Trans-Tasman Mutual Recognition Arrangement information for businesses
A practical guide for business operators who wish to sell goods under the Trans-Tasman Mutual Recognition Arrangement (TTMRA).
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How the Trans-Tasman Mutual Recognition Arrangement can work for you
The Trans-Tasman Mutual Recognition Arrangement (TTMRA) goods principle enables the free movement of goods (and people in registered occupations) between New Zealand and Australia. It is intended to make it easier for businesses in Australia and New Zealand to export their goods across the Tasman by lowering sale related compliance costs. The TTMR Act also offers a defence to prosecution for an offence against domestic law on the sale of goods.
Subject to some exceptions, the goods principle means, New Zealand imported or produced goods need only comply with New Zealand sale related regulatory requirements before it can be sold in a participating Australian jurisdiction, regardless of the differences in regulatory sale requirements between the jurisdictions. The same applies for Australian goods coming into New Zealand. In other words, if it can be sold in one country, it can generally be sold in the other although there are a few exceptions.
For example:
If you are a New Zealand business wanting to export your New Zealand made/imported goods to New South Wales in Australia, your goods only need to comply with New Zealand sales laws to allow you to sell the same goods in New South Wales.
Likewise, if you are an Australian business in Victoria wanting to export your Victorian made/imported goods to New Zealand, your goods only need to comply with Victoria’s sales laws to allow you to sell the same goods in New Zealand.
Types of goods covered under the Trans-Tasman Mutual Recognition Arrangement
The Trans-Tasman Mutual Recognition Arrangement (TTMRA) applies to goods of any kind; and includes:
- Animals or plants
- Material of microbial origin
- A package containing goods
- A label attached to goods.
Generally, the TTMRA applies to goods that meet the requirements under the goods principle of the TTMR Act and can therefore be legally sold without having to comply with additional regulatory sales requirements imposed by the local jurisdiction your goods are being sold into.
Check whether the Trans-Tasman Mutual Recognition Arrangement would apply to specific goods or services
Sale-related regulatory requirements the Trans-Tasman Mutual Recognition Arrangement will automatically over-ride
Subject to laws excluded or exempt from the Trans-Tasman Mutual Recognition Arrangement (TTMRA), the TTMRA will automatically over-ride the following sales-related regulatory requirements.
Examples of laws over-ridden by the TTMRA:
- Requirements relating to the production, composition, quality or performance of a good (for example product standards).
- Requirements that a good satisfy certain standards relating to presentation (for example packaging and labelling).
- Requirements that goods be inspected, passed or similarly dealt with (for example conformance assessment requirements).
- Any other requirement that would, or would have the effect of, preventing or restricting the sale of goods.
Types of laws not affected by the Trans-Tasman Mutual Recognition Arrangement
Text description for image: Types of laws not affected by the TTMRA
The Trans-Tasman Mutual Recognition Arrangement (TTMRA) does not affect the operation of laws that has been excluded or exempt from its operation, such as export prohibition or restrictions from a participating jurisdiction.
How the Trans-Tasman Mutual Recognition Arrangement operates in practice
The TTMRA goods principle automatically applies in the background once all requirements are met, and over-rides any additional requirements imposed by the domestic laws of your goods’ destination.
The requirements of the TTMRA are:
- The goods can be legally sold (for example New Zealand imported or produced goods are still required to comply with New Zealand’s regulatory sale requirements before it can be sold in Australia under the TTMRA).
and to be able to rely on the defence:
- The goods are labelled at the point of sale stating that they were produced in or imported into the place of origin (for example New Zealand made goods labelled “Made in New Zealand”).
- The defendant has no reasonable grounds for suspecting that the goods were not so produced or imported (for example no reason to suspect that the New Zealand imported goods were not imported into New Zealand).
There is no pre-approval process to start benefiting from this scheme. The TTMR Act is a defence to prosecution for an offence against domestic law on the sale of goods.
Trans-Tasman Mutual Recognition Act as a defence to prosecution
In most cases, the mutual recognition principle overrides sales-related regulatory requirements. However, there is also a specific defence available under the TTMR Act to prosecutions brought in relation to the sale of goods.
