This fact sheet explains the customs and regulatory requirements for private importers, including immigrants, bringing a vehicle to New Zealand.
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ISSN 1175-396X
29 CUSTOMS FACT SHEET » IMPORTANT INFORMATION
ADVICE ON PRIVATE MOTOR
VEHICLE IMPORTS
This fact sheet explains the customs and regulatory requirements for private importers, including
immigrants, bringing a vehicle to New Zealand.
WHAT CUSTOMS CHARGES APPLY WHAT LEGAL REQUIREMENTS MUST » the vehicle and its components and
TO IMPORTED VEHICLES? MOTOR VEHICLES MEET? systems are still within safe tolerance
In general, motor vehicles and Certification of their state when manufactured.
motorcycles are free from tariff duty All new or used motor vehicles, including The importer is responsible for
and only subject to a goods and services motorcycles, imported into New Zealand supplying evidence of a vehicle’s
tax of 15 percent. The exceptions are must be certified by NZ Transport compliance with New Zealand legal
ambulances and motorhomes (vehicles Agency (NZTA)-approved certifiers requirements, in particular compliance
for the transport of persons specially as complying with New Zealand legal of the vehicle with relevant approved
equipped for habitation, ie, with requirements, before they can be standards.
sleeping, cooking, and toilet facilities), registered for use on public roads in In some cases, it may not be possible to
which are subject to duty at the rate of New Zealand. certify a vehicle for registration and use
10 percent in addition to GST.
The purpose of certification is to in New Zealand. For example:
The absence of tariff duty does not establish that a vehicle complies with » often vehicles manufactured in
necessarily make a privately imported relevant approved vehicle standards, and Asia or Africa do not comply with
vehicle an economic proposition after is still within safe tolerance of those approved vehicle standards
shipping/insurance costs have been standards. The applicable standards
taken into consideration. Importers are » some vehicle manufacturers do not
depend on the vehicle type and date of
also cautioned that the New Zealand or cannot supply information on
manufacture and/or first registration.
used motor vehicle market is awash with compliance with approved vehicles
Certification requires the identification standards.
late model imports.
of the vehicle and the sighting of
Where the value of a motor vehicle documentation to prove its original Frontal impact rules
amounts to $1,000 or more, Customs compliance with approved standards. From 1 April 2002, all Class MA
requires that the vehicle be entered NZTA-approved certifiers must be passenger vehicles (passenger vehicle
on an Import Entry. An import entry satisfied with any documentation that has not more than nine seating
transaction fee (IETF) will be payable. provided for certification and may positions including the driver’s seating
The IETF is $29.26 (GST inclusive). request confirmation or additional position) must comply with an approved
A biosecurity system entry levy of information. frontal impact standard before they can
$19.98 is collected by Customs on be certified and registered for use in
The certification process also consists
behalf of the Ministry for Primary New Zealand for the first time, unless:
of a physical inspection of a vehicle to
Industries (MPI). This levy will be ensure that: (a) the vehicle was border checked
charged on all imports that attract the before 1 February 2002, or
» the vehicle has not been modified
IETF. The funds collected by Customs (b) the vehicle was first registered
from the levy are paid to MPI. » replaceable components are original,
outside New Zealand 20 years or
or replacements comply with
more prior to being certified for
approved standards
entry into service in New Zealand.
Issue date October 2018CUSTOMS FACT SHEET 29
The vehicles listed in (a) and (b) above Both documents are available on Once qualified for a depreciation
may be certified at any time, provided NZTA’s website www.nzta.govt.nz and deduction the depreciation period is
they meet other applicable requirements. can be requested from the NZTA help measured from the time of delivery
In practice, this means that any class desk (Email: info@nzta.govt.nz, or (the date possession is taken following
MA passenger vehicle to be certified for Freephone: 0800 699000). purchase) until the date on which the
registration for the first time on or after Potential importers are strongly ship or aircraft carrying the vehicle
