Common use of Operation of the Scheme Clause in Contracts

Operation of the Scheme. GOODS 4.1.1 Under this Arrangement, a Good that may legally be sold in the Jurisdiction of an Australian Party may legally be sold in New Zealand and a Good that may legally be sold in New Zealand may legally be sold in the Jurisdiction of any Australian Party. Goods need only comply with the standards or Regulations applying in the jurisdiction in which they are produced or through which they are imported. The understandings entered into under this principle are confined to the laws of each Party. 4.1.2 Under the principle referred to in sub-paragraph 4.1.1, mutual recognition will affect certain laws relating to the sale of Goods of the jurisdiction where the Goods are intended for sale. Such laws include: (a) Requirements relating to production, composition, quality or performance of a Good; (b) Requirements that a Good satisfy certain standards relating to presentation, such as packaging, labelling, date, or age stamping; (c) Requirements that Goods be inspected, passed or similarly dealt with; or (d) any other Requirement that would prevent or restrict, or would have the effect of preventing or restricting, the sale of the Good. 4.1.3 The Arrangement is not intended to affect the operation of any laws to the extent that they regulate: (a) the manner of the sale of Goods or the manner in which sellers conduct or are required to conduct their business, so long as those laws apply equally to Goods produced or imported in the Jurisdiction of the Party. Examples include: (i) the contractual aspects of the sale of Goods; (ii) the registration of sellers or other persons carrying on occupations; (iii) the requirements for business franchise licences; (iv) the persons to whom Goods may or may not be sold; and (v) the circumstances in which Goods may or may not be sold; (b) the transportation, storage or handling of Goods, so long as those laws apply equally to Goods produced or imported under the laws of the Party and so long as they are directed at matters affecting public health and safety or at preventing, minimising or regulating environmental pollution (including air, water, noise or soil pollution); or (c) the inspection of Goods, provided inspection is not a prerequisite to the sale of Goods, the laws apply equally to Goods produced or imported under the laws of the Party, and the laws are directed to protecting the health and safety of persons or to preventing, minimising or regulating environmental pollution. 4.1.4 Consistent with the mutual recognition principle set out above, the Parties intend that the Arrangement will not affect the operation of any law or regulation prohibiting or restricting the export of Goods from a Participating Party.