-B:

LISTS OF GEOGRAPHICAL INDICATIONS

SECTION A:

LIST OF GEOGRAPHICAL INDICATIONS – EUROPEAN UNION

SECTION B:

LIST OF GEOGRAPHICAL INDICATIONS – NEW ZEALAND

ANNEX 19:

ENVIRONMENTAL GOODS AND SERVICES

ANNEX 24:

RULES OF PROCEDURE OF THE TRADE COMMITTEE

ANNEX 26-A:

RULES OF PROCEDURE FOR DISPUTE SETTLEMENT

ANNEX 26-B:

CODE OF CONDUCT FOR PANELLISTS AND MEDIATORS

ANNEX 26-C:

RULES OF PROCEDURE FOR MEDIATION

ANNEX 27:

JOINT DECLARATION ON CUSTOMS UNIONS

APPENDIX 2-A-1:

TARIFF SCHEDULE OF THE EUROPEAN UNION

APPENDIX 2-A-2:

TARIFF SCHEDULE OF NEW ZEALAND

PREAMBLE

The European Union, hereinafter referred to as “the Union”,

and

New Zealand,

hereinafter individually referred to as a “Party” and jointly referred to as the “Parties”,

RECOGNISING their longstanding and strong partnership based on the common principles and values reflected in the Partnership Agreement on Relations and Cooperation between the European Union and its Member States, of the one part, and New Zealand, of the other part, done at Brussels on 5 October 2016, and their important economic, trade and investment relationship;

RESOLVED to strengthen their economic relations, and expand bilateral trade and investment;

RECOGNISING the importance of global cooperation to address issues of shared interest;

RECOGNISING the importance of transparency in international trade and investment to the benefit of all stakeholders;

SEEKING to establish a stable and predictable environment with clear and mutually advantageous rules governing trade and investment between the Parties, and to reduce or eliminate barriers thereto;

ACKNOWLEDGING that te Tiriti o Waitangi / the Treaty of Waitangi is a foundational document of constitutional importance to New Zealand;

DESIRING to raise living standards, promote inclusive economic growth and stability, create new employment opportunities and improve the general welfare and, to this end, reaffirming their commitment to promote trade and investment liberalisation;

CONVINCED that this Agreement will create an expanded and secure market for goods and services, thus enhancing the competitiveness of their firms in global markets;

DETERMINED to strengthen their economic, trade, and investment relations in accordance with the objective of sustainable development, in its economic, social and environmental dimensions, and to promote trade and investment that are consistent with the aims for high levels of environmental and labour protection and with relevant internationally recognised standards and agreements to which they are a party;

DETERMINED to enhance consumer welfare through policies that ensure a high level of consumer protection, consumer choice and economic wellbeing;

AFFIRMING the Parties’ right to regulate within their territories to achieve legitimate policy objectives, such as the protection of human, animal or plant life or health; social services; public education; safety; the environment, including climate change; public morals; social or consumer protection; animal welfare; privacy and data protection; the promotion and protection of cultural diversity; and, in the case of New Zealand, the promotion or protection of the rights, interests, duties and responsibilities of Māori;

COMMITTED to communicate with all relevant stakeholders from civil society, including the private sector, trade unions and other non-governmental organisations;

RECOGNISING the importance of promoting inclusive participation in international trade, and of addressing barriers and other challenges that exist for domestic stakeholders in accessing international trade and economic opportunities, including in digital trade;

DETERMINED to address the particular challenges faced by small and medium-sized enterprises in contributing to the development of trade and foreign direct investment;

RECOGNISING the importance of international trade in enabling and advancing Māori wellbeing, and the challenges that exist for Māori, including wāhine Māori, in accessing trade and investment opportunities derived from international trade, including the opportunities and benefits created by this Agreement;

SEEKING to advance gender equality and the economic empowerment of women by promoting the importance of gender inclusive policies and practices in economic activities, including international trade, in an effort to eliminate all forms of gender-based discrimination;

REAFFIRMING their commitment to the Charter of the United Nations signed in San Francisco on 26 June 1945 and having regard to the principles articulated in the Universal Declaration of Human Rights adopted by the General Assembly of the United Nations on 10 December 1948;

BUILDING upon their respective rights and obligations under the Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994, and other multilateral and bilateral instruments of cooperation to which both Parties are a party;

HAVE AGREED AS FOLLOWS:

CHAPTER 1

Initial provisions

Article 1.1

Objectives of this Agreement

The objectives of this Agreement are to liberalise and facilitate trade and investment, as well as to promote a closer economic relationship between the Parties.

Article 1.2

General definitions

For the purposes of this Agreement, the following definitions apply:

(a)	“agricultural product” means a product listed in Annex 1 to the Agreement on Agriculture;

(b)	“CCMAA” means the Agreement between the European Union and New Zealand on cooperation and mutual administrative assistance in customs matters (1), done at Brussels on 3 July 2017;

(c)

“customs authority “ means:

(i)	with respect to New Zealand, the New Zealand Customs Service; and

(ii)	with respect to the Union, the services of the European Commission responsible for customs matters, or, as appropriate, the customs administrations and any other authorities empowered in the Member States to apply and enforce customs legislation;

(d)

“customs duty” means any duty or charge of any kind imposed on, or in connection with, the importation of a good, but does not include any:

(i)	charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994;

(ii)	anti-dumping or countervailing duty applied in conformity with GATT 1994, the Anti-dumping Agreement, and the SCM Agreement; and

(iii)

fee or other charge imposed on, or in connection with, importation that is limited in amount to the approximate cost of the services rendered;

(e)	“CPC” means the Provisional Central Product Classification (Statistical Papers Series M No. 77, Department of Economic and Social Affairs, Statistical Office of the United Nations, New York, 1991);

(f)	“day” means a calendar day;

(g)	“enterprise” means a juridical person or a branch or a representative office of a juridical person;

(h)	“EU” or “Union” means the European Union;

(i)	“existing” means, unless otherwise specified in this Agreement, in effect on the date of entry into force of this Agreement;

(j)	“good of a Party” means a domestic product within the meaning of GATT 1994, and includes goods originating in that Party;

(k)	“Harmonized System” or “HS” means the Harmonized Commodity Description and Coding System, including all legal notes and amendments thereto developed by the WCO;

(l)	“heading” means the first four digits in the tariff classification number under the Harmonized System;

(m)	“ILO” means the International Labour Organization;

(n)	“juridical person” means any legal entity duly constituted or otherwise organised under the law of a Party, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;

(o)	“measure” means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action, requirement or practice, or any other form (2);

(p)

“measures of a Party” means any measures adopted or maintained by: (3)

(i)	central, regional or local governments or authorities; and

(ii)	non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities;

(q)	“Member State” means a Member State of the Union;

(r)

“natural person of a Party” means:

(i)	for the Union, a national of one of the Member States according to its law (4); and

(ii)	for New Zealand, a national of New Zealand according to its law (5);

(s)	“OECD” means the Organisation for Economic Co-operation and Development;

(t)	“originating” means qualifying as originating under the rules of origin set out in Chapter 3 (Rules of origin and origin procedures);

(u)	“originating good” or “good originating in a Party” means a good qualifying under the rules of origin set out in Chapter 3 (Rules of origin and origin procedures);

(v)	“person” means a natural person or a juridical person;

(w)	“preferential tariff treatment” means the rate of customs duty applicable to an originating good pursuant to the tariff elimination schedules in Annex 2-A (Tariff elimination schedules);

(x)	“Sanitary Agreement” means the Agreement between the European Community and New Zealand on sanitary measures applicable to trade in live animals and animal products (6), done at Brussels on 17 December 1996;

(y)	“sanitary or phytosanitary measure” or “SPS measure” means any measure as referred to in paragraph 1 of Annex A to the SPS Agreement;

(z)	“SDR” means special drawing right;

(aa)	“service supplier” means a person that supplies or seeks to supply a service;

(bb)	“SME” means a small and medium-sized enterprise;

(cc)	“territory” means with respect to each Party the area where this Agreement applies in accordance with Article 1.4 (Territorial application);

(dd)	“TFEU” means the Treaty on the Functioning of the European Union;

(ee)	“the Paris Agreement” means the Paris Agreement under the United Nations Framework Convention on Climate Change (7), done at Paris on 12 December 2015;

(ff)	“the Partnership Agreement” means the Partnership Agreement on Relations and Cooperation between the European Union and its Member States, of the one part, and New Zealand, of the other part (8), done at Brussels on 5 October 2016;

(gg)	“third country” means a country or territory outside the territorial scope of application of this Agreement;

(hh)	“WTO” means the World Trade Organization; and

(ii)	“WCO” means the World Customs Organization.

Article 1.3

WTO Agreements

For the purposes of this Agreement, the following definitions apply:

(a)	“Agreement on Agriculture” means the Agreement on Agriculture, contained in Annex 1A to the WTO Agreement;

(b)	“Agreement on Safeguards” means the Agreement on Safeguards, contained in Annex 1A to the WTO Agreement;

(c)	“Anti-dumping Agreement” means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the WTO Agreement;

(d)	“Customs Valuation Agreement” means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the WTO Agreement;

(e)	“DSU” means the Understanding on Rules and Procedures Governing the Settlement of Disputes, contained in Annex 2 to the WTO Agreement;

(f)	“GATS” means the General Agreement on Trade in Services, contained in Annex 1B to the WTO Agreement;

(g)	“GATT 1994” means the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the WTO Agreement;

(h)	“GPA” means the Agreement on Government Procurement as amended by the Protocol Amending the Agreement on Government Procurement, done at Geneva on 30 March 2012;

(i)	“Import Licensing Agreement” means the Agreement on Import Licensing Procedures, contained in Annex 1A to the WTO Agreement;

(j)	“SCM Agreement” means the Agreement on Subsidies and Countervailing Measures, contained in Annex 1A to the WTO Agreement;

(k)	“SPS Agreement” means the Agreement on the Application of Sanitary and Phytosanitary Measures, contained in Annex 1A to the WTO Agreement;

(l)	“TBT Agreement” means the Agreement on Technical Barriers to Trade, contained in Annex 1A to the WTO Agreement;

(m)	“TRIPS Agreement” means the Agreement on Trade-Related Aspects of Intellectual Property Rights, contained in Annex 1C to the WTO Agreement; and

(n)	“WTO Agreement” means the Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994.

Article 1.4

Territorial application

1. This Agreement applies:

(a)	to the territories in which the Treaty on European Union and the TFEU are applied and under the conditions laid down in those Treaties; and

(b)	to the territory of New Zealand and the exclusive economic zone, seabed and subsoil over which New Zealand exercises sovereign rights with respect to natural resources in accordance with international law, but does not include Tokelau.

2. As regards the provisions of this Agreement concerning the tariff treatment of goods, including rules of origin and origin procedures, this Agreement also applies to those areas of the customs territory of the Union within the meaning of Article 4 of Regulation (EU) No 952/2013 of the European Parliament and of the Council (9) that are not covered by point (a) of paragraph 1 of this Article.

3. References to “territory” in this Agreement shall be understood in the sense referred to in paragraphs 1 and 2, except as otherwise expressly provided.

Article 1.5

Relation to other international agreements

1. Unless otherwise provided for in this Agreement, the existing international agreements between the European Community, the Union, or the Member States, of the one part, and New Zealand, of the other part, are not superseded or terminated by this Agreement.

2. This Agreement shall be an integral part of the overall bilateral relations as governed by the Partnership Agreement and shall form part of the common institutional framework.

3. The Parties affirm their rights and obligations with respect to each other under the WTO Agreement. For greater certainty, nothing in this Agreement requires a Party to act in a manner inconsistent with its obligations under the WTO Agreement.

4. In the event of any inconsistency between this Agreement and any international agreement other than the WTO Agreement to which both Parties are a party, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution.

5. Unless otherwise specified, where international agreements are referred to in, or incorporated into, this Agreement, in whole or in part, they shall be understood to include amendments thereto and their successor agreements entering into force for both Parties on or after the date of entry into force of this Agreement.

6. If any matter arises regarding the implementation or application of this Agreement as a result of any amendments thereto or successor agreements as referred to in paragraph 5, the Parties may, on request of either Party, consult with each other with a view to finding a mutually satisfactory solution to such matter as necessary.

Article 1.6

Establishment of a free trade area

The Parties hereby establish a free trade area, in conformity with Article XXIV of GATT 1994 and Article V of GATS.

CHAPTER 2

National treatment and market access for goods

Article 2.1

Objective

The Parties shall progressively and reciprocally liberalise trade in goods in accordance with this Agreement.

Article 2.2

Scope

Unless otherwise provided in this Agreement, this Chapter applies to trade in goods of a Party.

Article 2.3

Definitions

For the purposes of this Chapter, the following definitions apply:

(a)	“A.T.A. carnet” means the document reproduced in accordance with the Annex to the Customs Convention on the A.T.A. Carnet for the temporary admission of goods, done in Brussels on 6 December 1961;

(b)

“consular transaction” means the procedure of obtaining from a consul of the importing Party in the territory of the exporting Party, or in the territory of a third country, a consular invoice or a consular visa for a commercial invoice, certificate of origin, manifest, shipper’s export declaration or any other customs documentation in connection with the importation of the good;

(c)

“export licensing procedure” means an administrative procedure requiring the submission of an application or other documentation, other than that generally required for customs clearance purposes, to the relevant administrative body or bodies as a prior condition for exportation from the territory of the exporting Party;

(d)

“import licensing procedure” means an administrative procedure, requiring the submission of an application or other documentation, other than that generally required for customs clearance purposes, to the relevant administrative body or bodies as a prior condition for importation into the territory of the importing Party;

(e)

“remanufactured good” means a good classified in HS Chapters 84 to 90 or heading 94.02 that:

(i)	is entirely or partially comprised of parts obtained from used goods;

(ii)	has similar performance and working conditions compared to equivalent goods, when new; and

(iii)

is given the same warranty as that applicable to equivalent goods, when new;

(f)

“repair” or “alteration” means any processing operation undertaken on a good, regardless of any increase in the value of the good, to remedy operating defects or material damage and entailing the re-establishment of the good to its original function or to ensure compliance with technical requirements for its use, without which the good could no longer be used in the normal way for the purposes for which it was intended; repair or alteration of a good includes restoration and maintenance, but does not include an operation or process that:

(i)	destroys the essential characteristics of a good, or creates a new or commercially different good;

(ii)	transforms an unfinished good into a finished good; or

(iii)

is used to substantially change the function of a good; and

(g)	“staging category” means the timeframe for the elimination of customs duties ranging from zero to seven years, after which a good is free of customs duty, unless otherwise specified in Annex 2-A (Tariff elimination schedules).

Article 2.4

National treatment on internal taxation and regulation

Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994, including its interpretative Notes and Supplementary Provisions. To that end, Article III of GATT 1994 and its interpretative Notes and Supplementary Provisions are incorporated into and made part of this Agreement, mutatis mutandis.

Article 2.5

Elimination of customs duties

1. Unless otherwise provided for in this Agreement, each Party shall reduce or eliminate its customs duties on goods originating in the other Party in accordance with Annex 2-A (Tariff elimination schedules).

2. For the purposes of paragraph 1, the base rate of customs duties shall be the base rate specified for each good in Annex 2-A (Tariff elimination schedules).

3. If a Party reduces its applied most-favoured-nation customs duty rate, such duty rate shall apply to goods originating in the other Party for as long as it is lower than the customs duty rate determined pursuant to Annex 2-A (Tariff elimination schedules).

4. Two years after the date of entry into force of this Agreement, on the request of a Party, the Parties shall consult to consider accelerating the reduction or elimination of customs duties set out in Annex 2-A (Tariff elimination schedules). The Trade Committee may adopt a decision to amend Annex 2-A (Tariff elimination schedules) to accelerate the tariff reduction or elimination.

5. A Party may at any time autonomously accelerate the elimination of customs duties set out in Annex 2-A (Tariff elimination schedules) on goods originating in the other Party. That Party shall inform the other Party as early as practicable before the new customs duty rate takes effect.

6. If a Party autonomously accelerates the elimination of customs duties in accordance with paragraph 5 of this Article, that Party may raise the customs duties concerned to the level set out in Annex 2-A (Tariff elimination schedules) for the respective year following any autonomous reduction.

Article 2.6

Standstill

Unless otherwise provided in this Agreement, a Party shall not increase any customs duty set as the base rate in Annex 2-A (Tariff elimination schedules) or adopt any new customs duty on a good originating in the other Party.

Article 2.7

Export duties, taxes or other charges

1. A Party shall not adopt or maintain:

(a)	any duty, tax or other charge of any kind imposed on, or in connection with, the exportation of a good to the other Party; or

(b)	any internal tax or other charge on a good exported to the other Party that is in excess of the tax or charge that would be imposed on like goods when destined for domestic consumption.

2. Nothing in this Article shall prevent a Party from imposing a fee or charge that is permitted under Article 2.8 (Fees and formalities) on the exportation of a good.

Article 2.8

Fees and formalities

1. Each Party shall ensure, in accordance with Article VIII:1 of GATT 1994, including its interpretative Notes and Supplementary Provisions, that all fees and other charges of whatever character imposed by a Party on, or in connection with, importation or exportation of goods are limited in amount to the approximate cost of services rendered, and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.

2. A Party shall not levy the fees and other charges of whatever character referred to in paragraph 1 on an ad valorem basis.

3. Each Party shall promptly publish all fees and other charges of whatever character it imposes on, or in connection with, importation or exportation of goods in such a manner as to enable governments, traders and other interested parties to become acquainted with them.

4. A Party shall not require a consular transaction, including related fees and other charges of whatever character, in connection with the importation of any good of the other Party.

5. For the purposes of this Article, fees or other charges of whatever character do not include export taxes, customs duties, charges equivalent to an internal tax, or other internal charges imposed consistently with Article III:2 of GATT 1994, or anti-dumping or countervailing duties.

Article 2.9

Repaired or altered goods

1. A Party shall not apply a customs duty to a good, regardless of its origin, that re-enters the Party’s territory after that good has been temporarily exported from its territory to the territory of the other Party for repair or alteration, regardless of whether that repair or alteration could have been performed in the territory of the Party from which the good was exported for repair or alteration.

2. Paragraph 1 does not apply to a good imported in bond, into free trade zones, or in similar status, that is then exported for repair or alteration and is not reimported in bond, into free trade zones, or in similar status.

3. A Party shall not apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration.

Article 2.10

Remanufactured goods

1. A Party shall not accord to remanufactured goods of the other Party treatment that is less favourable than that which the Party accords to equivalent goods, when new.

2. For greater certainty, Article 2.11 (Import and export restrictions) applies to import or export prohibitions or restrictions on the importation or exportation of remanufactured goods. If a Party adopts or maintains import or export prohibitions or restrictions on the importation or exportation of used goods, it shall not apply such measures to remanufactured goods.

3. A Party may require that remanufactured goods be identified as such for distribution or sale in its territory and that the goods meet all applicable technical requirements that apply to equivalent goods, when new.

Article 2.11

Import and export restrictions

1. A Party shall not adopt or maintain any prohibitions or restrictions on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of GATT 1994, including its interpretative Notes and Supplementary Provisions. To that end, Article XI of GATT 1994 and its interpretative Notes and Supplementary Provisions are incorporated into and made part of this Agreement, mutatis mutandis.

2. A Party shall not adopt or maintain:

(a)	export and import price requirements (10), except as permitted in enforcement of countervailing and anti-dumping duty orders and undertakings; or

(b)	import licensing conditioned on the fulfilment of a performance requirement.

Article 2.12

Origin marking

1. If New Zealand requires a mark of origin on the importation of goods from the Union, New Zealand shall accept the origin mark “Made in the EU” under conditions that are no less favourable than those applied to marks of origin of a Member State.

2. For the purposes of the origin mark “Made in the EU”, New Zealand shall treat the Union as a single territory.

Article 2.13

Import licensing procedures

1. Each Party shall adopt and administer any import licensing procedures in accordance with Articles 1 to 3 of the Import Licensing Agreement. To that end, Articles 1 to 3 of the Import Licensing Agreement are incorporated into and made part of this Agreement, mutatis mutandis.

2. A Party that adopts a new import licensing procedure or modifies an existing import licensing procedure, shall notify the other Party of such adoption or modification without delay and in any event no later than 60 days after the date of the publication of the relevant procedure. The notification shall include the information specified in Article 5(2) of the Import Licensing Agreement. A Party shall be deemed to be in compliance with this notification obligation if it notifies the adoption of a new import licensing procedure, or a modification of an existing import licensing procedure, to the WTO Committee on Import Licensing established by Article 4 of the Import Licensing Agreement, including the information specified in Article 5(2) of that Agreement.

3. Upon request of a Party, the other Party shall promptly provide any relevant information, including the information specified in Article 5(2) of the Import Licensing Agreement, regarding any import licensing procedure that it intends to adopt or that it maintains as well as any modification of an existing import licensing procedure.

4. If a Party denies an application for an import licence with respect to a good of the other Party, it shall, on request, and within a reasonable period of time after receiving the request, provide the applicant with a written explanation of the reason for the denial.

Article 2.14

Export licensing procedures

1. Each Party shall publish any new export licensing procedure, or any modification of an existing export licensing procedure, in such a manner as to enable governments, traders and other interested parties to become acquainted with them. Such publication shall take place, whenever practicable, 45 days before the new export licensing procedure or any modification of an existing export licensing procedure takes effect, and in any event no later than the date on which the new export licensing procedure or any modification of an existing export licensing procedure takes effect.

2. Each Party shall ensure that it includes the following information in its publication of export licensing procedures:

(a)	the texts of its export licensing procedures, or of any modifications the Party makes to those procedures;

(b)	the goods subject to each export licensing procedure;

(c)

for each export licensing procedure, a description of the process for applying for a licence and any criteria an applicant must meet to be eligible to apply for a licence, such as possessing an activity licence, establishing or maintaining an investment, or operating through a particular form of establishment in the territory of a Party;

(d)	a contact point or points from which interested persons can obtain further information on the conditions for obtaining an export licence;

(e)	the administrative body or bodies to which an application for a licence or other relevant documentation is to be submitted;

(f)	a description of any measure or measures being implemented through the export licensing procedure;

(g)	the period during which each export licensing procedure will be in effect, unless the export licensing procedure will remain in effect until withdrawn or revised, resulting in a new publication;

(h)	if the Party intends to use an export licensing procedure to administer an export quota, the overall quantity and, if applicable, the value of the quota and the opening and closing dates of the quota; and

(i)	any exemptions or exceptions that replace the requirement to obtain an export licence, how to request or use those exemptions or exceptions, and the criteria for granting them.

3. Within 30 days after the date of entry into force of this Agreement, each Party shall notify the other Party of its existing export licensing procedures. A Party that adopts new export licensing procedures, or modifications of existing licensing procedures, shall notify the other Party of such adoption or modification within 60 days after the publication of any new export licensing procedure or any modification of an existing licensing procedure. The notification shall include the reference to the source or sources where the information specified in paragraph 2 is published and, if appropriate, the address of the relevant government website or websites.

4. For greater certainty, nothing in this Article requires a Party to grant an export licence, or prevents a Party from implementing its commitments under United Nations Security Council resolutions, as well as under multilateral non-proliferation regimes and export control arrangements, including:

(a)	the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, done at the Hague on 19 December 1995;

(b)	the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction, done at Paris on 13 January 1993;

(c)	the Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on their Destruction, done at London, Moscow and Washington on 10 April 1972;

(d)	the Treaty on the Non-Proliferation of Nuclear Weapons, done at London, Moscow and Washington on 1 July 1968; and

(e)	the Australia Group, the Nuclear Suppliers Group, and the Missile Technology Control Regime.

Article 2.15

Preference utilisation rates

1. For the purpose of monitoring the functioning of this Agreement and calculating preference utilisation rates, the Parties shall annually exchange comprehensive import statistics for a period starting one year after the date of entry into force of this Agreement until 10 years after the tariff elimination is completed for all goods in accordance with Annex 2-A (Tariff elimination schedules). Unless the Trade Committee decides otherwise, that period shall be automatically extended for five years, and thereafter the Trade Committee may decide to extend it further.

2. The exchange of import statistics shall cover data pertaining to the most recent year available, including value and, if applicable, volume, at the tariff line level for imports of goods of the other Party benefitting from preferential duty treatment under this Agreement and for the import of those goods that received non-preferential treatment including under the different regimes used by the Parties upon importation. Such statistics as well as preference utilisation rates may be presented for an exchange of views to the Trade Committee.

Article 2.16

Temporary admission

1. For the purposes of this Article, the term “temporary admission” means the customs procedure under which certain goods, including means of transport, can be brought into the territory of a Party with conditional relief from the payment of import duties and taxes and without the application of import prohibitions or restrictions of an economic character, on the condition that the goods are imported for a specific purpose and are intended for re-exportation within a specified period without having undergone any change except normal depreciation due to the use made of those goods.

2. Each Party shall grant temporary admission in accordance with its laws, regulations or procedures, to the following goods, regardless of their origin:

(a)	professional equipment, including equipment for the press or television, software, and broadcasting and cinematographic equipment, necessary for carrying out the business activity, trade, or profession of a person visiting the territory of the other Party to perform a specified task;

(b)	goods, including their component parts, ancillary apparatus, and accessories, intended for display or use at exhibitions, fairs, meetings or similar events;

(c)

commercial samples and advertising films and recordings (recorded visual media or audio materials, consisting essentially of images or sound showing the nature or operation of goods or services offered for sale or lease by a person established or resident in the territory of a Party provided that such materials are of a kind suitable for exhibition to prospective customers but not for broadcast to the general public); and

(d)	goods imported for sports purposes, including contests, demonstrations, training, racing or similar events.

3. For the temporary admission of the goods listed in paragraph 2, each Party shall accept A.T.A. carnets issued in the other Party, endorsed there and guaranteed by an association forming part of the international guarantee chain, certified by the competent authorities and valid in the territory of the importing Party.

4. Each Party shall determine the period during which goods may remain under the temporary admissions procedure. The initial period may be extended autonomously by a Party.

5. Each Party may require that the goods benefiting from temporary admission:

(a)	be used solely by or under the personal supervision of a national or resident of the other Party in the exercise of the business activity, trade, profession, or sport carried out by that national or resident;

(b)	not be sold, leased, disposed of, or transferred while in its territory;

(c)	be accompanied by a security that is consistent with the importing Party’s obligations under the relevant international customs conventions to which it has acceded;

(d)	be identified when imported and exported;

(e)	be exported on or before the departure of the national or resident referred to in point (a), or within a period related to the purpose of the temporary admission that the Party may establish, or within one year, unless extended;

(f)	be admitted in no greater quantity than is reasonable for its intended use; or

(g)	be otherwise admissible into the territory of the Party under its law.