1 April 2002 must have documentation advised to contact NZTA and obtain arrives in New Zealand territorial waters.
or other evidence proving that the all necessary documentation prior to Depreciation is not given if a vehicle
vehicle meets an approved frontal making arrangements for shipping a is ordered from New Zealand, for
impact standard, except in the two cases vehicle. example, over the internet, and the
outlined above. owner does not take delivery in person
HOW ARE CUSTOMS CHARGES overseas and use the vehicle prior
Any class MA passenger vehicle that
CALCULATED? to handing it over for shipping to
does not meet an approved frontal
impact standard will need to have been Customs value this country. Value is determined in
certified (ie, issued with a MR2A) before Duty and GST are calculated on the accordance with Schedule 4 of the
1 April 2002 to enter the New Zealand customs value of privately imported Customs and Excise Act 2018. In
vehicle fleet for the first time (except new or used motor vehicles, which general terms this will be the full cost of
in the two cases outlined above). It is is determined in accordance with the purchasing the vehicle or motorcycle.
neither sufficient for the vehicle to only provisions of the fourth Schedule of
have a vehicle identification number the Customs and Excise Act 2018. PERIOD OF DEPRECIATION
OWNERSHIP AND DEDUCTION
(VIN) issued, nor sufficient for the In normal circumstances, the customs USE OVERSEAS (%)
vehicle to be in the certification process value is determined as the price paid or
payable overseas for the vehicle (which Less than 90 days 0
but not yet certified (for instance,
because it requires structural or other includes overseas vehicle registration 3 months or more,
fees and insurance costs paid to the but less than 4 months 13
repairs).
retailer) by the importer, less: 4 months or more,
For detailed information on how to
» any overseas duties or taxes included but less than 6 months 20
prove that a vehicle meets an approved
frontal impact standard, refer to the in the price paid which have been 6 months or more,
NZTA website: www.nzta.govt.nz rebated or refunded before the but less than 9 months 27.5
vehicle arrives in New Zealand 9 months or more,
Vehicle odometer
» an allowance for depreciation if the but less than 1 year 35
The Customs Import Prohibition Order 2017
vehicle has been personally owned 1 year or more,
prohibits the importation of any motor
and used by the importer overseas but less than 2 years 50
vehicle with an odometer reading that
for not less than 90 days prior
does not correctly record the distance 2 years or more,
to the arrival of the vehicle in but less than 3 years 60
that the vehicle has been driven. The
New Zealand.
importation of any motor vehicle that 3 years or more,
lacks an odometer at the time of Depreciation but less than 4 years 70
importation is similarly prohibited. The following depreciation deductions
4 years or more 75
can be made from the purchase cost
More information
of a vehicle or motorcycle owned and In normal circumstances, the maximum
Please contact NZTA for advice on
used overseas by the importer prior to depreciation is 75 percent, but a special
matters relating to vehicle standards
shipping to New Zealand. deduction (tropical depreciation) may
and safety requirements. NZTA has
the following documents available for To qualify for a depreciation deduction be allowed in some instances where
potential importers: the vehicle must have been owned and it can be demonstrated that high heat
used by the importer for a minimum and humidity have accelerated the
» Factsheet 44 — Bringing a light
period of 90 days from the time of deterioration of a vehicle.
vehicle into New Zealand
delivery after purchase to the date of
» Infosheet 1.67 — Certification of handing in for shipment, or date of
imported motor vehicles. departure of the owner whichever is
earlier.
Advice on Private Motor Vehicle Imports Issue date October 2018 2CUSTOMS FACT SHEET 29
Exchange rates the fourth Schedule to the Customs
(e) Freight, insurance and
To calculate the GST (and duty, if a shipping costs
NZ$4,500.00 and Excise Act 2018. For example, an
campervan is involved) payable on the alternative method of valuation may be
depreciated value, it is necessary to (f) GST value = (c) + (d) + (e) NZ$24,379.00 used when:
convert the currency of purchase into » the importer has purchased the
(g) Goods and Services
the New Zealand dollar equivalent. Tax (GST) = 15% of the NZ$3,656.85 vehicle overseas at an unrealistically
Exchange rates used by Customs are total of (c) + (d) + (e) low or token price
published fortnightly in the Customs » the vehicle was acquired by the
Payable
Release and remain in force for a two- importer as a gift or prize
week period. A listing of the current NZ$3,656.85
Customs charges payable » the vehicle was constructed overseas
exchange rates used for Customs’ (d) + (g) (exceeds the de
minimus) by the importer
purposes can be obtained from any
Customs office or on the Customs Import entry transaction
NZ$49.24 » the value of the vehicle has been
fee
website www.customs.govt.nz (These altered significantly after the date
rates may differ slightly from the Total Payable NZ$3,706.09 of purchase, for example, by
currency rates published by overseas major restoration, modification or
trading banks). Motorhome (campervan) owned and improvement, replacement of parts
used overseas by the importer for two and running repairs; or because
Shipping and marine insurance years but less than three: of significant structural damage
charges
which occurred after the vehicle was
Enquiries concerning these charges (a) Value for duty of
vehicle — (pounds sterling)
£18,000.00 acquired overseas by the importer
should be made to a shipping company
trading with New Zealand. (b) Value for duty of » use of the depreciation allowance
vehicle (NZ$) – converted
NZ$58,065.00 results in an unrealistically high
Goods and services tax (GST) using Customs exchange
rate eg at 0.31
Customs value.
GST is charged on all goods (including To determine an alternative valuation:
motor vehicles) imported into New (c) Value for duty after
NZ$23,226.00
Zealand, even though the transaction 60% depreciation allowed » the New Zealand market value
has been conducted offshore and the of the vehicle, as imported, is
(d) Duty = (c) at a rate of
purchase price may already incorporate duty of 10%
NZ$2,322.60 established
a local value-added or sales tax (e) Freight, insurance and » a series of deductions is made for
NZ$4,500.00
component. The current rate of GST shipping costs such things as overseas freight and
is 15 percent. GST is calculated on (f) GST value = (c) + (d)
NZ$30,048.60
insurance, duty (where applicable),
+ (e) GST and normal mark-ups, until
the customs value of the vehicle, plus
duty (if any), plus the cost of shipping (g) Goods and Services a nominal value for duty can be
Tax (GST) = 15% of the $4,507.29
the vehicle to New Zealand (including total of (c) + (d) + (e) determined
insurance charges). » duty (if applicable) and GST are
Payable
calculated on the nominal value.
Examples of calculations
NZ$6,829.89
Vehicle owned and used overseas by the Customs charges payable
(exceeds the de DO CUSTOMS CHARGES APPLY
importer for six months, but less than (d) + (g)
minimus) TO MOTOR VEHICLES OR BOATS
nine: Import entry transaction IMPORTED BY PERSONS ARRIVING
NZ$49.24
(a) Value for duty of fee WITH A DOCUMENT AUTHORISING
£8,500.00
vehicle — (pounds sterling) RESIDENCE?
Total Payable NZ$6,879.13
(b) Value for duty of A person arriving in New Zealand who
vehicle (NZ$) – converted
NZ$27,419.00 Note: on the date of importation of the goods
using Customs exchange
rate eg at 0.31 Duty in addition to GST charged at the holds a document authorising residence
normal rate. in New Zealand has the ability to import
(c) Value for duty after
27.5% depreciation NZ$19,879.00 a motor vehicle, motorcycle, and/or
Other valuation methods
allowed small ship (generally a trailer-borne boat)
Where an importer supplies insufficient without having to pay the standard GST
(d) Duty = (c) at a rate of
duty of 0%
NZ$0.00 or unsatisfactory information, Customs normally levied on all imported goods
may determine a value employing one (this is called concessionary entry).
