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Customs and Excise Act 2018

Entry and exit of goods, persons, and craft - Assessment, payment, and recovery of duty - Appeals, etc

128: Chief executive to pay interest on duty refunded on appeal, etc

You could also call this:

"Get interest on your refund if you overpaid duty and win an appeal"

Illustration for Customs and Excise Act 2018

If you get a refund on duty you paid, the chief executive must pay you interest on that duty. The interest period starts on the day you paid the duty and ends on the day you get your refund. You get interest for each day in that period.

The amount of interest you get is calculated using a formula: duty times interest rate, divided by 365. The duty is the amount you are getting back, and the interest rate is the rate that applies on that day.

The chief executive adds up the interest for each day to get the total interest you should get. If you get too much interest, the chief executive can take back the extra amount, like they would if they made a mistake with your refund.

If the chief executive is appealing a decision to give you a refund, they do not have to pay you interest until the appeal is finished. You can find more information about how this works by looking at section 127(3) and section 150.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7039385.

Topics:
Money and consumer rights > Taxes
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127: Obligation to pay duty not suspended by appeal, etc, or

"You still have to pay duty even if you're appealing a decision"

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"You must pay a fee called duty when you bring goods into New Zealand."

Part 3Entry and exit of goods, persons, and craft
Assessment, payment, and recovery of duty: Appeals, etc

128Chief executive to pay interest on duty refunded on appeal, etc

  1. If duty is required to be refunded in accordance with section 127(3), the chief executive must pay interest on the duty for the period (the interest period) that—

  2. begins with the day on which the duty was paid; and
    1. ends with the day on which the duty is refunded.

      1. The amount of interest payable is calculated for each day of the interest period in accordance with the following formula:

        d × r ÷ 365

        Where:

        • d d

          is the duty to be refunded

        • r r

          is the prescribed rate of interest applying on that day.

      2. The total amount of interest payable is the sum of the amounts calculated under subsection (2) for each day in the interest period.

      3. If the chief executive is satisfied that a person has been paid more interest than was payable, the chief executive may recover the amount of the excess in accordance with section 150 as if that amount were an amount refunded by Customs in error.

      4. The chief executive’s obligation under subsection (1) is suspended pending the outcome of any appeal lodged by the chief executive under this Act or any other enactment against a decision requiring the duty to be refunded.

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