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Customs and Excise Act 2018

Entry and exit of goods, persons, and craft - Assessment, payment, and recovery of duty - Release of goods subject to duty

136: Goods temporarily imported

You could also call this:

"Bringing goods into New Zealand for a short time without paying duty upfront"

Illustration for Customs and Excise Act 2018

If you bring goods into New Zealand temporarily, the chief executive might let you have them without paying duty first. You will need to give a security, like a deposit, that is equal to the amount of duty you would have to pay. The chief executive will give your security back if you export the goods, ship them for export, pack them for export, destroy them, or deal with them in a way the chief executive allows, within 12 months or a longer time the chief executive decides. You must do this within the time limit, or you might have to pay duty.

If you use the goods for industrial or commercial purposes, you will have to pay duty. The chief executive will work out how much duty you owe by comparing the value of the goods when you imported them and their value when you dealt with them. You will pay duty on the difference between these two values. The chief executive will use a special method to work out the value of the goods, which is described in section EE 12(2)(b) of the Income Tax Act 2007.

The chief executive might also use a depreciation rate decided by the Commissioner of Inland Revenue under section 91AAF or 91AAG of the Tax Administration Act 1994 or a rate in a table published by the Commissioner. If you have to pay duty, it can be taken out of your deposit. If you do not deal with the goods within the time limit, you might lose your deposit or have to pay the duty.

There are some exceptions to these rules, like if the goods are imported under a treaty or agreement with another country. The chief executive decides what conditions apply in these cases. This section does not apply to some types of duties, like those under the Trade (Anti-dumping and Countervailing Duties) Act 1988 or the Trade (Safeguard Measures) Act 2014, unless the chief executive says it does. It also does not apply to goods that are excluded by regulations made under the Tariff Act 1988.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7039403.

Topics:
Money and consumer rights > TaxesBusiness > Industry rulesTransport and travel > Import and export
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135: Release of goods subject to duty, or

"Getting your goods from Customs when you still owe duty on them"

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137: Goods temporarily imported for manufacturing, etc, or

"Bringing goods into New Zealand to work on them, then sending them back overseas"

Part 3Entry and exit of goods, persons, and craft
Assessment, payment, and recovery of duty: Release of goods subject to duty

136Goods temporarily imported

  1. The chief executive may, if he or she is satisfied that goods have been temporarily imported, allow goods to be released, so that they are no longer subject to the control of Customs, without payment of duty and on receipt of security that is equal to the amount of the duty payable on the goods.

  2. Subject to any prescribed conditions, the person who gave the security must be released from the conditions of the security, and any deposit of money must be returned, if, within 12 months from the date of importation of the goods or any longer period that the chief executive allows, the chief executive is satisfied that the goods have been—

  3. exported; or
    1. shipped for export; or
      1. packed for export into a bulk cargo container in a Customs-controlled area and the container secured to the satisfaction of the chief executive; or
        1. destroyed; or
          1. dealt with in any manner that the chief executive may allow.

            1. Duty is payable in respect of the goods if—

            2. the goods are used for industrial or commercial purposes or any other purpose the chief executive considers applicable; and
              1. their value for duty, as determined by the chief executive at the time that he or she is satisfied in accordance with subsection (2) that the goods have been dealt with in any of the ways described in subsection (2)(a) to (e), is less than their value for duty, as ascertained in accordance with this Act, at the time of their importation.

                1. The duty is payable on the difference between the 2 values referred to in subsection (3)(b).

                2. For the purposes of subsection (3)(b), the chief executive must determine the value for duty of goods that have been dealt with by using—

                3. the straight-line method of calculating an amount of depreciation loss described in section EE 12(2)(b) of the Income Tax Act 2007; and
                  1. the depreciation rate for that method determined by the Commissioner of Inland Revenue under section 91AAF or 91AAG of the Tax Administration Act 1994 or the rate specified in the table appended to the General depreciation rates published by the Commissioner of Inland Revenue; and
                    1. for duty calculation purposes, the depreciation rate applicable on the date the goods are imported.

                      1. Any amount of duty that is payable under this section may be deducted from any deposit of money given as security under subsection (1).

                      2. If, at the expiry of the period referred to in subsection (2), the goods have not been dealt with in any of the ways described in subsection (2)(a) to (e),—

                      3. any sum secured by way of deposit of money must be retained by the Crown; or
                        1. any sum secured must be paid to the Crown by the importer within 10 working days (or any longer period that the chief executive may allow) after the expiry of the period.

                          1. Subject to any conditions that the chief executive imposes, duty is not payable on goods temporarily imported in accordance with any treaty, agreement, or arrangement concluded by the Government of New Zealand.

                          2. This section does not apply to duties imposed under the Trade (Anti-dumping and Countervailing Duties) Act 1988 or under the Trade (Safeguard Measures) Act 2014 except to the extent allowed by the chief executive of the department of State that, with the authority of the Prime Minister, is responsible for the administration of the Act in question.

                          3. This section does not apply to goods that are declared by regulations made under the Tariff Act 1988 to be goods to which this section does not apply.

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