Since the establishment of New Zealand (NZ) and the United States of America’s (USA) Bilateral Trade and Investment Framework Agreement in 1992, commercial ties between the two countries have strengthened significantly.
Over the past 15 years, trade between them has grown by more than 5% annually, according to a 2022 Sense Partners report on the NZ-USA trade relationship. As a result, the USA has become a significant trading partner for New Zealand, currently ranking as the third-largest source of imported goods.
However, when importing from the USA, businesses must navigate differing product safety standards and compliance to meet New Zealand's stringent regulations, particularly for goods like electronics, food products, and pharmaceuticals.
To assist in this process, we’ve outlined a quick guide providing insights to manage these challenges and ensure product safety compliance effectively.
Understanding New Zealand's product safety standards
New Zealand has stringent product safety standards enforced by various regulations and acts, including the following:
- Fair trading act (FTA) 1986: Regulates fair competition and prevents misleading or deceptive conduct in trade to ensure product safety and compliance.
- The consumer guarantees act (CGA): Provides consumer rights and guarantees, ensuring products meet acceptable quality standards, safety, and performance expectations.
- Weights and measures act (WMA): Ensures accuracy in measuring goods for sale, enforcing standards for weight and measurement to protect consumers and ensure fair trade practices.
These product safety regulations collectively ensure that imported goods from the USA are safe, accurately represented, and meet consumer expectations.
Moreover, businesses must adhere to additional quality assurance procedures specific to different types of products:
- Electrical products: Importers and suppliers must verify that their electrical products comply with New Zealand’s safety standards. This can be achieved by testing the products in accredited local laboratories in the USA or in approved international labs with mutual recognition agreements with New Zealand.
- Energy efficiency: For imported electrical products and appliances, the Energy Efficiency and Conservation Authority (EECA) oversees compliance with energy efficiency standards. This includes monitoring the energy use of products such as household appliances and motor vehicles. Importers must ensure that their products meet these efficiency standards to be allowed entry into New Zealand.
- Therapeutic products: When importing therapeutic products such as medicines and medical devices, they must comply with the regulations set by Medsafe New Zealand. Medsafe ensures that these products meet safety and efficacy standards before they are allowed into the market. Compliance with these regulations is critical for the protection of public health and the integrity of the healthcare system in New Zealand.
- Food safety: Imported food products must comply with the Australia New Zealand Food Standards Code. This code enforces strict safety and traceability measures to reduce foodborne illness and ensures easy product recall in NZ if any safety issues arise.
- Fruits, plants, and seeds: These items must be issued a certificate from the US Department of Agriculture, confirming they are disease-free. Then, the certificate must be sent to the consignee in New Zealand.
Following these requirements is critical for compliance with New Zealand’s regulations.
Meeting packaging and labelling and requirements
One of the most important aspects to consider when importing goods from overseas countries like the USA is to make certain they comply with New Zealand’s packaging and labelling standards. Here’s a guide to the key requirements:
- Language: All text or labels must be in English. Fortunately, since English is the official language in both the USA and New Zealand, this requirement won’t be a challenge for suppliers and importers.
- Ingredients: All products must include a complete list of ingredients. For cosmetics, ingredients must be listed in the highest to lowest concentrations. As for food labelling requirements, if any genetically modified (GM) ingredients are present, the label must include the term "genetically modified".
- Country of origin: If you’re importing from the USA, labels must state "Made in the USA" or an equivalent phrase to indicate where the product was manufactured.
- Safety warnings: The product must clearly indicate all relevant safety warnings and usage instructions on the packaging to ensure consumer safety and correct product use.
- Date markings: All perishable items must include a date mark, such as "Best Before" or "Use By," to inform consumers of the product's shelf life and ensure it is consumed while still safe and effective.
- Storage and handling instructions: Labels must include proper storage and handling instructions to maintain the product's quality and safety.
- Net weight: The net weight must be displayed in metric units.
- Contact information: Should include the manufacturer’s or importer’s contact details on the label. This information is essential for customer inquiries, complaints, or product recalls, providing consumers with a way to reach out for support or report issues.
Adhering to these standards is imperative for successfully importing products into New Zealand.
Strategies for conducting risk assessments of imported products
Effective risk assessment involves several key strategies to ensure the product safety compliance of imported products.
- Identify potential hazards: Collaborate with the US suppliers to analyse the supply chain for risks such as contamination and manufacturing defects. Additionally, you can request copies of the Material Safety Data Sheet (MSDS) and other relevant documentation to understand potential hazards associated with the products.
- Evaluate supplier reliability: Review the compliance history of the US suppliers and manufacturers to ensure they consistently meet product safety standards, emphasising their compliance with Food and Drug Administration (FDA) and the US Department of Agriculture (USDA) regulations.
- Implement quality control measures: Set up testing protocols in New Zealand’s accredited labs for imported products to confirm they meet local safety standards.
- Develop risk management plans: Conduct mock recalls to test and refine your risk management strategies. Simulate the recall process to identify weaknesses and improve response times. Regular drills help ensure a swift, coordinated response in real product recall procedures, minimising damage to your brand and maintaining consumer trust.
Therefore, taking decisive steps to perform thorough manufacturer and supplier due diligence is critical. By verifying their product compliance with essential safety and quality standards, you can proactively mitigate risks and uphold the integrity of your imported products from the USA.
