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First Protocol to amend the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area – Regulation Impact Statement – Department of Foreign Affairs and Trade

On 26 August 2014, the Trade and Investment Minister signed the First Protocol with Ministers from the eleven other parties to the agreement, at the ASEAN Economic Ministers – Closer Economic Relations Trade Ministers Meeting in Burma. The First Protocol amends the Agreement establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) to remove regulatory impediments that have been identified as hindering business use of the Agreement, it will reduce the information requirements imposed on business when completing certificates of origin, simplify the presentation of the Agreement's Rules of Origin, and provide for the use of HS 2012 nomenclature. The change is expected to reduce compliance costs for Australian businesses making use of AANZFTA to import or export goods, and will not introduce any new requirements or administrative burdens on business, with any initial transitional costs expected to be minimal. The change updates the existing FTA to reflect modern business practices thereby helping to ensure that the Agreement remains commercially relevant, and further secures Australia’s competiveness in key markets. The implementation of the First Protocol will require an amendment of the Customs (ASEAN-Australia New Zealand Free Trade Agreement Rules of Origin) Regulation 2009. The RIS prepared and certified by the Department of Foreign Affairs and Trade, was assessed as compliant and consistent with best practice by the Office of Best Practice Regulation. The RIS estimated the average annual regulatory cost saving at $0.64 million per annum. The OBPR has agreed to the regulatory cost saving.