Exchange of Letters Amending Annex 3 of the New Zealand – Malaysia Free Trade Agreement to Allow for Third Party Invoicing

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Treaty Type:

Bilateral/Plurilateral

Common Name:

Exchange of Letters Amending Annex 3 of the New Zealand – Malaysia Free Trade Agreement to Allow for Third Party Invoicing

Responsible Department:

Foreign Affairs and Trade

Administering Department:

Foreign Affairs and Trade

Treaty Summary:

The Exchange of Letters amends Annex 3 of the New Zealand - Malaysia Free Trade Agreement (MNZFTA) on Procedures and Verification to allow for what is called 'third party invoicing'.  For the purposes of MNZFTA, third party invoices are those issued by a trader in a country other than Malaysia or New Zealand for the goods that are being imported into Malaysia or New Zealand.  The amendments to Annex 3:

  1. broaden who can make a declaration of origin, so that a declaration can also be made by someone other than the exporter or producer, as long as that person is an 'authorised representative' of the exporter or producer;
  2. expands the documentation on which the declaration can be made, removing the requirement that the declaration shall be made on an export invoice, because 'export invoice' could be given a narrow interpretation so as to exclude a third party invoice; and
  3. provides guidance to importing administrations by stating that a claim for preferences shall not be rejected solely because a declaration is made on an invoice issued in a non-Party.

NZ Adherence Status:

In Progress

Negotiation Status:

Negotiations concluded.  Text approved by Cabinet.  Signed, awaiting entry into force.

Organisation:

Is Signed By NZ:

Yes

Signature Date:

20/07/2020

Ratified or Signed:

No

Requires Ratification:

No

NZ Territorial Applications:

None

Information about required Legislation:

The Customs and Excise Regulations 1996 will need to be amended to provide for incorporation by reference of the amended Annex 3 of MNZFTA to provide for third party invoicing.

Impacts on Maori:

N/A

Impacts on Stakeholders:

Prior to drafting the Exchange of Letters, the New Zealand Customs Service undertook industry consultations, and in particular sought views from New Zealand exporters to Malaysia. The use of third party invoicing varied according to the importer/exporter relationship, but all New Zealand exporters consulted support enabling third party invoicing.

Link To Legislation:

Treaty Text Link:

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