# Internet Shopping Import Duties



## pookienuffnuff

Tried searching previous forums but didnt find anything so apologies if I am repeating something. 
I like to buy stuff from back in UK and have it delivered here (NZ). Not only is stuff cheaper but theres more choice. I am not importing stuff commercially. 
I am importing personal effects for personal use and all goods are duty paid (in country of origin).
Now in most countries I understand this is perfectly alright...if duty is paid in country of purchase and its for personal use there is no charge to bring it in. 
BUT it seems that NZ customs are wanting to slap a load of import duties, taxes and spurious charges onto such purchases/imports (if they choose to allocate its worth above $60 regardless of any invoice/receipt).

I am trying to find out how this can be legal...where does their legislation say they can make such charges on personal items?

I am happy to abide by laws if those laws are real and in writing and enacted by due democratic process and fair and equitable. But I have been unable to find a copy of those that pertain to these 'rules' that are being enforced (at random apparently) by NZ customs.

Can anyone point me towards the legislation for this please?

Their website is neither user friendly nor detailed enough...:ranger:

many thanks


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## carosapien

Hi there. There was a discussion about this a little time ago with some useful information.

http://www.expatforum.com/expats/ne...t-some-popular-nz-retailers-3.html#post851213


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## pookienuffnuff

Thanks, tried that one, doesnt really answer my questions. I would like to know how the actions being taken are strictly legal. I would like to see the actual legislation they are using. Of course their website doesnt tell you how to avoid this and where it doesnt apply. Its crazy that they can apply this randomly, choose their own value, ignore receipts, and set a rate so low its frankly ensuring no-one can buy anything outside (over priced through lack of competition) NZ. If we are not importers (ie selling stuff on) then I do not beleive this type of action is legal. But as I say...happy to pay if I can read the legislation in black and white and know its not just some govt department making it up as they go along/feel like it just to bring in extra cash. I have wroked for such departments...its not unheard of until someone challenges them.


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## topcat83

You can do it, but if the value is over a certain amount, you'll be slapped with GST and import duty. I'm still smarting from a shipment of clothes from Marks & Sparks (cost including delivery of £140 GBP) which ended up costing me an extra $80 NZD. Hmph! 

See New Zealand Customs Service : Items coming into NZ


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## toadsurfer

Variety of legislation including GST Act 1985 and Customs and Excise Act 1996. Have a look at s12 GST Act as a starting point.


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## carosapien

pookienuffnuff said:


> Thanks, tried that one, doesnt really answer my questions. I would like to know how the actions being taken are strictly legal. I would like to see the actual legislation they are using. Of course their website doesnt tell you how to avoid this and where it doesnt apply. Its crazy that they can apply this randomly, choose their own value, ignore receipts, and set a rate so low its frankly ensuring no-one can buy anything outside (over priced through lack of competition) NZ. If we are not importers (ie selling stuff on) then I do not beleive this type of action is legal. But as I say...happy to pay if I can read the legislation in black and white and know its not just some govt department making it up as they go along/feel like it just to bring in extra cash. I have wroked for such departments...its not unheard of until someone challenges them.


I suppose they interpret the law as best they can and will continue to do so until someone challenges them in court.

It's annoying though when you've already paid sales tax overseas and then get stung again when you import it into New Zealand. The IRD obviously thinks there's an untapped resource there for them.

A few years ago they were threatening to keep tabs on Trade Me sellers to make sure they weren't earning an income from their sales, with international purchases becoming more popular in New Zealand they're obviously revisiting the whole subject afresh.

It's hard to get a break


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## toadsurfer

Don't know why everyone gets excited by this. The UK, and most other countries in the world, have similar rules.


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## topcat83

toadsurfer said:


> Don't know why everyone gets excited by this. The UK, and most other countries in the world, have similar rules.


Very true. And I certainly think there are good reasons for customs and excise. I just got a bit carried away with the overseas credit card and forgot that it would probably be picked up. 

It does seem to be at the whim of whichever NZ customs officer looks at it on the day though. It must be pretty obvious that a small package of socks and knickers and other single items is for personal use, and is not going to be sold on for a major profit!


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## jawnbc

Most countries have import duties: NZ is no different. They're always designed to achieve two things: offset tax revenue loss for international commerce and to protect local retailers. 

