{"id":"F2006L04069","name":"Customs (New Zealand Rules of Origin) Regulations 2006","slug":"customs-new-zealand-rules-of-origin-regulations-2006","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"374 of 2006","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":60997,"registerId":"commonwealth-F2006L04069-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Introductory","content":"## Part 1—Introductory","sortOrder":0},{"sectionNumber":"1.1","sectionType":"section","heading":"Name of Regulations","content":"#### 1.1 Name of Regulations\n\n  These Regulations are the Customs (New Zealand Rules of Origin) Regulations 2006.","sortOrder":1},{"sectionNumber":"1.3","sectionType":"section","heading":"Authority","content":"#### 1.3 Authority\n\n  These Regulations are made under the Customs Act 1901.","sortOrder":2},{"sectionNumber":"1.4","sectionType":"section","heading":"Definitions","content":"#### 1.4 Definitions\n\n  In these Regulations:\n\n> Act means the Customs Act 1901.\n\n> Agreement has the meaning given by section 153ZIB of the Act.\n\n> Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 means the Agreement of that name set out in Annex 1A of the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994.\n\n> Note: The Marrakesh Agreement Establishing the World Trade Organization is in Australian Treaty Series 1995 No. 8 (\\[1995\\] ATS 8) and could in 2021 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\n> non‑originating materials has the meaning given by section 153ZIB of the Act.\n\n> originating materials has the meaning given by section 153ZIB of the Act.\n\n> produce has the meaning given by section 153ZIB of the Act.","sortOrder":3},{"sectionNumber":"Part 2","sectionType":"part","heading":"Tariff change requirement","content":"## Part 2—Tariff change requirement","sortOrder":4},{"sectionNumber":"2.1","sectionType":"section","heading":"Change in tariff classification requirement for non‑originating materials","content":"#### 2.1 Change in tariff classification requirement for non‑originating materials\n\n  For the purposes of subsection 153ZIE(3) of the Act, a non‑originating material used or consumed in the production of goods that does not satisfy a particular change in tariff classification is taken to satisfy the change in tariff classification if:\n    (a) it was produced entirely in New Zealand, or entirely in New Zealand and Australia, from other non‑originating materials; and\n    (b) each of those other non‑originating materials satisfies the change in tariff classification, including by one or more applications of this regulation.","sortOrder":5},{"sectionNumber":"Part 3","sectionType":"part","heading":"Regional value content requirement","content":"## Part 3—Regional value content requirement","sortOrder":6},{"sectionNumber":"3.1","sectionType":"section","heading":"Build‑down method","content":"#### 3.1 Build‑down method\n\n  (1) For the purposes of subsection 153ZIE(5) of the Act, the regional value content of goods under the build‑down method is worked out using the formula:\n  ![](image.002.png)\n  where:\n\n> customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.\n\n> value of non‑originating materials means the value, worked out under Part 4, of the non‑originating materials that are acquired by the producer and are used or consumed by the producer in the production of the goods, other than non‑originating materials produced by the producer.\n\n  (2) Regional value content must be expressed as a percentage.","sortOrder":7},{"sectionNumber":"3.2","sectionType":"section","heading":"Build‑up method","content":"#### 3.2 Build‑up method\n\n  (1) For the purposes of subsection 153ZIE(5) of the Act, the regional value content of goods under the build‑up method is worked out using the formula:\n  ![](image.003.png)\n  where:\n\n> customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.\n\n> value of originating materials means the value, worked out under Part 4, of the originating materials that are acquired by the producer, or produced by the producer, and are used or consumed by the producer in the production of the goods.\n\n  (2) Regional value content must be expressed as a percentage.","sortOrder":8},{"sectionNumber":"3.3","sectionType":"section","heading":"Factory cost method","content":"#### 3.3 Factory cost method\n\n  (1) For the purposes of subsection 153ZIE(5) of the Act, the regional value content of goods under the factory cost method is worked out using the formula:\n  ![](image.004.png)\n  where:\n\n> factory cost means the factory cost of producing the goods worked out in accordance with paragraph 5 of Article 3 of the Agreement.\n\n> qualifying expenditure means the qualifying expenditure on the goods worked out in accordance with paragraph 5 of Article 3 of the Agreement.\n\n  (2) Regional value content must be expressed as a percentage.","sortOrder":9},{"sectionNumber":"Part 4","sectionType":"part","heading":"Determination of value","content":"## Part 4—Determination of value","sortOrder":10},{"sectionNumber":"4.1","sectionType":"section","heading":"Value of goods that are originating materials or non‑originating materials","content":"#### 4.1 Value of goods that are originating materials or non‑originating materials\n\n  (1) For the purposes of subsection 153ZIB(3) of the Act, this regulation explains how to work out the value of originating materials or non‑originating materials used or consumed in the production of goods.