The Challenge of FTA Qualification
Just because your product is “Made in New Zealand” doesn’t automatically mean it qualifies for preferential duty rates under Free Trade Agreements.
You must prove:
- Transformation: That your product underwent substantial manufacturing in NZ, OR
- Value Content: That a minimum percentage of the product’s value originated in NZ (Regional Value Content - RVC)
Getting this wrong means:
- Your importer pays full import duties instead of preferential rates
- Your Certificate of Origin may be rejected at customs
- You lose competitive advantage against local suppliers
Why FTA Compliance Is Complex
Different Rules for Different Markets
Each Free Trade Agreement has unique Product Specific Rules (PSR). What qualifies under China-NZ FTA may not qualify under CPTPP or RCEP.
Example:
- China-NZ FTA: Many products require 40% RVC
- CPTPP: Some products require a Change in Tariff Classification (CTC)
- RCEP: Allows cumulation across 15 member states
Regional Value Content (RVC) Calculations
RVC rules require calculating what percentage of your product’s value comes from NZ materials and labour.
Common Mistakes:
- Misunderstanding what counts as “originating” materials
- Incorrect valuation of imported components
- Failing to account for non-qualifying operations (simple assembly doesn’t always count)
Product Specific Rules (PSR)
Some products have additional requirements beyond RVC, such as:
- Change in Tariff Classification (e.g., wool must become fabric, not just dyed yarn)
- Specific manufacturing processes (e.g., cheese must be produced from milk, not just packaged)
Our FTA Qualification Service
What We Do
We provide a comprehensive analysis of your product’s FTA eligibility:
1. Bill of Materials (BOM) Analysis
We review your:
- Raw material sourcing (NZ vs. imported)
- Manufacturing processes
- Labour and overhead costs
- Final product assembly
2. Regional Value Content (RVC) Calculation
We calculate the exact percentage of NZ content using the correct FTA formula:
- Build-Down Method: (FOB - VNM) / FOB × 100
- Build-Up Method: VOM / FOB × 100
Where:
- FOB = Free on Board value
- VNM = Value of Non-Originating Materials
- VOM = Value of Originating Materials
3. Product Specific Rules (PSR) Check
We verify if your product meets any additional transformation requirements under the relevant FTA chapter.
4. FTA Strategy Report
You receive a written report with:
- Qualification Status: Yes, No, or “Borderline”
- RVC Percentage: Calculated to 2 decimal places
- Compliance Recommendations: How to improve your eligibility if needed
- COO Requirements: Which Certificate of Origin form to use
Key NZ Free Trade Agreements
China-NZ FTA
New Zealand’s largest trading partner. Most products require 40% RVC or meet a Change in Tariff Classification (CTC) rule.
Top Exports:
- Dairy products
- Meat
- Wood products
- Wine
CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership)
Includes: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, Vietnam, and more.
Benefits:
- Duty elimination on 99% of tariff lines
- Cumulation rules (allows Australian materials to count as “originating”)
RCEP (Regional Comprehensive Economic Partnership)
Includes: China, Japan, South Korea, Australia, ASEAN nations.
Benefits:
- Expanded cumulation across 15 countries
- Simplified Rules of Origin for some products
UK-NZ FTA
Effective from 2023. Near-total duty elimination for NZ exports.
EU-NZ FTA
Effective from 2024. Significant duty reductions on dairy, meat, and wine.
Common FTA Scenarios We Help With
Scenario 1: Manufactured Goods
Client: Electronics manufacturer
Issue: Components sourced from China and Taiwan
Solution: We calculated that NZ labour and assembly added 52% RVC, qualifying under CPTPP.
Scenario 2: Processed Foods
Client: Food processor
Issue: Imported packaging materials
Solution: Packaging is typically excluded from RVC calculation. Product qualified under China-NZ FTA.