Some overseas vendors will not charge VAT/GST/sales tax when shipping overseas: Amazon.co.uk comes to mind, even though amazon.fr still charges VAT. Most US states no longer have an online sales state sales tax exemption, so you will get double dinged.

There are a few solutions: 1.) don't shop online overseas, 2.) shop whilst out of the country and leverage your customs exemption, 3.) lobby your local MP to change the current law and policies, or 4.) LEAVE.


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## pookienuffnuff

topcat83 said:


> You can do it, but if the value is over a certain amount, you'll be slapped with GST and import duty. I'm still smarting from a shipment of clothes from Marks & Sparks (cost including delivery of £140 GBP) which ended up costing me an extra $80 NZD. Hmph!
> 
> See New Zealand Customs Service : Items coming into NZ


still a bargain I think...quality clothing and no quibble returns ;-)


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## pookienuffnuff

Had this reply from Customs: not yet checked through: 

I can advise that Customs Fact Sheet 29 outlines all the relevant information a person needs to know in respect to Importing goods into NZ.
In regards to Gifts being sent from overseas: I can advise that gifts are also subject to Import taxes - However, a Gift Concession is applied to the overall value of any single shipment of goods entering into NZ. (New Zealand Customs Service : Allowances & duty free concessions)
In regards to finding what DUTY is payable on goods, and not on others: You will need to classify the goods in the Working Tariff Document of New Zealand (New Zealand Customs Service : The Working Tariff Document)

In regards to relevant legislation, in respect to the Charging of import taxes on purchases made abroad: I can advise of the following legislation administered by the Customs service:—
•	Schedule 2 – Valuation of Goods for the Purposes of the Tariff, and;
•	Section 12 of the Goods and Services Tax Act 1985


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## pookienuffnuff

*Importing Regulations*



toadsurfer said:


> Variety of legislation including GST Act 1985 and Customs and Excise Act 1996. Have a look at s12 GST Act as a starting point.


Thanks, will do....


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## pookienuffnuff

jawnbc said:


> Most countries have import duties: NZ is no different. They're always designed to achieve two things: offset tax revenue loss for international commerce and to protect local retailers.
> 
> Some overseas vendors will not charge VAT/GST/sales tax when shipping overseas: Amazon.co.uk comes to mind, even though amazon.fr still charges VAT. Most US states no longer have an online sales state sales tax exemption, so you will get double dinged.
> 
> There are a few solutions: 1.) don't shop online overseas, 2.) shop whilst out of the country and leverage your customs exemption, 3.) lobby your local MP to change the current law and policies, or 4.) LEAVE.


I always pay my taxes willingly, as a socialist, and understand why they exist. I shop locally where I can but if they dont sell it in NZ then I intedn to buy eleswhere. But I like your point re avoiding tax completely by bringing it in with you. What I dont like is when 'taxes' are 'randomly' applied and at the whim of an individual who can also 'make up' what the value is without any regard to receipts or being legally trained as a valuer.


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## jawnbc

pookienuffnuff said:


> I always pay my taxes willingly, as a socialist, and understand why they exist. I shop locally where I can but if they dont sell it in NZ then I intedn to buy eleswhere. But I like your point re avoiding tax completely by bringing it in with you. What I dont like is when 'taxes' are 'randomly' applied and at the whim of an individual who can also 'make up' what the value is without any regard to receipts or being legally trained as a valuer.


Hello comrade!  (seriously; I'm a social democrat)

Great point--and I think that's a significant issue: these rules aren't applied consistently by different customs agents. Same problem in Canada. Can be infuriating.

One thing I've learnt: never order from a US company that uses UPS (not USPS) for their overseas shipping: criminal "brokerage fees".


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## pookienuffnuff

jawnbc said:


> Hello comrade!  (seriously; I'm a social democrat)
> 
> Great point--and I think that's a significant issue: these rules aren't applied consistently by different customs agents. Same problem in Canada. Can be infuriating.
> 
> One thing I've learnt: never order from a US company that uses UPS (not USPS) for their overseas shipping: criminal "brokerage fees".


Yes, I got stung by them once...I wont repeat what I said to them!