6. If any condition that a Party may impose under paragraph 5 has not been fulfilled, the Party may apply the customs duty and any other charge that would normally be owed on the good as well as any other charges or penalties provided for under its law.

7. Each Party shall allow a good temporarily admitted under this Article to be re-exported through a customs authorised point of departure other than that through which it was admitted.

8. A Party shall relieve the importer or other person responsible for a good temporarily admitted under this Article of liability for failure to export a good temporarily admitted under this Article on presentation of satisfactory proof to the importing Party that the good temporarily admitted under this Article has been destroyed or irretrievably lost, in accordance with the customs legislation of that Party.

Article 2.17

Duty-free entry of commercial samples of negligible value and printed advertising material

1. Each Party shall, in accordance with its laws, regulations or procedures, grant duty-free entry to commercial samples of negligible value and printed advertising material imported from the other Party, regardless of their origin.

2. A Party may define commercial samples of negligible value as:

(a)	having a value, individually or in the aggregate as shipped, of not more than the amount specified in the law of a Party; or

(b)	being so marked, torn, perforated, or otherwise treated that they are unsuitable for sale or use except as commercial samples.

3. Printed advertising materials are defined as goods classified in HS Chapter 49, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, tourist promotional materials, and posters, that are used to promote, publicise, or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge.

Article 2.18

Specific measures concerning the management of preferential treatment

1. The Parties shall cooperate in preventing, detecting and combating breaches of customs legislation related to the preferential treatment granted under this Chapter in accordance with Chapter 3 (Rules of origin and origin procedures) and Titles I, III, IV and V of the CCMAA.

2. A Party may temporarily suspend the relevant preferential treatment of the goods concerned in accordance with the procedure laid down in paragraphs 3 to 5, if:

(a)

that Party has made a finding, on the basis of objective, compelling and verifiable information, that systematic and sectoral breaches of customs legislation related to the preferential treatment granted under this Chapter, resulting in a significant loss of revenue to that Party, have been committed; and

(b)	the other Party repeatedly and unjustifiably refuses or otherwise fails to cooperate with respect to the breaches of customs legislation referred to in point (a).

3. The Party that has made a finding as referred to in point (a) of paragraph 2 shall, without undue delay, notify the Trade Committee and enter into consultations with the other Party within the Trade Committee with a view to reaching a mutually acceptable solution.

4. If the Parties fail to agree on an acceptable solution within three months after the notification as referred to in paragraph 3, the Party that made the finding may decide to temporarily suspend the relevant preferential treatment of the goods concerned. The temporary suspension shall apply to only those traders that both Parties during the consultations referred to in paragraph 3 have identified and have agreed that those traders were involved in the breaches of customs legislation. Such temporary suspension shall be notified to the Trade Committee without undue delay.

5. If a Party has made a finding as referred to in point (a) of paragraph 2 and within three months following the notification as referred to in paragraph 4 has established that the temporary suspension as referred to in paragraph 4 has been ineffective in combatting breaches of customs legislation related to the preferential treatment granted under this Chapter, the Party may decide to temporarily suspend the relevant preferential treatment of the goods concerned. The Party may also decide to temporarily suspend the relevant preferential treatment of the goods concerned if, during the consultations referred to in paragraph 3, the Parties were unable to identify and agree on the traders involved in the breaches of customs legislation. This temporary suspension shall be notified to the Trade Committee without undue delay.

6. The temporary suspensions referred to in this Article shall apply only for the period necessary to protect the financial interests of the Party concerned, and in any case they shall not apply longer than six months. If the conditions that gave rise to the initial temporary suspension persist at the expiry of the six month period, the Party concerned may decide to renew the temporary suspension after notifying the other Party. Any such suspension shall be subject to periodic consultations within the Trade Committee.

7. Each Party shall publish, in accordance with its internal procedures, notices to importers about any decision concerning temporary suspensions referred to in this Article.

8. Notwithstanding paragraph 5, if an importer is able to satisfy the customs authority of the importing Party that the goods concerned are fully compliant with the customs law of the importing Party, the requirements of this Agreement, and any other conditions related to the temporary suspension established by the importing Party in accordance with its law, the importing Party shall allow the importer to apply for preferential treatment and recover any duties paid in excess of the applicable preferential tariff rates when the goods concerned were imported.

Article 2.19

Committee on Trade in Goods

1. This Article complements and further specifies Article 24.4 (Specialised committees).

2. The functions of the Committee on Trade in Goods, with respect to this Chapter, shall include:

(a)	promoting trade in goods between the Parties, including through consultation on accelerating tariff elimination under this Agreement;

(b)	promptly addressing barriers to trade in goods between the Parties;

(c)

without prejudice to Chapter 26 (Dispute settlement), consulting on and endeavouring to resolve any issues relating to this Chapter, including differences that may arise between the Parties on matters related to the classification of goods under the Harmonized System and Annex 2-A (Tariff elimination schedules), or to an amendment to the Harmonized System Code Structure or each Party’s respective nomenclatures, to ensure that the obligations of each Party pursuant to Annex 2-A (Tariff elimination schedules) are not altered;

(d)	monitoring preference utilisation rates and statistics, the data of which may be presented for an exchange of views by the Committee on Trade in Goods to the Trade Committee; and

(e)	working with any specialised committee or other body established or granted authority to act under this Agreement on issues that may be relevant to that specialised committee or other body, as appropriate.

Article 2.20

Contact points

Within 90 days after the date of entry into force of this Agreement, each Party shall designate a contact point to facilitate communication between the Parties on matters covered by this Chapter and shall notify the other Party of the contact details for the contact point. Each Party shall promptly notify the other Party of any change of those contact details.

CHAPTER 3

Rules of origin and origin procedures

Section A

Rules of origin

Article 3.1

Definitions

For the purposes of this Chapter, the following definitions apply:

(a)	“consignment” means a product that is either sent simultaneously from a consignor to a consignee or covered by a single transport document covering a shipment from the consignor to the consignee or, in the absence of such a document, by a single invoice;

(b)	“exporter” means a person, located in a Party, who, in accordance with the requirements laid down in the law of that Party, exports or produces the originating product and makes out a statement on origin;

(c)	“importer” means a person who imports the originating product and claims preferential tariff treatment for it;

(d)	“material” means any substance used in the production of a product, including any ingredient, raw material, component or part;

(e)	“non-originating material” means a material that does not qualify as originating under this Chapter, including a material whose originating status cannot be determined;

(f)	“product” means the result of production, even if it is intended for use as a material in the production of another product; and

(g)	“production” means any kind of working or processing, including assembly.

Article 3.2

General requirements for originating products

1. For the purpose of applying preferential tariff treatment by a Party to an originating good of the other Party in accordance with this Agreement, provided that a product satisfies all other applicable requirements of this Chapter, a product shall be considered as originating in the other Party if it is:

(a)	wholly obtained in that Party within the meaning of Article 3.4 (Wholly obtained products);

(b)	produced in that Party exclusively from originating materials; or

(c)	produced in that Party incorporating non-originating materials provided that the product satisfies the requirements set out in Annex 3-B (Product-specific rules of origin).

2. If a product has acquired originating status, the non-originating materials used in the production of that product shall not be considered as non-originating materials when that product is incorporated as a material in another product.

3. The acquisition of originating status shall be fulfilled without interruption in New Zealand or the Union.

Article 3.3

Cumulation of origin

1. A product originating in a Party shall be considered as originating in the other Party if that product is used as a material in the production of another product in that other Party.

2. Production carried out in a Party on a non-originating material may be taken into account for the purpose of determining whether a product is originating in the other Party.

3. Paragraphs 1 and 2 do not apply if the production carried out in the other Party does not go beyond one or more of the operations referred to in Article 3.6 (Insufficient working or processing).

4. In order for an exporter to complete the statement on origin referred to in point (a) of Article 3.16(2) (Claim for preferential tariff treatment) for a non-originating material, the exporter shall obtain from its supplier a supplier’s declaration as provided for in Annex 3-D (Supplier’s declaration referred to in Article 3.3(4) (Cumulation of origin)) or an equivalent document that contains the same information describing the non-originating materials concerned in sufficient detail to enable them to be identified.

Article 3.4

Wholly obtained products

1. The following shall be considered as wholly obtained in a Party:

(a)	a mineral or naturally occurring substance extracted or taken from the soil or the seabed of a Party;

(b)	a plant or vegetable grown or harvested in a Party;

(c)	a live animal born and raised in a Party;

(d)	a product obtained from a live animal raised in a Party;

(e)	a product obtained from a slaughtered animal born and raised in a Party;

(f)	a product obtained by hunting or fishing conducted in a Party, but not beyond the outer limits of the Party’s territorial sea;

(g)

a product obtained from aquaculture in a Party, if aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants, are born or raised from seed stock, such as eggs, roes, fry, fingerlings or larvae, by intervention in the rearing or growth processes to enhance production, such as regular stocking, feeding or protection from predators;

(h)	a product of sea fishing and other product taken in accordance with international law from the sea outside any territorial sea by a vessel of a Party;

(i)	a product made aboard a factory ship of a Party exclusively from a product referred to in point (h);

(j)	a product taken or extracted by a Party or a person of a Party from the seabed or subsoil outside any territorial sea, provided that Party or person of that Party has the right to work that seabed or subsoil in accordance with international law;

(k)	waste or scrap resulting from manufacturing operations conducted in a Party;

(l)	a used product collected in a Party and which is fit only for the recovery of raw materials, including such raw materials; and

(m)	a product produced in a Party exclusively from the products referred to in points (a) to (l).

2. The terms “vessel of a Party” and “factory ship of a Party” in points (h) and (i) of paragraph 1 respectively refer only to a vessel or a factory ship which:

(a)	is registered in a Member State or in New Zealand;

(b)	sails under the flag of a Member State or of New Zealand; and

(c)

meets one of the following conditions:

(i)	it is at least 50 % owned by nationals of a Member State or of New Zealand; or

(ii)

it is owned by one or more juridical persons each of which:

(A)	has its head office and main place of business in a Member State or in New Zealand; and

(B)	is at least 50 % owned by public entities or persons of a Member State or of New Zealand.

Article 3.5

Tolerances

1. If non-originating materials used in the production of a product do not satisfy the requirements set out in Annex 3-B (Product-specific rules of origin), the product shall be considered as originating in a Party, provided that:

(a)	for all products, except for the products classified under HS Chapters 50 to 63, the value of non-originating materials used in the production of the products concerned does not exceed 10 % of the ex-works price of those products;

(b)	for the products classified under HS Chapters 50 to 63, the tolerances set out in Notes 7 and 8 of Annex 3-A (Introductory notes to product-specific rules of origin) apply.

2. Paragraph 1 does not apply if the value or weight of non-originating materials used in the production of a product exceeds any of the percentages for the maximum value or weight of non-originating materials as specified in the requirements set out in Annex 3-B (Product-specific rules of origin).

3. Paragraph 1 does not apply to products wholly obtained in a Party within the meaning of Article 3.4 (Wholly obtained products). If Annex 3-B (Product-specific rules of origin) requires that the materials used in the production of a product are wholly obtained in a Party within the meaning of Article 3.4 (Wholly obtained products), paragraphs 1 and 2 apply.

Article 3.6

Insufficient working or processing

1. Notwithstanding point (c) of Article 3.2(1) (General requirements for originating products), a product shall not be considered as originating in a Party if the production of the product in a Party consists only of one or more of the following operations conducted on non-originating materials:

(a)	preserving operations such as drying, freezing, keeping in brine and other similar operations when their sole purpose is to ensure that the product remains in good condition during transport and storage (11);

(b)	breaking-up or assembly of packages;

(c)	washing or cleaning, removal of dust, oxide, oil, paint or other coverings;

(d)	ironing or pressing of textiles and textile articles;

(e)	simple painting and polishing operations;

(f)	husking and partial or total milling of rice; polishing and glazing of cereals and rice;

(g)	operations to colour or flavour sugar or form sugar lumps, partial or total milling of crystal sugar;

(h)	peeling, stoning and shelling of fruits, nuts and vegetables;

(i)	sharpening, simple grinding or simple cutting;

(j)	sifting, screening, sorting, classifying, grading, matching, including the making-up of sets of articles;

(k)	simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;

(l)	affixing or printing marks, labels, logos and other like-distinguishing signs on the product or its packaging;

(m)	simple mixing of products, whether or not of different kinds; mixing of sugar with any material;

(n)	simple addition of water or dilution with water or another substance that does not materially alter the characteristics of the product, or dehydration or denaturation of the product;

(o)	simple assembly of parts of articles to constitute a complete article or disassembly of the product into parts; or

(p)	slaughter of animals.

2. For the purposes of paragraph 1, operations shall be considered to be simple if neither special skills nor especially produced or installed machines, apparatus or equipment are needed for carrying out those operations.

Article 3.7

Unit of qualification

1. For the purposes of this Chapter, the unit of qualification shall be the particular product that is considered as the basic unit when classifying the product under the HS.

2. If a consignment consists of a number of identical products classified under the same heading of the Harmonized System, each individual product shall be taken into account when applying this Chapter.

Article 3.8

Packing materials and containers for shipment

Packing materials and containers for shipment that are used to protect a product during transportation shall be disregarded in determining whether a product has originating status.

Article 3.9

Packaging materials and containers for retail sale

1. Packaging materials and containers in which a product is packaged for retail sale, if classified with that product, shall be disregarded in determining whether the non-originating materials used in the production of the product have undergone the applicable change in tariff classification or a specific manufacturing or processing operation as set out in Annex 3-B (Product-specific rules of origin) or whether the product is wholly obtained in a Party within the meaning of Article 3.4 (Wholly obtained products).

2. When a product is subject to a value requirement as set out in Annex 3-B (Product-specific rules of origin), the value of the packaging materials and containers in which the product is packaged for retail sale, if classified with that product, shall be taken into account as originating or non-originating, as the case may be, in the calculation for the purposes of the application of the value requirement to the product.

Article 3.10

Accessories, spare parts and tools

1. For the purposes of this Article, accessories, spare parts, tools and instructional or other information materials of a product are covered if they are:

(a)	classified, delivered and invoiced with the product; and

(b)	of the type, quantity and value that are customary for the product concerned.

2. In determining whether a product:

(a)

is wholly obtained in a Party within the meaning of Article 3.4 (Wholly obtained products) or satisfies a production process or change in tariff classification requirement as set out in Annex 3-B (Product-specific rules of origin), accessories, spare parts, tools and instructional or other information materials of that product shall be disregarded; and

(b)

meets a value requirement as set out in Annex 3-B (Product-specific rules of origin), the value of accessories, spare parts, tools and instructional or other information materials of that product shall be taken into account as originating or non-originating materials, as the case may be, in the calculation for the purposes of the application of the value requirement to the product.

Article 3.11

Sets

Sets, as referred to in General Rule 3, points (a) and (b), of the General rules for the interpretation of the Harmonized System, shall be considered as originating in a Party if all of their components have originating status. When a set is composed of originating and non-originating components, the set as a whole shall be considered as originating in a Party, if the value of the non-originating components does not exceed 15 % of the ex-works price of that set.

Article 3.12

Neutral elements

In order to determine whether a product is originating in a Party, it shall not be necessary to determine the originating status of the following neutral elements:

(a)	energy and fuel;

(b)	plant and equipment, including products used for their maintenance;

(c)	machines, tools, dies and moulds;

(d)	spare parts and materials used in the maintenance of equipment and buildings;

(e)	lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings;

(f)	gloves, glasses, footwear, clothing, safety equipment and supplies;

(g)	equipment, devices and supplies used for testing or inspecting the product;

(h)	catalysts and solvents; and

(i)	other materials that are neither incorporated nor intended to be incorporated into the final composition of the product.

Article 3.13

Accounting segregation method for fungible materials and fungible products

1. For the purposes of this Article, “fungible materials” or “fungible products” means materials or products that are of the same kind and commercial quality, with the same technical and physical characteristics, and which cannot be distinguished from one another for origin purposes.

2. Originating and non-originating fungible materials or fungible products shall be physically segregated during storage in order to maintain their originating and non-originating status.

3. Notwithstanding paragraph 2, originating and non-originating fungible materials may be used in the production of a product without being physically segregated during storage if an accounting segregation method is used.

4. Notwithstanding paragraph 2, originating and non-originating fungible products classified under Chapters 10, 15, 27, 28, 29, headings 32.01 to 32.07, or headings 39.01 to 39.14 of the Harmonized System may be stored in a Party before exportation to the other Party without being physically segregated, if an accounting segregation method is used.

5. The accounting segregation method referred to in paragraphs 3 and 4 shall be applied in conformity with a stock management method under accounting principles that are generally accepted in the Party where the accounting segregation method is used.

6. The accounting segregation method shall be any method that ensures that at any time no more products receive originating status than that would be the case if the materials or the products had been physically segregated.

Article 3.14

Returned products

If an originating product of a Party exported from that Party to a third country returns to that Party, it shall be considered as a non-originating product unless the returned product:

(a)	is the same as that exported; and

(b)	has not undergone any operation other than what was necessary to preserve it in good condition while in the third country to which it has been exported or while being exported.

Article 3.15

Non-alteration

1. An originating product declared for home use in the importing Party shall not, after exportation and prior to being declared for home use, have been altered, transformed in any way or subjected to operations other than to preserve it in good condition or than adding or affixing marks, labels, seals or any other documentation to ensure compliance with specific requirements of the importing Party.

2. The storage or exhibition of an originating product may take place in a third country if that originating product is not cleared for home use in that third country.

3. Without prejudice to Section B (Origin procedures) of this Chapter, the splitting of consignments may take place in a third country if the consignments are not cleared for home use in that third country.

4. In case of doubt as to whether the requirements provided for in paragraphs 1 to 3 are complied with, the customs authority of the importing Party may request the importer to provide evidence of compliance with those requirements, which may be given by any means, including contractual transport documents, such as bills of lading, factual or concrete evidence based on marking or numbering of packages or any evidence related to the product itself.

Section B

Origin procedures

Article 3.16

Claim for preferential tariff treatment

1. The importing Party shall grant preferential tariff treatment to a product originating in the other Party on the basis of a claim by the importer for preferential tariff treatment. The importer shall be responsible for the correctness of the claim for preferential tariff treatment and for compliance with the requirements set out in this Chapter.

2. A claim for preferential tariff treatment shall be based on either:

(a)	a statement on origin that the product is originating made out by the exporter; or

(b)	the importer’s knowledge that the product is originating.

3. A claim for preferential tariff treatment and its basis as referred to in points (a) and (b) of paragraph 2 shall be included in the customs import declaration in accordance with the law of the importing Party.

4. The importer making a claim for preferential tariff treatment based on a statement on origin referred to in point (a) of paragraph 2 shall keep the statement on origin and, when required by the customs authority of the importing Party, shall provide a copy thereof to that customs authority.

Article 3.17

Claim for preferential tariff treatment after importation

1. If the importer did not make a claim for preferential tariff treatment at the time of importation, and the product would have qualified for preferential tariff treatment at the time of importation, the importing Party shall grant preferential tariff treatment and repay or remit any excess customs duty paid.

2. The importing Party may require as a condition for granting preferential tariff treatment under paragraph 1 that the importer makes a claim for preferential tariff treatment and provides the basis for the claim as referred to in Article 3.16(2) (Claim for preferential tariff treatment). Such a claim shall be made no later than three years after the date of importation or within a longer period if specified in the law of the importing Party.

Article 3.18

Statement on origin

1. A statement on origin shall be made out by an exporter of a product on the basis of information demonstrating that the product is originating, including, when applicable, information on the originating status of materials used in the production of that product. The exporter shall be responsible for the correctness of the statement on origin and the information provided.

2. A statement on origin shall be made out in one of the language versions included in Annex 3-C (Text of the statement on origin) on an invoice or on any other document that describes the originating product in sufficient detail to enable its identification (12). The importing Party shall not require the importer to submit a translation of the statement on origin.

3. A statement on origin shall be valid for one year from the date it was made out.

4. A statement on origin may apply to:

(a)	a single shipment of one or more products imported into a Party; or

(b)	multiple shipments of identical products imported into a Party within the period specified in the statement on origin not exceeding 12 months.

5. The importing Party shall, upon the request of the importer and subject to requirements that the importing Party may provide, allow a single statement on origin for unassembled or disassembled products within the meaning of General Rule 2, point (a), of the General rules for the interpretation of the Harmonized System falling within Sections XV to XXI of the Harmonized System when imported by instalments.

Article 3.19

Minor errors or minor discrepancies

The customs authority of the importing Party shall not reject a claim for preferential tariff treatment due to minor errors or minor discrepancies in the statement on origin.

Article 3.20

Importer’s knowledge

The importer’s knowledge that a product is originating in the exporting Party shall be based on information demonstrating that the product is originating and satisfies the requirements of this Chapter.

Article 3.21

Record-keeping requirements

1. For a minimum of three years after the date on which the claim for preferential tariff treatment referred to in Article 3.16 (Claim for preferential tariff treatment) or the claim for preferential tariff treatment after importation referred to in Article 3.17 (Claim for preferential tariff treatment after importation) was made or for a longer period that may be specified in the law of the importing Party, an importer making that claim for preferential tariff treatment or that claim for preferential tariff treatment after importation for a product imported into the importing Party shall keep:

(a)	the statement on origin made out by the exporter, if the claim was based on a statement on origin; or

(b)	all records demonstrating that the product satisfies the requirements to obtain originating status, if the claim was based on the importer’s knowledge.

2. An exporter who has made out a statement on origin shall, for a minimum of four years after that statement was made out or within a longer period provided for in the law of the exporting Party, keep a copy of that statement and other records demonstrating that the product satisfies the requirements to obtain originating status.

3. If an exporter is not the producer of the products, and has relied on information from a supplier as to the originating status of the products, the exporter shall be required to keep the information provided by that supplier.

4. The records to be kept in accordance with this Article may be held in electronic format.

Article 3.22

Waiver of procedural requirements

1. Notwithstanding Articles 3.16 to 3.21, the importing Party shall grant preferential tariff treatment to:

(a)	a product sent in a small package from private persons to private persons; or

(b)	a product forming part of a traveller’s personal luggage.

2. Paragraph 1 applies only to products that have been subject to a customs declaration declaring conformity with the requirements of this Chapter, and for which the customs authority of the importing Party has no doubts as to the veracity of such declaration.

3. The following products are excluded from the application of paragraph 1:

(a)	products imported by way of trade, except for imports that are occasional and consist solely of products for the personal use of the recipients or travellers or their families, if it is evident from the nature and quantity of the products that the imports have no commercial purpose;

(b)	products whose importation forms part of a series of importations that may reasonably be considered to have been made separately for the purpose of avoiding the requirements of Article 3.16 (Claim for preferential tariff treatment);

(c)

products for which the total value exceeds:

(i)

for the Union, EUR 500 in the case of products sent in small packages, or EUR 1 200 in the case of products forming part of a traveller’s personal luggage. The amounts to be used in a given national currency shall be the equivalent in that currency of the amounts expressed in euro as at the first working day of October. The exchange rates shall be those published for that day by the European Central Bank, unless a different exchange rate is communicated to the European Commission by 15 October, and shall apply from 1 January the following year. The European Commission shall notify New Zealand of the relevant exchange rates;

(ii)	for New Zealand, NZD 1 000 both in the case of products sent in small packages and in the case of products forming part of a traveller’s personal luggage.

4. The importer shall be responsible for the correctness of the customs declaration referred to in paragraph 2. The record-keeping requirements set out in Article 3.21 (Record-keeping requirements) do not apply to the importer when this Article is being applied.

Article 3.23

Verification

1. The customs authority of the importing Party may conduct a verification as to whether a product is originating or the other requirements of this Chapter are met, on the basis of risk assessment methods, which may include random selection. Such verification may be conducted by means of a request for information to the importer who made the claim for preferential tariff treatment referred to in Article 3.16 (Claim for preferential tariff treatment), at the time the import declaration is submitted, either before or after the release of the products.

2. The information requested pursuant to paragraph 1 shall cover no more than the following elements:

(a)	if the claim was based on a statement on origin referred to in point (a) of Article 3.16(2) (Claim for preferential tariff treatment), that statement on origin;

(b)

if the origin criterion is based on:

(i)	the fact that the product is wholly obtained, the applicable category (such as harvesting, mining, fishing) and the place of production;

(ii)	change in tariff classification, a list of all the non-originating materials, including their tariff classification (in two-, four- or six-digit format, depending on the origin criterion);

(iii)

a value method, the value of the final product as well as the value of all the non-originating materials used in the production of that final product;

(iv)	weight, the weight of the final product as well as the weight of the relevant non-originating materials used in the production of that final product;

(v)	a specific production process, a specific description of that production process.

3. When providing the requested information, the importer may add any other information considered relevant for the purposes of verification.

4. If the claim for preferential tariff treatment is based on a statement on origin, the importer shall inform the customs authority of the importing Party that the importer does not have the statement on origin referred to in point (a) of Article 3.16(2) (Claim for preferential tariff treatment). In that case, the importer may inform the customs authority that the requested information will be provided by the exporter directly.

5. If the claim for preferential tariff treatment is based on the importer’s knowledge as referred to in point (b) of Article 3.16(2) (Claim for preferential tariff treatment), after having first requested information in accordance with paragraph 1 of this Article the customs authority of the importing Party conducting the verification may send a request for additional information to the importer if it considers that additional information is required in order to verify whether a product has originating status or whether the other requirements of this Chapter are met. The customs authority of the importing Party may request the importer for specific documentation and information, if appropriate.

6. During verification, the importing Party shall allow the release of the products concerned. The importing Party may condition such release on the importer providing a guarantee or implementing other appropriate precautionary measures required by the customs authorities. Any suspension of preferential tariff treatment shall be terminated as soon as possible after the customs authority of the importing Party has ascertained that the products concerned have originating status, and that the other requirements of this Chapter are fulfilled.

Article 3.24

Administrative cooperation

1. In order to ensure the proper application of this Chapter, the Parties shall cooperate, through the customs authority of each Party, in verifying whether a product is originating and is in compliance with the other requirements provided for in this Chapter.

