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Customs and Excise Act 2018

Entry and exit of goods, persons, and craft - Import duties - Valuation of goods

102: Provisional Customs value

You could also call this:

"Guessing the value of goods when you don't know the final price yet"

Illustration for Customs and Excise Act 2018

When you bring goods into New Zealand, you need to tell Customs what they are worth. You can give a provisional Customs value if you cannot work out the final value yet. This can happen if you are part of a special pricing deal or if you do not have all the information you need.

You can include a provisional Customs value in your entry if you have a special pricing deal and a ruling from the government that says how the deal works. You can also do this if the value of the goods would normally be worked out using the transaction value method, but you do not have all the information you need. The chief executive can also give you approval to use a provisional Customs value.

Your provisional Customs value must be a reasonable guess based on the information you have. You have to use this value until you can work out the final value. The chief executive can give approvals for provisional Customs values and can cancel them if necessary.

If you do not follow the rules, the chief executive can stop you from using provisional Customs values. You can appeal some decisions to a Customs Appeal Authority. A binding ruling is a decision made by the government that says how a special pricing deal works, and a transfer pricing arrangement is a special deal between companies about how they price their goods.

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Topics:
Money and consumer rights > TaxesBusiness > Industry rulesImport and export > Customs procedures
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101: Importer must specify Customs value on entry, or

"Tell the government the value of goods you bring into New Zealand"

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103: Chief executive may revise Customs value, or

"The boss of Customs can change the price of imported goods if they think it's wrong."

Part 3Entry and exit of goods, persons, and craft
Import duties: Valuation of goods

102Provisional Customs value

  1. An importer may include a provisional Customs value in an entry for imported goods—

  2. if—
    1. the importer is a party to a transfer pricing arrangement that involves the supply and acquisition of the imported goods; and
      1. a binding ruling applies to the importer in relation to the transfer pricing arrangement; and
        1. because of the transfer pricing arrangement, it is not reasonably practicable to finalise the Customs value of the imported goods at the time the entry is being made; or
        2. if the Customs value of the imported goods would be determined under Part 1 of Schedule 4 (transaction value method) except that, at the time the entry is being made, any adjustments that are required to be made under clause 7(b)(iv) or (v) of Schedule 4 cannot be made because of a lack of sufficient information (as that term is defined in clause 2(1) of Schedule 4); or
          1. under an approval given by the chief executive under subsection (4).

            1. A provisional Customs value must be a reasonable estimate of the Customs value of the goods based on the information that is available to the importer at the time the entry is being made.

            2. Until the final Customs value is provided (see sections 112 and 117(4)), the provisional Customs value must be treated as the Customs value for the purposes of this Act.

            3. The chief executive may, for the purposes of subsection (1)(c), give approvals for the inclusion of provisional Customs values in entries.

            4. An approval may be given—

            5. to a particular importer in relation to particular goods or a class of goods; or
              1. so as to apply generally to a class of importer or a class of goods (or both).

                1. An approval may be given subject to any terms, conditions, and restrictions that the chief executive considers appropriate.

                2. The chief executive may—

                3. vary any terms, conditions, or restrictions that an approval is subject to; or
                  1. withdraw an approval.

                    1. Before giving an approval of the type referred to in subsection (5)(a) that relates wholly or partly to the application of a transfer pricing arrangement, the chief executive must consult the Commissioner of Inland Revenue in relation to the appropriateness of the transfer pricing arrangement.

                    2. An approval of the type referred to in subsection (5)(b) must be published on an Internet site that—

                    3. is maintained by, or on behalf of, the chief executive; and
                      1. is publicly available free of charge.

                        1. Subsection (11) applies if the chief executive has reasonable grounds to believe that a person has failed to comply with subsection (2) or section 112 in relation to a provisional Customs value that the person included in an entry.

                        2. The chief executive may, by notice to the person, suspend the person’s right to include provisional Customs values in entries.

                        3. The suspension may be for—

                        4. a definite period; or
                          1. an indefinite period, which may be brought to an end by the chief executive on an application by the person.

                            1. A person who is dissatisfied with any of the following decisions may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision:

                            2. a refusal to give an approval of a type referred to in subsection (5)(a):
                              1. a decision under subsection (6) or (7) in relation to an approval of a type referred to in subsection (5)(a):
                                1. a decision under subsections (10) to (12).

                                  1. In this section,—

                                    binding ruling—

                                    1. has the meaning given to that term in section 3(1) of the Tax Administration Act 1994; and
                                      1. includes a mutual agreement procedure under a double tax agreement that is in force under section BH 1 of the Income Tax Act 2007

                                        transfer pricing arrangement has the meaning given to that term in section GC 6(2) of the Income Tax Act 2007.