The UK signed a free trade agreement with New Zealand on 28 February 2022. The agreement is not yet in force but the UK Government has issues some explainer documents.
We know how Rules of Origin have been hugely challenging when trading with the EU. Here is a summary on status of how Rules of Origin will apply when trading with New Zealand. Rules of Origin & Customs explainer – click to view
The rules of origin have been designed to support the UK food and drink sector and recognise domestic sensitivities by ensuring that only British and New Zealand agricultural goods can benefit from this agreement. The agreement does not include requirements for many ingredients to be ‘wholly obtained’ when used in processed foods. Moreover, the agreement does not include Regional Value Content rules (which requires that a product contains a certain percentage of originating content) for agricultural goods. Instead, a change of tariff classifcation rule, tailored to each product, has been agreed for these goods. These rules will guard against unfair competition whilst also making exporting products, such as confectionery, to New Zealand easier. For example, UK biscuit producers will qualify for new zero tariffs even if they use imported wheat and sugar. The tailored rules will allow businesses to be more competitive and flexible in sourcing ingredients for their products.
