Plain language law

New Zealand law explained for everyone

Customs and Excise Act 2018

Entry and exit of goods, persons, and craft - Interest and penalties for late or incorrect payments of duty, incorrect refunds of duty, and drawback incorrectly allowed - Penalties: late payments of duty

159: Penalties payable for late payments of duty in certain cases

You could also call this:

"Paying late duty costs extra - you might have to pay a penalty if you're late"

Illustration for Customs and Excise Act 2018

If you do not pay your duty on time, you might have to pay a penalty. This penalty applies if the duty is covered by section 160 and you have not paid the duty in full before the payment date is over. You will have to pay 1% of the duty you still owe at the end of the payment date.

If you still have not paid your duty after seven days, you will have to pay another penalty. This further penalty is 4% of the duty you still owe at the end of those seven days. The payment date is defined in section 160(2), (4), or (6), depending on which one applies to you.

You can find out about getting some or all of your penalty back by looking at sections 165 to 173.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7245122.

Topics:
Money and consumer rights > Taxes
Previous

158: Other cases involving assessments or demands by chief executive, or

"Paying duty on time when other rules don't apply"

Next

160: Cases in which penalties may be payable, or

"When you might have to pay a penalty for paying duty late"

Part 3Entry and exit of goods, persons, and craft
Interest and penalties for late or incorrect payments of duty, incorrect refunds of duty, and drawback incorrectly allowed: Penalties: late payments of duty

159Penalties payable for late payments of duty in certain cases

  1. A penalty is payable in respect of any duty if—

  2. section 160 provides for this section to apply to the duty; and
    1. the duty is not fully paid to Customs before the close of the payment date (see subsection (5)).

      1. The penalty is equal to 1% of the amount of the duty still to be paid to Customs as at the close of the payment date.

      2. A further penalty is payable in respect of the duty if the duty is not fully paid to Customs before the close of the seventh day after the payment date.

      3. The further penalty is equal to 4% of the amount of the duty still to be paid to Customs as at the close of that seventh day.

      4. In this section, payment date has the meaning given to that term in section 160(2), (4), or (6) (as applicable).

      5. See sections 165 to 173 for remissions and refunds of penalties payable under this section.