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Customs and Excise Act 2018

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

152: Outward processing

You could also call this:

"Exporting goods for repair and bringing them back to New Zealand with lower duty fees"

Illustration for Customs and Excise Act 2018

When you export goods to another country for repair or refurbishment, and then bring them back to New Zealand, this law applies to you. The goods must be in substantially the same condition as when you exported them, except for the repair or refurbishment. You can bring the goods back into New Zealand and pay a reduced amount of duty on them.

The chief executive will decide the amount of duty you need to pay, based on what the goods would cost if you were importing them for the first time, and the cost of the repair or refurbishment. The cost of the repair or refurbishment includes the value of any new parts or materials used, the cost of the repair service, and the cost of packing and shipping the goods back to New Zealand.

The cost of the repair or refurbishment also includes other expenses like transportation and insurance costs, loading and unloading charges, and any other costs associated with getting the goods back to New Zealand. You will need to pay duty on the goods based on these costs, as determined by the chief executive.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7039425.

Topics:
Money and consumer rights > TaxesBusiness > Industry rulesBusiness > Fair tradingTransport and travel > Import and export
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151: Reimportation of goods exported, or

"Bringing back goods you exported from New Zealand"

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153: Goods from Cook Islands and Niue, or

"Goods from Cook Islands and Niue are usually duty-free when brought into New Zealand."

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

152Outward processing

  1. This section applies to goods if the goods—

  2. have been exported for the purposes of repair or refurbishment; and
    1. will be, or are, reimported; and
      1. when reimported, will be, or are, in substantially the same condition, except for the repair or refurbishment, as they were when exported.

        1. The goods may, subject to any conditions that the chief executive considers appropriate, be readmitted at the rate or amount of duty the chief executive determines would be payable on the goods if the goods—

        2. were imported for the first time; and
          1. had a Customs value equal to the cost of the repair or refurbishment.

            1. In this section, cost of the repair or refurbishment means—

            2. the value of any materials, component parts, and other goods incorporated in the reimported goods for the purposes of their repair or refurbishment; and
              1. the price paid for the service of the repair or refurbishment; and
                1. the packing costs and charges incurred in respect of the goods for their shipment back to New Zealand, including the cost of cartons, cases, and other containers and coverings that are treated for customs purposes as being part of the goods when they are reimported; and
                  1. all expenses of packing incidental to placing the goods in the condition in which they are shipped back to New Zealand; and
                    1. the costs of the following until the goods have left the country of export:
                      1. transportation and insurance of the goods:
                        1. the loading, unloading, and handling charges associated with the transportation of the goods:
                          1. any other charges and expenses associated with the transportation of the goods.