2. If the claim for preferential tariff treatment is based on a statement on origin and after having first requested information in accordance with Article 3.23(1) (Verification), the customs authority of the importing Party conducting the verification may also request information from the customs authority of the exporting Party within a period of two years after the date on which the claim for preferential tariff treatment on the basis of a statement on origin referred to in point (a) of Article 3.16(2) (Claim for preferential tariff treatment) or the claim for preferential tariff treatment after importation referred to in Article 3.17(2) (Claim for preferential tariff treatment after importation) was made, if the customs authority of the importing Party considers that it requires additional information in order to verify the originating status of the product or whether the other requirements provided for in this Chapter are complied with. The customs authority of the importing Party may request specific documentation and information from the customs authority of the exporting Party, if appropriate.

3. The request for information as referred to in paragraph 2 shall include the following elements:

(a)	the statement on origin;

(b)	the identity of the customs authority issuing the request;

(c)	the name of the exporter;

(d)	the subject and scope of the verification; and

(e)	where applicable, any relevant documentation.

4. The customs authority of the exporting Party may, in accordance with its law, request documentation or examination by calling for any evidence, or by visiting the premises of the exporter, to review records and observe the facilities used in the production of the product.

5. Without prejudice to paragraph 6, the customs authority of the exporting Party receiving the request for information as referred to in paragraph 2 shall provide the customs authority of the importing Party with the following information:

(a)	the requested documentation, where available;

(b)	an opinion on the originating status of the product;

(c)	the description of the product subject to examination and the tariff classification relevant to the application of this Chapter;

(d)	a description and explanation of the production process to support the originating status of the product;

(e)	information on the manner in which the examination was conducted; and

(f)	supporting documentation, where appropriate.

6. The customs authority of the exporting Party shall not provide to the customs authority of the importing Party information listed in paragraph 5 without the consent of the exporter.

7. Each Party shall notify the other Party of the contact details of its customs authorities and shall notify the other Party of any modification thereof within 30 days after the date of such modification. For the Union, the European Commission shall be responsible for the notifications as referred to in this paragraph.

Article 3.25

Denial of preferential tariff treatment

1. Without prejudice to the requirements in paragraph 3 of this Article, the customs authority of the importing Party may deny preferential tariff treatment, if:

(a)

within three months after the date of a request for information referred to in Article 3.23(1) (Verification):

(i)	no reply has been provided by the importer;

(ii)	in cases where the claim for preferential tariff treatment is based on a statement on origin, no statement on origin has been provided; or

(iii)

in cases where the claim for preferential tariff treatment is based on the importer’s knowledge, the information provided by the importer is inadequate to confirm that the product has originating status;

(b)

within three months after the date of a request for additional information referred to in Article 3.23(5) (Verification):

(i)	no reply has been provided by the importer; or

(ii)	the information provided by the importer is inadequate to confirm that the product has originating status;

(c)

within ten months after the date of delivery of a request for information pursuant to Article 3.24(2) (Administrative cooperation):

(i)	no reply has been provided by the customs authority of the exporting Party; or

(ii)	the information provided by the customs authority of the exporting Party is inadequate to confirm that the product has originating status.

2. The customs authority of the importing Party may deny preferential tariff treatment to a product for which an importer claims preferential tariff treatment if the importer fails to comply with requirements of this Chapter other than those relating to the originating status of the products.

3. If the customs authority of the importing Party has sufficient justification to deny preferential tariff treatment under paragraph 1 of this Article, in cases where the customs authority of the exporting Party has provided an opinion on the originating status of the product referred to in point (b) of Article 3.24(5) (Administrative cooperation) confirming the originating status of the products, the customs authority of the importing Party shall notify the customs authority of the exporting Party of its reasons and intention to deny the preferential tariff treatment within two months after the date of receipt of that opinion.

4. If the notification as referred to in paragraph 3 has been made, consultations shall be held at the request of either Party, within three months after the date of such notification. The period for consultations may be extended on a case-by-case basis by mutual agreement between the customs authorities of the Parties. The consultations shall take place in accordance with the procedure set by the Joint Customs Cooperation Committee, unless otherwise agreed between the customs authorities of the Parties.

5. Upon expiry of the period for consultations, where the customs authority of the importing Party cannot confirm that the product is originating, it may deny the preferential tariff treatment if it has sufficient justification for doing so and after having granted the importer the right to be heard. However, when the customs authority of the exporting Party confirms the originating status of the products and provides justification for such confirmation, the customs authority of the importing Party shall not deny preferential tariff treatment to a product on the sole ground that Article 3.24(6) (Administrative cooperation) has been applied.

6. Within two months after the date of its final decision on the originating status of the product, the customs authority of the importing Party shall notify the customs authority of the exporting Party that provided an opinion on the originating status of the product referred to in point (b) of Article 3.24(5) (Administrative cooperation) of that final decision.

Article 3.26

Confidentiality

1. Each Party shall maintain, in accordance with its law, the confidentiality of information provided by the other Party or a person of that Party, pursuant to this Chapter, and shall protect that information from disclosure.

2. Information obtained by the authorities of the importing Party may only be used for the purposes of this Chapter. A Party may use information collected pursuant to this Chapter in any administrative, judicial, or quasi-judicial proceedings instituted for failure to comply with the requirements set out in this Chapter. A Party shall notify the other Party or a person of that Party who provided the information in advance of such use.

3. Each Party shall ensure that confidential information collected pursuant to this Chapter shall not be used for purposes other than the administration and enforcement of decisions and determinations relating to origin and to customs matters, except with the permission of the other Party or a person of that Party who provided such confidential information. If confidential information is requested for judicial proceedings not relating to origin and customs matters in order to comply with the law of a Party, and provided that Party notifies the other Party or a person of that Party who provided the information in advance and states the legal requirement for such use, permission of the other Party or a person of that Party who provided the confidential information shall not be required.

Article 3.27

Administrative measures and sanctions

Each Party shall ensure the effective enforcement of this Chapter. Each Party shall ensure that its competent authorities are able, in accordance with its law, to impose administrative measures and, where appropriate, sanctions for violations of the obligations under this Chapter.

Section C

Final provisions

Article 3.28

Ceuta and Melilla

1. For the purposes of this Chapter, the term “Party” does not include Ceuta and Melilla.

2. Products originating in New Zealand, when imported into Ceuta and Melilla, shall in all respects be subject to the same customs regime, including preferential tariff treatment, as that which is applied to products originating in the customs territory of the Union under Protocol 2 concerning the Canary Islands and Ceuta and Melilla of the 1985 Act of Accession (13). New Zealand shall apply to imports of products covered by this Agreement and originating in Ceuta and Melilla the same customs regime, including preferential tariff treatment, as that which is applied to products imported from and originating in the Union.

3. The rules of origin and origin procedures applicable to New Zealand under this Chapter shall apply in determining the origin of products exported from New Zealand to Ceuta and Melilla. The rules of origin and origin procedures applicable to the Union under this Chapter shall apply in determining the origin of products exported from Ceuta and Melilla to New Zealand.

4. Ceuta and Melilla shall be considered as a single territory.

5. The Spanish customs authorities shall be responsible for the application of this Chapter in Ceuta and Melilla.

Article 3.29

Transitional provisions for products in transit or storage

This Agreement may be applied to products that comply with this Chapter and, on the date of entry into force of this Agreement, are either in transit from the exporting Party to the importing Party or under customs control in the importing Party without payment of import duties and taxes, subject to the making of a claim for preferential tariff treatment referred to in Article 3.16 (Claim for preferential tariff treatment) to the customs authority of the importing Party within 12 months after the date of entry into force of this Agreement.

Article 3.30

Joint Customs Cooperation Committee

1. This Article complements and further specifies Article 24.4 (Specialised committees).

2. The Joint Customs Cooperation Committee established under the CCMAA shall, with respect to this Chapter, have the following functions:

(a)	considering possible amendments to this Chapter, including those arising from the review of the Harmonized System;

(b)	adopting, by decisions, explanatory notes to facilitate the implementation of this Chapter; and

(c)	adopt a decision to establish the procedure for consultations referred to in Article 3.25(4) (Denial of preferential tariff treatment).

CHAPTER 4

Customs and trade facilitation

Article 4.1

Objectives

The objectives of this Chapter are to:

(a)	promote trade facilitation for goods traded between the Parties while ensuring effective customs controls, taking into account the evolution of trade practices;

(b)	ensure transparency of each Party’s laws and regulations relating to the requirements for the import, export and transit of goods and consistency thereof with applicable international standards;

(c)	ensure predictable, consistent and non-discriminatory application by each Party of its customs laws and regulations relating to the requirements for the import, export and transit of goods;

(d)	promote simplification and modernisation of customs procedures and practices of each Party;

(e)	further develop risk management techniques to facilitate legitimate trade while securing the international trade supply chain; and

(f)	enhance cooperation between the Parties in the field of customs matters and trade facilitation.

Article 4.2

Customs cooperation and mutual administrative assistance

1. The competent authorities of the Parties shall cooperate on customs matters in order to ensure that the objectives set out in Article 4.1 (Objectives) are attained.

2. In addition to the CCMAA, the Parties shall develop cooperation, including in the following areas:

(a)

exchanging information concerning customs laws and regulations, their implementation, and customs procedures, particularly in the following areas:

(i)	the enforcement of intellectual property rights by the customs authorities;

(ii)	the facilitation of transit movements and transhipment; and

(iii)

relations with the business community;

(b)	strengthening their cooperation in the field of customs in international organisations such as the WTO and the WCO;

(c)	endeavouring to harmonise their data requirements for import, export and other customs procedures by implementing common standards and data elements in accordance with the WCO Data Model;

(d)

exchanging, where relevant and appropriate, through a structured and recurrent communication between customs authorities of the Parties, certain categories of customs-related information for the purpose of improving risk management and the effectiveness of customs controls, targeting high-risk goods and facilitating legitimate trade. Exchanges under this point shall be without prejudice to exchanges of information that may take place between the Parties pursuant to the provisions of the CCMAA on mutual administrative assistance;

(e)	strengthening their cooperation on risk management techniques, including sharing best practices, and where appropriate, risk information and control results; and

(f)	establishing, where relevant and appropriate, mutual recognition of authorised economic operator programmes and customs controls, including equivalent trade facilitation measures.

3. Without prejudice to other forms of cooperation envisaged under this Agreement, the customs authorities of the Parties shall cooperate, including through exchange of information, and provide each other with mutual administrative assistance in the matters covered by this Chapter in accordance with the provisions of the CCMAA. Any exchange of information between the Parties under this Chapter shall be mutatis mutandis subject to the confidentiality and protection of information requirements set out in Article 17 CCMAA as well as any confidentiality and privacy requirements to be agreed by the Parties.

Article 4.3

Customs provisions and procedures

1. Each Party shall ensure that its customs provisions and procedures are based on:

(a)

the international instruments and standards applicable in the area of customs and trade which each Party has accepted, including the substantive elements of the International Convention on the Simplification and Harmonisation of Customs Procedures, done at Kyoto on 18 May 1973, as amended, (Revised Kyoto Convention), the International Convention on the Harmonized Commodity Description and Coding System, done at Brussels on 14 June 1983, as well as the Framework of Standards to Secure and Facilitate Global Trade and the WCO Data Model;

(b)	the protection and facilitation of legitimate trade through effective enforcement and compliance with the applicable requirements provided under its law;

(c)

customs laws and regulations that are proportionate and non-discriminatory, avoiding unnecessary burdens on economic operators, providing for further facilitation for operators ensuring high levels of compliance, including favourable treatment with respect to customs controls prior to the release of goods, and ensuring safeguards against fraud and illicit or damageable activities; and

(d)	rules that ensure that any penalty imposed for breaches of customs laws and regulations is proportionate and non-discriminatory and that the imposition of such penalties does not unduly delay the release of the goods.

2. Each Party should periodically review its customs laws, regulations and procedures. Customs procedures shall also be applied in a manner that is predictable, consistent and transparent.

3. In order to improve working methods, as well as to ensure non-discrimination, transparency, efficiency, integrity and accountability of operations, each Party shall:

(a)	simplify and review requirements and formalities wherever possible with a view to ensuring the rapid release and clearance of goods; and

(b)	work towards further simplification and standardisation of data and documentation required by customs authorities and other agencies.

Article 4.4

Release of goods

1. Each Party shall adopt or maintain customs procedures that:

(a)	provide for the prompt release of goods within a period that is no longer than necessary to ensure compliance with its laws and regulations and, to the extent possible, upon arrival of the goods;

(b)	provide for advance electronic submission and processing of documentation and any other required information prior to the arrival of the goods, to enable the release of goods upon arrival;

(c)

allow for the release of goods prior to the final determination of the applicable customs duties, taxes, fees and charges, if such a determination is not done prior to, or upon arrival, or as rapidly as possible after arrival and provided that all other regulatory requirements have been met. As a condition for such release, each Party may require a guarantee for any amount not yet determined in the form of a surety, a deposit or another appropriate instrument provided for in its laws and regulations. Such guarantee shall not be greater than the amount the Party requires to ensure payment of customs duties, taxes, fees and charges ultimately due for the goods covered by the guarantee. The guarantee shall be discharged when it is no longer required; and

(d)	allow goods to be released at the point of arrival, without temporary transfer to warehouses or other facilities, provided that the goods are otherwise eligible for release.

2. Each Party shall, to the extent possible, minimise the documentation required for the release of goods.

3. Each Party shall endeavour to allow for the expeditious release of goods in need of urgent clearance, including outside regular business hours of customs authorities and other relevant authorities.

4. Each Party shall, to the extent possible, adopt or maintain customs procedures that provide for expedited release of certain consignments while maintaining appropriate customs control, including allowing the submission of a single document covering all of the goods in the shipment, if possible, by electronic means.

Article 4.5

Perishable goods

1. For the purposes of this Article, “perishable goods” are goods that rapidly decay due to their natural characteristics, in particular in the absence of appropriate storage conditions.

2. To prevent avoidable deterioration or loss of perishable goods, each Party shall give appropriate priority to perishable goods when scheduling and performing any examinations that may be required.

3. In addition to point (a) of Article 4.4(1) (Release of goods), and at the request of the economic operator, each Party shall, where practicable and in accordance with its laws and regulations:

(a)	provide for the clearance of a consignment of perishable goods outside regular business hours of customs authorities and other relevant authorities; and

(b)	allow consignments of perishable goods to be moved to and cleared at the premises of the economic operator.

Article 4.6

Simplified customs procedures

Each Party shall adopt or maintain measures allowing traders or operators fulfilling criteria specified in its laws and regulations to benefit from further simplification of customs procedures. Such measures may include:

(a)	customs declarations containing a reduced set of data or supporting documents; or

(b)	periodical customs declarations for the determination and payment of customs duties and taxes covering multiple imports within a given period, after the release of those imported goods.

Article 4.7

Transit and transhipment

1. Each Party shall ensure the facilitation and effective control of transhipment operations and transit movements through its respective territory.

2. Each Party shall ensure cooperation and coordination between all authorities and agencies concerned in its respective territory to facilitate traffic in transit.

3. Provided all regulatory requirements are met, each Party shall allow goods intended for import to be moved within its territory under customs control from a customs office of entry to another customs office in its territory from where the goods would be released or cleared.

Article 4.8

Risk management

1. Each Party shall adopt or maintain a risk management system for customs control.

2. Each Party shall design and apply risk management in a manner as to avoid arbitrary or unjustifiable discrimination, or disguised restrictions to international trade.

3. Each Party shall concentrate customs control and other relevant border controls on high-risk consignments and shall expedite the release of low-risk consignments. Each Party may also select consignments for such controls on a random basis as part of its risk management.

4. Each Party shall base risk management on assessment of risk through appropriate selectivity criteria.

Article 4.9

Post-clearance audit

1. With a view to expediting the release of goods, each Party shall adopt or maintain post-clearance audits to ensure compliance with customs and other related laws and regulations.

2. Each Party shall select a person or a consignment for a post-clearance audit in a risk-based manner, which may include appropriate selectivity criteria. Each Party shall conduct a post-clearance audit in a transparent manner. Where a person is involved in the audit process and conclusive results have been achieved, the Party shall, without delay, notify the person whose record is audited of the results, the person’s rights and obligations and the reasons for the results.

3. The information obtained in a post-clearance audit may be used in further administrative or judicial proceedings.

4. The Parties shall, wherever practicable, use the result of a post-clearance audit in applying risk management.

Article 4.10

Authorised economic operators

1. Each Party shall establish or maintain a partnership programme for operators who meet specified criteria (hereinafter referred to as “authorised economic operators”).

2. The specified criteria to qualify as an authorised economic operator shall be published and they shall relate to compliance with requirements specified in the respective laws and regulations or procedures of the Parties. Such criteria may include:

(a)	an appropriate record of compliance with customs and other related laws and regulations;

(b)	a system of managing records to allow for necessary internal controls;

(c)	financial solvency, including, where appropriate, provision of a sufficient security or guarantee; and

(d)	supply chain security.

3. The specified criteria to qualify as an authorised economic operator shall not be designed or applied so as to afford or create arbitrary or unjustifiable discrimination between operators where the same conditions prevail and shall allow the participation of SMEs.

4. The authorised economic operator programme shall include specific benefits for an authorised economic operator, such as:

(a)	low rate of physical inspections and examinations as appropriate;

(b)	priority treatment if selected for control;

(c)	rapid release time as appropriate;

(d)	deferred payment of customs duties, taxes, fees and charges;

(e)	use of comprehensive guarantees or reduced guarantees;

(f)	a single customs declaration for all imports or exports in a given period; and

(g)	clearance of goods at the premises of the authorised economic operator or another place authorised by the customs authorities.

5. Notwithstanding paragraphs 1 to 4, a Party may offer the exemplary benefits listed in paragraph 4 through customs procedures generally available to all operators, in which case that Party is not required to establish a separate scheme for authorised economic operators.

6. The Parties may foster cooperation between customs authorities and other government authorities or agencies within a Party in relation to authorised economic operator programmes. Such cooperation may be achieved, inter alia, by aligning requirements, facilitating access to benefits and minimising unnecessary duplication.

Article 4.11

Publication and availability of information

1. Each Party shall promptly publish, in a non-discriminatory and easily accessible manner and as far as possible through the internet, laws, regulations and customs procedures, relating to the requirements for the import, export and transit of goods. This shall include:

(a)	importation, exportation and transit procedures, including port, airport, and other entry-point procedures, and required forms and documents;

(b)	applied rates of duties and taxes of any kind imposed on or in connection with importation or exportation;

(c)	fees and charges imposed by or for governmental agencies on or in connection with importation, exportation or transit;

(d)	rules for the classification or valuation of products for customs purposes;

(e)	laws, regulations and administrative rulings of general application relating to rules of origin;

(f)	import, export or transit restrictions or prohibitions;

(g)	penalty provisions against breaches of import, export or transit formalities;

(h)	appeal procedures;

(i)	agreements or parts thereof with any country or countries relating to importation, exportation or transit;

(j)	procedures relating to the administration of tariff quotas;

(k)	hours of operation for customs offices; and

(l)	relevant notices of an administrative nature.

2. Each Party shall endeavour to make public new laws, regulations and customs procedures, relating to the requirements for the import, export and transit of goods prior to their application, as well as changes to and interpretations thereof.

3. Each Party shall, to the extent possible, ensure there is a reasonable time period between the publication of amended or new laws, regulations and customs procedures, fees or charges and their entry into force.

4. Each Party shall make available, and update as appropriate, the following through the internet:

(a)	a description of its importation, exportation and transit procedures, including appeal procedures, informing of the practical steps needed for the import and export, and for transit;

(b)	the forms and documents required for importation into, exportation from, or transit through the territory of the Party; and

(c)	contact information of enquiry points.

5. Each Party shall, subject to its available resources, establish or maintain enquiry points to answer within a reasonable time enquiries of governments, traders and other interested parties on matters covered by paragraph 1. A Party shall not require the payment of a fee for answering enquiries from the other Party.

Article 4.12

Advance rulings

1. The customs authority of each Party shall issue advance rulings to an applicant setting out the treatment to be accorded to the goods concerned, in accordance with its laws and regulations. Such rulings shall be issued in writing or in electronic format in a time-bound manner and shall contain all necessary information. Each Party shall ensure that an advance ruling can be issued to, and used in the Party by, an applicant of the other Party.

2. Advance rulings shall be issued with regard to:

(a)	the tariff classification of goods;

(b)	the origin of goods; and

(c)	the appropriate method or criteria, and the application thereof, to be used for determining the customs value under a particular set of facts, if permitted by the laws and regulations of a Party.

3. Advance rulings shall be valid for a period of at least three years from the date of their issuance or some other date if specified in the ruling. The issuing Party may modify or revoke, invalidate or annul an advance ruling if the ruling was based on incorrect, incomplete, false or misleading information, an administrative error or if there is a change in the law, the material facts or the circumstances on which the ruling is based.

4. A Party may refuse to issue an advance ruling if the question raised in the application is the subject of an administrative or judicial review, or if the application does not relate to any intended use of the advance ruling or any intended use of a customs procedure. If a Party declines to issue an advance ruling, that Party shall promptly notify the applicant in writing, setting out the relevant facts and the basis for its decision.

5. Each Party shall publish, at least:

(a)	the requirements for the application for an advance ruling, including the information to be provided and the format;

(b)	the time period by which it will issue an advance ruling; and

(c)	the length of time for which the advance ruling is valid.

6. If a Party modifies, revokes, invalidates or annuls an advance ruling, it shall provide written notice to the applicant setting out the relevant facts and the basis for its decision. A Party may only modify, revoke, invalidate or annul an advance ruling with retroactive effect if the advance ruling was based on incomplete, incorrect, false or misleading information.

7. An advance ruling issued by a Party shall be binding on that Party in respect of the applicant that sought it. The Party may provide that the advance ruling be binding on the applicant.

8. Each Party shall provide, upon written request from the applicant, a review of an advance ruling or of a decision to amend, revoke or invalidate the advance ruling.

9. Each Party shall endeavour to make publicly available information on advance rulings, taking into account the need to protect personal and commercially confidential information.

10. Each Party shall issue an advance ruling without delay, and normally within 150 days after the date of receipt of all necessary information. This period may be extended, in accordance with the laws and regulations of a Party, if additional time is needed to ensure that the advance rulings are issued in a correct and uniform manner. In that event, the Party shall inform the applicant of the reason for, and the duration of, the extension.

Article 4.13

Customs brokers

The customs provisions and procedures of a Party shall not require the mandatory use of customs brokers. Each Party shall notify and publish its measures on the use of customs brokers. Each Party shall apply transparent, non-discriminatory and proportionate rules if and when licensing customs brokers.

Article 4.14

Customs valuation

1. Each Party shall determine the customs value of goods in accordance with Part I of the Customs Valuation Agreement. To that end, Part 1 of the Customs Valuation Agreement is hereby incorporated into and made part of this Agreement, mutatis mutandis.

2. The Parties shall cooperate with a view to reaching a common approach to issues relating to customs valuation.

Article 4.15

Preshipment inspection activities

A Party shall not require the mandatory use of preshipment inspection activities within the meaning of Article 1(3) of the Agreement on Preshipment Inspection, contained in Annex 1A to the WTO Agreement.

Article 4.16

Appeal and review

1. Each Party shall provide effective, prompt, non-discriminatory and easily accessible procedures to guarantee the right of appeal against administrative actions, rulings and decisions of customs authorities or other competent authorities that affect the import or export of goods or goods in transit.

2. Each Party shall ensure that any person with respect to whom it takes administrative action referred to in paragraph 1 or to whom it issues a ruling or decision referred to in paragraph 1 has access to:

(a)	an administrative appeal to or review by an administrative authority higher than or independent of the official or office that took the administrative action or that issued the ruling or the decision; or

(b)	a judicial appeal or review of the administrative action or the ruling or the decision.

3. Each Party shall ensure that, in cases where the decision on administrative appeal or review under point (a) of paragraph 2 is not issued within the period of time provided for in its laws and regulations or is not issued without undue delay, the petitioner has the right to further administrative or judicial appeal or review or any other recourse to a judicial authority in accordance with the laws and regulations of that Party.

4. Each Party shall ensure that the petitioner is provided in writing, including electronically, with the reasons for the administrative decision, so as to enable the petitioner to have recourse to appeal or review procedures where necessary.

Article 4.17

Engagement with the business community

1. Considering the need for timely and regular consultations with trade representatives on legislative proposals and general procedures related to customs and trade facilitation issues, each Party’s customs administration shall hold consultations with the business community of that Party.

2. Each Party shall ensure, where possible, that its customs and related requirements and procedures continue to meet the needs of the business community, follow internationally accepted best practices, and remain as least trade-restrictive as possible.

Article 4.18

Joint Customs Cooperation Committee

1. This Article complements and further specifies Article 24.4 (Specialised committees).

2. The Joint Customs Cooperation Committee shall, with respect to the Chapters and provisions that fall within its competences pursuant to Article 24.4(2) (Specialised committees), except for Chapter 3 (Rules of origin and origin procedures), have the following functions:

(a)	identifying areas for improvement in their implementation and operation; and

(b)	seeking appropriate ways and methods to reach mutually agreed solutions with regard to any matters that may arise.

3. The Joint Customs Cooperation Committee may adopt decisions in relation to the areas listed in Article 4.2(2) (Customs cooperation and mutual administrative assistance), including, where it considers it necessary, for the purpose of implementing points (d) and (f) of paragraph 2 of that Article.

CHAPTER 5

Trade remedies

Section A

General provisions

Article 5.1

Non-application of preferential rules of origin

For the purposes of Section B (Anti-dumping and countervailing duties) of this Chapter and Section C (Global safeguard measures) of this Chapter, the preferential rules of origin under Chapter 3 (Rules of origin and origin procedures) do not apply.

Article 5.2

Non-application of dispute settlement

Chapter 26 (Dispute settlement) does not apply to Section B (Anti-dumping and countervailing duties) of this Chapter and Section C (Global safeguard measures) of this Chapter.

Section B

Anti-dumping and countervailing duties

Article 5.3

Transparency

1. Trade remedies should be used in full compliance with the relevant WTO requirements and should be based on a fair and transparent system.

2. Without prejudice to Article 6.5 of the Anti-dumping Agreement and Article 12.4 of the SCM Agreement, each Party shall ensure as soon as possible after any imposition of provisional measures and before a final determination is made, full and meaningful disclosure of all essential facts and considerations on which a decision to apply definitive measures is based. Disclosures shall be made in writing and allow interested parties sufficient time to make their comments.

3. Provided it does not unnecessarily delay the conduct of the investigation, each interested party shall be granted the possibility to be heard in order to express their views during trade remedy investigations.

Article 5.4

Consideration of public interest

1. A Party may refrain from applying anti-dumping or countervailing measures on the goods of the other Party if, on the basis of the information made available during the investigation pursuant to the requirements under the laws and regulations of that Party, it can be concluded that it is not in the public interest to apply such measures.

