Clause 4 amends the Overseas Investment Act 2005 to add the UAE CEPA to the list of agreements that may be implemented by regulations to be made under section 61A of the Act. That section provides for regulations regarding alternative monetary thresholds for overseas investments in significant business assets. The standard threshold is $100 million before consent is needed for an overseas investment. Section 13 of the Act envisages increased monetary thresholds for investors from certain countries to whom regulations under section 61A apply.

Subpart 2 of Part 1 amends the Overseas Investment Regulations 2005 to set an alternative monetary threshold of $200 million for investments in significant business assets by individuals and enterprises from the United Arab Emirates and other specified jurisdictions for the purpose of providing specified types of service in New Zealand.

The service sectors in respect of which the alternative monetary threshold applies are set out in Annex 9-C of the UAE CEPA.

Clause 11 inserts new regulations 96A and 96B, which provide for the alternative $200 million monetary threshold.

Clauses 6 to 10—

• insert references to UAE CEPA and defined terms relating to the new alternative monetary threshold:

• extend the ownership and control test in regulation 86 to cover the new alternative monetary threshold:

• extend the existing alternative monetary threshold for type 3 investors, provided for in regulations 93 and 94, to cover United Arab Emirates individuals and enterprises:

• make other minor amendments.

The Schedule contains transitional provisions related to the alternative monetary threshold.

Clause 14 amends the Customs and Excise Act 2018 to add references to the UAE CEPA and the United Arab Emirates to section 435. That section allows the chief executive of the New Zealand Customs Service to designate an authorised certification body to certify that goods originate in New Zealand for the purposes of a free trade agreement. The amendments allow an authorised certification body to be designated in respect of the UAE CEPA.

Clauses 16 to 18—

• insert a reference to the United Arab Emirates, and an abbreviation for its name, into the list of preferential countries and preferential abbreviations in note 3 of the Tariff. This allows preferential Tariff rates to be applied to goods imported from the United Arab Emirates; and

• insert the preferential abbreviation for the United Arab Emirates into lists of preferential abbreviations in note 2 of the Tariff and the footnotes to the Tariff (which list countries whose produce or manufactured goods may enter New Zealand free of duty in defined circumstances).

Clause 19 inserts into Part II of the Tariff a concession for goods re-entered into New Zealand after repair or alteration in the United Arab Emirates.

Clause 21 inserts new regulation 51ZZO into the Customs and Excise Regulations 1996. New regulation 51ZZO prescribes when goods are treated as the produce or manufacture of the United Arab Emirates for the purposes of the Customs and Excise Act 2018 and Tariff Act 1988.