Scenario 3: Dairy Products
Client: Specialty cheese producer
Issue: Milk sourced from NZ, but cheese culture imported
Solution: Cheese culture is a “minimal operation” and doesn’t disqualify. Product qualified.
Scenario 4: Blended Products
Client: Wine blender
Issue: Some grapes from Australia
Solution: Under CPTPP, Australian grapes can count as “originating” due to cumulation rules. Product qualified.
When to Get an FTA Assessment
You should consider an FTA qualification review if:
- ✅ You’re exporting to China, ASEAN, or CPTPP countries
- ✅ Your product has a high import duty rate (5%+)
- ✅ You use imported components or materials
- ✅ You’re competing against local suppliers on price
- ✅ Your buyer is asking for a Certificate of Origin
- ✅ You’re launching a new product with complex sourcing
FTA Qualification vs. Certificate of Origin
Important Distinction:
- FTA Qualification = Verifying your product meets the Rules of Origin (what we do in this service)
- Certificate of Origin = The official document you submit to the importer (see our Certificate of Origin service)
Process Flow:
- First, get an FTA qualification assessment (this service)
- Then, if qualified, we prepare the Certificate of Origin
- Finally, the importer uses the COO to claim duty relief
Pricing
Single Product
$200
Per product assessment
- ✓BOM analysis
- ✓RVC calculation for 1 FTA
- ✓Written qualification report
Product Range
$150
Per product (3+ products)
- ✓BOM analysis for all products
- ✓RVC calculation for 2 FTAs
- ✓Comparative qualification report
Enterprise
Custom
For large catalogs
- ✓Unlimited products
- ✓All FTA markets
- ✓Ongoing compliance support
Add-Ons:
- Additional FTA market analysis: +$50 per FTA
- Rush assessment (48 hours): +$100
- Ongoing quarterly reviews: Custom pricing
Frequently Asked Questions
Do I need an FTA assessment for every shipment?
No. Once we’ve verified your product qualifies, that assessment is valid for as long as your sourcing and manufacturing process remain the same. If you change suppliers or add new components, you should get a reassessment.
What if my product doesn’t qualify?
We’ll provide recommendations on how to adjust your sourcing or manufacturing to qualify. Sometimes, small changes (like switching one component to a NZ supplier) can push you over the RVC threshold.
Can I self-certify for FTAs?
Under CPTPP and RCEP, yes. Exporters can self-certify using an “Origin Declaration” instead of getting a Chamber-stamped COO. However, you’re still legally liable for the accuracy of your claim, which is why an FTA assessment is crucial.
Do I need a different COO for each FTA?
Sometimes. China-NZ FTA requires a specific “Form E” Certificate. CPTPP and RCEP allow either a Chamber COO or self-certification. We guide you on which form to use after the FTA assessment.
What documents do I need to provide?
We’ll need:
- Bill of Materials (BOM) with supplier origins
- Manufacturing cost breakdown
- Commercial invoice or pro forma invoice
- HS Code (if known)
How long does an FTA assessment take?
Standard: 3-5 business days
Rush: 48 hours (additional fee applies)
What Happens After Qualification?
Once we’ve confirmed your product qualifies for FTA benefits, you have two options:
1. Get a Certificate of Origin
We can prepare the official COO for you. See our Certificate of Origin service for details.
2. Self-Certify (CPTPP/RCEP Only)
For CPTPP and RCEP, you can issue your own “Origin Declaration” without Chamber certification. We provide you with:
- The correct Origin Declaration wording
- Supporting documentation for your records
- Guidance on record-keeping requirements (5-7 years)
Related Services
- Certificate of Origin - Official COO certification after FTA qualification
- HS Code Classification - Correct tariff classification (required for FTA analysis)
- Commercial Invoice Preparation - Ensure your invoice supports your FTA claim
- Customs Compliance Check - Pre-shipment audit of all documentation
Reduce Your Import Duties Today
Book a free discovery call to discuss your FTA qualification needs.