2. When making a final determination on the imposition of duties, each Party shall, in accordance with its laws and regulations, take into account information provided by relevant interested parties, which may include the domestic industry, importers and their representative associations, representative users and representative consumer organisations.

Article 5.5

Lesser duty rule

If a Party imposes an anti-dumping duty on the goods of the other Party, the amount of such duty shall not exceed the margin of dumping. If a duty the amount of which is less than the margin of dumping is sufficient to remove the injury to the domestic industry, the Party shall adopt such lesser duty in accordance with its laws and regulations.

Section C

Global safeguard measures

Article 5.6

Transparency

1. At the request of the other Party, the Party initiating a global safeguard investigation or intending to apply global safeguard measures shall provide immediately a written notification of all pertinent information leading to the initiation of a global safeguard investigation or the imposition of global safeguard measures, including on provisional findings, if relevant. This is without prejudice to Article 3.2 of the Agreement on Safeguards.

2. Each Party shall endeavour to impose global safeguard measures in a way that least affects trade between the Parties.

3. For the purposes of paragraph 2, if a Party considers that the legal requirements are met for the imposition of definitive global safeguard measures, the Party intending to apply such measures shall notify the other Party and shall endeavour to provide adequate opportunity for prior consultations with that Party, with a view to reviewing the information provided under paragraph 1 and exchanging views on the proposed global safeguard measures before a final decision is adopted.

Section D

Bilateral safeguard measures

Article 5.7

Definitions

For the purposes of this Section, the following definitions apply:

(a)	“bilateral safeguard measure” means a bilateral safeguard measure specified in Article 5.8 (Application of a bilateral safeguard measure);

(b)

“domestic industry” with respect to an imported good, means the producers as a whole of the like or directly competitive goods operating in the territory of a Party, or the producers whose collective production of the like or directly competitive goods constitutes a major proportion of the total domestic production of such goods;

(c)	“serious deterioration” means major difficulties in a sector of the economy producing like or directly competitive goods;

(d)	“serious injury” means a significant overall impairment in the position of a domestic industry;

(e)	“threat of serious deterioration” means a serious deterioration that is clearly imminent on the basis of facts and not merely on allegation, conjecture or remote possibility;

(f)	“threat of serious injury” means a serious injury that is clearly imminent on the basis of facts and not merely on allegation, conjecture or remote possibility; and

(g)	“transition period” means a period of seven years starting from the date of entry into force of this Agreement.

Article 5.8

Application of a bilateral safeguard measure

1. Without prejudice to the Parties’ rights and obligations under Section C (Global safeguard measures) of this Chapter, if, as a result of the reduction or elimination of a customs duty under this Agreement, a good originating in a Party is being imported into the territory of the other Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to the domestic industry of the other Party, that other Party may apply a bilateral safeguard measure during the transition period and only in accordance with the conditions and procedures laid down in this Section.

2. Bilateral safeguard measures applied pursuant to paragraph 1 may only consist of:

(a)	the suspension of any further reduction of the rate of customs duty on the good concerned in accordance with Chapter 2 (National treatment and market access for goods); or

(b)

the increase of the rate of customs duty on the good concerned to a level which does not exceed the lesser of:

(i)	the most-favoured-nation applied rate of customs duty in effect on the day when the bilateral safeguard measure is applied; or

(ii)	the most-favoured-nation applied rate of customs duty in effect on the day immediately preceding the date of entry into force of this Agreement.

Article 5.9

Standards for a bilateral safeguard measure

1. A bilateral safeguard measure shall not be applied:

(a)	except to the extent, and for such time, as may be necessary to prevent or remedy the serious injury or the threat of serious injury to the domestic industry or the serious deterioration or the threat of serious deterioration in the economic situation of the outermost region or regions;

(b)	for a period exceeding two years; and

(c)	beyond the expiration of the transition period.

2. The period referred to in point (b) of paragraph 1 may be extended by one year provided that:

(a)

the competent investigating authorities of the importing Party determine, in conformity with the procedures specified in Sub-Section 1 (Procedural rules applicable to bilateral safeguard measures), that the bilateral safeguard measure continues to be necessary to prevent or remedy the serious injury or the threat of serious injury to the domestic industry or the serious deterioration or the threat of serious deterioration in the economic situation of the outermost region or regions; and

(b)	there is evidence that the domestic industry is adjusting and the total period of application of a bilateral safeguard measure, including the period of initial application and any extension thereof, does not exceed three years.

3. When a Party ceases to apply a bilateral safeguard measure, the rate of customs duty shall be the rate that would have been in effect for the good concerned, in accordance with Annex 2-A (Tariff elimination schedules).

4. A bilateral safeguard measure shall not be applied to the import of a good of a Party which has already been subject to such a bilateral safeguard measure for a period of time equal to half of the duration of the previous bilateral safeguard measure.

5. A Party shall not apply to the same good and at the same time:

(a)	a provisional bilateral safeguard measure, a bilateral safeguard measure or an outermost regions safeguard measure pursuant to this Agreement; and

(b)	a safeguard measure pursuant to Article XIX of GATT 1994 and the Agreement on Safeguards.

Article 5.10

Provisional bilateral safeguard measures

1. In critical circumstances, where delay would cause damage that would be difficult to repair, a Party may apply a provisional bilateral safeguard measure, pursuant to a preliminary determination that there is clear evidence that imports of a good originating in the other Party have increased as a result of the reduction or elimination of a customs duty under this Agreement, and that such imports cause serious injury or the threat of serious injury to the domestic industry or serious deterioration or the threat of serious deterioration in the economic situation of the outermost region or regions.

2. The duration of any provisional bilateral safeguard measure shall not exceed 200 days. During this period, the Party shall comply with the relevant procedural rules laid down in Sub-Section 1 (Procedural rules applicable to bilateral safeguard measures).

3. The customs duty imposed as a result of the provisional bilateral safeguard measure shall promptly be refunded if the subsequent investigation referred to in Sub-Section 1 (Procedural rules applicable to bilateral safeguard measures) does not determine that the increased imports of the good subject to the provisional bilateral safeguard measure cause serious injury or the threat of serious injury to the domestic industry or serious deterioration or the threat of serious deterioration in the economic situation of the outermost region or regions.

4. The duration of any provisional bilateral safeguard measure shall be counted as part of the period laid down in point (b) of Article 5.9(1) (Standards for a bilateral safeguard measure).

5. The Party applying a provisional bilateral safeguard measure shall inform the other Party immediately upon applying such a provisional bilateral safeguard measure.

6. At the request of the other Party, consultations shall be held immediately after the application of the provisional bilateral safeguard measure.

Article 5.11

Outermost regions

1. Where any product originating in New Zealand is being directly imported into the territory of one or several outermost regions of the Union (14) in such increased quantities and under such conditions as to cause serious deterioration or the threat of serious deterioration in the economic situation of the outermost region or regions concerned, the Union, after having examined alternative solutions, may exceptionally apply bilateral safeguard measures limited to the territory of the outermost region or regions concerned.

2. For the purposes of paragraph 1, the determination of serious deterioration shall be based on objective factors, including the following elements:

(a)	the increase in the volume of imports in absolute or relative terms to the domestic production and to the imports from other sources; and

(b)	the effect of such imports on the situation of the relevant industry or the economic sector concerned, including on the levels of sales, production, financial situation and employment.

3. Without prejudice to paragraph 1, this Section applies to any safeguard measure adopted under this Article, mutatis mutandis.

Article 5.12

Compensation and suspension of concessions

1. No later than 30 days after the date of the application of the bilateral safeguard measure, the Party applying that measure shall provide an opportunity for consultations with the other Party in order to mutually agree on appropriate trade liberalising compensation in the form of concessions having substantially equivalent trade effect.

2. If the consultations referred to in paragraph 1 do not result in an agreement on trade liberalising compensation within 30 days after the first day of those consultations, the Party to whose originating good the bilateral safeguard measure is applied may suspend the application of concessions having substantially equivalent trade effect in respect of the Party applying the bilateral safeguard measure.

3. The obligation to provide concessions as referred to in paragraph 1 and the right to suspend those concessions under paragraph 2 shall apply only as long as the bilateral safeguard measure is maintained.

4. Notwithstanding paragraph 3, the right to suspend referred to in that paragraph shall not be exercised for the first 24 months during which a bilateral safeguard measure is in effect, provided that the bilateral safeguard measure has been applied as a result of an absolute increase in imports and provided that the bilateral safeguard measure is in conformity with this Agreement.

Sub-section 1

Procedural rules applicable to bilateral safeguard measures

Article 5.13

Applicable law

This Sub-Section applies to bilateral safeguard measures which are covered by Section D (Bilateral safeguard measures) of this Chapter and applied by the competent investigating authority of a Party. In cases not covered by this Sub-Section, the competent investigating authority shall apply the rules established under its domestic legislation provided that those rules are in conformity with this Section.

Article 5.14

Investigation procedures

1. A Party shall apply a bilateral safeguard measure only after an investigation has been carried out by its competent investigating authorities in accordance with Article 3 and Article 4(2), points (a) and (c), of the Agreement on Safeguards. To that end, Article 3 and Article 4(2), points (a) and (c), of the Agreement on Safeguards are incorporated into and made part of this Agreement, mutatis mutandis.

2. In order to apply a bilateral safeguard measure, the competent investigating authority shall demonstrate on the basis of objective evidence the existence of a causal link between the increased imports of the product concerned and the serious injury or the threat of serious injury or the existence of a causal link between the increased imports of the product concerned and the serious deterioration or the threat of serious deterioration. The competent investigating authority shall also examine known factors other than the increased imports to ensure that the injury caused by such other factors is not attributed to the increased imports.

3. The investigation shall in all cases be completed within one year after the date of its initiation.

Article 5.15

Notification and consultation

1. A Party shall promptly notify the other Party in writing if it:

(a)	initiates a bilateral safeguard investigation under this Chapter;

(b)	determines that the increased imports cause serious injury or the threat of serious injury or serious deterioration or the threat of serious deterioration in the economic situation of the outermost region or regions;

(c)	decides to apply a provisional bilateral safeguard measure, or to apply or extend a bilateral safeguard measure; or

(d)	decides to modify a bilateral safeguard measure previously adopted.

2. A Party shall provide to the other Party a copy of the public version of the complaint and the report of its competent investigating authorities that is required under Article 3 of the Agreement on Safeguards.

3. When a Party notifies the other Party that it has decided to apply or extend a bilateral safeguard measure as referred to in point (c) of paragraph 1, that Party shall include in its notification all pertinent information, such as:

(a)

evidence that, as a result of the reduction or elimination of a customs duty pursuant to this Agreement, the increased imports of the good of the other Party are causing serious injury or the threat of serious injury to the domestic industry or serious deterioration or the threat of serious deterioration in the economic situation of the outermost region or regions;

(b)	a precise description of the good subject to the bilateral safeguard measure, including its heading or subheading under the HS on which Annex 2-A (Tariff elimination schedules) is based;

(c)	a precise description of the bilateral safeguard measure;

(d)	the date of application of the bilateral safeguard measure, its expected duration and, if applicable, a timetable for progressive liberalisation of that measure; and

(e)	in the case of an extension of the bilateral safeguard measure, evidence that the domestic industry concerned is adjusting.

4. On request of the Party whose good is subject to a bilateral safeguard proceeding under this Chapter, the Party that conducts that proceeding shall provide adequate opportunity for consultations with the requesting Party before a final decision to apply bilateral safeguard measures is taken, with a view to reviewing a notification as referred to in paragraph 1 of this Article or any public notice or report that the competent investigating authority issued in connection with the proceeding, and exchanging views on the proposed measure and reaching an understanding on compensation provided for in Article 5.12 (Compensation and suspension of concessions).

CHAPTER 6

Sanitary and phytosanitary measures

Article 6.1

Objectives and general provisions

1. The objectives of this Chapter are to:

(a)	protect human, animal and plant health in the respective territories of the Parties while facilitating trade between them;

(b)	ensure that the Parties’ sanitary and phytosanitary measures do not create unnecessary barriers to trade;

(c)	facilitate implementation of the SPS Agreement, international standards and related texts, and in particular, regionalisation and equivalence;

(d)	maintain cooperation in international standard-setting bodies;

(e)	promote transparency and understanding on the application of each Party’s sanitary and phytosanitary measures;

(f)	enhance cooperation between and recognise the common objectives of the Parties to combat antimicrobial resistance (hereinafter referred to as “AMR”); and

(g)	enhance communication, cooperation and resolution of sanitary and phytosanitary issues that may affect trade between the Parties.

2. In respect of the SPS Agreement, the Parties recall in particular:

(a)	the principle that a Party’s SPS measures are based on a risk assessment in accordance with Article 5 and other relevant provisions of the SPS Agreement; and

(b)	the concept of provisional SPS measures.

Article 6.2

Scope

1. The Parties affirm their respective rights and obligations under the Sanitary Agreement.

2. Subject to paragraph 3, this Chapter applies:

(a)	to sanitary and phytosanitary measures of a Party that may affect trade between the Parties; and

(b)	to cooperation on AMR.

3. This Chapter does not apply to any measure of a Party or matters covered by the Sanitary Agreement.

Article 6.3

Definitions

For the purposes of this Chapter, the following definitions apply:

(a)	the definitions in Annex A of the SPS Agreement;

(b)	the definitions adopted under the auspices of the Codex Alimentarius Commission;

(c)	the definitions adopted under the auspices of the World Organisation for Animal Health;

(d)	the definitions adopted under the auspices of the International Plant Protection Convention (hereinafter referred to as the “IPPC”);

(e)	“competent authority” means a governmental body listed in Annex 6-A (Competent authorities) and includes the relevant national plant protection organisations; and

(f)

“import check” means an assessment that may include inspection, examination, sampling, review of documentation, tests or procedures, including laboratory, organoleptic, or identity, conducted at the border of an importing Party by the competent authority of the importing Party to determine whether a consignment complies with the SPS requirements of the importing Party.

Article 6.4

Specific plant-health-related conditions

1. In accordance with applicable standards agreed under the IPPC, the Parties shall exchange information on their pest status in their respective territories. At the request of a Party, the other Party shall provide the justification for the pest categorisation and related phytosanitary measures.

2. In relation to pest categorisation, each Party shall establish and update a list of regulated pests for plants and plant products for which a phytosanitary concern exists. Such list shall contain:

(a)	the quarantine pests not present within any part of its territory;

(b)	the quarantine pests present but not widely distributed and under official control;

(c)	protected zone quarantine pests; and

(d)	where applicable, regulated non-quarantine pests.

3. Each Party shall limit its import requirements for plants or plant products to those needed to mitigate against the risks of the introduction of regulated pests. Import requirements to mitigate the risk from protected zone quarantine pests shall not apply unless the destination of any plants or plant products is known to be within a protected zone.

4. Pre-export inspection by the importing Party’s national plant protection organisation should not be a requirement by the importing Party, where inspection of plants or plant products is within the scope of the exporting Party’s national plant protection organisation.

Article 6.5

Recognition of pest freedom

Where regionalisation is defined with respect to a pest free area, pest free place of production, pest free production site, or a protected zone in the plants and plant products sector:

(a)	the Parties recognise the concepts of pest free areas, pest free places of production and pest free production sites as specified in relevant IPPC International Standards for Phytosanitary Measures (“ISPMs”);

(b)

the Parties shall accept each other’s:

(i)	pest free areas, pest free places of production and pest free production sites; and

(ii)	official controls in the establishment and maintenance of pest free areas, pest free places of production and pest free production sites;

(c)	New Zealand shall recognise the concept of protected zones within the territory of the Union as equivalent to a pest free area as specified in IPPC ISPM 4 (“Requirements for the establishment of pest free areas”);

(d)

the exporting Party, if requested by the importing Party, shall identify pest free areas, pest free places of production, pest free production sites and protected zones, and, if requested by the importing Party, provide a full explanation and supporting data as provided for in the relevant ISPMs or as otherwise deemed appropriate; and

(e)	the Trade Committee may adopt a decision to amend Annex 6-B (Regional conditions for plants and plant products) to set out any other matter that may pertain to regionalisation or to specify any appropriate risk-based special conditions.

Article 6.6

Equivalence

1. The Parties acknowledge that recognition of equivalence is an important means to facilitate trade.

2. In determining the equivalence of a specific SPS measure, group of SPS measures or on a systems-wide basis, each Party shall take into account the relevant guidance of the WTO Committee on Sanitary and Phytosanitary Measures (hereinafter referred to as “WTO SPS Committee”) and international standards, guidelines and recommendations. The Trade Committee may adopt a decision to set out further guidance and procedures to determine, recognise and maintain equivalence in Annex 6-C (Equivalence recognition of SPS measures).

3. At the request of the exporting Party, the importing Party shall, within a reasonable period of time, explain the objective and rationale of its SPS measure and clearly identify the risk that SPS measure is intended to address.

4. The importing Party shall recognise the equivalence of an SPS measure if the exporting Party objectively demonstrates that its SPS measure achieves the importing Party’s appropriate level of protection (hereinafter referred to as “ALOP”) in relation to human, animal or plant health.

5. If an equivalence assessment does not result in an equivalence determination by the importing Party, the importing Party shall provide the exporting Party with the rationale for its decision.

6. Without prejudice to Article 6.8(6) (Certification), the Trade Committee may adopt a decision to amend Annex 6-C (Equivalence recognition of SPS measures) in order to:

(a)	set out the exporting Party’s commodity types which the importing Party recognises as being covered by an SPS measure equivalent to its own or set out the exporting Party’s official controls which the importing Party recognises as equivalent to its own; and

(b)	specify any appropriate risk-based special conditions or any agreed pest or disease status.

7. If a Party amends an SPS measure in a way that it considers does not affect an equivalence determination specified in this Chapter, the determination shall be applicable to the most recent version of the relevant law or regulation amending that SPS measure.

8. If a Party considers that a previous equivalence determination is affected, that Party shall notify the other Party of that consideration.

9. If an importing Party amends an SPS measure and considers an equivalence determination specified in this Chapter may be affected it shall:

(a)	objectively consider whether the previous equivalence determination is no longer sufficient to meet its ALOP; and

(b)	consult with the exporting Party and then decide whether the equivalence determination may continue with or without any special conditions.

Article 6.7

Trade conditions and approval procedures

1. The importing Party shall make publicly available its phytosanitary import health requirements and the procedures used to establish those requirements.

2. If the Parties jointly identify a specific plant or plant product as a priority, the importing Party shall establish specific import requirements for that product without undue delay other than in duly justified circumstances.

3. Where an import request is received in relation to a specific plant or plant product which has previously been approved for import from the exporting Party, the importing Party shall assess the risk profile and, if determined to be the same, complete the approval procedure without undue delay, other than in duly justified circumstances.

4. Each Party shall ensure that procedures used to approve imports from the other Party are undertaken and completed without undue delay, including, if needed, audits and the necessary legislative or administrative measures to complete the approval procedure. Each Party shall in particular avoid unnecessary or unduly burdensome information requests, which shall be limited to what is necessary and take into account information already available to the importing Party, such as information on the applicable laws and regulations and audit reports of the exporting Party.

5. Except as provided for in Article 6.5 (Recognition of pest freedom), each Party shall apply its phytosanitary import conditions to the entire territory of the other Party where the same pest status prevails.

6. Without prejudice to Article 6.10 (Emergency measures), each Party shall recognise as equivalent the official controls applied by the other Party for trade provided that from the date of entry into force of this Agreement, there are no significant changes in the official control systems of the exporting Party that would lower the level of assurance to the importing Party.

7. Without prejudice to Article 6.10 (Emergency measures), the importing Party shall not refuse or stop the importation of a good of the exporting Party solely for the reason that the importing Party is undertaking a review of its SPS measures, if the importing Party permitted the importation of that good from the other Party when the review was initiated.

8. The Parties shall, without any subsequent approval processes, accept each other’s lists of establishments that are subject to SPS measures for trade.

9. Each Party shall make the lists of establishments referred to in paragraph 8 available to one another on request.

Article 6.8

Certification

1. In respect of health certification for plants and plant products the competent authorities shall apply the principles laid down in the IPPC ISPM 7 (“Export Certification System”) and IPPC ISPM 12 (“Guidelines for Phytosanitary Certificates”).

2. Each Party shall promote the implementation of electronic certification and other technologies to facilitate trade.

3. Without prejudice to Articles 6.2 (Scope) and 6.10 (Emergency measures), food safety certification shall not be required for processed foods covered by this Chapter unless supported by a risk analysis.

4. The Trade Committee may adopt a decision to amend Annex 6-E (Certification) in order to specify further guidance, procedures and requirements in relation to certification.

5. If the importing Party has accepted a commodity SPS measure of the exporting Party as equivalent to its own, the exporting Party may include the model health attestation set out in Section 1 of Annex 6-E (Certification) on the official health certificate.

6. If an importing Party has, in accordance with Article 6.6(7) (Equivalence) or Article 6.6(8) (Equivalence), determined that equivalence is maintained, the import health certificate provided for in Annex 6-E (Certification) shall, where practicable and if applicable, state the initial laws and regulations of the importing Party on the basis of which equivalence was determined.

7. If an importing Party determines that a special condition included in Annex 6-C (Equivalence recognition of SPS measures) is no longer necessary, guarantees to that special condition shall no longer be required and the Trade Committee shall adopt a decision to amend Annex 6-C (Equivalence recognition of SPS measures) accordingly within a reasonable period of time.

Article 6.9

Transparency, information exchange and technical consultation

1. The Parties shall promptly inform each other of any significant:

(a)	findings of epidemiological importance that may relate to a product being traded between the Parties;

(b)	food safety matters related to a product being traded between the Parties; or

(c)	other pertinent information for the adequate implementation of this Chapter.

2. If the information listed in paragraph 1 has been made available through a notification to the WTO or to the relevant international standard-setting body in accordance with their rules, or on a publicly accessible website of a Party, the obligation in paragraph 1 shall be deemed to have been fulfilled.

3. If either Party has a serious concern with respect to a sanitary or phytosanitary risk, technical consultations regarding that sanitary or phytosanitary risk shall, on request, take place as soon as possible and in any case within 14 days after the date of delivery of the request.

4. If a Party has a significant concern with a SPS measure that the other Party has proposed or implemented, that Party may request technical consultations with the other Party. The Party to which the request is addressed shall respond within 30 days after the date of delivery of the request.

5. With respect to paragraphs 3 and 4, each Party shall endeavour to provide all the information necessary to avoid a disruption in trade and to enable the Parties to reach a mutually acceptable solution that effectively manages any sanitary or phytosanitary risk.

6. The Parties shall seek to resolve any concerns arising from the implementation of this Chapter through technical consultations pursuant to this Article (15) prior to initiating dispute settlement pursuant to Chapter 26 (Dispute settlement).

Article 6.10

Emergency measures

1. If a Party adopts an emergency measure that is necessary for the protection of human, animal or plant life or health, the competent authority of that Party shall notify the competent authority of the other Party within 24 hours. If a Party requests technical consultations to address the emergency SPS measure, the technical consultations shall be held within 14 days after the date of delivery of the notification of the emergency SPS measure. The Parties shall consider any information provided through the technical consultations.

2. The Party applying the emergency measure shall consider any information provided in a timely manner by the exporting Party when it makes its decision with respect to any consignment that, at the time of adoption of the emergency SPS measure, is being transported between the Parties.

3. Where an emergency measure seriously disrupts or suspends trade, the importing Party shall as soon as practically possible revoke that emergency measure or provide relevant scientific and technical justification for its continuation.

Article 6.11

Audits

1. For the purpose of maintaining confidence in the implementation of this Chapter, each Party has the right to carry out a system-based audit of all, or part of, the control system of the competent authority of the other Party to determine that it is functioning as intended.

2. In undertaking an audit, a Party shall take into account relevant guidance of the WTO SPS Committee and international standards, guidelines and recommendations.

3. Any decision or action taken by the auditing Party that may adversely affect trade as a result of the audit shall take into account and be proportionate to:

(a)	the risk assessed, supported by objective evidence and data that can be verified; and

(b)	the auditing Party’s knowledge of, relevant experience with and confidence in the audited Party.

4. The auditing Party shall provide objective evidence and data to the audited Party on request.

5. The auditing Party shall bear its own costs associated with the audits.

6. Each Party shall ensure that procedures are in place to prevent the disclosure of confidential information that is acquired during an audit of the other Party’s competent authorities, including procedures to remove any confidential information from a final audit report that is made publicly available.

7. The auditing Party shall consider any comments on the report by the audited Party and shall determine whether the report or part of it is made publicly available or is made available in a more limited way.

8. The Trade Committee may adopt a decision to amend Annex 6-D (Guidelines and procedures for an audit or verification) in order to establish or specify audit guidelines and procedures.

Article 6.12

Import checks and fees

1. The importing Party shall have the right to carry out import checks based on the sanitary or phytosanitary risks associated with imports. Such checks shall be carried out without undue delay and with minimum trade-disrupting effects.

2. If import checks reveal non-compliance with the relevant import requirements, the action taken by the importing Party shall follow international standards, be based on an assessment of the risk involved and not be more trade-restrictive than required to achieve the importing Party’s ALOP.

3. The competent authority of the importing Party shall notify the competent authority of the exporting Party when any non-compliance constitutes a serious risk to human, animal or plant health.

4. The competent authority of the importing Party shall notify the importer or its representative of a non-compliant consignment, including the reason for non-compliance, and provide that importer or its representative with an opportunity for a review of the decision. The competent authority of the importing Party shall consider any relevant information submitted to assist in such a review.

5. Any fees imposed for procedures on imported products shall not be higher than any fees charged for comparable checks of like domestic products and not higher than the actual cost of the service.

6. The Trade Committee may adopt a decision to amend Annex 6-F (Import checks and fees) in order to set out frequency rates and fees for import checks for certain commodities falling within the scope of this Chapter.

Article 6.13

Scientific robustness and transparency in specified authorisation processes (16)

1. The Parties recognise that authorisation processes shall be based on robust science and conducted in a transparent manner so as to build and maintain public trust and confidence. The Parties shall cooperate on increasing the robustness and transparency of those authorisation processes.

2. The Parties acknowledge that their respective authorisation processes are intended to provide comparable outcomes and that cooperation in this area is desirable.

3. If a person responsible for ensuring that the requirements for obtaining marketing authorisation are met by the business under its control commissions scientific studies in a scientific institution (17) located in a Party with a view to supporting an application for authorisation in the context of certain specified authorisation processes in the other Party, and this is brought to the attention of the Party in which the scientific institution is located, both Parties shall endeavour to share such information with each other.

