Customs and Excise Act 2018

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

104: Crown's right of compulsory acquisition

You could also call this:

"The government can take goods if they think the price is too low and pay the owner for them."

Illustration for Customs and Excise Act 2018

The Crown can take ownership of goods at any time if they think the price of the goods is too low. This helps protect the public revenue against people not paying enough for goods that have a duty based on their value. The chief executive is in charge of making this decision.

When the chief executive decides to take ownership of the goods, they sign a warrant and the goods immediately become the property of the Crown. You will be told in writing as soon as possible if the chief executive has signed a warrant to take ownership of your goods. If the Crown takes ownership of the goods and you do not appeal, the chief executive will sell the goods and the money from the sale will go to Customs.

The Crown will pay you for the goods within 10 working days of taking ownership of them. The price the Crown pays is based on the value of the goods, plus any reasonable costs for things like freight and insurance, and any duties already paid. If you are not happy with the chief executive's decision, you can appeal to a Customs Appeal Authority within 20 working days of being told about the decision, you can find more information about this by looking at the Customs and Excise Act 2018 and previous legislation such as the 1996 No 27 s 63.

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This page was last updated on 1 October 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7039345.

Topics:

Money and consumer rights > TaxesGovernment and voting > Government departments

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."

105: Entry of goods at preferential rates of duty, or

"Getting a discount on import taxes for goods"

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

104Crown's right of compulsory acquisition

For the purpose of protecting the public revenue against undervaluation of goods subject to ad valorem duty, goods for which entry is made may be acquired by the Crown at any time while they remain subject to the control of Customs.
The right under subsection (1) may be exercised by the chief executive.
The goods are acquired when the chief executive signs a warrant for their acquisition in the prescribed form.
The goods become the property of the Crown immediately the warrant is signed.
Customs must notify the importer in writing, as soon as is reasonably practicable, if the chief executive has signed a warrant under this section.
If goods are acquired by the Crown under this section and no appeal is made under subsection (10),—
the chief executive must sell the goods; and
the proceeds of sale must be accounted for as Customs revenue.

Customs must pay the importer of the goods for the goods within 10 working days of their acquisition.
The price payable by the Crown for the goods is the sum of the following:
the Customs value of the goods included in the entry for the goods:
any charges for freight, insurance, and other matters incidental to the importation of the goods that the chief executive considers reasonable:
any duties already paid on the goods.

Nothing in this section affects—
any other powers of Customs in respect of the goods; or
any liability of the importer or any other person in respect of an offence committed in respect of the goods.

An importer who is dissatisfied with a decision of the chief executive under this section 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.

Compare

1996 No 27 s 63