Application of EU-NZ FTA Agreement on 1 May 2024
As from 1 May 2024, the Free Trade Agreement (FTA) signed between the EU and New Zealand in July 2023, is applicable.
From the first day the FTA enters into force, most New Zealand goods entering the EU have these tariffs eliminated entirely.
The Agreement establishes in Appendix 2-A the preferential treatment applicable to goods to be imported into both territories, providing for:
- Originating goods for which customs duties are completely eliminated on the date of entry into force of the Agreement.
- Originating goods for which progressive tariff dismantling schedules are established for the next seven years in Annex 2A.
Main benefits of the FTA on trade in goods
Tariff reductions on goods provided in the FTA are applicable as follows:
- For EU exports to New Zealand, tariffs generally up to 5%, in force until now, are removed on industrial and agricultural products including motor vehicles, machinery, pharmaceuticals, wine, biscuits and chocolate.
- For New Zealand companies, on the other hand, 91 % of trade in goods can enter duty free from 1 May 2024 through tariff elimination and duty-free quotas, rising to 97% within seven years.
This will apply to fish and seafood, wine, honey, kiwi, apples, onions, etc. For some goods like meat and dairy, tariffs will remain but there will be an increase in quota volume, with reduced in-quota tariff rates. Quotas will also increase over time.
Evidence of origin to claim for the FTA tariff preferences
Under the FTA, the claim by the importer for preferential tariff treatment is based on either:
- a communication on origin in which the exporter declares that the product is originating and includes the reference number by which it is identified:
- In the Union, it will be the REX number of the registered exporters,
- In New Zealand, it will be the Customs Code of the Customer; or
- the importer’s knowledge that the product is originating.
The codes of the documents to be declared in the customs declaration for imports into the EU are:
- U120: Declaration of origin, arts. 3.16.2.a) and 3.18.4.a) of the EU-New Zealand Agreement.
- U121: Declaration of origin for multiple shipments of identical products, arts. 3.16.2.a and 3.18.4.b of the EU- New Zealand Agreement
- U122: Importer's knowledge, art.3.16.2.b of the EU- New Zealand Agreement
For both parties, this is a "new generation" free trade agreement that includes a chapter on sustainable food systems or gender equality.
For the EU, the treaty includes for the first time a commitment on harmful fisheries subsidies or the issue of sustainable development.
Further information can be found in: