Importing goods to sell in NZ.. (Tax?!?!)

[degrom]

How does tax on imported goods work?

I know you need to pay GST and import duty on imported stock.(But you can claim that back)

Can I claim back Tax I paid in another country or am I going to getting hit twice... (Paying tax to my suppliers country and paying local tax to the IRD?)

Any advice on the topic would be much appreciated.
Thanks.

[fireliv]

Try these websites

http://www.customs.govt.nz/importers/Commercial+Importers/Duties+and+Levies.htm

www.business.govt.nz

Might help!

[degrom]

Try these websites

http://www.customs.govt.nz/importers/Commercial+Importers/Duties+and+Levies.htm

www.business.govt.nz (http://www.business.govt.nz)

Might help!

Thanks mate,

I have looked at the two sites and they are very informative..

They don't really say anything about other countries taxes and if I will get money back or if I need to pay the tax double.(If you need to pay double it potentially kills business hundreds of small businesses)

[Mully]

Mate, check with your supplier. They should be able to invoice you tax-free on an export invoice.

[Mully]

Oh, and you can only claim back Import GST, not Duty.

[degrom]

Thanks Mully,

I thought it would be something like that. So I need to pay Duty and GST to IRD.

Now I understand why imported goods are so dear.... But what else can you do if they don't manufacture it locally!?!?!?

[Mully]

Thanks Mully,

I thought it would be something like that. So I need to pay Duty and GST to IRD.

Now I understand why imported goods are so dear.... But what else can you do if they don't manufacture it locally!?!?!?

GST goes to the IRD, from whence you claim it back. Oh yes, I used "whence"

Duty goes to (I think) the government slush fund and is never seen again.

If your product isn't (and can't be) manufactured locally, you can apply for a concession with MED (which costs around $400 IIRC). Keep in mind that the $400 is not refundable if someone objects and your concession is declined.

Hope this helps.

[scracha]

If you're doing it regularly you get a TNT (or other carrier) account. They'll then send you the customs forms for you to get a customs code (or you can do it yourself). Yeah, you claim back the GST. Easy peezy.

[trumpy]

Check with customs, some goods are duty exempt. They will have a list you can check out.

[Reckless]

I get the odd thing for the Z1R and sometimes my MX bikes from the States and Aussy. Linkage kits and various bits where over $100-00 cheaper retail incl freight from BTO Sports USA. Delivered within 5 days!

All items should ship tax free. You pay GST on anything over $400-00 incl freight.
So $390-00 incl freight and you pay nothing, $410-00 incl freight and you pay GSt on the whole $410 not just the extra $10-00. If your purchase is $700-00 plus freight you may wanna make 2 orders for your stuff just work out if the extra freight kills the deal. You didn't say where you where buying from.
If your spending a big amount you'll just have to pay GST. The above is for personal use only so don't use a company name even as a delivery address.
I don't know what the law actually says but the above is what I have discovered from personal experiance. Hope this helps!

Ps I've never been charged duty so I gather Bike bits are duty free, Don't quote me on that though.

[jonbuoy]

I get the odd thing for the Z1R and sometimes my MX bikes from the States and Aussy. Linkage kits and various bits where over $100-00 cheaper retail incl freight from BTO Sports USA. Delivered within 5 days!

All items should ship tax free. You pay GST on anything over $400-00 incl freight.
So $390-00 incl freight and you pay nothing, $410-00 incl freight and you pay GSt on the whole $410 not just the extra $10-00. If your purchase is $700-00 plus freight you may wanna make 2 orders for your stuff just work out if the extra freight kills the deal. You didn't say where you where buying from.
If your spending a big amount you'll just have to pay GST. The above is for personal use only so don't use a company name even as a delivery address.
I don't know what the law actually says but the above is what I have discovered from personal experiance. Hope this helps!

Ps I've never been charged duty so I gather Bike bits are duty free, Don't quote me on that though.

American companies are fantastic to deal with over the net, always answer your emails within a day or two and always prepared to deal with the extra hassle of shipping overseas.

[degrom]

I get the odd thing for the Z1R and sometimes my MX bikes from the States and Aussy. Linkage kits and various bits where over $100-00 cheaper retail incl freight from BTO Sports USA. Delivered within 5 days!

All items should ship tax free. You pay GST on anything over $400-00 incl freight.
So $390-00 incl freight and you pay nothing, $410-00 incl freight and you pay GSt on the whole $410 not just the extra $10-00. If your purchase is $700-00 plus freight you may wanna make 2 orders for your stuff just work out if the extra freight kills the deal. You didn't say where you where buying from.
If your spending a big amount you'll just have to pay GST. The above is for personal use only so don't use a company name even as a delivery address.
I don't know what the law actually says but the above is what I have discovered from personal experiance. Hope this helps!

Ps I've never been charged duty so I gather Bike bits are duty free, Don't quote me on that though.

Nice... I am dealing with a supplier in the US. I have ordered twice from them... But both times it was under $200. The next shipment I want to order will have to be over $600 so I can get a bit of discount from the supplier.

