Import Transaction Fee

Customs Minister Rick Barker says it is important that importers have the correct information about the new Import Transaction Fee, due to be collected by the New Zealand Customs Service from this Sunday December 1 2002.

The fee of $18 (GST inclusive) will be payable on:
·Every commercial import entry and import declaration for goods with a duty and/or GST liability of $50 or more; and
·Every private import declaration for goods with a value of $1000 or more and with a duty and/or GST liability of $50 or more.

The fee is to cover the cost of ongoing improvements to Customs’ clearance service aimed at ensuring continued fast and efficient clearance of imported goods.

Rick Barker says the Government first announced plans to introduce the fee last December and it has been widely debated since then.

“The Customs Service has provided a lot of information and has just concluded a series of meetings with importers and customs brokers around the country.”

Unfortunately, some business leaders are still perpetuating inaccuracies about the fee. It is not a tax, as the money collected goes directly to Customs to cover the cost of services.

It is also not correct to state that commercial and private importations are being treated differently.
The only difference is the point at which the ITF is triggered:
·Private imports will be charged the ITF where the value is $1,000 or more and the duty and/or GST liability is $50 or more;
·Commercial import transactions will be charged the ITF when the duty and/or GST liability is $50 or more.

There is no change to the duty or GST liability on either private or commercial imports.

New Zealand’s 30,000 importers bring goods worth around $32 billion across the country’s borders each year. Customs expects to collect about $15 million per annum from the Import Transaction Fee - less than 0.05 per cent of the value of goods imported.

Rick Barker says the Customs Service has dramatically improved the rate of release for imported goods.

“The average turnaround for Customs inspections of cargo shipments is now just 12 minutes and in the case of low-risk shipments, Customs staff can often clear goods before they even arrive on the wharf.”

Importers have also gained from efficiencies made in the way goods are shifted onto the wharf. Dramatic reductions in container movements save $200 on each lift.

“All of this has been made possible by the State, saving importers and businesses huge amounts. With increases in import volumes and increased security risks, it is only reasonable that beneficiaries now make a contribution to that work,” Mr Barker says.

http://www.customs.govt.nz/about/news/itf+faqs.asp)