Legality of dealing with customs importing to New Zealand?

Hi there, I am just enquiring if anyone knows what the legal requirements are on paying duty and tax on incoming goods. I mostly deal in clothing, and am charged 10% duty and 15% GST on everything i order in, plus a $38.07 customs fee on big orders over $1000.

Now i know if i get smaller amounts, at $400 or under, i can avoid those charges, but i am wondering if i am allowed to legally? Sometimes it just happens that way and i get charged no fees, is it supposed to be like that?

Also, does anyone know if the $400-$500 threshhold is for the stock price only or freight price included

Thanks.

Hello inthemosh,

Your charges will be worked out using the following:

* Customs value of the goods – usually the transaction value (the purchase price for the goods). Basically if your import's total worth is less than $500 then you won't get charged any import fees.
* Customs duty – tariff classification and duty rate applied to each good which comes from The Working Tariff Document of New Zealand.
* Concession.
* Preerential tariff.
* Goods and services tax (GST) – calculated on the total of the value of the goods plus the duty plus any freight and insurance charges. Usually anything more than $50 will be charged GST.

You might find the discussion in this thread helpful - Link hidden: Login to view

Also, I encourage you to visit Link hidden: Login to view for more information.

Hope this helps :)

Hi there, something I'm confused with here is the use of a customs broker when importing lower value goods. Would I need the services of a custom broker for something under $400?

Lets say I bought something from China with EMS- would an 'in-house' broker do the paperwork, or would I be required to set this up prior to importing?

Also, how can I fill out the Import entry form or ECI if I'm a first time importer?

Cheers.

Hi donaldo0802,

Welcome to SaleHoo, nice to have you with us!

From what I gathered, so long as you are below the threshold of $500 you will not need to secure the services of a customs broker, but ideally if its your first time importing it is best that you seek the help of a professionally.

This might help you a bit with your ECI - Link hidden: Login to view

All the best :)

Hi , I am really confused as to what has happened with my latest order? It was worth $300, but when it has come to Customs they have charged me and sent me a bill for $101.55 broken down to

Import Duty $17.50
GST $45.98
Import Transaction Fee $22.00
GST on Import Transaction Fee $3.30
Biosecurity Levy $11.10
GST on Biosecurity Levy $1.67

Total Payabl $101.55

Does anyone know why this has happened as Customs themselves are not being very helpful to me at all, and this extra cost will drastically cut down my profit margin.

Is it legal to bring in multiple lots of stock worth under $400 or is there a cutoff point or anything that anyone knows of?

Any help would be appreciated
Thanks
Jamie

Hi Jamie,

Sorry to hear about your current situation. I am not aware of any threshold for repeatedly importing products under $500.

It could be that Customs has a different assessment value for the items you ordered. It could be that the items are under declared for Customs, thus the charge. It's hard to tell for sure. At this point your best option would be to contact NZ Customs for a clear explanation as to how you were charged that much for your recent package.

All the best!

OK, ive worked it out, and the problem is that GST has gone up to 15% which in effect has lowered the threshhold amount. The rule is that customs will charge you if your duty charges (plus gst) plus GST on the goods plus freight is more than $60, Customs will charge you.

Basically my product was worth around $200 and incurred a 10% clothing duty, bringing the total including freight to $320.

The duty was $20 plus the GST which would be $48. The total is $68 which is over the $60, so then come all the other charges. So, please refrain from saying the $400-$500 general rule as GST and the ability to get cheap freight (flat rate boxes etc) make it so a fairly small order can go over the threshhold.

Hi Jamie,

Thanks for the update and breakdown. This is really helpful information - so thanks for sharing it :)

All the best!