http://www.consumer.org.nz/news/view...ransaction-fee
From July, the New Zealand Customs Service will begin applying an import transaction fee (ITF) of $24.75 ($22 plus GST) to a range of personal imports that attract GST and import duty.
Generally the ITF will apply to goods valued over $400 but at times packages valued at less than $400 will attract the fee.
The fee will apply to all import items such as jewellery, clothing and electrical appliances.
A MAF Biosecurity system entry levy (BSEL) of $12.50 (including GST) will also be charged whenever an ITF is applied.
Customs says these import transaction fees are applied to cover the time and costs associated with processing imports and are used to fund border risk management activities.
More information
The New Zealand Customs Service have provided us with the following information in response to the questions and comments made by our members (see below). For more information see www.customs.govt.nz.
The New Zealand Customs Service notes the comments on the Consumer website relating to proposed changes which will mean that in future private importers of import shipments (commonly through the International Mail system) will be required to pay an Import Transaction Fee – in cases where revenue of over $50 is payable.
We are aware that this area can be confusing for people importing – especially those who do not import frequently.
The simple rule is that the issues of import duty, GST and any import transaction fees apply to an import consignment. A consignment is a package or a set of packages imported on the same day. If the consignment is of a value which will attract duty and GST exceeding $50, then it will be required to also pay an Import Transaction fee of $24.75 (including GST), and a Biosecurity Systems Entry Levy of $12.50 (including GST). The examples that we provided are designed to show how this system works.
In the first example, of a shipment of toys valued at $380 with freight cost of $19, the total value for estimating GST is $399 as no duty is payable (these items are duty free into New Zealand). However, even though no duty is payable, all imports into New Zealand are liable for GST. The GST that would be payable is $49.88. Under the Customs and Excise Act, if the duty and GST to be paid is less than $50, it is not collected.
So in this case, no GST is to be paid. In such cases no Import Transaction Fee or Biosecurity System Entry levy is payable either.
In the examples for clothes and jewellery, the duty and GST combined does exceed $50. In these cases the importer – or addressee, in the case of mail items – is liable to pay the duty and GST before the goods are released. Under the new rules they will also need to pay the Import Transaction Fee and the Biosecurity System Entry Levy.
These import transaction fees have up until now been paid on all commercial imports. The change means that they will be applied in future to personal imports, but only where duty/GST exceeding $50 is payable.
Tony Irvine correctly notes that if you haven’t paid duty and GST previously, in future you won’t pay these, and you won’t pay the import transaction fee either.
Faye King wonders if, when she buys a book valued at $30, will she need to pay the Import Transaction Fee? The answer is no. However, if she buys 15 books, totaling a value plus freight such that the liable duty and GST will exceed $50, and which arrive in a single shipment, then she will need to pay the duty/GST and the Import Transaction Fee, and the Biosecurity Systems Entry Levy.
This charge will apply to CD/DVD purchases – if the consignment is liable to pay duty and GST, collectively, of more than $50.
The Customs website has information on the specific items that are liable for duty as well as GST.
One of your correspondents has asked in what circumstances goods valued at below $400 will be liable for duty/GST and the Import Transaction Fee. We have indicated in the examples in the table above some goods which, valued at below $400, will still attract duty/GST and transaction fees. (For example, clothing valued at $250, depending on the freight cost, might be liable for duty/GST and the Import Transaction Fee and the Biosecurity Systems Entry Levy.)
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Originally Posted by rachprice
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