4. The Parties may also exchange information on their authorisation processes.

5. A Party may request a fact-finding visit under this Article to a scientific institution located in the other Party to collect information concerning the application of relevant standards by the scientific institution when it conducts a scientific study for the purposes of certain specified authorisation processes in the Party which requests a fact-finding visit.

6. If a Party seeks to conduct a fact-finding visit, it shall notify the other Party no later than 60 days before such visit.

7. If a Party seeks to conduct a fact-finding visit and the scientific institution agrees to such visit, officials of the other Party may accompany the officials of the visiting Party during the fact-finding visit.

8. The final report of any fact-finding visit shall be made available to the competent authorities of both Parties. The relevant portions of the final report shall also be made available to the scientific institution that was visited.

9. The costs of any such fact-finding visit shall be borne by the Party that requests a fact-finding visit.

10. The Trade Committee may adopt a decision to establish detailed implementing rules and any necessary guidance with respect to paragraphs 3 to 9.

Article 6.14

Antimicrobial resistance

1. The Parties recognise that AMR is a serious threat to human and animal health.

2. The Parties shall, in accordance with the One Health approach, cooperate and facilitate the exchange of information, including with respect to regulations, guidelines, national plans, standards, expertise and experiences in the field of AMR, and identify common views, interests, priorities and policies in that field.

3. The Parties acknowledge that:

(a)	their respective antimicrobial regulatory standards, guidelines and surveillance systems deliver comparable controls and health outcomes;

(b)	antimicrobial agents that are critical to human and animal treatment and health are a core focus of their respective AMR strategies; and

(c)	initiatives are taken on both sides, within their respective strategies and policies, to promote the phasing out of the use of antibiotic agents as growth promoters, in particular those of medical importance, and to reduce the use of antimicrobial agents in animal production.

4. Furthermore, the Parties shall:

(a)	cooperate in relevant international fora on the development of future codes, guidelines, standards, recommendations and initiatives;

(b)	cooperate on international action plans, especially with regard to responsible and prudent use of antimicrobial agents in order to combat AMR more effectively; and

(c)	within the context of their respective strategies and policies support the implementation of agreed international action plans and strategies on AMR.

5. Any regulations, guidelines, strategic plans, standards and other initiatives on AMR shall not be used to create or implement measures affecting trade unless those measures are consistent with the SPS Agreement and relevant provisions of this Chapter.

6. The Committee on Sanitary and Phytosanitary Measures may establish a technical working group on AMR.

Article 6.15

Fraud in traded commodities

1. The Parties recognise that fraudulent activities by commercial operators engaged in international trade may:

(a)	affect the health of humans, animals, plants and consequentially the environment; and

(b)	undermine fair commercial practice and consumer confidence.

2. The Parties shall exchange relevant information and cooperate to deter practices that are, or appear to be, non-compliant with their respective SPS measures or that mislead consumers and other relevant stakeholders.

Article 6.16

Implementation and resources

Each Party shall ensure that its competent authorities have the necessary resources to effectively implement this Chapter.

Article 6.17

Committee on Sanitary and Phytosanitary Measures

1. This Article complements and further specifies Article 24.4 (Specialised committees).

2. The Committee on Sanitary and Phytosanitary Measures shall, with respect to this Chapter, have the following functions:

(a)	provide a forum to exchange information on each Party’s regulatory system, including the scientific and risk assessment basis for its SPS measures;

(b)	identify opportunities for cooperation, including trade facilitation initiatives and further work on eliminating unnecessary barriers to trade between the Parties;

(c)	promote cooperation in multilateral fora, including in the WTO SPS Committee and international standard-setting bodies, as appropriate;

(d)	establish ad hoc working groups;

(e)	provide a forum for the Parties to update each other at an early stage on regulatory considerations related to SPS measures;

(f)

without prejudice to Chapter 26 (Dispute settlement), serve as a forum to resolve specific trade concerns where the Parties have been unable to reach a mutually acceptable solution through technical consultations pursuant to Article 6.9 (Transparency, information exchange and technical consultation);

(g)	take any other action in the exercise of its functions as the Parties may agree; and

(h)	consider any other matter related to this Chapter.

3. Unless the Parties decide otherwise, the Committee shall meet and establish its work programme no later than one year after the date of entry into force of this Agreement.

CHAPTER 7

Sustainable food systems

Article 7.1

Objectives

1. The Parties, recognising the importance of strengthening policies and defining programmes that contribute to the development of sustainable, inclusive, healthy, and resilient food systems, agree to establish close cooperation to jointly engage in the transition towards sustainable food systems (hereinafter referred to as “SFS”).

2. This Chapter applies in addition to, and without prejudice to, the other Chapters of this Agreement related to food systems or to sustainability, in particular Chapter 6 (Sanitary and phytosanitary measures), Chapter 9 (Technical barriers to trade) and Chapter 19 (Trade and sustainable development).

Article 7.2

Scope

1. This Chapter applies to the cooperation between the Parties to improve the sustainability of their respective food systems.

2. This Chapter sets out provisions for cooperation in areas which can achieve more sustainable food systems. Indicative areas for cooperation are listed in Article 7.4 (Cooperation to improve the sustainability of food systems).

3. The Parties recognise that priorities for cooperation may change over time as their respective understandings and the international understanding and treatment of food systems develop.

Article 7.3

Definition of a sustainable food system

1. The Parties recognise that food systems are diverse and context-specific, encompassing a range of actors and their interlinked activities across all areas of the food system, including the production, harvesting, processing, manufacturing, transport, storage, distribution, sale, consumption and disposal of food products.

2. For the purposes of this Chapter, and acknowledging that the definition of SFS can evolve over time, the Parties consider SFS to be a food system which ensures access to safe, nutritious and sufficient food all year round in such a way that the economic, social, cultural and environmental bases to generate food security and nutrition for future generations are not compromised.

Article 7.4

Cooperation to improve the sustainability of food systems

1. The Parties recognise the importance of cooperation as a mechanism to implement this Chapter as they strengthen their trade and investment relations.

2. Taking account of their respective priorities and circumstances, the Parties shall cooperate to address matters of common interest related to the implementation of this Chapter. Such cooperation may take place bilaterally as well as in international fora.

3. Cooperation may include exchange of information, expertise and experiences, as well as cooperation in research and innovation.

4. The Parties shall cooperate on topics such as:

(a)	food production methods and practices which aim to improve sustainability, including organic farming and regenerative agriculture, amongst others;

(b)	the efficient use of natural resources and agricultural inputs, including reducing the use and risk of chemical pesticides and fertilisers, where appropriate;

(c)	the environmental and climate impacts of food production, including on agricultural greenhouse gas emissions, carbon sinks and biodiversity loss;

(d)	contingency plans to ensure the security and resilience of food supply chains and trade in times of international crisis;

(e)	sustainable food processing, transport, wholesale, retail and food services;

(f)	healthy, sustainable and nutritious diets;

(g)	the carbon footprint of consumption;

(h)	food loss and waste, in line with the United Nations Sustainable Development Goals Target 12.3;

(i)	reduction of the adverse environmental effects of policies and measures linked to the food system; and

(j)	indigenous knowledge, participation and leadership in food systems, in line with the Parties’ respective circumstances.

Article 7.5

Additional provisions

1. The cooperation activities under this Chapter shall not affect the independence of each Party’s agencies, including a Party’s regional agencies.

2. Fully respecting each Party’s right to regulate, nothing in this Chapter shall be construed to oblige a Party to:

(a)	modify its import requirements;

(b)	deviate from its procedures for preparing or adopting regulatory measures;

(c)	take action that would undermine or impede the timely adoption of regulatory measures to achieve its public policy objectives; or

(d)	adopt any particular regulatory measure.

Article 7.6

Committee on Sustainable Food Systems

1. This Article complements and further specifies Article 24.4 (Specialised committees).

2. The Committee on Sustainable Food Systems shall, with respect to this Chapter, have the following functions:

(a)	establishing priorities for cooperation and work plans to implement those priorities;

(b)	promoting cooperation in multilateral fora; and

(c)	performing any other functions relating to the implementation or operation of this Chapter.

3. In pursuing the objectives of this Chapter, and to monitor the results obtained from its implementation, the Committee on Sustainable Food Systems shall establish each year an annual work plan, including actions with objectives and milestones for those actions.

4. When appropriate, the Committee on Sustainable Food Systems may establish working groups consisting of expert-level representatives of each Party.

5. The Committee on Sustainable Food Systems shall meet within one year after the date of entry into force of this Agreement and thereafter as mutually agreed.

6. The Committee on Sustainable Food Systems may establish rules mitigating potential conflicts of interest for the experts that may participate in its meetings and those of any working group reporting to it.

Article 7.7

Contact points

Within 90 days after the date of entry into force of this Agreement, each Party shall designate a contact point to facilitate the communication between the Parties on matters covered by this Chapter and shall notify the other Party of the contact details for the contact point. Each Party shall promptly notify the other Party of any change of those contact details.

CHAPTER 8

Animal welfare

Article 8.1

Objective

The objective of this Chapter is to enhance cooperation between the Parties on animal welfare of farmed animals with a view to facilitating trade between the Parties.

Article 8.2

General provisions and cooperation

1. The Parties recognise that animals are sentient beings. (18)

2. The Parties acknowledge that their farming practices are substantively different but recognise that their respective animal welfare standards and associated systems provide comparable animal welfare outcomes.

3. The Parties shall make best endeavours to cooperate in international fora to promote the development and implementation of science-based animal welfare standards. In particular, the Parties shall cooperate to reinforce and broaden the scope of the World Organisation for Animal Health animal welfare standards, as well as their implementation, with a focus on farmed animals.

4. The Parties shall exchange information, expertise and experiences in the field of animal welfare related to the treatment of animals on the farm, during transport and at slaughter or killing.

5. The Parties shall continue to cooperate on research in the area of animal welfare to facilitate the development of science-based animal welfare standards related to the treatment of animals on the farm, during transport and at slaughter or killing.

Article 8.3

Technical working group on animal welfare

The Parties hereby establish a technical working group on animal welfare. The technical working group on animal welfare shall report to and undertake activities specified by the Committee on Sanitary and Phytosanitary Measures.

CHAPTER 9

Technical barriers to trade

Article 9.1

Objectives

The objectives of this Chapter are to facilitate trade in goods between the Parties by preventing, identifying and eliminating unnecessary technical barriers to trade, and to enhance cooperation between the Parties in matters covered by this Chapter.

Article 9.2

Scope

1. This Chapter applies to the preparation, adoption and application of all technical regulations, standards and conformity assessment procedures as defined in Annex 1 to the TBT Agreement that may affect trade in goods between the Parties.

2. This Chapter does not apply to:

(a)	purchasing specifications prepared by governmental bodies for production or consumption requirements of bodies to which Chapter 14 (Public procurement) applies; or

(b)	SPS measures to which Chapter 6 (Sanitary and phytosanitary measures) applies.

Article 9.3

Relation to the TBT Agreement

1. Articles 2 to 9 of and Annexes 1 and 3 to the TBT Agreement are incorporated into and made part of this Agreement, mutatis mutandis.

2. Terms used in this Chapter, including in the Annexes to this Chapter, shall have the same meaning as they have in the TBT Agreement.

Article 9.4

Technical regulations

1. Further to Article 22.8 (Impact assessment), each Party shall endeavour to carry out an impact assessment of planned technical regulations falling within the scope of regulatory measures defined in point (b) of Article 22.2 (Definitions) that may have a significant impact on trade, in accordance with its rules and procedures. For greater certainty, this paragraph also applies to conformity assessment procedures that are part of such technical regulations.

2. If an impact assessment is carried out pursuant to paragraph 1 of this Article, then, further to point (b) of Article 22.8(2) (Impact assessment), each Party shall assess the feasible and appropriate regulatory and non-regulatory options for the proposed technical regulation that may fulfil the Party’s legitimate objectives in accordance with Article 2.2 of the TBT Agreement. For greater certainty, such obligation to assess also applies to conformity assessment procedures that are part of such technical regulations.

3. Further to Articles 2.3 and 2.4 of the TBT Agreement, each Party shall review its technical regulations from time to time. In undertaking such a review, each Party shall, inter alia, give positive consideration to increasing convergence with relevant international standards, taking into account any new development as regards the relevant international standards and whether previous circumstances that gave rise to divergences from any relevant international standard continue to exist.

4. Without prejudice to Chapter 22 (Good regulatory practices and regulatory cooperation), when developing major technical regulations that may have a significant effect on trade, each Party shall, as required by its rules and procedures, allow persons of the Parties to provide input through a public consultation process, except where urgent problems of safety, health, environmental protection or national security arise or threaten to arise. Each Party shall allow persons of the other Party to participate in such consultations on terms no less favourable than those accorded to its own persons, and shall make the results of that consultation process public.

Article 9.5

International standards

1. International standards developed by the International Organization for Standardization (ISO), the International Electrotechnical Commission (hereinafter referred to as “IEC”), the International Telecommunication Union (ITU), and the Codex Alimentarius Commission (Codex) shall be considered as the relevant international standards within the meaning of Article 2 and Article 5 of, and Annex 3 to, the TBT Agreement provided that they comply with the conditions set out in paragraph 2 of this Article.

2. A standard developed by an international organisation, other than those referred to in paragraph 1, may also be considered a relevant international standard within the meaning of Article 2 and Article 5 of and Annex 3 to the TBT Agreement, provided that:

(a)

it has been developed by a standardisation body which seeks to establish consensus either:

(i)	among national delegations of the participating WTO Members representing all the national standards bodies in their territory that have adopted, or expect to adopt, standards for the subject matter to which the international standardisation activity relates; or

(ii)	among governmental bodies of participating WTO Members; and

(b)

it has been developed in accordance with the Decision of the Committee on Technical Barriers to Trade established by Article 13 of the TBT Agreement on Principles for the Development of International Standards, Guides and Recommendations in relation to Article 2 and Article 5 of and Annex 3 to the TBT Agreement.

3. If a Party has not used international standards as a basis for its technical regulations and related conformity assessment procedures, a Party shall, on request from the other Party, identify any substantial deviation from the relevant international standard and explain the reasons why such standards have been judged inappropriate or ineffective for the aim pursued, and provide the evidence on which that assessment is based, where available.

Article 9.6

Standards

1. With a view to harmonising standards on as wide a basis as possible, and in addition to Article 4.1 of the TBT Agreement, each Party shall encourage the standardisation bodies within its territory, as well as the regional standardisation bodies of which a Party or the standardisation bodies within its territory are members, to:

(a)	review national and regional standards that are not based on relevant international standards at regular intervals, with a view to increasing the convergence of those national and regional standards with relevant international standards, among other considerations;

(b)	cooperate with the relevant standardisation bodies of the other Party in international standardisation activities, including through cooperation in the international standardisation bodies or at regional level; and

(c)	foster bilateral cooperation with the standardisation bodies of the other Party.

2. The Parties should exchange information on:

(a)	their respective use of standards in support of technical regulations; and

(b)	their respective standardisation processes, and the extent of use of international standards, regional or subregional standards as a base for their national standards.

3. If standards are made mandatory through incorporation into or by reference in a draft technical regulation or conformity assessment procedure, the transparency obligations set out in Article 9.8 (Transparency) of this Chapter and in Article 2 or Article 5 of the TBT Agreement shall apply, to the extent permitted by applicable copyright.

Article 9.7

Conformity assessment

1. If a Party requires conformity assessment as a positive assurance that a product conforms with a technical regulation, it shall:

(a)	select conformity assessment procedures proportionate to the risks involved;

(b)	accept the use of a supplier’s declaration of conformity (hereinafter referred to as “SDoC”), where appropriate; and

(c)	if requested by the other Party, explain the rationale for selecting particular conformity assessment procedures for specific products.

2. The Parties recognise that a broad range of mechanisms exist to facilitate the acceptance of the results of conformity assessment procedures. Such mechanisms may include:

(a)

SDoC;

(b)	recognition by a Party of the results of conformity assessment procedures conducted in the territory of the other Party;

(c)	cooperative and voluntary arrangements between conformity assessment bodies located in the territories of the Parties;

(d)	mutual recognition agreements for the results of conformity assessment procedures with respect to specific technical regulations conducted by bodies located in the territory of the other Party;

(e)	use of accreditation to qualify conformity assessment bodies; and

(f)	government designation of conformity assessment bodies.

3. If a Party requires third-party conformity assessment as a positive assurance that a product conforms with a technical regulation, and it has not reserved this task to a governmental authority as specified in paragraph 4, it shall:

(a)	give preference to the use of accreditation to qualify conformity assessment bodies;

(b)	use international standards for accreditation and conformity assessment;

(c)

where practicable, use international agreements involving the Parties’ accreditation bodies, for example, through the mechanisms of the International Laboratory Accreditation Cooperation (hereinafter referred to as “ILAC”) and the International Accreditation Forum (hereinafter referred to as “IAF”);

(d)	encourage the use of functioning international agreements or arrangements for harmonisation, or facilitation of acceptance of conformity assessment results;

(e)	ensure that its rules and procedures do not unnecessarily restrict choice for economic operators amongst the conformity assessment bodies designated by its authorities for a particular product or set of products;

(f)

ensure that the activities of its accreditation bodies are consistent with international standards for accreditation and, in that respect, that there are no conflicts of interest between accreditation bodies and conformity assessment bodies in relation to their conformity activities, including personnel;

(g)	ensure that conformity assessment bodies carry out their activities in a manner that prevents conflicts of interests affecting the outcome of the conformity assessment;

(h)

allow conformity assessment bodies to use subcontractors to perform testing or inspections in relation to the conformity assessment, including subcontractors located in the territory of the other Party. Nothing in this point shall be construed as to prohibit a Party from requiring subcontractors to meet the same requirements that the conformity assessment body to which it is contracted is required to meet in order to perform the contracted tests or inspection itself; and

(i)	ensure that the details, including the scope of the designation, of the bodies that have been designated to perform such conformity assessment, are published online.

4. Nothing in this Article shall preclude a Party from requiring that conformity assessment in relation to specific products is performed by specified governmental authorities of the Party. If a Party requires conformity assessment to be performed by its specified governmental authorities, that Party shall:

(a)	limit the conformity assessment fees to the approximate cost of the services rendered and, upon the request of an applicant for conformity assessment, explain how any fees it imposes for such conformity assessment are limited to the approximate cost of services rendered; and

(b)	ensure that the conformity assessment fees are available on request, if they are not published.

5. Notwithstanding paragraphs 1, 3 and 4 of this Article, in the fields listed in Annex 9-A (Acceptance of conformity assessment (documents)) in respect of which the Union accepts SDoC, New Zealand shall, if it considers non-first-party conformity assessment necessary as an assurance that a product conforms with the requirements of New Zealand’s technical regulations, accept:

(a)

certificates and test reports issued by conformity assessment bodies that are located in the territory of the Union and that have been accredited by an accreditation body member of the international arrangements for mutual recognition of the ILAC or the IAF, or their successor bodies, or that are otherwise recognised pursuant to New Zealand’s technical regulations; or

(b)

in relation to electrical safety and electromagnetic compatibility aspects, certificates and test reports that have been issued by conformity assessment bodies that are located in the territory of the Union and under the IEC System for Conformity Assessment Schemes for Electrotechnical Equipment and Components (IECEE) Certification Body (CB) Scheme.

6. SDoC is a first-party attestation of conformity issued (19) by the manufacturer or other authorised first-party on their sole responsibility based on the results of an appropriate type of conformity assessment activity and excluding mandatory third-party assessment.

7. The Parties shall cooperate in the field of mutual recognition in accordance with the Agreement on mutual recognition in relation to conformity assessment between the European Community and New Zealand (20), done at Wellington on 25 June 1998. The Parties may also decide, in accordance with the relevant provisions of that Agreement, to extend its scope as regards the products, the applicable regulatory requirements or the recognised conformity assessment bodies.

Article 9.8

Transparency

1. Except where urgent problems of safety, health, environmental protection or national security arise or threaten to arise, each Party shall allow the other Party to provide written comments on notified proposed technical regulations and conformity assessment procedures within a period of at least 60 days after the date of transmission of the notification of such regulations or procedures to the WTO Central Registry of Notifications. A Party shall give positive consideration to a reasonable request to extend that comment period.

2. In the event that the notified text is not in one of the official languages of the WTO, each Party shall provide a detailed and comprehensive description of the content of the proposed technical regulation or conformity assessment procedure in the WTO notification format.

3. If a Party receives written comments on its proposed technical regulation or conformity assessment procedure from the other Party, it shall:

(a)	if requested by the other Party, discuss the written comments with the participation of its competent regulatory authority, whenever possible, at a time when the comments can be taken into account; and

(b)	reply in writing to significant or substantive issues presented in the comments no later than the date of publication of the technical regulation or conformity assessment procedure.

4. Each Party shall make publicly available, preferably by publishing on a website, its responses to significant or substantive issues presented in comments received from other WTO Members on its TBT notification as referred to in paragraph 1 of the proposal for the technical regulation or conformity assessment procedure.

5. If requested by the other Party, a Party shall provide information regarding the objectives of, and rationale for, any technical regulation or conformity assessment procedure that the Party has adopted or is proposing to adopt.

6. Each Party shall ensure that its adopted technical regulations and conformity assessment procedures are published online and are accessible free of charge.

7. Each Party shall provide information on the adoption and the entry into force of the technical regulation or conformity assessment procedure and the adopted final text through an addendum to the original notification to the WTO.

8. Further to Article 2.12 of the TBT Agreement, the term “reasonable interval” shall be understood to mean a period of not less than six months, except where this would be ineffective in fulfilling the legitimate objectives pursued.

9. A Party shall consider a reasonable request from the other Party, received prior to the end of the comment period as referred to in paragraph 1 following the transmission to the WTO Central Registry of Notifications to extend the period of time between the adoption of the technical regulation and its entry into force, except where this would be ineffective in fulfilling the legitimate objectives pursued.

Article 9.9

Marking and labelling

1. A technical regulation of a Party may include or deal exclusively with marking or labelling requirements. In such cases, the relevant principles of Article 2.2 of the TBT Agreement apply to these technical regulations.

2. If a Party requires mandatory marking or labelling of products, it shall:

(a)	to the extent possible, only require information that is relevant for consumers or users of the product or that indicates that the product conforms with mandatory technical requirements;

(b)

not require any prior approval, registration or certification of the markings or labels of products, nor any fee disbursement, as a precondition for placing on its market products that otherwise comply with its mandatory technical requirements unless it is necessary in view of the risk of the products or the risk of the claims made on the markings and labels to human, animal or plant health or life, the environment or national safety;

(c)	if it requires the use of a unique identification number by economic operators, issue such a number to the economic operators of the other Party without undue delay and on a non-discriminatory basis;

(d)

provided that the marking and labelling of a product is compliant with and not misleading, contradictory or confusing as regards the regulatory requirements of the importing Party, permit (21) the following:

(i)	information in other languages in addition to the language required in the importing Party;

(ii)	internationally accepted nomenclatures, pictograms, symbols or graphics; and

(iii)

additional information to that required in the importing Party;

(e)

accept that labelling, including supplementary labelling or corrections to labelling, take place in the territory of the importing Party, in accordance with its relevant regulations and procedures as an alternative to labelling in the exporting Party, unless such labelling is necessary in view of the legitimate objectives referred to in Article 2.2 of the TBT Agreement; and

(f)

if it considers that legitimate objectives referred to in Article 2.2 of the TBT Agreement are not compromised, endeavour to accept non-permanent or detachable labels, or marking or labelling in the accompanying documentation, rather than requiring marking or labelling to be physically attached to the product.

3. Paragraph 2 of this Article does not apply to marking or labelling of medicinal products and medical devices, as defined by a Party’s laws and regulations.

Article 9.10

Cooperation on market surveillance, safety and compliance of non-food products

1. For the purposes of this Article, the term “market surveillance” means activities conducted and measures taken by public authorities, including those taken in cooperation with economic operators, on the basis of procedures of a Party, to enable that Party to monitor or address safety of products or their compliance with the requirements set out in its laws and regulations.

2. The Parties recognise the importance of cooperation on market surveillance, safety and compliance of non-food products for the facilitation of trade and for the protection of consumers and other users, and the importance of building mutual trust based on shared information.

3. Each Party shall ensure:

(a)	impartial and independent conduct of market surveillance functions from conformity assessment functions with a view to avoiding conflicts of interest; (22) and

(b)	the absence of any interest that would affect the impartiality of market surveillance authorities in the performance of control or supervision of economic operators.

4. The Parties may cooperate and exchange information in the area of market surveillance, safety and compliance of non-food products, in particular with respect to the following:

(a)	market surveillance and enforcement activities and measures;

(b)	risk assessment methods and product testing;

(c)	coordinated product recalls or other similar actions;

(d)	scientific, technical and regulatory matters in order to improve non-food product safety and compliance;

(e)	emerging issues of significant health and safety relevance;

(f)	standardisation-related activities; and

(g)	exchange of officials.

5. The Union may provide New Zealand with selected information from its Rapid Alert System for dangerous non-food products with respect to consumer products as referred to in Directive 2001/95/EC of the European Parliament and of the Council (23) or its successor system, and New Zealand may provide the Union with selected information on the safety of non-food consumer products and on preventive, restrictive and corrective measures taken, with respect to consumer products as referred to in the relevant legislation of New Zealand. The information exchange may take the form of:

(a)	ad hoc exchange, in duly justified cases; or

(b)

systematic exchange, based on an arrangement established by decision of the Trade Committee pursuant to Annex 9-C (Arrangement referred to in point (b) of Article 9.10(5) for the systematic exchange of information in relation to the safety of non-food products and related preventive, restrictive and corrective measures).

6. The Trade Committee may adopt a decision to establish pursuant to Annex 9-D (Arrangement referred to in Article 9.10(6) for the regular exchange of information regarding measures taken on non-compliant non-food products, other than those covered by point (b) of Article 9.10(5)) an arrangement on the regular exchange of information, including by electronic means, on measures taken with respect to non-compliant non-food products, other than those covered by point (b) of paragraph 5 of this Article.

7. Each Party shall use the information obtained pursuant to paragraphs 4, 5 and 6 for the sole purpose of protection of consumers, health, safety or the environment.

8. Each Party shall treat the information obtained pursuant to paragraphs 4, 5 and 6 as confidential.

9. The arrangements referred to in point (b) of paragraph 5 and in paragraph 6 shall specify the type of information to be exchanged, the modalities for the exchange and the application of confidentiality and personal data protection rules.