\n  (2) The value of the materials is as follows:\n    (a) for materials imported into New Zealand by the producer of the goods—the value of the materials worked out in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994;\n    (b) for materials acquired in New Zealand—the sum of:\n    (i) the cost of acquisition; and\n    (ii) the cost of transporting the materials to the producer of the goods, where that cost is not included in the cost of acquisition;\n    (c) for materials that are produced by the producer of the goods—the sum of:\n    (i) all the costs incurred in the production of the materials, including general expenses; and\n    (ii) an amount that is the equivalent of the amount of profit that the producer would make for the materials in the normal course of trade.\n  (3) In working out the value of particular originating materials under subregulation (2), the following may be included, to the extent that they have not been taken into account under that subregulation:\n    (a) the costs of freight, insurance, packing and all other costs incurred to transport the materials within New Zealand, or between Australia and New Zealand, to the location of the producer of the goods;\n    (b) duties, taxes and customs brokerage fees on the materials that:\n    (i) have been paid in either or both of New Zealand and Australia; and\n    (ii) have not been waived or refunded; and\n    (iii) are not refundable or otherwise recoverable;\n    including any credit against duties or taxes that have been paid or that are payable;\n    (c) the costs of waste and spoilage resulting from the use of the materials in the production of the goods, reduced by the value of renewable scrap or by‑products.\n  (4) In working out the value of particular non‑originating materials under subregulation (2), the following are to be deducted if they were included under that subregulation:\n    (a) the costs of freight, insurance, packing and all other costs incurred to transport the non‑originating materials within New Zealand, or between Australia and New Zealand, to the location of the producer of the goods;\n    (b) duties, taxes and customs brokerage fees on the non‑originating materials that:\n    (i) have been paid in either or both of New Zealand and Australia; and\n    (ii) have not been waived or refunded; and\n    (iii) are not refundable or otherwise recoverable;\n    including any credit against duties or taxes that have been paid or that are payable;\n    (c) the costs of waste and spoilage resulting from the use of the non‑originating materials in the production of the goods, reduced by the value of renewable scrap or by‑products;\n    (d) the costs of processing incurred in either or both of New Zealand and Australia in the production of the non‑originating materials;\n    (e) the costs of originating materials used or consumed in the production of the non‑originating materials in either or both of New Zealand and Australia.","sortOrder":11},{"sectionNumber":"4.2","sectionType":"section","heading":"Value of accessories, spare parts or tools","content":"#### 4.2 Value of accessories, spare parts or tools\n\n  If paragraphs 153ZIE(6)(a), (b), (c), (d) and (e) of the Act are satisfied in relation to goods:\n    (a) the value of the accessories, spare parts or tools must be taken into account for the purposes of working out the regional value content of the goods under Part 3 of these Regulations; and\n    (b) if the accessories, spare parts or tools are non‑originating materials—for the purposes of Part 3 of these Regulations and regulation 4.1, those accessories, spare parts or tools are taken to be non‑originating materials used or consumed in the production of the goods; and\n    (c) if the accessories, spare parts or tools are originating materials—for the purposes of Part 3 of these Regulations and regulation 4.1, those accessories, spare parts or tools are taken to be originating materials used or consumed in the production of the goods.","sortOrder":12},{"sectionNumber":"4.3","sectionType":"section","heading":"Value of packaging material and container","content":"#### 4.3 Value of packaging material and container\n\n  If paragraphs 153ZIF(1)(a) and (b) of the Act are satisfied in relation to goods and the goods must have a regional value content of not less than a particular percentage worked out in a particular way:\n    (a) the value of the packaging material or container in which the goods are packaged must be taken into account for the purposes of working out the regional value content of the goods under Part 3 of these Regulations; and\n    (b) if that packaging material or container is a non‑originating material—for the purposes of Part 3 of these Regulations and regulation 4.1, that packaging material or container is taken to be a non‑originating material used or consumed in the production of the goods; and\n    (c) if that packaging material or container is an originating material—for the purposes of Part 3 of these Regulations and regulation 4.1, that packaging material or container is taken to be an originating material used or consumed in the production of the goods.","sortOrder":13}],"analysis":{"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"These Regulations operationalise origin criteria already contemplated by the Customs Act rather than expanding or narrowing the statutory classes of goods or parties. They prescribe how to apply tariff‑classification exceptions, how to calculate regional value content and how to value inputs and packaging (see regs 2.1, 3.1–3.3, 4.1–4.3). The effect is procedural and methodological—altering how origin eligibility is demonstrated and calculated, and thereby shifting compliance costs and documentation duties to producers and importers, but not changing who is covered by the underlying statutory scheme."