Page 56 - English-DBINZ brochure-2019

53 Doing business in New Zealand

Customs must clear all imported and exported goods. To obtain clearance, importers and exporters
must make a declaration which includes providing a description of the nature, quantity, origin and, in the
case of exports, the destination of their goods. Almost all imported goods are subject to a 15% Goods
and Services Tax (GST), and some imports are also subject to tariffs. Given the importance of border
security (particularly regarding biosecurity), the legislative requirements and procedure are strictly
enforced with penalties imposed for non-compliance.

GENERAL PROCEDURE FOR IMPORTING AND EXPORTING
Persons wanting to undertake importing or exporting activities in New Zealand must use one of two
electronic systems - the Customs Online Declarations website or the Electronic Data Interchange
software (EDI), which must be installed by the importer or exporter on its computer system. EDI has
lower transaction costs for obtaining Customs clearances than the online service so is suitable for high
frequency importers and exporters.
The Customs Online Declarations website is suited to one-off or low volume users. The Customs Online
Declarations website is designed for regular importers and exporters who have sufficient knowledge of
the requirement to clear their own exports with Customs. Alternatively, a freight forwarder or customs
broker can be engaged to undertake the transaction.
Both importers and exporters are responsible for making accurate customs entries, paying all Customs
charges, and retaining all relevant documentation for seven years. Documentation must be presented to
Customs on demand.

PENALTIES
Customs enforces a wide range of prohibitions and restrictions on imports and exports at the border.
Export and import entries providing details of shipments to be exported or imported are a legal
declaration to Customs under the Customs and Excise Duties Act. A penalty can be imposed for filing
entry documentation that contains an error or omission that renders the documentation materially
incorrect or results in any amount of payable duty not being declared or paid. Regardless of whether a
Customs broker or agent is used, the importer or exporter remains liable for any penalties or prosecution
action taken under the Customs and Excise Duties Act for providing an erroneous entry or declaration to
Customs.

DUTIES AND TARIFFS

In recent times, the New Zealand Government has pursued a liberal trade policy and only imposes duties
on selected goods entering New Zealand to protect the most vulnerable New Zealand industries.

The majority of goods subject to import duty have a rate imposed at around 5% to 7% of the goods’
value. The manufacturing industry, particularly the textile, clothing and footwear industry, are subject
to more protectionist measures. Goods competing with New Zealand’s textile, clothing and footwear
industry attract the highest tariffs, of up to 10% or more.
Customs applies duties to imported goods based on the following criteria:

ə Tariff classification: The New Zealand Customs Service Working Tariff document is a commodity
coding system used to identify and describe goods based on the World Customs Organisation
International Convention guidelines
ə Concession applicability: Goods are generally grouped together and fixed with a duty under the tariff
classification system. However, there are special concessions for some goods
ə Preference: New Zealand extends preferential tariff access to goods which are the “produce” or
“manufacture” of specified countries and country groups.