Trans-Tasman Mutual Recognition Arrangement legal defence explained
Text description for image: TTMRA legal defence explained
Exemptions and exclusions
The TTMRA has provisions to exclude and exempt certain laws from its scope. The TTMRA principles do not apply to laws that has been excluded or exempt from the TTMRA.
Exclusions from the Trans-Tasman Mutual Recognition Arrangement
Exclusions are categories of laws that may indirectly relate to the sale of goods and were never intended to be subject to the TTMRA because of their importance to each jurisdiction’s sovereignty. In developing the TTMRA, the parties identified a number of laws which could unintentionally affect the application of mutual recognition principles. Specific laws or requirements that fall within one of these exclusions are automatically outside the scope of the TTMRA to the extent they deal with sale of goods requirements under section 10(2) of the TTMR Act.
Trans-Tasman Mutual Recognition Act 1997(external link) — New Zealand Legislation
Laws that fall into the following categories that relate to the sale of goods are excluded from the operation of the TTMRA:
- Customs controls and tariffs – to the extent that laws provide for the imposition of tariffs and related measures (for example, anti-dumping and countervailing duties) and the prohibition or restriction of imports (for example, firearms).
- Intellectual property – to the extent that laws provide for the protection of intellectual property rights.
- Taxation – to the extent that laws provide for the imposition of taxes on the sale of locally produced and imported goods in a non-discriminatory way.
- Specified international obligations – to the extent that laws implementing those obligations deal with the requirements relating to the sale of goods.
New Zealand:- Ozone Layer Protection Act 1990
- Trade in Endangered Species Act 1989
- United Nations Act 1946
For example, a law providing for an import ban is introduced in New Zealand for any goods containing asbestos would be excluded from the TTMRA. This means that goods containing asbestos from Australia could not be imported into or sold in New Zealand.
The laws listed in the Exclusions including specific laws are listed in the schedules of the mirror legislations of the Trans-Tasman Mutual Recognition Act. Any jurisdiction may unilaterally add new laws, or another provision of a law, to any of the categories. Laws listed in the Exclusions schedule of the Acts may also be amended unilaterally by any party as long as the amendment merely removes or reduces the extent of one of that party’s excluded laws, or substitutes another of that party’s laws that falls within the categories above. The categories of laws excluded from the TTMRA can only be amended to add another category if all the participating jurisdictions agree.
Exemptions from the Trans-Tasman Mutual Recognition Arrangement
Exemptions are more specific laws that have been carved out of the scope of the TTMRA over time due to particular risks or divergence between the countries’ laws. Exemptions can be temporary or permanent.
Temporary exemptions
Jurisdictions can put in place temporary exemptions for a particular law or goods. Participating jurisdictions can unilaterally invoke a temporary exemption for the purpose of protecting the health and safety of persons in New Zealand (or an Australian jurisdiction, as the case may be) or avoiding, remedying, or mitigating any adverse effects of activities on the environment in New Zealand (or an Australian jurisdiction as the case may be). Temporary exemptions invoked by the New Zealand Government are made by Regulation, whereas temporary exemptions made by Australian jurisdictions are declared by or under an Act or Regulation. Temporary exemption lasts up to 12 months. There are provisions to extend a temporary exemption, although a number of pre-conditions must be met, including the endorsement of no fewer than two-thirds of the participating jurisdictions.
Permanent exemptions
Certain laws relating to the sale of goods are permanently exempt from the TTMRA in areas where the parties considered that the application of the TTMRA principles would not be appropriate.
The TTMR Act allows for permanently exempt laws to be amended or replaced providing this does not increase the scope of the exemption. Adding new permanent exemptions under the TTMR Act require the unanimous agreement of the participating jurisdictions. A participating jurisdiction can unilaterally remove or reduce the extent of its permanently exempt laws at any time under the TTMRA.
New permanent exemptions can be created but the bar for exemptions is high and requires the unanimous agreement of all participating jurisdictions (that is, New Zealand, and the Commonwealth, States, and Territories of Australia).
