Customs and Excise Regulations 1996

Provisions relating to less developed countries

Heading: substituted, on 1 July 2001, by regulation 3 of the Customs and Excise Amendment Regulations 2001 (SR 2001/110).

43 Less developed countries (Group 2)

(1)

For the purposes of this regulation, Group 2 means the group of countries consisting of the countries declared to be less developed countries for the purposes of the Tariff Act 1988.

(2)

The following classes of goods are deemed, for the purposes of the Act and the Tariff Act 1988, to be the produce or manufacture of the countries included in Group 2, namely—

(a)

the following goods wholly obtained in any of the countries included in Group 2:

(i)

mineral products extracted from its soil or from its seabed:

(ii)

vegetable products harvested there:

(iii)

live animals born and raised there:

(iv)

products obtained there from live animals:

(v)

products obtained by hunting or fishing conducted there:

(vi)

products of sea fishing and other products taken from the sea by its vessels:

(vii)

products made on board its factory ships exclusively from the products referred to in subparagraph (vi):

(viii)

used articles collected there fit only for the recovery of raw materials:

(ix)

waste and scrap resulting from manufacturing operations conducted there:

(x)

products obtained there exclusively from products specified in subparagraphs (i) to (ix):

(b)

goods partly manufactured in the countries included in Group 2 subject to the following conditions:

(i)

that the process last performed in the manufacture of the goods was performed in a country included in Group 2; and

(ii)

that in respect of the goods, the expenditure—

(A)

in material that is the origin of 1 or more countries included in Group 2 or of New Zealand; or

(B)

in other items of factory or works cost (as defined in this regulation) incurred in 1 or more countries included in Group 2 or in New Zealand; or

(C)

partly in such material and partly in such other items as aforesaid,—

is not less than half of the factory or works cost of the goods in their finished state.

(3)

Subclause (2) applies only in respect of goods exported directly from a country in Group 2 to New Zealand, without entering the commerce of another country (other than a country also listed in Group 2) after shipment from that country and before importation into New Zealand, unless the chief executive otherwise permits and subject to such conditions as he or she in any case approves.

(4)

For the purposes of this regulation, the factory or works cost of any article shall be the sum of the following items:

(a)

cost of materials as received into factory, excluding customs duty or excise duty or other duties paid or payable in respect of those materials:

(b)

manufacturing wages:

(c)

factory overhead expenses, namely—

(i)

all expenses directly or indirectly connected with manufacture, for example, rent, rates, and taxes in respect of factory:

(ii)

motive power, gas, fuel, water, lighting, and heating of factory:

(iii)

expenses of factory supervision, for example, wages and salaries of manager, supervisor, timekeepers, and guards:

(iv)

repairs, renewals, and depreciation of plant, machinery, and tools:

(v)

interest on capital outlay on plant, machinery, tools, and factory buildings:

(vi)

royalties payable in respect of patented machines or processes used in the manufacture of the goods:

(d)

cost of containers other than the outside package.

(5)

In calculating the factory or works cost in subclause (4), and in calculating the expenditure in any item of factory or works cost, none of the following items shall be included or considered:

(a)

manufacturer’s profit, or the profit or remuneration of any trader, agent, broker, or other person dealing in the article in its finished condition:

(b)

royalties payable in respect of the finished goods:

(c)

the cost of outside packages or any cost of packing the goods into them:

(d)

administrative and general office expenses:

(e)

any cost of conveying, insuring, or shipping the goods after their manufacture:

(f)

any other charges incurred after the completion of the manufacture of the goods.

Regulation 43 heading: amended, on 1 July 2001, by regulation 4(1) of the Customs and Excise Amendment Regulations 2001 (SR 2001/110).

Regulation 43(1): substituted, on 1 July 2001, by regulation 4(2) of the Customs and Excise Amendment Regulations 2001 (SR 2001/110).