Customs agreement with Korea benefits New Zealand traders

An agreement between New Zealand and the Republic of Korea will bring significant benefits to New Zealand exporters, Customs Minister Maurice Williamson said today.

The signing of a mutual recognition agreement (MRA) between the countries customs services allows New Zealand’s secure export scheme members (SES) to be treated as the equivalent to Korea’s authorised economic operator (AEO) members.

“New Zealand exporters who are SES members can expect to see their cargo processed more quickly by the Korean Customs Service. Similarly, New Zealand Customs will give equal recognition to cargo from Korean AEO members,” Mr Williamson said.

The signing took place at a World Customs Organisation council meeting last weekend and is scheduled to become operational on 1 January 2012.

This is the third such agreement New Zealand Customs’ has signed - the other two being with the United States and Japan.

New Zealand exporters who have joined the New Zealand Customs SES scheme benefit from more secure and more efficient international trade supply chains and SES cargo from New Zealand can receive “front-of-line” priority.

Mr Williamson also said the MRA is an important contributor to strengthening trade ties with Korea while the countries negotiate a bilateral free trade agreement.

“The Government is looking forward to concluding that agreement at the earliest opportunity,” Mr Williamson said.
 

New Zealand and the Republic of Korea
Mutual Recognition Agreement (MRA)
Questions and Answers

What benefits does the mutual recognition agreement (MRA) with Korea bring for New Zealand exporters and importers?

Benefits to exporters from the MRA will include:

● Secure and more efficient international trade supply chains
● “Front-of-line” priority for SES cargo from New Zealand if a Customs inspection was required
● Faster Custom clearance times for SES cargo (from reduced inspection requirements) - and the same for New Zealand imports from Korean AEO exporters
● Stronger relationship with Korea Customs to improve the ability of New Zealand Customs to resolve trade issues that might arise
● Faster resumption of processing for NZ cargo in the event of a disruption in trade flows.

When/where is the MRA being signed?

The MRA was signed at a World Customs Organisation council meeting in Brussels on the weekend of 25/26 June.

When will the Korea MRA become operational?

It is scheduled to come into effect from 1 January 2012.

What other mutual recognition agreements does New Zealand Customs have?

The Korea MRA will be New Zealand Customs’ third such agreement - the other two are with the United States and Japan.
Because the United States recently upgraded the status of our MRA with them, New Zealand has a unique position as a trading partner of the US - and this latest MRA with Korea adds further benefits for New Zealand exporters and importers who are smart enough to partner with New Zealand Customs in the SES.

How does the MRA relate to the free trade agreement being negotiated with the Koreans?

The Korea MRA is an important contributor to strengthening trade ties with Korea while the countries negotiate a bilateral free trade agreement.
The Government is looking forward to concluding that agreement at the earliest opportunity.

What is the current value of trade between New Zealand and the Republic of Korea?

In 2010 The Republic of Korea was New Zealand’s 6th largest export market with a value of NZD $1.413 billion in trade and our 8th largest source of imports at a value of NZD $1.387 billion.