Luckily the stuff I am buying is duty free...

And yes, you are correct motorcycle parts are duty free.. :2thumbsup

[degrom]

American companies are fantastic to deal with over the net, always answer your emails within a day or two and always prepared to deal with the extra hassle of shipping overseas.

I must agree 100%!!! They are great...

The best part for me is that if you are not impressed with the company you are dealing with , there are most likely 3 more companies doing the same thing to choose from.

I think we don't have the volume and population in NZ to support that kind of business. But it does sound very impressive. :2thumbsup

I wonder when China will get into this habit cause they produce most of the goods but still lack the customer service the Western countries offer.

[huck farley]

I do a fair bit of trading overseas. There is no tax penalty to you on the goods you order to come to NZ. When the goods arrive into NZ If there is a customs declaration attached which there should be. You are exempt from paying taxes of any kind if the value of the goods you import plus the shipping costs do not exceed $400.00 nzd.

I simply ask my provider overseas to put a $150.00 value on the Customs declaration. I have no problem doing that.

There is a downside to it though. If it gets lost the Insurance will only pay out what is on the Customs declaration, recorded at the other end.

Fingers crossed, I haven't lost anything yet.

[Mully]

There is a downside to it though. If it gets lost the Insurance will only pay out what is on the Customs declaration, recorded at the other end.


And, y'know, fraud and that.

And if Customs decides to Audit it, they'll be all over you if the value doesn't check out. And they will make your life a misery if they suspect your supplier has misdeclared the value. Plus they'll get their mates at IRD to have a nosey too, which is about as much fun as masturbating with sandpaper.

[degrom]

If you're doing it regularly you get a TNT (or other carrier) account. They'll then send you the customs forms for you to get a customs code (or you can do it yourself). Yeah, you claim back the GST. Easy peezy.


Hi there...
Its been a while and at last I have started my Importing Kingdom... :banana:

I already have my first package sitting at NZ post waiting to be cleared by Customs. I am a sole trader and going to import stuff more and more.

Do I really need a Customs Broker to get my parcels cleared?

NZ Post is asking $75 to get it cleared + duty fees and GST. The parcel is worth about $475... Not really good!!!

Thanks to all.

[Forest]

Can I claim back Tax I paid in another country or am I going to getting hit twice... (Paying tax to my suppliers country and paying local tax to the IRD?)


Depends on what you're buying, and where you're buying it from as different countries have different tax regimes (including some countries which have no sales taxes at all).

If you're buying from Australian suppliers, simply ask them for a zero rated export invoice and they won't charge you any Australian GST.

Duty and excise taxes are a bit more complicated and are generally not refundable. When I moved from NZ to Australia, I took a few cases of NZ wine with me as unaccompanied personal effects and had to pay Australia alcohol excise taxes on them (in addition to the NZ excise taxes I paid when I bought the wine in NZ).

I own and run a trading company that buys and sells good internationally. If you have any specific questions, ask them here and I'll try to answer them.

[Forest]

Hi there...
Do I really need a Customs Broker to get my parcels cleared?

NZ Post is asking $75 to get it cleared + duty fees and GST. The parcel is worth about $475... Not really good!!!


Yes you do need a customs broker. The broker lodges the paperwork with customs and arranges the clearance.

The cheapest way to process customs clearances is to become a registered customs broker and lodge your own paperwork (this is what most commercial traders end up doing). However this requires a fair bit of effort, so for now I'd advise you to find a customs broker (look in the yellow pages).

Finally, if you can keep the value of your shipments below $400 NZD (including freight) then you don't need a customs clearance. You only need to get a customs clearance when the GST or duties on the shipment are more than $50 in total.

[degrom]

I own and run a trading company that buys and sells good internationally. If you have any specific questions, ask them here and I'll try to answer them.

Hi Forest,

I am mostly interested to know if I would be able to file my own Customs Clearance Entries.

I will most likely stay at the $500 mark for most of the parcels I receive and if I have to pay $75 brokers fee for easy parcel I might as well stop trading.

The Customs website said you can do it without a Customs Broker but after talking to a few customs people, I keep on hearing that I will need a broker.

Thanks for the input... ;)

[degrom]

You are to quick Forest!!! ;)

[scracha]

Hi there...
Its been a while and at last I have started my Importing Kingdom... :banana:

I already have my first package sitting at NZ post waiting to be cleared by Customs. I am a sole trader and going to import stuff more and more.

Do I really need a Customs Broker to get my parcels cleared?

NZ Post is asking $75 to get it cleared + duty fees and GST. The parcel is worth about $475... Not really good!!!

Thanks to all.

$75 clearnace fee...bwhaha. TNT is about umm...15 bucks or summit. As I said before, get a TNT account and a customs code. Their customs brokers are really good and deal with all the paperwork and $hit for ya. NZ post are crroked barstewards and I wouldn't use them. Aussie post are good at losing stuff too.

[Mully]

I am a Customs Broker. And no, you don't need one.