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## bdl123

topcat83 said:


> You can do it, but if the value is over a certain amount, you'll be slapped with GST and import duty. I'm still smarting from a shipment of clothes from Marks & Sparks (cost including delivery of £140 GBP) which ended up costing me an extra $80 NZD. Hmph!
> 
> See New Zealand Customs Service : Items coming into NZ


I've just had a shipment of clothes from Debenhams (total incl del £113 GBP) and no extra charges of GST. Have also ordered some kids toys off Amazon, specifically Little Tikes Cozy Coupe Car (much cheaper than buying here) and that's arrived with no charges either. Must be luck of the draw I suppose )

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## pookienuffnuff

bdl123 said:


> I've just had a shipment of clothes from Debenhams (total incl del £113 GBP) and no extra charges of GST. Have also ordered some kids toys off Amazon, specifically Little Tikes Cozy Coupe Car (much cheaper than buying here) and that's arrived with no charges either. Must be luck of the draw I suppose )
> 
> Sent from my iPhone using ExpatForum


Yup, luck of the draw....that what I object to. I too have received many items including leather boots that are half the price of the NZ sale prices inc delivery (so goodness knows what customs would value them at!). Hence I thought there was no charge...then I saw the target/Fair Go programmme!


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## pookienuffnuff

Still...perhaps this is what I need to wean me off my thatcherite consumer culture additiction
;-)


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## bdl123

pookienuffnuff said:


> Still...perhaps this is what I need to wean me off my thatcherite consumer culture additiction
> ;-)



Haha...never!! Missed the Fair Go programme..am I not out of the woods yet then??

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## pookienuffnuff

bdl123 said:


> Haha...never!! Missed the Fair Go programme..am I not out of the woods yet then??
> 
> Sent from my iPhone using ExpatForum


when they arrive at your door you are safe...:clap2:


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## bdl123

pookienuffnuff said:


> when they arrive at your door you are safe...:clap2:


Phew.....😜

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## Song_Si

a 'cautionary tale from today's news about the extra fees that may be incurred when shopping online/overseas.
Full story at link in header
Note the buyer said it would have been cheaper to have made two separate orders.



> *Buyers can face hefty tax bills on online deals*
> 13/09/2012
> Whakatane production engineer Tony Milne reckoned he was getting a good deal when he bought clothes and a mug to the value of US$284 online - until he was landed with a $134 bill from Customs.
> 
> HOW TONY MILNE's BILL WAS CALCULATED:
> Purchase price: US$284.29
> Shipping charge: Did not apply
> Converted at NZ$0.78 @ US$1: $364
> Duty at 10 per cent: $36.40
> GST at 15 per cent (including GST on duty): $60.06
> Import Entry Transaction Fee and biosecurity levy: $38.07
> Total Customs bill: $134.53


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## Song_Si

another option - though the fees and shipping charges look extreme to me 



> New Zealand Post plans to extend its YouShop internet shopping delivery service so Kiwis can easily buy from online retailers based in Europe, Asia and Australia as well as in the United States.
> 
> The move is another blow to traditional shop-owners, many of whom argue they are unfairly disadvantaged because most purchases under $400 made through overseas websites are GST and duty-free.
> 
> YouShop, unveiled earlier this month, lets Kiwi shoppers buy from US online stores that either won't deliver to New Zealand or have high shipping charges. Shoppers ask for purchases to be delivered to an address in the US, from which NZ Post forwards them to their home.
> 
> US air freight company i-parcel, which runs a competing forwarding service called Prezoom from a warehouse in Delaware, said it would also extend that service "imminently" so New Zealanders would be able to have purchases sent on from a delivery address in Britain.
> 
> source


and an example of fees




> YouShop charges $23 to forward a 500 gram package from the US. Prezoom charges $19.50, though a Taranaki shopper said patrons should be aware it could charge more for large, light items, after he was surprised by a $28.50 bill for delivery of a 200 gram lightbulb.
> source


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## NaeTeaspoon

carosapien said:


> A few years ago they were threatening to keep tabs on Trade Me sellers to make sure they weren't earning an income from their sales, with international purchases becoming more popular in New Zealand they're obviously revisiting the whole subject afresh.
> 
> It's hard to get a break


The IRD taxes all earnings in NZ, they weren't threatening to tax Trade Me sellers, they were taxing Trade Me sellers and many were prosecuted (I used to work for the IRD).


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