Rules of Origin  

Chapter 3 Trade in Goods Annex 1: Rules of Origin

The value-added Rules of Origin (ROO) qualifies the origin of the product based on the value of the work done in the exporting country which should also be the last country of substantial transformation.  Under the ANZSCEP, most of Singapore's top exports to New Zealand will be able to qualify for preferential market access treatment.

The main features of the Agreement are:

(a) A product will qualify for preferential treatment if at least 40% of the cost is of New Zealand or Singapore origin, and if the last place of manufacture is in New Zealand or Singapore. Manufacturers that source inputs from overseas can include the New Zealand or Singapore component of these inputs towards the 40%. This is based on the Ex-factory Cost:

Local Value Add (%) = ("Local" raw material costs + Direct labour
costs + Direct overhead cost) x 100%
Ex-Factory Cost

Where ex-factory cost = Total raw materials costs + Direct Labour Costs + Direct Overhead Costs

(b) Both New Zealand and Singapore will recognise Quality Control (QC) as an integral part of the manufacturing process. A manufacturer doing only QC in New Zealand or Singapore will benefit where the cost of QC is at least 8% of the total cost of the qualifying product. In the case of QC for a product that does not have any other local content, the cost of QC must exceed 50% of the total cost of the product.
(c) Exporters are permitted to transit, unload and reload their goods in Australia and still qualify for preferential treatment.