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Customs and Excise Act 2018

Entry and exit of goods, persons, and craft - Assessment, payment, and recovery of duty - Liability for duty in certain cases

139: Liability of owners of craft for duty on goods unlawfully landed

You could also call this:

"Owners of boats must pay tax on goods brought into New Zealand illegally on their boat"

Illustration for Customs and Excise Act 2018

If cargo, stores, or other goods are brought into New Zealand illegally on a craft, you need to know what happens. The owner and the person in charge of the craft are responsible for paying the duty on these goods. This means they have to pay the duty as if they had imported the goods themselves and followed the rules for importing goods, including entering them in accordance with section 75.

The chief executive can ask the owner or person in charge of the craft to pay any money that is owed. If the chief executive asks for payment, it is assumed that the money is owed unless it is proven otherwise. You are responsible for paying the duty if you are the owner or person in charge of the craft, and you have to pay it even if someone else was also involved in bringing the goods into New Zealand illegally.

If you disagree with a decision made by the chief executive about paying duty, you can either ask for the decision to be reviewed or appeal to a Customs Appeal Authority within 20 working days. You can choose to do one of these options, but not both.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7039407.

Topics:
Money and consumer rights > TaxesTransport and travel > Boating
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138: Liability for duty on goods wrongfully removed or missing, or

"Paying duty on goods that are taken or go missing from a special storage area"

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140: Effect of payment of duty by one person on liability of other persons, or

"If someone else pays the duty on your goods, you don't have to pay it anymore."

Part 3Entry and exit of goods, persons, and craft
Assessment, payment, and recovery of duty: Liability for duty in certain cases

139Liability of owners of craft for duty on goods unlawfully landed

  1. This section applies if cargo, stores, or other goods are unlawfully landed in New Zealand in or from a craft that is within New Zealand.

  2. The owner and the person in charge of the craft are jointly and severally liable for the payment of the duty on the cargo, stores, or other goods as if—

  3. the cargo, stores, or other goods had been imported by them; and
    1. the cargo, stores, or other goods had been entered in accordance with section 75 and the entry had been passed for home consumption.

      1. Liability under subsection (2) does not affect the liability of any other person.

      2. The chief executive may, by notice in writing, demand from the owner or the person in charge of any craft payment of any sum that the chief executive reasonably suspects is owing under this section.

      3. In any proceedings for the recovery of duty, or for a refund of duty paid, under this section, the sum demanded by the chief executive under subsection (4) is presumed to be payable unless the contrary is proved.

      4. A person who is liable for the payment of the duty and 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, do 1 (but not both) of the following:

      5. apply for an administrative review of the decision:
        1. appeal to a Customs Appeal Authority against the decision.

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