10. The Trade Committee shall have the power to adopt decisions in order to determine or amend arrangements referred to in Annexes 9-C (Arrangement referred to in point (b) of Article 9.10(5) for the systematic exchange of information in relation to the safety of non-food products and related preventive, restrictive and corrective measures) and 9-D (Arrangement referred to in Article 9.10(6) for the regular exchange of information regarding measures taken on non-compliant non-food products, other than those covered by point (b) of Article 9.10(5)).

Article 9.11

Technical discussions and consultations

1. If a Party considers that a draft or proposed technical regulation or conformity assessment procedure of the other Party might significantly adversely affect trade between the Parties, it may request to hold discussions on the matter. The request shall be made in writing and identify:

(a)	the measure at issue;

(b)	the provisions of this Chapter to which the concerns relate; and

(c)	the reasons for the request, including a description of the requesting Party’s concerns regarding the measure.

2. A Party shall deliver its request to the TBT Chapter coordinator of the other Party designated pursuant to Article 9.14 (TBT Chapter coordinator).

3. At the request of either Party, the Parties shall meet to discuss the concerns raised in the request, in person, or via any means of communication, including telephone, video conference or other electronic means of communication, within 60 days after the date of delivery of the request and shall endeavour to resolve the matter as expeditiously as possible. If a requesting Party believes that the matter is urgent, it may request that any meeting take place within a shorter time frame. In such cases, the responding Party shall give positive consideration to such a request.

4. A Party may request consultations with the other Party regarding any matter arising under this Chapter by delivering a written request to the TBT Chapter coordinator of the other Party. The Parties shall make every attempt to arrive at a mutually satisfactory resolution of such matter.

5. For greater certainty, this Article is without prejudice to Chapter 26 (Dispute settlement).

Article 9.12

Cooperation

1. The Parties may cooperate in respect of particular areas of mutual interest, with a view to eliminating, reducing or avoiding the creation of technical barriers to trade, and facilitating trade between the Parties, including via digital solutions.

2. The Parties may cooperate and exchange information on any issues related to Annex 9-A (Acceptance of conformity assessment (documents)), including its implementation.

Article 9.13

Prohibition on animal testing

1. Each Party shall continue to actively support and promote the research, development, validation and regulatory acceptance of alternative methods to animal testing.

2. Each Party shall accept, for the purpose of the safety assessment of products falling under the definition of the term “cosmetic product” in their jurisdiction, test results generated from validated alternative methods to animal testing.

3. A Party shall not require that a product falling under the definition of the term “cosmetic product” in their jurisdiction be tested on animals to determine the safety of such a product.

Article 9.14

TBT Chapter coordinator

1. Each Party shall designate a TBT Chapter coordinator and notify the other Party of its contact details. Each Party shall promptly notify the other Party of any change to those contact details.

2. The TBT Chapter coordinators shall work jointly to facilitate the implementation of this Chapter and cooperation between the Parties in all TBT matters. To that end and subject to each Party’s internal procedures, the TBT Chapter coordinators shall, in particular, have the following responsibilities:

(a)

monitoring the implementation and administration of this Chapter, promptly addressing any issue that either Party raises related to the development, adoption, application or enforcement of technical regulations, standards or conformity assessment procedures, and upon either Party’s request, consulting on any matter arising under this Chapter;

(b)	enhancing cooperation in the development and improvement of technical regulations, standards and conformity assessment procedures;

(c)	arranging the technical discussions or consultations referred to in Article 9.11 (Technical discussions and consultations);

(d)	arranging the establishment of working groups (24), where relevant; and

(e)	exchanging information on developments in non-governmental, regional and multilateral fora related to technical regulations, standards and conformity assessment procedures.

3. The TBT Chapter coordinators shall communicate with one another by any agreed method that is appropriate to carry out their responsibilities.

CHAPTER 10

Trade in services and investment

Section A

General provisions

Article 10.1

Objectives

1. The Parties, affirming their commitment to create a better climate for the development of trade and investment between them, hereby lay down the necessary arrangements for the progressive reciprocal liberalisation of trade in services and investment.

2. The Parties reaffirm each Party’s right to regulate within their territories to achieve legitimate policy objectives, such as the protection of human, animal or plant life or health, social services, public education, safety, the environment, including climate change, public morals, social or consumer protection, animal welfare, privacy and data protection, the promotion and protection of cultural diversity and, in the case of New Zealand, the promotion or protection of the rights, interests, duties and responsibilities of Māori.

Article 10.2

Scope

1. This Chapter does not apply to measures affecting natural persons of a Party seeking access to the employment market of the other Party, nor to measures regarding nationality or citizenship, residence or employment on a permanent basis.

2. This Chapter shall not prevent a Party from applying measures to regulate the entry of natural persons into, or their temporary stay in, its territory, including those measures that are necessary to protect the integrity of its borders and to ensure the orderly movement of natural persons across them, provided that such measures are not applied in such a manner as to nullify or impair the benefits accruing to the other Party under this Chapter (25).

3. This Chapter does not apply to:

(a)

air services or related services in support of air services (26), other than the following:

(i)	aircraft repair and maintenance services;

(ii)	computer reservation system (CRS) services;

(iii)

ground handling services;

(iv)	the selling and marketing of air transport services; and

(v)

the following services provided using a manned aircraft, whose primary purpose is not the transportation of goods or passengers: aerial fire-fighting; flight training; spraying; surveying; mapping; photography; aviation adventure services (27); and other airborne agricultural, industrial and inspection services;

(b)	audio-visual services; and

(c)	national maritime cabotage (28).

Article 10.3

Definitions

For the purposes of this Chapter, the following definitions apply:

(a)	“activity performed in the exercise of governmental authority” means any activity which is performed, including any service that is supplied, neither on a commercial basis nor in competition with one or more economic operators;

(b)	“aircraft repair and maintenance services” means such activities when undertaken on an aircraft or a part thereof while it is withdrawn from service, it does not include line maintenance;

(c)	“computer reservation system (CRS) services” means services provided by computerised systems that contain information about air carriers’ schedules, availability, fares and fare rules, through which reservations can be made or tickets may be issued;

(d)	“covered enterprise” means an enterprise in the territory of a Party established in accordance with point (g), directly or indirectly, by an investor of the other Party, in accordance with the applicable law, existing on the date of entry into force of this Agreement or established thereafter;

(e)

“cross-border trade in services” means the supply of a service:

(i)	from the territory of a Party into the territory of the other Party; or

(ii)	in the territory of a Party to the service consumer of the other Party;

(f)	“economic activity” means any activity of an industrial, commercial or professional character or any activity of a craftsperson, including the supply of services, except for an activity performed in the exercise of governmental authority;

(g)	“establishment” means the setting up or the acquisition of a juridical person, including through capital participation, or the creation of a branch or representative office, in a Party, with a view to creating or maintaining lasting economic links;

(h)

“ground handling services” means the supply at an airport, on a fee or contract basis, of the following services: airline representation; administration and supervision; passenger handling; baggage handling; ramp services; catering; air cargo and mail handling; fuelling of aircraft; aircraft servicing and cleaning; surface transport; and flight operations, crew administration and flight planning. The term “ground handling services” does not include: self-handling; security; aircraft repair and maintenance; or management or operation of essential centralised airport infrastructure, such as de-icing facilities, fuel distribution systems, baggage handling systems and fixed intra airport transport systems;

(i)	“investor of a Party” means a natural person of a Party or a juridical person of a Party, including a Party, that seeks to establish, is establishing or has established an enterprise in accordance with point (g), in the territory of the other Party;

(j)

“juridical person of a Party” means: (29)

(i)

for the Union:

(A)	a juridical person constituted or organised under the law of the Union or of at least one of the Member States and engaged in substantive business operations (30) in the Union; and

(B)	shipping companies established outside the Union, and controlled by natural persons of a Member State, whose vessels are registered in, and fly the flag of, a Member State;

(ii)

for New Zealand:

(A)	a juridical person constituted or organised under the law of New Zealand and engaged in substantive business operations in New Zealand; and

(B)	shipping companies established outside New Zealand, and controlled by natural persons of New Zealand, whose vessels are registered in, and fly the flag of, New Zealand;

(k)	“operation” means the conduct, management, maintenance, use, enjoyment, or sale or other form of disposal of an enterprise;

(l)

“selling and marketing of air transport services” means opportunities for the air carrier concerned to sell and market freely its air transport services, including all aspects of marketing such as market research, advertising and distribution, but not including the pricing of air transport services nor the applicable conditions;

(m)	“service” means any service in any sector, except services supplied in the exercise of governmental authority; and

(n)	“service supplier” means any natural or juridical person that seeks to supply or supplies a service.

Section B

Investment liberalisation

Article 10.4

Scope

1. This Section applies to measures of a Party affecting establishment or operation to perform economic activities by:

(a)	investors of the other Party;

(b)	covered enterprises; and

(c)	for the purposes of Article 10.9 (Performance requirements), any enterprise in the territory of the Party which adopts or maintains the measure.

2. This Section does not apply to any measure of a Party with respect to public procurement of a good or service purchased for governmental purposes, and not with a view to commercial resale or with a view to use in the supply of a good or service for commercial sale, whether or not that procurement is covered procurement within the meaning of Article 14.1(4) (Incorporation of certain provisions of the GPA).

3. Articles 10.5 (Market access), 10.6 (National treatment), 10.7 (Most-favoured-nation treatment) and 10.8 (Senior management and boards of directors) do not apply to subsidies or grants provided by the Parties, including government-supported loans, guarantees and insurance.

Article 10.5

Market access

A Party shall not adopt or maintain, with regard to market access through establishment or operation by an investor of the other Party or by a covered enterprise, either on the basis of its entire territory or on the basis of a territorial subdivision, measures that:

(a)

impose limitations on (31):

(i)	the number of enterprises that may carry out a specific economic activity, whether in the form of numerical quotas, monopolies, exclusive rights or the requirement of an economic needs test;

(ii)	the total value of transactions or assets in the form of numerical quotas or the requirement of an economic needs test;

(iii)

the total number of operations or on the total quantity of output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test;

(iv)	the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment; or

(v)	the total number of natural persons that may be employed in a particular sector or that an enterprise may employ and who are necessary for, and directly related to, the performance of an economic activity, in the form of numerical quotas or the requirement of an economic needs test; or

(b)	restrict or require specific types of legal entity or joint venture through which an investor of the other Party may perform an economic activity.

Article 10.6

National treatment

Each Party shall accord to investors of the other Party and to covered enterprises treatment no less favourable than that which it accords, in like situations, to its own investors and to their enterprises, with respect to establishment and operation in its territory.

Article 10.7

Most-favoured-nation treatment

1. Each Party shall accord to investors of the other Party and to covered enterprises treatment no less favourable than that which it accords, in like situations, to investors of a third country and to their enterprises, with respect to establishment and operation in its territory.

2. Paragraph 1 shall not be construed as obliging a Party to extend to investors of the other Party or to covered enterprises the benefit of any treatment resulting from existing or future agreement or arrangement providing for recognition of qualifications, licences or prudential measures as referred to in Article VII of GATS or paragraph 3 of the Annex on Financial Services to GATS.

3. For greater certainty, the treatment referred to in paragraph 1 does not include dispute settlement procedures provided for in other international agreements.

4. For greater certainty, substantive provisions in other international agreements concluded by a Party with a third country do not in themselves constitute the treatment referred to in paragraph 1. Measures of a Party pursuant to those provisions may constitute such treatment and thus give rise to a breach of this Article. The mere transposition of the substantive provisions in other international agreements concluded by a Party with a third country into domestic law, to the extent that it is necessary in order to incorporate them into the domestic legal order, does not in itself qualify as the treatment referred to in paragraph 1.

Article 10.8

Senior management and boards of directors

A Party shall not require a covered enterprise to appoint natural persons of any particular nationality to senior management positions or as members of the board of directors.

Article 10.9

Performance requirements

1. A Party shall not impose or enforce any requirement, or enforce any commitment or undertaking, in connection with the establishment or operation of any enterprise in its territory:

(a)	to export a given level or percentage of goods or services;

(b)	to achieve a given level or percentage of domestic content;

(c)	to purchase, use or accord a preference to goods produced or services supplied in its territory, or to purchase goods or services from natural or juridical persons or any other entities in its territory;

(d)	to relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with the enterprise;

(e)	to restrict sales of goods or services in its territory that the enterprise produces or supplies by relating such sales in any way to the volume or value of its exports or foreign exchange inflows;

(f)	to transfer technology, a production process or other proprietary knowledge to a natural or juridical person or any other entity in its territory;

(g)	to supply exclusively from the territory of that Party a good produced or a service supplied by the enterprise to a specific regional market or to the world market;

(h)	to locate the headquarters for a specific region or the world market in its territory;

(i)	to employ a given number or percentage of natural persons of that Party;

(j)	to achieve a given level or value of research and development in its territory;

(k)	to restrict the exportation or sale for export; or

(l)

with regard to any licence contract (32) in existence at the time the requirement is imposed or enforced, or any commitment or undertaking is enforced, or with regard to any future licence contract freely entered into between the enterprise and a natural or juridical person or any other entity in its territory, if the requirement is imposed or enforced or the commitment or undertaking is enforced, in a manner that constitutes a direct interference with such licence contract by an exercise of non-judicial governmental authority of a Party (33), to adopt:

(i)	a given rate or amount of royalty under a licence contract; or

(ii)	a given duration of the term of a licence contract.

2. A Party shall not condition the receipt, or continued receipt of an advantage (34), in connection with the establishment or operation of an enterprise in its territory, on compliance with any of the following requirements:

(a)	to achieve a given level or percentage of domestic content;

(b)	to purchase, use or accord a preference to goods produced or services supplied in its territory, or to purchase goods or services from natural or juridical persons or any other entities in its territory;

(c)	to relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with the enterprise;

(d)	to restrict sales of goods or services in its territory that the enterprise produces or supplies by relating such sales in any way to the volume or value of its exports or foreign exchange inflows; or

(e)	to restrict the exportation or sale for export.

3. Paragraph 2 shall not be construed as preventing a Party from conditioning the receipt or continued receipt of an advantage, in connection with the establishment or operation of any enterprise in its territory, on compliance with a requirement to locate production, supply a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its territory.

4. Points (f) and (l) of paragraph 1 do not apply when:

(a)	the requirement is imposed or enforced, or the commitment or undertaking is enforced by a court, administrative tribunal or competition authority, pursuant to the Party’s competition law, to prevent or remedy a distortion of competition; or

(b)

a Party authorises the use of an intellectual property right in accordance with Article 31 or Article 31bis of the TRIPS Agreement, or adopts or maintains measures requiring the disclosure of data or other proprietary information that fall within the scope of, and are consistent with, Article 39 of the TRIPS Agreement.

5. Points (a), (b) and (c) of paragraph 1 and points (a) and (b) of paragraph 2 do not apply to qualification requirements for goods or services with respect to participation in export promotion and foreign aid programmes.

6. Points (a) and (b) of paragraph 2 do not apply to requirements imposed by an importing Party relating to the content of goods necessary to qualify for preferential tariffs or preferential quotas.

7. Point (l) of paragraph 1 does not apply if the requirement is imposed or enforced, or the commitment or undertaking is enforced, by a tribunal as equitable remuneration under the Party’s copyright laws.

8. This Article is without prejudice to the obligations of a Party under the WTO Agreement.

9. For greater certainty, paragraphs 1 and 2 shall not apply to any commitment, undertaking or requirement other than those set out in those paragraphs. (35)

10. This Article does not apply to the establishment or operation of a financial service supplier.

11. With regard to performance requirements relating to financial service suppliers, the Parties shall negotiate disciplines on performance requirements with respect to the establishment or operation of a financial service supplier.

12. Within 180 days of the date of the successful negotiation by the Parties of the performance requirement disciplines pursuant to paragraph 11 of this Article, the Trade Committee shall amend paragraph 1 of this Article by means of a decision to integrate those performance requirement disciplines into this Article and may amend, as appropriate, the non-conforming measures of each Party in Annex 10-A (Existing measures) and Annex 10-B (Future measures). This Article shall then apply to the establishment and operation of a financial service supplier.

Article 10.10

Non-conforming measures

1. Articles 10.5 (Market access), 10.6 (National treatment), 10.7 (Most-favoured-nation treatment), 10.8 (Senior management and boards of directors) and 10.9 (Performance requirements), do not apply to:

(a)

any existing non-conforming measure of a Party at the level of:

(i)

for the Union:

(A)	the Union, as specified in the Schedule of the Union in Annex 10-A (Existing measures);

(B)	the central government of a Member State, as specified in the Schedule of the Union in Annex 10-A (Existing measures);

(C)	a regional government of a Member State, as specified in the Schedule of the Union in Annex 10-A (Existing measures); or

(D)	a local government, other than that referred to in point (C); and

(ii)

for New Zealand:

(A)	the central government, as specified in the Schedule of New Zealand in Annex 10-A (Existing measures); or

(B)	a local government;

(b)	the continuation or prompt renewal of any existing non-conforming measure referred to in point (a); or

(c)

a modification of, or amendment to, any existing non-conforming measure referred to in points (a) and (b), to the extent that it does not decrease the conformity of such measure, as it existed immediately before the modification or amendment, with Article 10.5 (Market access), 10.6 (National treatment), 10.7 (Most-favoured-nation treatment), 10.8 (Senior management and boards of directors) or 10.9 (Performance requirements).

2. Articles 10.5 (Market access), 10.6 (National treatment), 10.7 (Most-favoured-nation treatment), 10.8 (Senior management and boards of directors) and 10.9 (Performance requirements) shall not apply to a measure of a Party with respect to sectors, sub-sectors or activities specified in its Schedule in Annex 10-B (Future measures).

3. A Party shall not, under any measure adopted after the date of entry into force of this Agreement and covered by its Schedule in Annex 10-B (Future measures), require an investor of the other Party, by reason of its nationality, to sell or otherwise dispose of an investment existing at the time the measure becomes effective.

4. Articles 10.6 (National treatment) and 10.7 (Most-favoured-nation treatment) do not apply to any measure that constitutes an exception to, or a derogation from, Article 3 or Article 4 of the TRIPS Agreement, as specifically provided in Articles 3 to 5 of that Agreement.

Article 10.11

Information requirements

Notwithstanding Articles 10.6 (National treatment) and 10.7 (Most-favoured-nation treatment), a Party may require an investor of the other Party or its covered enterprise to provide information concerning that covered enterprise solely for information or statistical purposes. The Party shall protect such information that is confidential from any disclosure that would prejudice the competitive position of the investor or the covered enterprise. Nothing in this Article shall be construed to prevent a Party from otherwise obtaining or disclosing information in connection with the equitable application of its law in good faith.

Article 10.12

Denial of benefits

A Party may deny the benefits of this Section to an investor of the other Party or to a covered enterprise if the denying Party adopts or maintains measures related to the maintenance of international peace and security, including the protection of human rights, which:

(a)	prohibit transactions with that investor or covered enterprise; or

(b)	would be violated or circumvented if the benefits of this Section were accorded to that investor or covered enterprise, including where the measures prohibit transactions with a natural or juridical person who owns or controls the investor or the covered enterprise.

Section C

Cross-border trade in services

Article 10.13

Scope

1. This Section applies to measures of a Party affecting the cross-border trade in services by service suppliers of the other Party.

2. This Section does not apply to:

(a)

any measure of a Party with respect to public procurement of a good or service purchased for governmental purposes, and not with a view to commercial resale or with a view to use in the supply of a good or service for commercial sale, whether or not that procurement is covered procurement within the meaning of Article 14.1(4) (Incorporation of certain provisions of the GPA); or

(b)	subsidies or grants provided by the Parties, including government-supported loans, guarantees and insurance.

Article 10.14

Market access

A Party shall not adopt or maintain, either on the basis of its entire territory or on the basis of a territorial subdivision, a measure that:

(a)

imposes limitations on:

(i)	the number of service suppliers, whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirement of an economic needs test;

(ii)	the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test; or

(iii)

the total number of service operations or the total quantity of service output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test; or

(b)	restricts or requires specific types of legal entity or joint venture through which a service supplier may supply a service.

Article 10.15

Local presence

A Party shall not require a service supplier of the other Party to establish or maintain a representative office or any form of enterprise, or to be resident, in its territory as a condition for cross-border trade in services.

Article 10.16

National treatment

1. Each Party shall accord to services and service suppliers of the other Party treatment no less favourable than that which it accords, in like situations, to its own services and services suppliers. (36)

2. A Party may meet the requirement of paragraph 1 by according to services and service suppliers of the other Party either formally identical treatment or formally different treatment to that which it accords to its own services and service suppliers.

3. Formally identical or formally different treatment shall be considered to be less favourable if it modifies the conditions of competition in favour of services or service suppliers of the Party compared to services or service suppliers of the other Party.

Article 10.17

Most-favoured-nation treatment

1. Each Party shall accord to services and service suppliers of the other Party treatment no less favourable than that which it accords, in like situations, to services and service suppliers of a third country.

2. Paragraph 1 shall not be construed as obliging a Party to extend to services and service suppliers of the other Party the benefit of any treatment resulting from existing or future agreement or arrangement providing for the recognition of qualifications or licences or of prudential measures as referred to in Article VII of GATS or paragraph 3 of the Annex on Financial Services to GATS.

3. For greater certainty, substantive provisions in other international agreements concluded by a Party with a third country do not in themselves constitute the treatment referred to in paragraph 1. Measures of a Party pursuant to those provisions may constitute such treatment and thus give rise to a breach of this Article.

Article 10.18

Non-conforming measures

1. Articles 10.14 (Market access), 10.15 (Local presence), 10.16 (National treatment) and 10.17 (Most-favoured-nation treatment) do not apply to:

(a)

any existing non-conforming measure of a Party at the level of:

(i)

for the Union:

(A)	the Union, as specified in the Schedule of the Union in Annex 10-A (Existing measures);

(B)	the central government of a Member State, as specified in the Schedule of the Union in Annex 10-A (Existing measures);

(C)	a regional government of a Member State, as specified in the Schedule of the Union in Annex 10-A (Existing measures); or

(D)	a local government, other than that referred to in point (C); and

(ii)

for New Zealand:

(A)	the central government, as specified in the Schedule of New Zealand in Annex 10-A (Existing measures); or

(B)	a local government;

(b)	the continuation or prompt renewal of any existing non-conforming measure referred to in point (a); or

(c)

a modification of, or amendment to, any existing non-conforming measure referred to in points (a) and (b), to the extent that it does not decrease the conformity of such measure, as it existed immediately before the modification or amendment, with Article 10.14 (Market access), 10.15 (Local presence), 10.16 (National treatment) or 10.17 (Most-favoured-nation treatment).

2. Articles 10.14 (Market access), 10.15 (Local presence), 10.16 (National treatment) and 10.17 (Most-favoured-nation treatment) shall not apply to a measure of a Party with respect to sectors, sub-sectors, or activities specified in its Schedule in Annex 10-B (Future measures).

Article 10.19

Denial of benefits

A Party may deny the benefits of this Section to a service supplier of the other Party if the denying Party adopts or maintains measures related to the maintenance of international peace and security, including the protection of human rights, which:

(a)	prohibit transactions with that service supplier; or

(b)	would be violated or circumvented if the benefits of this Section were accorded to that service supplier, including where the measures prohibit transactions with a natural or juridical person who owns or controls that service supplier.

Section D

Entry and temporary stay of natural persons for business purposes

Article 10.20

Scope and definitions

1. Subject to paragraphs 1 and 2 of Article 10.2 (Scope) of Section A, this Section applies to measures of a Party affecting the entry and temporary stay in its territory of natural persons of the other Party for business purposes, who fall within the scope of the following categories: short-term business visitors, business visitors for establishment purposes, contractual service suppliers, independent professionals and intra-corporate transferees.

2. Commitments on the entry and temporary stay of natural persons for business purposes do not apply in cases where the intent or effect of the entry and temporary stay is to interfere with, or otherwise affect, the outcome of any labour or management dispute or negotiation, or the employment of any natural person who is involved in such dispute or negotiation.

3. For the purposes of this Section, the following definitions apply:

(a)

“business visitor for establishment purposes” means a natural person, working in a senior position within a juridical person of a Party, who:

(i)	is responsible for setting up or winding down an enterprise of such juridical person in the territory of the other Party;

(ii)	does not offer or provide services or engage in any economic activity other than that which is required for the purpose of establishing that enterprise; and

(iii)

does not receive remuneration from a source located within the other Party;

(b)

“contractual service supplier” means a natural person employed by a juridical person of a Party, other than through an agency for placement and supply services of personnel, which is not established in the territory of the other Party and has concluded a bona fide service contract (37) to supply services to a final consumer in the other Party requiring the temporary presence of its employee who:

(i)	has offered those services as an employee of the juridical person for a period of not less than one year immediately preceding the date of that employee’s application for entry and temporary stay;

(ii)

possesses, on the date of that employee’s application for entry and temporary stay, the required level of professional experience (38) in the sector of activity that is the object of the contract, a degree or a qualification demonstrating knowledge of an equivalent level (39) and the professional qualification legally required to exercise that activity in the other Party; and

(iii)

does not receive remuneration from a source located within the other Party;

(c)

“independent professional” means a natural person engaged in the supply of a service and established as self-employed in the territory of a Party who:

(i)	has not established in the territory of the other Party;

(ii)	has concluded a bona fide service contract (40), other than through an agency for placement and supply services of personnel, for a period not exceeding 12 months to supply services to a final consumer in the other Party, requiring that person’s presence on a temporary basis; and

(iii)

possesses, on the date of that person’s application for entry and temporary stay, at least six years professional experience in the sector of activity that is the object of the contract, a university degree or a qualification demonstrating knowledge of an equivalent level (41) and the professional qualification legally required to exercise that activity in the other Party;

(d)

“intra-corporate transferee” means a natural person who:

(i)	has been employed by a juridical person of a Party, or has been a partner in such person, for a period of not less than one year immediately preceding the date of that person’s application for the entry and temporary stay in the other Party (42);

(ii)	at the time of that person’s application for the entry and temporary stay resides outside the territory of the other Party;

(iii)

is temporarily transferred to an enterprise of the juridical person in the territory of the other Party that is a member of the group of the originating juridical person, including its representative office, subsidiary, branch or head company; and

(iv)

belongs to one of the following categories:

(A)	manager or executive; or

(B)	specialist;

(e)

“manager” or “executive” means a natural person working in a senior position, who primarily directs the management of the enterprise or a substantial part of it in the other Party, receiving general supervision or direction principally from higher level executives or the board of directors or from stockholders of the business or their equivalent, and whose responsibilities include:

(i)	directing the enterprise or a department or subdivision thereof;

(ii)

supervising and controlling the work of other supervisory, professional or managerial employees. This does not include a first-line supervisor unless the employees supervised are professionals, nor does this include an employee who primarily performs tasks necessary for the provision of the service or operation of an investment; and

(iii)

having the authority to recommend hiring, dismissing or other personnel-related actions; and

(f)

“specialist” means a natural person possessing specialised knowledge at an advanced level of technical expertise, essential to the enterprise's areas of activity, techniques or management, which is to be assessed taking into account not only knowledge that is specific to the enterprise, but also whether the person has a high level of qualification, including adequate professional experience, referring to a type of work or activity requiring specific technical knowledge, including possible membership of an accredited profession.

