On 11 December 2004, Australia and New Zealand agreed to reform the Rules of Origin under ANZCERTA. After extensive consultations, a Change of Tariff Classification (CTC) approach for the rules came into effect on 1 January 2007.
Under the CTC approach, imports are required to undergo a specified change in tariff classification. This usually occurs when a product is transformed from a collection of material and components into the finished good. The CTC approach simplifies the administration of ROOs and reduce compliance costs.
Adopting the CTC approach in ANZCERTA reflects a global trend to use this type of ROO in bilateral free trade agreements. The CTC approach does not change the rules relating to the treatment of "wholly obtained goods" (ie. goods that are obtained or produced entirely in the country, such as minerals extracted there, vegetable goods harvested there, and live animals born and raised there).
In accordance with the 1 January 2007 decision, a review of the revised rules was completed by the end 2009.In the light of the review, the Product Specific Rules applying to a relatively small number of tariff lines where the ex-factory calculation of Regional Value Content were still in place were changed to Change-in-Tariff-Classification rules. Changes were made to ANZCERTA Article 3 and the Product Specific Rules for around 700 other tariff lines to make the rules easier for businesses to interpret and more consistent with Australia’s other free trade agreements. The amendments were designed to reduce the administrative burden for exporters.