Examples of current permanent exemptions under the New Zealand and Australian Trans-Tasman Mutual Recognition Acts include laws relating to:
- Firearms and other offensive weapons
- Fireworks
- Gaming machines
- Pornographic material
- Road vehicles
- Therapeutic goods
- Tobacco products
- Hazardous substances, industrial chemicals and dangerous goods
- Quarantine and endangered species legislation
All participating jurisdictions has their own TTMRA legislation that sets out their specific laws related to the sale of goods that are permanently exempt from the TTMRA.
For a full list of exemptions, you should consult your jurisdiction’s TTMRA legislation:
- New Zealand Trans-Tasman Mutual Recognition Act 1997(external link)— New Zealand Legislation
- Commonwealth of Australia Trans-Tasman Mutual Recognition Act 1997 (Cth)(external link) — Australian Government Federal Register of Legislation
- Australian Capital Territory Trans-Tasman Mutual Recognition Act 1997 (ACT)(external link) — ACT Government ACT Legislation Register
- New South Wales Trans-Tasman Mutual Recognition (New South Wales) Act 1996 [PDF 249KB](external link) — NSW Government NSW legislation
- Northern Territory Trans-Tasman Mutual Recognition Act 1997(external link) — Northern Territory Government Norther Territory Legislation
- Queensland Trans-Tasman Mutual Recognition (Queensland) Act 2003(external link) — Queensland Government Queensland Legislation
- South Australia Trans-Tasman Mutual Recognition (South Australia) Act 1999(external link) — Government of South Australia South Australian Legislation
- Tasmania Trans-Tasman Mutual Recognition (Tasmania) Act 2003(external link) — Tasmanian Government Tasmanian Legislation
- Victoria Trans-Tasman Mutual Recognition (Victoria) Act 1998(external link) — Victorian Legislation
- Western Australia Trans-Tasman Mutual Recognition (Western Australia) Act 2007(external link) — Government of Western Australia Western Australian Legislation
Further information
Process for selling goods under the Trans-Tasman Mutual Recognition Arrangement
There is no process to follow before the TTMRA applies – it applies automatically to New Zealand imported or produced goods intended for sale to a participating Australian jurisdiction, and Australian imported or produced goods intended for sale to New Zealand, once the conditions are met. Refer to the flow chart to check if the TTMRA applies to your goods.
Do goods have to be imported to New Zealand first before they can be sold in Australia
Yes. Only goods that are imported into or produced in New Zealand, are covered under the TTMRA. The same rule applies to Australian imported or produced goods, that are intended for sale in New Zealand. To import goods is to bring them into the country from abroad. If the goods are merely passing through en route to some place outside the country (for example trans-shipping), they are not imported. Goods are not imported into a jurisdiction until they are landed or brought within the limits of a port with the intention of landing or discharging them. Moreover, importation connotes a commercial purpose or at least an intention to use or consume the goods.
For example, transitory unloading of goods in New Zealand for reshipment to Australia – where New Zealand authorities have not considered whether the goods are acceptable for sale – does not constitute the importation of those goods into New Zealand for the purposes of the Trans-Tasman Mutual Recognition Act 1997 (TTMR Act). It is also considered that the requirement of the TTMR Act that the goods “may lawfully be sold in New Zealand” is not satisfied in circumstances where the goods have not been cleared by New Zealand Customs.
As a New Zealand-based exporter sourcing goods from overseas, is it possible to ship goods directly to Australia without first importing them into New Zealand and still benefit from the Trans-Tasman Mutual Recognition Arrangement
No. The TTMRA only applies to goods that are imported into or manufactured in New Zealand. For the TTMRA to apply to your goods, you must first import your goods to New Zealand before they can be exported to Australia for sale.
Understanding local legal requirements for goods under the Trans-Tasman Mutual Recognition Arrangement
Under the TTMRA, New Zealand or Australian made/imported goods only have to comply with sales-related laws that apply in the jurisdiction they’re being exported from. Goods don’t have to additionally comply with sales-related laws in the country they are being sold into unless those laws are exempt or excluded from the TTMRA.
Contact us
If you still have questions, get in contact with us by emailing TTMRA.