The China External Trade Development Council and The Wellington
Chamber of Commerce (hereinafter referred to as "the Parties")
having been authorized by the Customs authorities of their resp-
ective territories to act as the sole issuing and guaranteeing
organisations in the mutual implementation of the NZCIO/BOFT ca-
rnet system in order to facilitate the procedures for the tempo-
rary duty-free importation of goods, Have reached the following
understandings:
1.For the purpose of the present Protocol:
(a) the term "import duties" will have the same meaning at that
given in clause l(a) of the Memorandum of Understanding of
the NZCIO/BOFT Garnet for the temporary admission of goods
signed at Taipei on December 2, 1993 between the Board of F-
oreign Trade in Taipei and the New Zealand Commerce and Ind-
ustry Office.
(b) the term "goods" will conform to the definition given in cl-
ause 3 of the aforementioned Memorandum of Understanding.
2.When both Parties have been approved by their respective Cust-
oms authorities for the purpose of guaranteeing the payment of
import duties in respect of goods which are the subject of the
present Protocol, both Parties are entitled to guarantee the
payment of import duties in respect of goods dispatched from
the territory of one Party to the territory of another Party.
The Parties will, where necessary, obtain approval in advance
from their respective foreign exchange control offices for the
settlement of all debts contracted as a result of these guara-
ntees.
3.The conditions for the grant of guarantee will be freely dete-
rmined by each Party. When the guarantee is granted, the auth-
orised guarantor organisation will affix its common seal in a-
ccordance with the model form confirmed by both Parties (see
attachment) on the NZCIO/BOFT carnet before issuing it to the
bearer.
4.The guarantee granted will be surety for the payment of the i-
mport duties which would be due to the Customs authorities of
the parties to this protocol in the event of the imported goo-
ds in question not being re-exported within the prescribed pe-
riod. The guarantee will further cover, up to 10% of the amou-
nt of the import duties, and the payment of any other sum whi-
ch would have had to be deposited by the importer if there had
been no guarantee.
5.When the goods covered by the guarantee given by the authoris-
ed guarantor organization in the territory of origin are intr-
oduced into the territory of destination, the guarantee of the
authorised guarantor organization in the latter territory will
immediately and automatically be substituted for the original
guarantee.
6.Should the merchandise covered by the guarantee not be duly r-
e-exported from the importing territory within the prescribed
period and thus become liable for import duties, the authoris-
ed guarantor organization in that territory will pay the impo-
rt duties due to the creditor Customs Administration.
7.Any Party which has settled the import duties in respect of m-
erchandise covered by the guarantee in accordance with clause
6 above may request the other Party to refund the duties paid
on behalf of the importer.
8.Calls for repayment must be accompanied by proof of payment (
Customs receipts) in original or photocopy. Repayment will be
made within two months after receipt of proof of payment.
9.Any dispute between the Parties concerning the interpretation
or application of the present Protocol will be settled by neg-
otiation between them.
10.This Protocol will take effect from the date of its signature
and will remain effective until the expiry of 90 days from t-
he date of which either of the Parties has given the other P-
arty notice in writing of its intention to terminate the Pro-
tocol.
Any revision of this Protocol or its termination will be effect-
ed without any prejudice to any rights or obligations accruing
or incurred under this Protocol prior to the effedive date of s-
uch revision or termination.
Signed in the English language.
Done at Taipei, on 17 December, 1993 Done at Wellington, on 20
January 1994

AGUSTIN TINGTSU LIU RAY HARDING
[Signed] [Signed]
SECRETARY GENERAL CHIEF EXECUTIVE
CHINA EXTERNAL TRADE WELLINGTON CHAMBER OF COMMERCE
DEVELOPMENT COUNCIL