New rules of origin arrangements under the Australia-New Zealand Closer Economic Relations Agreement (ANZCERTA) which came into effect on 1 January 2007 will boost the Victorian manufacturing sector, says VECCI.
Dynamic Melbourne-based recreational vehicle manufacturer and VECCI member Jayco, will be among the first to build its export profile as a result of the new rules.
Gerry Ryan, Managing Director of Jayco Corporation, is confident the new ANZCERTA rules will help his company to grow its motor home exports to New Zealand.
“The new rules will result in a big cost saving to our New Zealand customers and we expect our motor home exports to increase four-fold over the next five years,” says Mr Ryan.
“The Australian and New Zealand Governments are to be congratulated on the rule changes, which will provide greater opportunities to the Victorian manufacturing sector”, says VECCI Chief Executive Officer, Mr Neil Coulson.
“The new rules make sense in an age of global input sourcing and open the way to further exports to our largest export destination, New Zealand.
According to the Australian Bureau of Statistics, of the 42,194 Australian businesses involved in exporting in 2005-06, over 41 per cent - 17,394 businesses - exported to New Zealand, making it the top export destination with Australian companies.
Before the change in rules of origin, Jayco motor home exports to New Zealand were subject to a 17 per cent import duty because the company did not exceed the 50 per cent ‘regional value content’ criterion for this product. Under the new rules, Jayco will be able to sell their motor homes into the New Zealand market duty free.
“While a growing number of ‘Aussie icons’ are manufactured offshore, Jayco is bucking the trend and is building a $50 million state-of-the-art manufacturing complex in Melbourne”, says Mr Coulson. |
