FACT SHEET
15
CUSTOMS VALUE OF IMPORTED
GOODS
Customs establishes
a value for all
goods imported
into New Zealand
to ensure the
correct amount of
duty is charged.
CUSTOMS VALUATION
The Customs value (often referred to as value for duty) of imported goods is determined using
Schedule 2 of the Customs and Excise Act 1996, which follow the provisions of the World
Trade Organization (WTO) Customs Valuation Agreement.
The Customs value ensures the correct amount of duty is charged and also forms part of the
goods and services tax (GST) calculation.
The GST value of goods is the Customs value, plus duty (if any), plus freight and insurance
costs.
All goods imported into New Zealand must have a Customs value regardless of whether they
have been purchased, supplied free of charge, are personal possessions, or are temporarily
imported.
For more information about importing goods please refer to fact sheet 28.
DETERMINING THE CUSTOMS VALUE
Six methods of Customs valuation can be used, in strict hierarchical order, to work out the
Customs value. The primary method used (whenever possible) is called the transaction value.
The transaction value is calculated by taking the price paid or payable for the imported goods
(shown on the invoice), and adding any of the following amounts not included in the price:
»» commissions and brokerage fees (not including fees paid or payable by the buyer to their
agent for purchasing the goods on their behalf)
»» packing costs and charges
»» the value (apportioned as appropriate) of any goods and services supplied by the buyer
free or at a reduced cost for the production and sale for export of the goods (commonly
referred to as “assists”)
»» royalties and licence fees that the buyer must pay (directly or indirectly) as a condition of the
sale of the goods
»» the value of any part of the proceeds of any resale, disposal, or use of the goods by the
buyer that accrues or is to accrue (directly or indirectly) to the seller
»» the value of any materials, parts, or other goods incorporated to repair or refurbish the
goods before export to New Zealand, and the price paid for the repair or refurbishment
»» transportation and insurance costs, loading, unloading, and handling charges prior to export.
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FACT SHEET
15
The following charges can be deducted when establishing the transaction value if they are
included in the price paid and the amount is identified separately:
»» transport and insurance costs, loading, unloading, and handling charges for the imported
goods from the time the goods have left the country of export
»» any reasonable cost, charge, or expense for the construction, technical assistance, erection,
assembly, or maintenance after the goods are imported into New Zealand
»» any reasonable cost, charge, or expense incurred for the transportation or insurance of the
goods within New Zealand
»» any Customs duties or other taxes payable in New Zealand for the importation or sale of
the goods.
WHEN THE TRANSACTION VALUE METHOD CANNOT BE
USED
The transaction value method is subject to a number of requirements, including:
»» the goods must be subject to a sale between a buyer and a seller
»» the sale must be made with a view to exporting the goods to New Zealand
»» the price paid or payable for the goods has not been influenced by any relationship between
the buyer and seller.
»» there are no restrictions about the use of the goods by the buyer, other than those:
›› imposed by law
›› limiting the geographic area in which the goods may be resold
›› that don’t substantially affect the value of the goods.
If the imported goods haven’t been sold for export, or the transaction value is not acceptable
for the reasons outlined above, the transaction value method can’t be used. Examples of this
include gifts, free samples, goods imported on consignment, goods imported by branches which
are not separate legal entities, and goods imported under a hire or leasing contract.
ALTERNATIVE METHODS
When the transaction value method can’t be used, the first possible method of the five
alternatives below (set out in clauses 4 to 8 of Schedule 2) must be used:
1. Transaction value of identical goods (“identical goods method”)
The transaction value of identical goods previously sold for export to New Zealand is used
as a benchmark to determine the Customs value.
2. Transaction value of similar goods (“similar goods method”)
The transaction value of similar goods previously sold for export to New Zealand is used as
a benchmark to determine the Customs value.
3. Deductive value
The resale price of the goods is reduced to the Customs value that would have existed had
there been a sale. This method would generally apply where the imported goods are sold in
New Zealand within 90 days of importation.
4. Computed value
This method is based on the production cost of the imported goods, plus an amount for
profit and general expenses. This method is generally restricted to situations where the
importer has access to the producer’s production costs.
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Issued March 2015
CUSTOMS VALUE OF IMPORTED GOODS
FACT SHEET
15
5. Residual basis of valuation
If none of the above methods of valuation are suitable, the Customs value of the goods
will need to be determined using information based on an interpretation of one of the
previous methods.
Where applicable, importers can request that the computed value method be used before the
deductive value method.
METHODS OF VALUATION THAT CAN’T BE USED
A Customs value cannot be determined by:
»» the selling price of goods produced in New Zealand
»» choosing the higher of two alternative values
»» the price of goods in the country of export
»» the cost of production, other than computed values determined for identical or similar
goods in accordance with the provisions of clause 7 of Schedule 2
»» the price of goods for export to a country other than New Zealand, unless the goods were
imported into New Zealand
»» minimum customs values
»» arbitrary or fictitious values.
EXCHANGE RATE
The Customs value must be in New Zealand dollars. Any other currency used to determine the
Customs value is converted to New Zealand dollars using the Customs exchange rate on the
day the import entry or clearance is lodged with Customs. The exchange rates are available at
www.customs.govt.nz
EVIDENCE OF CUSTOMS VALUE
Customs carries out post-entry audits to verify the Customs value declared.
Documents of the Customs value are not required to be presented at the time of clearance,
but importers must keep records relating to the transaction for seven years, and produce these
documents if Customs requires them.
Making a false or incorrect entry or declaration and failing to keep relevant records for at least
seven years is an offence and administrative penalties and fines may apply.
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FOR FURTHER
INFORMATION
WEBSITE:
www.customs.govt.nz
Contact your nearest office
of the New Zealand
Customs Service:
FACEBOOK:
www.facebook.com/NZCustoms
Issued March 2015
TWITTER:
@NZ_Customs
CUSTOMS VALUE OF IMPORTED GOODS
TELEPHONE:
0800 4 CUSTOMS (0800 428 786)
from within New Zealand
1800 301 861 within Australia
+64 9 927 8036 from the rest of the world.