Article 10.21

Business visitors for establishment purposes and intra-corporate transferees

1. Subject to the relevant conditions and qualifications specified in Annex 10-C (Business visitors for establishment purposes, intra-corporate transferees and short-term business visitors):

(a)

a Party shall allow:

(i)	the entry and temporary stay of business visitors for establishment purposes and intra-corporate transferees; and

(ii)	the employment in its territory of intra-corporate transferees of the other Party;

(b)

a Party shall not maintain or adopt limitations in the form of numerical quotas or economic needs tests on the total number of natural persons that, in a specific sector, are allowed entry as business visitors for establishment purposes, or that an investor may employ as intra-corporate transferees either on the basis of a territorial subdivision or on the basis of its entire territory; and

(c)

each Party shall accord to business visitors for establishment purposes and intra-corporate transferees of the other Party, with regard to measures affecting their business activities during their temporary stay in its territory, treatment no less favourable than that which it accords, in like situations, to its own natural persons.

2. The permissible length of stay for managers or executives and specialists shall be for a period of up to three years.

3. The permissible length of stay for business visitors for establishment purposes shall be up to 90 days in any six-month period for the Union and up to 90 days in any 12-month period for New Zealand.

Article 10.22

Short-term business visitors

1. Subject to the relevant conditions and qualifications specified in Annex 10-C (Business visitors for establishment purposes, intra-corporate transferees and short-term business visitors), a Party shall allow the entry and temporary stay of short-term business visitors of the other Party for the purpose of carrying out the activities listed in Annex 10-C (Business visitors for establishment purposes, intra-corporate transferees and short-term business visitors), subject to the following conditions:

(a)	the short-term business visitors are not engaged in selling their goods or supplying services to the general public;

(b)	the short-term business visitors do not receive remuneration from an entity in the territory of the Party where they are staying temporarily; and

(c)

the short-term business visitors are not engaged in the supply of a service in the framework of a contract concluded between a juridical person who has not established in the territory of the Party where they are staying temporarily, and a consumer in such territory, except as provided for in Annex 10-C (Business visitors for establishment purposes, intra-corporate transferees and short-term business visitors).

2. Unless otherwise specified in Annex 10-C (Business visitors for establishment purposes, intra-corporate transferees and short-term business visitors), a Party shall allow entry of short-term business visitors without the requirement of an economic needs test or other prior approval procedures of similar intent.

3. The permissible length of stay shall be for a period of up to 90 days in any 12-month period.

Article 10.23

Contractual service suppliers and independent professionals

1. In the sectors, sub-sectors and activities listed in Annex 10-E (Contractual service suppliers and independent professionals), and subject to the relevant conditions and qualifications specified therein, each Party shall:

(a)	allow the entry and temporary stay of contractual service suppliers and independent professionals in its territory;

(b)

not adopt or maintain limitations on the total number of contractual service suppliers and independent professionals of the other Party allowed temporary entry, in the form of numerical quotas or an economic needs test, either on the basis of a territorial subdivision or on the basis of its entire territory; and

(c)	accord to contractual service suppliers and independent professionals of the other Party, with regard to measures affecting the supply of services in its territory, treatment no less favourable than that which it accords, in like situations, to its own service suppliers.

2. For greater certainty, access accorded under this Article relates only to the service that is the subject of the contract and does not confer entitlement to exercise the professional title of the Party where the service is provided.

3. The permissible length of stay shall be for a cumulative period of 12 months, or for the duration of the contract, whichever is less.

Article 10.24

Non-conforming measures

1. Points (b) and (c) of Article 10.21(1) (Business visitors for establishment purposes and intra-corporate transferees) and points (b) and (c) of 10.23(1) (Contractual service suppliers and independent professionals) shall not apply to:

(a)

any existing non-conforming measure that affects the temporary stay of natural persons for business purposes and that is maintained at the level of:

(i)

for the Union:

(A)	the Union, as specified in the Schedule of the Union in Annex 10-A (Existing measures);

(B)	the central government of a Member State, as specified in the Schedule of the Union in Annex 10-A (Existing measures);

(C)	a regional government of a Member State, as specified in the Schedule of the Union in Annex 10-A (Existing measures); or

(D)	a local government, other than that referred to in point (C); and

(ii)

for New Zealand:

(A)	the central government, as specified in the Schedule of New Zealand in Annex 10-A (Existing measures); or

(B)	a local government;

(b)	the continuation or prompt renewal of any existing non-conforming measure referred to in point (a); or

(c)

a modification of, or amendment to, any existing non-conforming measure referred to in points (a) and (b) to the extent that it does not decrease the conformity of such measure, as it existed immediately before the modification or amendment, with points (b) and (c) of Article 10.21(1) (Business visitors for establishment purposes and intra-corporate transferees) or points (b) and (c) of Article 10.23(1) (Contractual service suppliers and independent professionals).

2. Points (b) and (c) of Article 10.21(1) (Business visitors for establishment purposes and intra-corporate transferees) or points (b) and (c) of Article 10.23(1) (Contractual service suppliers and independent professionals) shall not apply to any measure that a Party adopts or maintains that affects the temporary stay of natural persons for business purposes with respect to sectors, sub-sectors or activities as set out by that Party in its Schedule in Annex 10-B (Future measures).

Article 10.25

Transparency

1. Each Party shall make publicly available, if possible by publishing on a website, information on its measures affecting the entry and temporary stay in its territory of natural persons of the other Party as referred to in Article 10.20(1) (Scope and definitions).

2. The information referred to in paragraph 1 shall include the following information relevant to the entry and temporary stay of natural persons, where it exists:

(a)	entry conditions;

(b)	an indicative list of documentation that may be required in order to verify fulfilment of the entry conditions;

(c)	indicative processing time;

(d)	applicable fees;

(e)	appeal procedures; and

(f)	relevant laws of general application pertaining to the entry and temporary stay of natural persons.

Section E

Regulatory framework

Sub-section 1

Domestic regulation

Article 10.26

Scope and definitions

1. This Sub-Section applies to measures of a Party relating to licensing requirements and procedures, qualification requirements and procedures, and technical standards (43) that affect:

(a)	cross-border trade in services;

(b)	establishment or operation; or

(c)	the supply of services through the presence of a natural person of a Party in the territory of the other Party of categories of natural persons as defined in Article 10.20(3) (Scope and definitions).

2. This Sub-Section does not apply to licensing requirements and procedures, qualification requirements and procedures, and technical standards pursuant to a measure that does not conform with Article 10.5 (Market access), 10.6 (National treatment), 10.14 (Market access) or 10.16 (National treatment), and is referred to in Article 10.10(1) or (2) (Non-conforming measures), or in Article 10.18(1) or (2) (Non-conforming measures).

3. For the purposes of this Sub-Section, the following definitions apply:

(a)

“authorisation” means the permission to carry out any of the activities referred to in points (a), (b) and (c) of paragraph 1 resulting from a procedure which a natural or juridical person must adhere to in order to demonstrate compliance with licensing requirements, qualification requirements or technical standards; and

(b)	“competent authority” means a central, regional or local government or authority or non-governmental body which exercises powers delegated by central, regional or local governments or authorities, and which is entitled to take a decision concerning the authorisation.

Article 10.27

Submission of applications

Each Party shall, to the extent practicable, avoid requiring an applicant to approach more than one competent authority for each application for authorisation. If an activity for which authorisation is requested is within the jurisdiction of multiple competent authorities, multiple applications for authorisation may be required.

Article 10.28

Application timeframes

If a Party requires authorisation, it shall ensure that its competent authorities, to the extent practicable, permit the submission of an application at any time throughout the year. If a specific time period for applying for authorisation is set, the Party shall ensure that the competent authorities allow a reasonable period of time for the submission of an application.

Article 10.29

Electronic applications and acceptance of copies

If a Party requires authorisation, it shall ensure that its competent authorities:

(a)	endeavour to accept applications in electronic format; and

(b)	accept copies of documents that are authenticated in accordance with the Party’s law, in place of original documents, unless the competent authorities require original documents to protect the integrity of the process of authorisation.

Article 10.30

Processing of applications

1. If a Party requires authorisation, it shall ensure that its competent authorities:

(a)	to the extent practicable, provide an indicative timeframe for the processing of an application;

(b)	at the request of the applicant, provide without undue delay information concerning the status of the application;

(c)	to the extent practicable, ascertain without undue delay the completeness of an application for processing under the Party’s laws and regulations;

(d)

if they consider an application complete for processing (44) under the Party’s laws and regulations, within a reasonable period of time after the submission of the application, ensure that:

(i)	the processing of the application is completed; and

(ii)	the applicant is informed of the decision concerning the application, (45) to the extent possible in writing (46);

(e)

if they consider an application incomplete for processing under the Party’s laws and regulations, within a reasonable period of time of the date on which the relevant competent authority determined that the application was incomplete, and to the extent practicable:

(i)	inform the applicant that the application is incomplete;

(ii)	at the request of the applicant identify the additional information required to complete the application or otherwise provide guidance on why the application is considered incomplete; and

(iii)

provide the applicant with the opportunity to provide the additional information that is required to complete the application (47);

if the steps in points (i) to (iii) are not practicable, and the application is rejected due to incompleteness, ensure that they inform the applicant within a reasonable period of time; and

(f)

if they reject an application, either on their own initiative or on request of the applicant, inform the applicant of the reasons for rejection and of the timeframe for an appeal against that decision and, if applicable, the procedures for resubmission of an application. An applicant should not be prevented from submitting another application solely on the basis of a previously rejected application.

2. Each Party shall ensure that its competent authorities grant an authorisation as soon as it is established, in the light of an appropriate examination, that an applicant meets the conditions for obtaining it.

3. Each Party shall ensure that its competent authorities ensure that authorisation, once granted, enters into effect without undue delay, subject to the applicable terms and conditions.

Article 10.31

Fees

1. For all economic activities covered by this Sub-Section other than financial services, each Party shall ensure that the authorisation fees (48) charged by its competent authorities are reasonable, transparent and do not in themselves restrict the supply of the relevant service or the pursuit of any other economic activity.

2. With regard to financial services, each Party shall ensure that its competent authorities, with respect to authorisation fees that they charge, provide applicants with a schedule of fees or information on how fee amounts are determined, and do not use the fees as a means of avoiding the Party’s commitments or obligations.

Article 10.32

Assessment of qualifications

If a Party requires an examination for authorisation, it shall ensure that its competent authorities schedule such an examination at reasonably frequent intervals and provide a reasonable period of time to enable applicants to request to take the examination. To the extent practicable, each Party shall consider accepting requests in electronic format to take such examinations and the use of electronic means in other aspects of the examination processes.

Article 10.33

Objectivity, impartiality and independence

If a Party adopts or maintains a measure relating to authorisation, it shall ensure that its competent authorities process applications, reach and administer decisions objectively and impartially and in a manner independent from any person carrying out the economic activity for which authorisation is required.

Article 10.34

Publication and information available

If a Party requires authorisation, the Party shall promptly publish (49) the information necessary for service suppliers, including those seeking to supply a service, and for persons carrying out or seeking to carry out the economic activity for which the licence or authorisation is required, to comply with the requirements and procedures for obtaining, maintaining, amending and renewing such licence or authorisation. Such information shall include, where it exists:

(a)	the requirements and procedures;

(b)	contact information of relevant competent authorities;

(c)	authorisation fees;

(d)	applicable technical standards;

(e)	procedures for appeal or review of decisions concerning applications;

(f)	procedures for monitoring or enforcing compliance with the terms and conditions of licences or qualifications;

(g)	opportunities for public involvement, such as through hearings or comments; and

(h)	indicative timeframes for the processing of an application.

Article 10.35

Technical standards

A Party shall encourage its competent authorities, when adopting technical standards, to adopt technical standards developed through open and transparent processes, and shall encourage all persons or entities, including relevant international organisations, designated to develop technical standards, to do so through open and transparent processes.

Article 10.36

Development of measures

If a Party adopts or maintains measures relating to authorisation, it shall ensure that:

(a)	such measures are based on clear, objective and transparent criteria (50);

(b)	the procedures are impartial, easily accessible to all applicants and are adequate for applicants to demonstrate whether they meet the requirements, where requirements exist; and

(c)	the procedures do not in themselves unjustifiably prevent fulfilment of requirements.

Article 10.37

Limited numbers of licences

If the number of licences available for a given activity is limited because of the scarcity of available natural resources or technical capacity, a Party shall, in accordance with its laws and regulations, apply a selection procedure to potential candidates that provides full guarantees of impartiality and transparency, including, in particular, adequate publicity about the launch, conduct and completion of the procedure. In establishing the rules for the selection procedure, a Party may take into account legitimate policy objectives, including considerations of health, safety, protection of the environment and preservation of cultural heritage.

Article 10.38

Review procedures for administrative decisions

A Party shall maintain judicial, arbitral or administrative tribunals or procedures that provide, at the request of an affected investor or service supplier of the other Party, for a prompt review of, and where justified, appropriate remedies for, administrative decisions that affect establishment or operation, cross-border trade in services or the supply of a service through the presence of a natural person of a Party in the territory of the other Party. If such procedures are not independent of the authority entrusted with the administrative decision concerned, a Party shall ensure that the procedures provide for an objective and impartial review in fact.

Sub-section 2

Provisions of general application

Article 10.39

Mutual recognition of professional qualifications

1. For the purposes of this Article, the term “professional qualifications” means formal qualifications, professional experience, professional registration or other attestation of competence.

2. Nothing in this Article shall prevent a Party from requiring that natural persons possess the necessary professional qualifications specified in the territory where the service is supplied, for the sector of activity concerned.

3. Where appropriate, the Parties shall encourage the establishment of dialogue between their relevant experts, regulators and industry bodies to share and facilitate understanding of their respective professional qualifications, registration requirements and processes, and cooperate with a view to achieving mutual recognition of professional qualifications.

4. The Parties shall encourage the relevant professional bodies or authorities in their respective territories to develop and provide a joint recommendation on mutual recognition of professional qualifications to the Committee on Investment, Services, Digital Trade, Government Procurement and Intellectual Property, including Geographical Indications, established pursuant to Article 24.4 (Specialised committees). That joint recommendation shall be supported by evidence of:

(a)	the economic value of an envisaged instrument on mutual recognition of professional qualifications (hereinafter referred to as “mutual recognition instrument”); and

(b)	the compatibility of the respective regimes, being the extent to which the criteria applied by each Party for the authorisation, licensing, operation and certification of professionals are compatible.

5. On receipt of a joint recommendation referred to in paragraph 4, the Committee on Investment, Services, Digital Trade, Government Procurement and Intellectual Property, including Geographical Indications, shall review the consistency of that joint recommendation with this Chapter within a reasonable period of time. Following such review, the Committee on Investment, Services, Digital Trade, Government Procurement and Intellectual Property, including Geographical Indications, may develop a mutual recognition instrument (51) and the Trade Committee may adopt it by means of decision as an annex to this Agreement.

Sub-section 3

Delivery services

Article 10.40

Scope and definitions

1. This Sub-Section sets out principles of the regulatory framework for the supply of delivery services and applies to measures of a Party affecting trade in delivery services.

2. For the purposes of this Sub-Section, the following definitions apply:

(a)	“delivery services” means postal services, courier services, express delivery services or express mail services, which include the collection, sorting, transport and delivery of postal items;

(b)

“express delivery services” means the collection, sorting, transport and delivery of postal items at accelerated speed and reliability and may include value added elements such as collection from point of origin, personal delivery to the addressee, tracing, possibility of changing the destination and addressee in transit, or confirmation of receipt;

(c)	“express mail services” means international express delivery services supplied through the EMS Cooperative, the voluntary association of designated postal operators under the Universal Postal Union;

(d)	“licence” means an authorisation that a regulatory authority of a Party may require of an individual supplier in order for that supplier to offer postal and courier services;

(e)	“postal item” means an item up to 31,5 kg addressed in the final form in which it is to be carried by any type of supplier of delivery services, whether public or private, and may include items such as a letter, parcel, newspaper or catalogue;

(f)	“postal monopoly” means the exclusive right to supply specified delivery services within a Party’s territory or a subdivision thereof pursuant to a legislative measure; and

(g)	“universal service” means the permanent supply of a delivery service of specified quality at all points in the territory of a Party or a subdivision of a Party at an affordable price for all users.

Article 10.41

Universal service

1. Each Party has the right to define the kind of universal service obligation it wishes to maintain and to decide on the scope and implementation of such obligation. Each Party shall administer any universal service obligation in a transparent, non-discriminatory and neutral manner with regard to all suppliers subject to that universal service obligation.

2. If a Party requires inbound express mail services to be supplied on a universal service basis, it shall not accord preferential treatment to those express mail services over other international express delivery services.

Article 10.42

Universal service funding

A Party shall not impose fees or other charges on the supply of a delivery service that is not a universal delivery service for the purpose of funding the supply of a universal service. (52)

Article 10.43

Prevention of market distortive practices

Each Party shall ensure that suppliers of delivery services subject to a universal service obligation or postal monopoly do not engage in market distortive practices such as:

(a)	using revenues derived from the supply of the service subject to a universal service obligation or from the monopoly to cross-subsidise the supply of an express delivery service or any delivery service that is not subject to a universal service obligation; or

(b)	unjustifiably differentiating among customers with respect to tariffs or other terms and conditions for the supply of a service subject to a universal service obligation or a postal monopoly.

Article 10.44

Licences

1. If a Party requires a licence for the provision of delivery services, it shall make publicly available:

(a)	all the licensing requirements and the period of time normally required to reach a decision concerning an application for a licence; and

(b)	the terms and conditions of licences.

2. Each Party shall ensure that the procedures, obligations and requirements of a licence are transparent, non-discriminatory and based on objective criteria.

3. Each Party shall ensure, if a licence application is rejected by a competent authority, that the competent authority informs the applicant of the reasons for the rejection in writing. Each Party shall establish an appeal procedure through an independent body to be available to applicants whose application for a licence has been rejected. Such body may be a court.

Article 10.45

Independence of the regulatory body

1. Each Party shall establish or maintain a regulatory body that shall be legally distinct and functionally independent from any supplier of delivery services. If a Party owns or controls a supplier of delivery services, it shall ensure effective structural separation of the regulatory function from activities associated with ownership or control.

2. Each Party shall ensure that the regulatory body performs its tasks in a transparent and timely manner and has adequate financial and human resources to carry out the task assigned to it, and that the regulatory body’s decisions are impartial with respect to all market participants.

Sub-section 4

Telecommunications services

Article 10.46

Scope

1. This Sub-Section sets out principles of the regulatory framework affecting telecommunications networks and services and applies to measures of a Party affecting trade in telecommunications services.

2. This Sub-Section does not apply to measures affecting:

(a)	broadcasting services as defined in the laws and regulations of each Party; and

(b)	services providing, or exercising editorial control over, content transmitted using telecommunications networks and services.

3. Notwithstanding point (a) of paragraph 2, a supplier of broadcasting services shall be considered as a supplier of public telecommunications services, and the networks of that supplier of broadcasting services shall be considered as public telecommunications networks when and to the extent that those public telecommunications networks are also used for providing public telecommunications services.

4. Nothing in this Sub-Section shall be construed as requiring a Party:

(a)	to authorise a service supplier of the other Party to establish, construct, acquire, lease, operate or supply telecommunications networks or services other than as provided for in this Agreement; or

(b)	to establish, construct, acquire, lease, operate or supply telecommunications networks or services not offered to the public generally, or to oblige a service supplier under its jurisdiction to do so.

Article 10.47

Definitions

For the purposes of this Sub-Section, the following definitions apply:

(a)	“associated facilities” means services, physical infrastructure and other facilities associated with a telecommunications network or telecommunications service that enable or support the supply of services via that network or that service or have the potential to do so;

(b)

“essential facilities” means facilities of a public telecommunications network or telecommunications service that:

(i)	are exclusively or predominantly provided by a single or limited number of suppliers; and

(ii)	cannot feasibly be economically or technically substituted in order to provide a service;

(c)

“interconnection” means the linking of public telecommunications networks used by the same or different suppliers of telecommunications networks or telecommunications services in order to allow the users of one supplier to communicate with users of the same or another supplier or to access services provided by another supplier. Services may be provided by the suppliers involved or any other supplier who has access to the network;

(d)	“leased circuit” means telecommunications services or facilities, including those of a virtual nature, that set aside capacity for the dedicated use of, or availability to, a user between two or more designated points;

(e)

“major supplier” means a supplier of telecommunications networks or telecommunications services which has the ability to materially affect the terms of participation (having regard to price and supply) in a relevant market for telecommunications networks or telecommunications services as a result of control over essential facilities or the use of its position in such market;

(f)	“network element” means a facility or equipment used in supplying a telecommunications service, including features, functions and capabilities provided by means of such facility or equipment;

(g)

“number portability” means the ability of subscribers who so request to retain the same telephone numbers, at the same location in the case of a fixed line, without impairment of quality, reliability or convenience when switching between the same category of suppliers of public telecommunications services;

(h)	“public telecommunications network” means any telecommunications network used wholly or mainly for the provision of public telecommunications services between network termination points;

(i)	“public telecommunications service” means any telecommunications service that is offered to the public generally;

(j)	“subscriber” means any natural or juridical person that is a party to a contract with a supplier of public telecommunications services for the supply of public telecommunications services;

(k)	“telecommunications” means the transmission and reception of signals by any electromagnetic means;

(l)	“telecommunications network” means transmission systems and, where applicable, switching or routing equipment and other resources, including network elements that are not active, which permit the transmission and reception of signals by wire, radio, optical or other electromagnetic means;

(m)	“telecommunications regulatory authority” means the body or bodies charged by a Party with the regulation of telecommunications networks and telecommunications services covered by this Sub-Section;

(n)

“telecommunications service” means a service that consists wholly or mainly in the transmission and reception of signals, including broadcasting signals, over telecommunications networks, including those used for broadcasting, but not a service providing or exercising editorial control over content transmitted using telecommunications networks and telecommunications services;

(o)	“universal service” means the minimum set of services of specified quality that must be made available to all users, or to a set of users, in the territory of a Party, or in a subdivision of a Party, regardless of their geographical location and at an affordable price; and

(p)	“user” means any person using a public telecommunications service.

Article 10.48

Approaches to regulation

1. The Parties recognise the value of competitive markets to deliver a wide choice in the supply of telecommunications services and to enhance consumer welfare, and that economic regulation may not be needed if there is effective and sustainable competition. Accordingly, the Parties recognise that regulatory needs and approaches differ market by market, and that a Party may determine how to implement its obligations under this Sub-Section.

2. In that respect, the Parties recognise that each Party may:

(a)	engage in direct regulation either in anticipation of an issue that the Party expects may arise or to resolve an issue that has already arisen in the market;

(b)	rely on the role of market forces, particularly with respect to market segments that are competitive or that have low barriers to entry, such as services provided by suppliers of telecommunications services that do not own network facilities; or

(c)

rely on market structure rules that restrict the activities of some suppliers of telecommunications services that own network facilities, for example by requiring provision of wholesale services on a non-discriminatory basis or prohibiting participation in a retail market, with a view to ensuring market behaviour equivalent to that of participants in a competitive market.

3. For greater certainty, a Party that refrains from engaging in regulation in accordance with point (b) of paragraph 2 of this Article remains subject to the obligations under this Sub-Section. Nothing in this Article shall prevent a Party from regulating telecommunications services.

Article 10.49

Telecommunications regulatory authority

1. Each Party shall establish or maintain a telecommunications regulatory authority that:

(a)	is legally distinct and functionally independent from any supplier of telecommunications networks, telecommunications services or telecommunications equipment;

(b)	uses procedures and issues decisions that are impartial with respect to all market participants;

(c)

acts independently and does not seek or take instructions from any other body in relation to the exercise of the tasks assigned to it by law to enforce the obligations set out in Articles 10.51 (Interconnection), 10.52 (Access and use), 10.53 (Resolution of telecommunications disputes), 10.55 (Interconnection with major suppliers) and 10.56 (Access to major suppliers’ essential facilities);

(d)	is sufficiently empowered to carry out the tasks referred to in point (c);

(e)	has the power to ensure that suppliers of telecommunications networks or telecommunications services provide it, promptly upon request, with all the information (53), including financial information, necessary to carry out the tasks referred to in point (c); and

(f)	exercises its powers transparently and in a timely manner.

2. Each Party shall ensure that the tasks to be undertaken by its telecommunications regulatory authority are made public in an easily accessible and clear form, in particular where those tasks are assigned to more than one body.

3. A Party that retains ownership or control of suppliers of telecommunications networks or telecommunications services shall ensure effective structural separation of the regulatory function from activities associated with ownership or control.

4. Each Party shall ensure that a user or supplier of telecommunications networks or telecommunications services affected by a decision of its telecommunications regulatory authority has a right of appeal before an appeal body that is independent of both the regulatory authority and other affected parties. Pending the outcome of the appeal, the decision shall stand, unless interim measures are granted in accordance with the law of the Party concerned.

Article 10.50

Authorisation to provide telecommunications networks or telecommunications services

1. If a Party requires authorisation for the provision of telecommunications networks or telecommunications services, it shall make publicly available the types of telecommunications services requiring authorisation, together with all authorisation criteria, applicable procedures, and terms and conditions generally associated with the authorisation.

2. Each Party shall endeavour to authorise the provision of telecommunications networks or telecommunications services without a formal procedure and permit the supplier to start providing its telecommunications networks or telecommunications services without having to wait for a decision by its telecommunications regulatory authority. If a Party requires a formal authorisation decision, it shall state a reasonable period of time normally required to obtain such a decision and communicate this in a transparent manner. The Party shall endeavour to ensure that the decision is taken within the stated period of time.

3. Each Party shall ensure that any authorisation criteria or applicable procedure, and any obligation or condition imposed on or associated with an authorisation, is objective, transparent, non-discriminatory, related to the service provided and not more burdensome than necessary for the kind of service provided.