},"complexity_factors":["Cross‑references to the Customs Act (notably subsections 153ZIB and 153ZIE) create dependency on external statutory definitions and tests (see regs 1.4, 2.1, 3.1–3.3, 4.1).","Multiple alternative calculation methods for regional value content (build‑down, build‑up, factory cost) require producers to choose and justify a method (regs 3.1–3.3).","Detailed valuation rules for imported, acquired and self‑produced materials introduce many inclusions and exclusions (reg 4.1(2)–(4)), increasing accounting complexity.","Recursive qualification for non‑originating materials (a non‑originating material can be treated as satisfying a tariff change if produced entirely in NZ or NZ+Australia from other non‑originating materials that do satisfy the change, including by repeated application) adds logical and evidentiary complexity (reg 2.1).","Conditional treatment of accessories, spare parts, tools, packaging and containers ties origin calculations to specific statutory paragraphs, adding conditional branches to compliance (regs 4.2–4.3 referencing Act paragraphs).","Reliance on external international instruments for valuation and factory cost calculations (e.g. Agreement on Implementation of Article VII of GATT 1994 and Article 3 of the Agreement) creates interpretive and implementation dependencies (reg 4.1(2)(a); reg 3.3(1)).","Implementation will require record‑keeping, transactional valuation, and potentially cross‑border cost allocation, increasing administrative and audit burden on producers and importers."],"plain_english_summary":"These Regulations set technical rules for determining whether goods qualify as originating under the Customs Act in the Australia–New Zealand context. They allow certain non‑originating inputs to be treated as originating, prescribe three methods to calculate regional value content (build‑down, build‑up, factory cost), and fix how to value materials, packaging and accessories.\n\nThey affect producers, importers and customs officers by assigning valuation and documentation duties and changing sourcing incentives because origin status controls eligibility for preferential tariff treatment."},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation appears focused on its original purpose of implementing the rules of origin provisions for the Australia-New Zealand Closer Economic Relations Trade Agreement. It provides technical implementation details for the parent Customs Act provisions without significant scope creep."},"complexity_factors":["Multiple calculation methods (build-down, build-up, factory cost) with different formulas and variables","Extensive cross-referencing to the Customs Act 1901 (sections 153ZIB, 153ZIE, 153ZIF) and the ANZCERTA Agreement","Nested conditional logic in Part 4 regarding what costs to include vs. deduct depending on material origin status","Recursive definition in regulation 2.1 allowing multiple applications of the same rule for accumulated production","Technical accounting concepts (customs value, factory cost, qualifying expenditure, general expenses, normal course of trade profit)","Specific treaty references (WTO Valuation Agreement, Marrakesh Agreement) requiring external legal knowledge","Differential treatment of originating vs. non-originating materials in valuation rules (inclusions vs. deductions)","Fragmented structure with formulas referencing external images (image.002.png, etc.) that break textual continuity"],"plain_english_summary":"This regulation sets the rules for deciding when goods traded between Australia and New Zealand qualify for preferential customs duties under CER, by defining how to calculate regional value content, tariff-shift requirements, accumulation, and valuation of materials and costs. \n\nIt affects importers, exporters, manufacturers, customs brokers and freight forwarders — getting it wrong can mean paying higher duties, border delays, or penalties."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/customs-new-zealand-rules-of-origin-regulations-2006","history":"/api/acts/customs-new-zealand-rules-of-origin-regulations-2006/history","analysis":"/api/acts/customs-new-zealand-rules-of-origin-regulations-2006/analysis","conflicts":"/api/acts/customs-new-zealand-rules-of-origin-regulations-2006/conflicts","importantCases":"/api/acts/customs-new-zealand-rules-of-origin-regulations-2006/important-cases","documents":"/api/acts/customs-new-zealand-rules-of-origin-regulations-2006/documents"}}