TNT/DHL and the like will usually do the Entry for free when they carry the parcel (basically included in the freight charge.

Although, you get what you pay for. If it all turns to custard, TNT and their mates will not want to know.

[The Pastor]

which is about as much fun as masturbating with sandpaper.


Makes it feel like the first time, (with the bleeding) the very first time


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[scracha]

TNT/DHL and the like will usually do the Entry for free when they carry the parcel (basically included in the freight charge.

Although, you get what you pay for. If it all turns to custard, TNT and their mates will not want to know.

?? I can only say +ve things about them. Emailed/faxed me through all the customs stuff and filled out most of the forms for me. Have called me back when they said they would on the odd occasion a parcel goes somewhere strange. Only time I've had hassle from TNT was during the APEC summit...summit to do with all flights being canceled. Hell, they've flown stuff from the eastern seaboard, over the pacific and onto Auckland in less time than it takes most of the kiwi courier companies to then pass the parcel down to the waikato.

[Mully]

?? I can only say +ve things about them. Emailed/faxed me through all the customs stuff and filled out most of the forms for me. Have called me back when they said they would on the odd occasion a parcel goes somewhere strange. Only time I've had hassle from TNT was during the APEC summit...summit to do with all flights being canceled. Hell, they've flown stuff from the eastern seaboard, over the pacific and onto Auckland in less time than it takes most of the kiwi courier companies to then pass the parcel down to the waikato.

Don't get me wrong, they do what they do extremely well, and yes, I agree they are better than most domestic courier companies in NZ, however, if you get audited by Customs, a "normal" broker will provide support and assistance with that, whereas TNT will not want to know.

But yeah, certainly a good option for smaller imports.

[Reckless]

I will most likely stay at the $500 mark for most of the parcels I receive and if I have to pay $75 brokers fee for easy parcel I might as well stop trading.

Just a small point, why don't you import 3 lots for $1200-00 (incl freight) and avoid the customs altogether, instead of 3 for $1500-00 and have the above hassles?

[degrom]

Just a small point, why don't you import 3 lots for $1200-00 (incl freight) and avoid the customs altogether, instead of 3 for $1500-00 and have the above hassles?

Yes... That is my aim,but till then I will have to keep it below $400 if I can. I am almost at the stage where I can afford two shipment at a time... :)

Thanks to all,for your advice.

[imdying]

How does tax on imported goods work?

I know you need to pay GST and import duty on imported stock.(But you can claim that back)

Can I claim back Tax I paid in another country or am I going to getting hit twice... (Paying tax to my suppliers country and paying local tax to the IRD?)

Any advice on the topic would be much appreciated.
Thanks.Hmmm, can't help you much I'm afraid... but I can tell you, if you buy anodized fasteners from tastynuts.com (UK based), they'll charge you a VAT exclusive price.

You can claim duty back?

[degrom]

Hmmm, can't help you much I'm afraid... but I can tell you, if you buy anodized fasteners from tastynuts.com (UK based), they'll charge you a VAT exclusive price.

You can claim duty back?

I am sure you would be able to claim back duty and GST.

But claiming back is actually not good,because as I see it,you first have to spend money before you can claim and the less you spend the better you are off... :)

[imdying]

GST I can understand, but duty? Sure, it's just a tax, but?

[Mully]

GST I can understand, but duty? Sure, it's just a tax, but?

No, no. Duty is a levy (and hence, subject to GST which Customs will slap on the bill). Not reclaimable. Unless you export the stuff again (faulty goods or the like) and then only if it's over $50.
GST is reclaimable provided you are GST registered (and you are using the good in your line of business, etc). If you are Joe Bloggs importing for private use, you must suck it.

[degrom]

GST I can understand, but duty? Sure, it's just a tax, but?

Duty fees are basically just like all other expense and you just claim it back.

That is why I am say its bad,cause its like paying for printer inks,it makes your product cost more and brings down your profit or makes your products more expensive... :P

[degrom]

No, no. Duty is a levy (and hence, subject to GST which Customs will slap on the bill). Not reclaimable. Unless you export the stuff again (faulty goods or the like) and then only if it's over $50.
GST is reclaimable provided you are GST registered (and you are using the good in your line of business, etc). If you are Joe Bloggs importing for private use, you must suck it.

Really?!?!?

That is just silly... Duty is something you paid for and its reducing your income. If you can't claim then the government is fooling us in say we are earning more that we really do!!!

[Mully]

Really?!?!?

That is just silly... Duty is something you paid for and its reducing your income. If you can't claim then the government is fooling us in say we are earning more that we really do!!!

I fucking hope so, I've been doing this for a while.

Duty, in theory, is there to protect NZ industry* (that's why not everything is dutiable). It's meant to prevent, for example, Asia from dumping products on our market cheaper than it can be made for here.

Joe McInternet-Buyer is just caught up in the net when importing goods for personal use. Sucks but there you go. Most motorcycle gear is Duty Free anyway.

*There is another thread about F&P, so please don't respond here to my point about NZ Industry.