4. Each Party shall ensure that an applicant receives in writing the reasons for the denial or revocation of an authorisation, or the imposition of supplier-specific conditions. In such cases, an applicant shall have a right of appeal before an appeal body.

5. Each Party shall ensure that administrative fees imposed on suppliers are objective, transparent, non-discriminatory and commensurate with the administrative costs reasonably incurred in the management, control and enforcement of the obligations set out in this Sub-Section. (54)

Article 10.51

Interconnection

1. The Parties recognise that interconnection should in principle be agreed on the basis of commercial negotiation between the suppliers of public telecommunications networks or public telecommunications services concerned.

2. To this end each Party shall ensure that a supplier of public telecommunications networks or public telecommunications services in its territory has the right and, when requested by another supplier of public telecommunications networks or public telecommunications services, the obligation to negotiate interconnection for the purpose of providing public telecommunications networks or public telecommunications services.

Article 10.52

Access and use

1. Each Party shall ensure that any covered enterprise or service supplier of the other Party is accorded access to and use of public telecommunications networks or public telecommunications services on reasonable and non-discriminatory (55) terms and conditions. This obligation shall be carried out, inter alia, in line with paragraphs 2 to 5 of this Article.

2. Each Party shall ensure that covered enterprises or service suppliers of the other Party have access to and use of any public telecommunications network or public telecommunications service offered within or across its border, including private leased circuits, and to that end shall ensure, subject to paragraph 5, that such enterprises and suppliers are permitted:

(a)	to purchase or lease and attach terminal or other equipment that interfaces with the public telecommunications network and that is necessary to conduct their operations;

(b)	to interconnect private leased or owned circuits with public telecommunications networks or with circuits leased or owned by another covered enterprise or service supplier; and

(c)	to use operating protocols of their choice in their operations, other than as necessary to ensure the availability of the public telecommunications services.

3. Each Party shall ensure that covered enterprises or service suppliers of the other Party may use public telecommunications networks and public telecommunications services for the movement of information within and across borders, including for their intra-corporate communications, and for access to information contained in data bases or otherwise stored in machine-readable form in the territory of either Party.

4. Notwithstanding paragraph 3, a Party may take measures that are necessary to ensure the security and confidentiality of communications, subject to the requirement that such measures are not applied in a manner that would constitute either a disguised restriction on trade in services or on the pursuit of any other economic activity covered by this Chapter or a means of arbitrary or unjustifiable discrimination.

5. Each Party shall ensure that no condition is imposed on access to and use of public telecommunications networks or public telecommunications services other than as necessary:

(a)	to safeguard the public service responsibilities of suppliers of public telecommunications networks or public telecommunications services, in particular their ability to make their public telecommunications services available; or

(b)	to protect the technical integrity of public telecommunications networks or public telecommunications services.

Article 10.53

Resolution of telecommunications disputes

1. Each Party shall ensure that, in the event of a dispute arising between suppliers of telecommunications networks or telecommunications services in connection with rights and obligations that arise from this Sub-Section, and at the request of either party involved in the dispute, its telecommunications regulatory authority issues a binding decision within a reasonable timeframe to resolve the dispute.

2. Each Party shall ensure that a decision by its telecommunications regulatory authority is made available to the public, having regard to the requirements of business confidentiality, and that the parties concerned are given a full statement of the reasons on which the decision is based and have the right of appeal as referred to in Article 10.49(4) (Telecommunications regulatory authority).

3. Each Party shall ensure that the procedure specified in paragraphs 1 and 2 does not preclude either party concerned from bringing an action before a judicial authority, in accordance with the laws and regulations of the Party.

Article 10.54

Competitive safeguards on major suppliers

Each Party shall adopt or maintain appropriate measures that prevent suppliers of telecommunications networks or telecommunications services who, alone or together, are a major supplier, from engaging in or continuing anti-competitive practices. The anti-competitive practices may include:

(a)	engaging in anti-competitive cross-subsidisation;

(b)	using information obtained from competitors with anti-competitive results; and

(c)	not making available to other service suppliers on a timely basis technical information about essential facilities and commercially relevant information that is necessary for them to provide services.

Article 10.55

Interconnection with major suppliers

1. Each Party shall ensure that major suppliers of public telecommunications networks or public telecommunications services provide interconnection at any technically feasible point in the network. Such interconnection shall be provided:

(a)

under non-discriminatory terms and conditions, including as regards rates, and technical standards and specifications, including quality and maintenance, and of a quality no less favourable than that provided for their own like services of such major supplier, or for like services of its subsidiaries or other affiliates;

(b)

in a timely fashion, on terms and conditions, including as regards rates, and technical standards and specifications, including quality and maintenance, that are transparent, reasonable, having regard to economic feasibility, and sufficiently unbundled so that the supplier does not need to pay for network elements or facilities that it does not require for the service to be provided; and

(c)	upon request, at points in addition to the network termination points offered to the majority of users, subject to charges that reflect the cost of construction of necessary additional facilities.

2. Each Party shall ensure that the procedures applicable for interconnection to a major supplier are made publicly available.

3. Each Party shall ensure that a major supplier in its territory makes publicly available either its interconnection agreements or its reference interconnection offers as appropriate.

Article 10.56

Access to major suppliers’ essential facilities

Each Party shall ensure that a major supplier in its territory makes its essential facilities available to suppliers of telecommunications networks or telecommunications services on reasonable and non-discriminatory terms and conditions for the purpose of providing public telecommunications services, except when this is not necessary to achieve effective competition on the basis of the facts collected and the assessment of the market conducted by the telecommunications regulatory authority.

Article 10.57

Scarce resources

1. Each Party shall ensure that the allocation and granting of rights of use of scarce resources, including radio frequency spectrum, numbers and rights of way, is carried out using procedures that are objective, timely, transparent, non-discriminatory and that do not create a disincentive for the application for the rights of use of scarce resources.

2. Each Party shall endeavour to take into account the public interest, including the promotion of competition, and to rely on market-based approaches, including mechanisms such as auctions, when allocating and granting rights of use of radio frequency spectrum for public telecommunication services.

3. Each Party shall ensure that the current use of allocated frequency bands is made publicly available, but detailed identification of radio spectrum allocated for specific government uses is not required.

4. Measures of a Party allocating and assigning spectrum and managing frequency are not per se inconsistent with Articles 10.5 (Market access) and 10.14 (Market access). Each Party retains the right to establish and apply spectrum and frequency management measures that may have the effect of limiting the number of suppliers of telecommunications services, provided that it does so in a manner consistent with this Agreement. This includes the ability to allocate frequency bands taking into account current and future needs and spectrum availability.

Article 10.58

Universal service

1. Each Party has the right to define the kind of universal service obligations it wishes to maintain and to decide on their scope and implementation.

2. Each Party shall administer the universal service obligations in a transparent, objective and non-discriminatory way which is neutral with respect to competition and not more burdensome than necessary for the kind of universal service defined by the Party.

3. If a Party designates a universal service supplier, it shall do so in a manner that is efficient, transparent, non-discriminatory and open to all suppliers of public telecommunication networks or public telecommunication services.

4. If a Party decides to compensate a universal service supplier, it shall ensure that such compensation does not exceed the net cost caused by the universal service obligation.

Article 10.59

Number portability

Each Party shall ensure that a supplier of public telecommunications services provides number portability on reasonable terms and conditions.

Article 10.60

Confidentiality of information

1. Each Party shall ensure that a supplier that acquires information from another supplier in the process of negotiating an arrangement pursuant to Article 10.51 (Interconnection), 10.52 (Access and use), 10.55 (Interconnection with major suppliers) or 10.56 (Access to major suppliers’ essential facilities) uses such information solely for the purpose for which it was supplied and respects at all times the confidentiality of information transmitted or stored. (56)

2. Each Party shall adopt or maintain measures to protect the confidentiality of communications and related traffic data transmitted in the use of public telecommunications networks or public telecommunications services, in a manner that is non-discriminatory and that does not unduly restrict the supply of telecommunication services.

Article 10.61

Telecommunications connectivity

The Parties recognise the importance of the availability and take-up of very high capacity networks and of high quality telecommunications services, including in rural and remote areas, as a means of enabling persons and businesses to access the benefits of trade.

Sub-section 5

Financial services

Article 10.62

Scope

1. This Sub-Section applies to measures of a Party affecting the supply of financial services. This Sub-Section does not apply to the non-conforming aspects of measures adopted or maintained in accordance with Article 10.10 (Non-conforming measures) or 10.18 (Non-conforming measures).

2. For the purposes of this Sub-Section, activity performed in the exercise of governmental authority defined in point (a) of Article 10.3 (Definitions) means the following:

(a)	an activity conducted by a central bank or a monetary authority or by any other public entity in pursuit of monetary or exchange rate policies;

(b)	an activity forming part of a statutory system of social security or public retirement plans; and

(c)	other activities conducted by a public entity on the account of or with the guarantee of or using the financial resources of the Party or its public entities.

3. If a Party allows any of the activities referred to in point (b) or (c) of paragraph 2 of this Article to be conducted by its financial service suppliers in competition with a public entity or a financial service supplier, service defined in point (m) of Article 10.3 (Definitions) shall include those activities.

4. Point (a) of Article 10.3 (Definitions) does not apply to financial services covered by this Sub-Section.

Article 10.63

Definitions

For the purposes of this Sub-Section and of Sections B (Investment liberalisation), C (Cross-border trade in services), D (Entry and temporary stay of natural persons for business purposes) and Sub-Section 1 (Domestic regulation) of Section E (Regulatory framework) of this Chapter, the following definitions apply:

(a)

“financial service” means any service of a financial nature offered by a financial service supplier of a Party. Financial services include all insurance and insurance-related services, and all banking and other financial services (excluding insurance). Financial services include the following activities:

(i)

insurance and insurance-related services:

(A)

direct insurance (including co-insurance):

(1)

life; and

(2)

non-life;

(B)	reinsurance and retrocession;

(C)	insurance intermediation, such as brokerage and agency; and

(D)	services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services;

(ii)

banking and other financial services (excluding insurance):

(A)	acceptance of deposits and other repayable funds from the public;

(B)	lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transactions;

(C)	financial leasing;

(D)	all payment and money transmission services, including credit, charge and debit cards, travellers’ cheques and bankers’ drafts;

(E)	guarantees and commitments;

(F)

trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following:

(1)	money market instruments (including cheques, bills and certificates of deposits);

(2)	foreign exchange;

(3)	derivative products, including futures and options;

(4)	exchange rate and interest rate instruments, including products such as swaps and forward rate agreements;

(5)	transferable securities; and

(6)	other negotiable instruments and financial assets, including bullion;

(G)	participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues;

(H)	money broking;

(I)	asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services;

(J)	settlement and clearing services for financial assets, including securities, derivative products and other negotiable instruments;

(K)	provision and transfer of financial information, and financial data processing and related software; and

(L)	advisory, intermediation and other auxiliary financial services in respect of the activities listed in points (A) to (K), including credit reference and analysis, investment and portfolio research and advice, and advice on acquisitions and corporate restructuring and strategy;

(b)	“financial service supplier” means any natural or juridical person of a Party that seeks to supply or supplies financial services and does not include a public entity;

(c)

“public entity” means:

(i)

a government, a central bank or monetary authority of a Party, or an entity owned or controlled by a Party, that is principally engaged in carrying out governmental functions or activities for governmental purposes, not including an entity principally engaged in supplying financial services on commercial terms; or

(ii)	a private entity, performing functions normally performed by a central bank or monetary authority, when exercising those functions;

(d)

“new financial service” means a service of a financial nature, including services related to existing and new products, or the manner in which a product is delivered, that is not supplied by any financial service supplier in the territory of a Party but that is supplied in the territory of the other Party; and

(e)

“self-regulatory organisation” means any non-governmental body, including a securities or futures exchange or market, clearing agency, other organisation or association, that exercises regulatory or supervisory authority over financial service suppliers by statute or delegation from central, regional or local governments or authorities, where applicable.

Article 10.64

Prudential carve-out

1. Nothing in this Agreement shall prevent a Party from adopting or maintaining measures for prudential reasons, such as:

(a)	the protection of investors, depositors, policy-holders or persons to whom a fiduciary duty is owed by a financial service supplier; or

(b)	ensuring the integrity and stability of a Party’s financial system.

2. Where such measures do not conform with this Agreement, they shall not be used as a means of avoiding the Party’s commitments or obligations under this Agreement.

Article 10.65

Disclosure of information

Nothing in this Agreement shall be construed to require a Party to disclose information relating to the affairs and accounts of individual consumers or any confidential or proprietary information in the possession of public entities.

Article 10.66

International standards

1. Each Party shall give due consideration to ensuring that internationally agreed standards for regulation and supervision in the financial services sector and for the fight against tax evasion and avoidance in the financial services sector are implemented and applied in its territory. Such internationally agreed standards include those adopted by the G20, the Financial Stability Board, the Basel Committee on Banking Supervision, in particular its Core Principles for effective banking supervision, the International Association of Insurance Supervisors, in particular its Insurance Core Principles, the International Organization of Securities Commissions, in particular its Objectives and Principles of Securities Regulation, the Financial Action Task Force, and the Global Forum on Transparency and Exchange of Information for Tax Purposes.

2. The Parties shall aim to cooperate and exchange information regarding the development of international standards.

Article 10.67

Financial services new to the territory of a Party

1. Each Party shall permit a financial service supplier of the other Party established in its territory to supply any new financial service that it would permit its own financial service suppliers to supply in accordance with its law in like situations, provided that the introduction of the new financial service does not require an amendment of an existing law or the adoption of a new law. This does not apply to branches of financial service suppliers of the other Party established within the territory of a Party.

2. A Party may determine the institutional and legal form through which the new financial service may be supplied and require authorisation for the supply of such service. Where such authorisation is required, a decision shall be made within a reasonable time and authorisation may only be refused for prudential reasons.

Article 10.68

Self-regulatory organisations

If a Party requires membership of, participation in, or access to, any self-regulatory organisation in order for financial service suppliers of the other Party to supply financial services in or into the territory of the first Party, the Party shall ensure observance by that self-regulatory organisation of the obligations under Articles 10.6 (National treatment), 10.7 (Most-favoured-nation treatment), 10.16 (National treatment) and 10.17 (Most-favoured-nation treatment).

Article 10.69

Clearing and payment systems

Under terms and conditions that accord national treatment, each Party shall grant to financial service suppliers of the other Party established in its territory access to payment and clearing systems operated by public entities, and to official funding and refinancing facilities available in the normal course of ordinary business. This Article shall not confer access to the Party’s lender of last resort facilities.

Sub-section 6

International maritime transport services

Article 10.70

Scope and definitions

1. This Sub-Section sets out principles of the regulatory framework for the provision of international maritime transport services pursuant to Sections B (Investment liberalisation), C (Cross-border trade in services) and D (Entry and temporary stay of natural persons for business purposes) of this Chapter and applies to measures of a Party affecting trade in international maritime transport services. This Sub-Section does not apply to the non-conforming aspects of measures adopted or maintained in accordance with Article 10.10 (Non-conforming measures) or 10.18 (Non-conforming measures).

2. For the purposes of this Sub-Section and Sections B (Investment liberalisation), C (Cross-border trade in services) and D (Entry and temporary stay of natural persons for business purposes) of this Chapter, the following definitions apply:

(a)	“container station and depot services” means activities consisting in storing containers, whether in port areas or inland, with a view to their stuffing or stripping, repairing and making them available for shipments;

(b)	“customs clearance” means activities consisting in carrying out, on behalf of another party, customs formalities concerning import, export or through transport of cargoes, irrespective of whether this service is the main activity of the service supplier or a usual complement of its main activity;

(c)	“door-to-door or multimodal transport operations” means transporting cargo using more than one mode of transport, involving an international sea-leg, under a single transport document;

(d)

“feeder services” means the pre- and onward transportation by sea of international cargo, including containerised, break bulk and dry or liquid bulk cargo, between ports located in the territory of a Party, international cargo en route directed to a destination, or coming from a port of shipment, outside the territory of that Party;

(e)	“freight forwarding services” means the activity consisting in organising and monitoring shipment operations on behalf of shippers, through the acquisition of transport and related services, preparation of documentation and provision of business information;

(f)	“international cargo” means cargo transported between a port of one Party and a port of the other Party or of a third country, or between ports of different Member States;

(g)

“international maritime transport services” means transporting passengers or cargo by sea-going vessels between a port of a Party and a port of the other Party or of a third country, including direct contracting with providers of other transport services, with a view to covering door-to-door or multimodal transport operations under a single transport document, but not the right to provide those other transport services;

(h)

“maritime agency services” means activities consisting in representing, within a given geographic area, as an agent the business interests of one or more shipping lines or shipping companies, for the following purposes:

(i)	marketing and sales of maritime transport and related services, from quotation to invoicing, and issuance of bills of lading on behalf of the companies, acquisition and resale of the necessary related services, preparation of documentation, and provision of business information;

(ii)	acting on behalf of the companies organising the call of the ship or taking over cargoes when required;

(i)	“maritime auxiliary services” means maritime cargo handling services, customs clearance services, container station and depot services, maritime agency services and maritime freight forwarding services; and

(j)

“maritime cargo handling services” means activities exercised by stevedore companies, including terminal operators but not including the direct activities of dockers, when this workforce is organised independently of the stevedoring or terminal operator companies. The activities covered include the organisation and supervision of:

(i)	the loading or discharging of cargo to or from a ship;

(ii)	the lashing or unlashing of cargo; and

(iii)

the reception or delivery and safekeeping of cargoes before shipment or after discharge.

Article 10.71

Obligations

1. Each Party shall implement unrestricted access to international maritime markets and trades on a commercial and non-discriminatory basis by:

(a)

according to ships flying the flag of the other Party, or operated by service suppliers of the other Party, treatment no less favourable than that accorded to its own ships, including with regard to:

(i)	access to ports;

(ii)	the use of infrastructure and services of ports;

(iii)

the use of maritime auxiliary services;

(iv)	related fees and charges; and

(v)	customs facilities and the assignment of berths and facilities for loading and unloading;

(b)	permitting international maritime service suppliers of the other Party to establish and operate an enterprise in its territory under conditions no less favourable than those that it accords to its own service suppliers;

(c)

making available to international maritime transport service suppliers of the other Party, on reasonable and non-discriminatory terms and conditions, the following services at its ports: pilotage; towing and tug assistance; provisioning; fuelling and watering; garbage collecting and ballast waste disposal; port captain’s services; navigation aids; emergency repair facilities; anchorage; berth and berthing services; and shore-based operational services essential to ship operations, including communications, water and electrical supplies;

(d)

permitting international maritime transport service suppliers of the other Party, subject to authorisation by the competent authority where applicable, to reposition owned or leased empty containers which are not being carried as cargo against payment between ports of New Zealand or between ports of a Member State; and

(e)	permitting international maritime transport service suppliers of the other Party to provide feeder services between the ports of New Zealand or between ports of a Member State, subject to authorisation by the competent authority where applicable.

2. In applying points (a) and (b) of paragraph 1, the Parties shall:

(a)	not introduce cargo-sharing arrangements in future agreements with third countries concerning maritime transport services, including in respect of dry or liquid bulk cargo and liner trade;

(b)	terminate, within a reasonable period of time, existing cargo-sharing arrangements as referred to in point (a) that exist in previous agreements; and

(c)	not adopt or maintain any administrative, technical or other measures which could constitute a disguised restriction, or have arbitrary or unjustifiable discriminatory effects where like conditions prevail, on the free supply of services in international maritime transport.

CHAPTER 11

Capital movements, payments and transfers

Article 11.1

Payments and transfers

Each Party shall allow, in freely convertible currency and in accordance with the relevant provisions of the Articles of Agreement of the International Monetary Fund, any payments or transfers with respect to transactions on the current account of the balance of payments that fall within the scope of this Agreement.

Article 11.2

Capital movements

Each Party shall allow, with regard to transactions on the capital and financial account of the balance of payments, the free movement of capital for the purposes of investment liberalisation and other transactions as provided for under Chapter 10 (Trade in services and investment).

Article 11.3

Application of laws and regulations relating to capital movements, payments and transfers

1. Nothing in Articles 11.1 (Payments and transfers) and 11.2 (Capital movements) shall be construed to prevent a Party from applying its laws and regulations relating to:

(a)	bankruptcy, insolvency or the protection of the rights of creditors;

(b)	issuing, trading or dealing in securities, derivatives such as futures or options, or in other financial instruments;

(c)	financial reporting or record-keeping of capital movements, payments or transfers, where it is necessary to assist law enforcement or financial regulatory authorities;

(d)	criminal or penal offences, deceptive or fraudulent practices;

(e)	ensuring compliance with orders or judgments in administrative or judicial proceedings; or

(f)	social security, public retirement or compulsory savings schemes.

2. A Party shall not apply the laws and regulations referred to in paragraph 1 in an arbitrary or discriminatory manner, or in a manner that would constitute a disguised restriction on capital movements, payments or transfers.

CHAPTER 12

Digital trade

Section A

General provisions

Article 12.1

Scope

1. This Chapter applies to measures of a Party affecting trade enabled by electronic means.

2. This Chapter does not apply to:

(a)	audio-visual services;

(b)	information held or processed by or on behalf of a Party, or measures relating to such information, including measures related to its collection; and

(c)

measures adopted or maintained by New Zealand that it deems necessary to protect or promote Māori rights, interests, duties and responsibilities (57) in respect of matters covered by this Chapter, including in fulfilment of New Zealand’s obligations under te Tiriti o Waitangi / the Treaty of Waitangi, provided that such measures are not used as a means of arbitrary or unjustified discrimination against persons of the other Party or a disguised restriction on trade enabled by electronic means. Chapter 26 (Dispute settlement) does not apply to the interpretation of te Tiriti o Waitangi / the Treaty of Waitangi, including as to the nature of the rights and obligations arising under it.

Article 12.2

Definitions

1. The definitions set out in Article 10.3 (Definitions) of Chapter 10 (Trade in services and investment) apply to this Chapter.

2. The definition of the term “public telecommunications service” in point (i) of Article 10.47 (Definitions) applies to this Chapter.

3. For the purposes of this Chapter, the following definitions apply:

(a)	“consumer” means any natural person using a public telecommunications service for other than professional purposes;

(b)	“digital procurement” means procurement through electronic means;

(c)	“direct marketing communication” means any form of commercial advertising by which a person communicates marketing messages directly to a user via a public telecommunications service, including electronic mail and text and multimedia messages (SMS and MMS);

(d)

“electronic authentication” means an electronic process or act of verifying that enables the confirmation of:

(i)	the electronic identification of a person; or

(ii)	the origin and integrity of data in electronic form;

(e)	“electronic invoicing” or “e-invoicing” means the automated creation, exchange and processing of invoices between suppliers and buyers using a structured digital format;

(f)	“electronic seal” means data in electronic form, used by a juridical person, which is attached to, or logically associated with, other data in electronic form to ensure the origin and integrity of that other data;

(g)

“electronic signature” means data in electronic form that is attached to, or logically associated with, other data in electronic form which:

(i)	may be used to identify the signatory in relation to the other data in electronic form; and

(ii)	is used by a signatory to agree on the other data in electronic form; (58)

(h)	“internet access service” means a public telecommunications service that provides access to the internet, and thereby connectivity to virtually all endpoints of the internet, irrespective of the network technology and terminal equipment used;

(i)	“personal data” means information relating to an identified or identifiable natural person;

(j)	“trade administration document” means a form issued or controlled by a Party that must be completed by or for an importer or exporter in connection with the import or export of goods; and

(k)	“user” means a person using a public telecommunications service.

Article 12.3

Right to regulate

The Parties reaffirm each Party’s right to regulate within their territories to achieve legitimate policy objectives, such as the protection of human, animal or plant life or health, social services, public education, safety, the environment, including climate change, public morals, social or consumer protection, animal welfare, privacy and data protection, the promotion and protection of cultural diversity, and, in the case of New Zealand, the promotion or protection of the rights, interests, duties and responsibilities of Māori.

Section B

Cross-border data flows and personal data protection

Article 12.4

Cross-border data flows

1. The Parties are committed to ensuring cross-border data flows to facilitate trade in the digital economy and recognise that each Party may have its own regulatory requirements in this regard.

2. To that end, a Party shall not restrict cross-border data flows taking place between the Parties in the context of an activity that is within the scope of this Chapter, by:

(a)	requiring the use of computing facilities or network elements in its territory for data processing, including by requiring the use of computing facilities or network elements that are certified or approved in the territory of the Party;

(b)	requiring the localisation of data in its territory;

(c)	prohibiting storage or processing of data in the territory of the other Party; or

(d)	making the cross-border transfer of data contingent upon the use of computing facilities or network elements in its territory or upon localisation requirements in its territory.

3. For greater certainty, the Parties understand that nothing in this Article prevents the Parties from adopting or maintaining measures in accordance with Article 25.1 (General exceptions) to achieve the public policy objectives referred to therein, which, for the purposes of this Article, shall be interpreted, where relevant, in a manner that takes into account the evolutionary nature of the digital technologies. The preceding sentence does not affect the application of other exceptions in this Agreement to this Article.

4. The Parties shall keep the implementation of this Article under review and assess its functioning within three years after the date of entry into force of this Agreement unless the Parties agree otherwise. A Party may also at any time propose to the other Party to review this Article. Such proposal shall be accorded sympathetic consideration.

5. In the context of the review referred to in paragraph 4, and following the release of the Waitangi Tribunal’s Report Wai 2522 dated 19 November 2021, New Zealand:

(a)	reaffirms its continued ability to support and promote Māori interests under this Agreement; and

(b)	affirms its intention to engage Māori to ensure the review referred to in paragraph 4 takes account of the continued need for New Zealand to support Māori to exercise their rights and interests, and meet its responsibilities under te Tiriti o Waitangi / the Treaty of Waitangi and its principles.

Article 12.5

Protection of personal data and privacy

1. Each Party recognises that the protection of personal data and privacy is a fundamental right and that high standards in this regard contribute to enhancing consumer confidence and trust in digital trade.

2. Each Party may adopt or maintain measures it deems appropriate to ensure the protection of personal data and privacy, including through the adoption and application of rules for the cross-border transfer of personal data. Nothing in this Agreement shall affect the protection of personal data and privacy afforded by the Parties’ respective measures.

3. Each Party shall inform the other Party about any measures referred to in paragraph 2 that it adopts or maintains.

4. Each Party shall publish information on the protection of personal data and privacy that it provides to users of digital trade, including:

(a)	how individuals can pursue a remedy for a breach of protection of personal data or privacy arising from digital trade; and

(b)	guidance and other information regarding compliance of businesses with applicable legal requirements protecting personal data and privacy.