How to Calculate Duties and Taxes on Imports to New Zealand is a critical step for any international business or consumer. Import duties and taxes are mandatory charges based on a product’s classification (HS Code), its value, and its country of origin. In New Zealand, the primary tax is the Goods and Services Tax (GST) at 15%. The New Zealand Customs Service (NZCS) generally does not collect duty, fees, or GST on shipments valued at NZ$1,000 or less, which serves as the de minimis threshold for both duty and tax. However, special rules apply to low-value eCommerce sales.
Import duty rates in New Zealand are determined by the specific classification of the goods, which is identified using the Harmonised System (HS) code. New Zealand uses an extended classification structure, requiring the 8-digit Tariff Code for import entries, often combined with a 3-digit statistical code for a full 11-digit classification. The duty rate is applied to the Customs Value of the goods, which is typically the transaction value. Preferential duty rates may apply if the goods originate from a country with which New Zealand has a Free Trade Agreement (FTA). The NZCS uses the Working Tariff Document of New Zealand to determine the correct tariff classifications and duty rates.
To accurately calculate import tax in New Zealand, you must first determine the Customs Value and then apply the relevant duty and tax rates. The process for calculating customs duties in New Zealand is based on the transaction value of the goods. For the purpose of the de minimis threshold, the value is assessed on a Free On Board (FOB) basis, meaning the cost of the goods alone, excluding international freight and insurance, is used to check if the NZ$1,000 limit is exceeded. If the FOB value is NZ$1,000 or less, no duty or GST is collected at the border, provided the goods are not alcohol or tobacco.
For commercial imports valued over NZ$1,000, the importer must lodge an electronic declaration via the Trade Single Window (TSW) system. The calculation of the final landed cost involves three main components: Customs Duty, Goods and Services Tax (GST), and Border Clearance Fees. The standard GST rate is 15%. When calculating GST on dutiable goods, the value used is a CIF-like basis, which includes the cost of the item, international freight, insurance, and any applicable import duty. This is a key factor in understanding how import duty is calculated in New Zealand and how to use an import tax calculator New Zealand businesses rely on. Additionally, shipments over the de minimis threshold incur the Import Entry Transaction Fee (IETF) and the Biosecurity System Entry Levy (BSEL).
Determine the Customs Value (Transaction Value) of the goods. For the NZ$1,000 de minimis check, this is the FOB value (cost of goods only).
Classify the goods using the 8-digit New Zealand Tariff Code to find the applicable Customs Duty rate (ad valorem).
Calculate the Customs Duty: Duty Rate (%) x (Customs Value). Note: If the FOB value is NZ$1,000 or less, and the goods are not alcohol/tobacco, the duty is zero.
Calculate the Goods and Services Tax (GST): GST is 15% and is calculated on the total of (Customs Value + International Freight + Insurance + Customs Duty).
Add applicable border fees (IETF and BSEL) to the total Duty and GST to find the final payable amount.
Low-Value B2C Shipment (NZ$500): If an overseas retailer is registered with Inland Revenue, they must collect 15% GST (NZ$75) at the point of sale. No duty, GST, or fees are collected by NZ Customs at the border.
High-Value Commercial Shipment (NZ$1,500): The shipment exceeds the NZ$1,000 de minimis. Customs Duty (if applicable) and 15% GST are calculated and collected at the border, along with the IETF and BSEL fees.
Alcohol/Tobacco Shipment (NZ$500): Despite being below the NZ$1,000 threshold, the goods are subject to specific Excise Duty and 15% GST, which must be paid at the border.
Misclassifying the goods: Using only the 6-digit international HS code instead of the full 8-digit New Zealand Tariff Code can lead to incorrect duty rates and penalties.
Ignoring the Low-Value GST Rule: Assuming all low-value imports are tax-free. Overseas sellers must register and collect GST on B2C sales under NZ$1,000 if their annual sales exceed NZ$60,000.
Under-declaring the value: Declaring a value lower than the actual transaction price to avoid duties can result in penalties, delays, and customs audits.
New Zealand's low-value goods (LVG) GST regime requires non-resident businesses to register with Inland Revenue and collect 15% GST on B2C sales of goods valued at NZ$1,000 or less if their total sales to New Zealand consumers exceed NZ$60,000 in a 12-month period. This is a crucial distinction for eCommerce businesses looking to calculate import tax in New Zealand. For goods where the GST has been collected by the overseas supplier, the NZCS will clear the goods without collecting GST at the border. Furthermore, New Zealand offers preferential tariff treatment under various Free Trade Agreements (FTAs), which can reduce or eliminate Customs Duty entirely, provided the goods meet the relevant Rules of Origin.
The de minimis threshold for both import duty and GST is NZ$1,000 (based on the FOB value of the goods). Shipments below this value are generally exempt from duty and border-collected GST, unless they contain alcohol or tobacco.
The primary import tax is the Goods and Services Tax (GST), which is charged at a standard rate of 15% on the total value of the imported goods, including duty, freight, and insurance.
Customs valuation is primarily based on the Transaction Value (the price paid or payable for the goods). For the NZ$1,000 de minimis check, the FOB value (excluding shipping/insurance) is used. For calculating GST on dutiable goods, the value is the CIF-like total (cost + insurance + freight + duty).
Commercial importers bringing in goods valued over NZ$1,000 must lodge an electronic declaration using the Trade Single Window (TSW) system.