of the alternative methods provided in
Advice on Private Motor Vehicle Imports Issue date October 2018 3CUSTOMS FACT SHEET 29
In the case of a motorhome or or producing false documentation to Rules on ownership and use
campervan, the concession also grants enter goods under concessions. The The actual age of a vehicle/boat is
relief from tariff duty. It is possible to penalties include monetary fines and, of no relevance in terms of eligibility
claim the concession for more than one in addition, forfeiture of the goods for duty-free entry. Assuming that an
vehicle, motorcycle, or boat, provided all concerned. importer meets the relevant residency
the conditions set out below can be met A document authorising residence requirements, the factor which
in respect of each item for which duty in New Zealand means any of the determines whether a vehicle/boat
(GST) free entry is sought. following: can be imported without payment
A vehicle/trailer-borne boat/motorcycle of Customs charges, is the ability to
» a New Zealand passport
will be admitted free of customs charges prove not less than 12 months personal
» an Australian passport ownership and personal use overseas.
if the importer is able to establish that
they: » a current New Zealand residence Lifestyle and work requirements may
visa or permit, or a current returning dictate that an owner is not in a position
» have arrived in New Zealand and
resident’s visa or permit to use a vehicle on a daily basis. This
on the date of importation of the
goods hold a document authorising » a current permanent residence visa will not necessarily disqualify a vehicle
residence in New Zealand, and (including a resident return visa) from concessionary entry, provided the
issued by the Government of the owner is able to satisfy Customs that
» have for the whole of the period of
Commonwealth of Australia the vehicle in question was at all times
21 months preceding their arrival,
» a current New Zealand work visa or available for use if required. The key
resided outside New Zealand or been
work permit that was issued for a element is that the periods of actual use,
domiciled outside New Zealand, and
minimum of 12 months if not continuous, should span a full
» have personally owned and used the twelve months.
vehicle or boat overseas for at least » a current New Zealand work visa
or work permit, issued under the Vehicles/boats will not, however,
one year before the date of their
Work to Residency (Skilled Migrant qualify if the owner surrenders them
departure for New Zealand, or for
Category) policy or the Long Term for shipping to New Zealand before the
at least one year before the date that
Business Visa/Permit category anniversary of the day on which original
the vehicle or boat is surrendered
» a current New Zealand visitor’s delivery was taken. For example, if a
for shipping (or, where the boat is
visa or permit that was issued for a vehicle was purchased on 10 June and
imported other than as cargo, the
minimum of three years. delivery taken on that day, it must not
date of its departure for
be handed over to be shipped before
New Zealand), whichever is the
Ships 10 June of the following year, and the
earlier, and
For boats/ships (defined for this owner must not leave for New Zealand
» give a written undertaking, in such purpose as a sailing vessel exceeding before this date.
form as a Customs officer may 2.5 metres in width or a powered Documentary evidence of personal
require, that if any such vehicle or vessel exceeding 7 metres in length), ownership and use of the vehicle/boat
boat is sold or otherwise disposed of concessionary entry is restricted to must be produced, for example:
within two years from the date of its persons who on the date of importation
importation, they will forthwith pay of the ship hold a document authorising » dated receipt covering purchase
to Customs the Customs charges that residence in New Zealand and are and showing date on which actual
would have applied at the time of arriving to live in New Zealand for the delivery was taken
their importation, or pay to Customs first time, provided that the importer » registration papers or copies certified
such lesser sum as may be required. can prove ownership/use of at least by the appropriate authority
The conditions set out above are 12 months. These craft are also subject » evidence of the date on which the
strictly applied and Customs has no to a two-year moratorium on sale or vehicle/boat was surrendered for
discretionary licence to adapt them to disposal and a written undertaking will shipment to New Zealand
suit particular circumstances, no matter also be required to ensure that any such » odometer reading at the time the
how unusual or deserving these may boat will not be used in a commercial vehicle was surrendered for shipping
be. There are heavy penalties under the capacity for hire, or for the transport of to New Zealand.
law for those who are found guilty of cargo or the carriage of passengers for
making false or misleading declarations reward, within two years of the date of
importation.
Advice on Private Motor Vehicle Imports Issue date October 2018 4CUSTOMS FACT SHEET 29
Note: Import clearance type of cover for damage by accident,
For the purposes of the concessions, After the vehicle has been inspected by fire, loss, theft, and so on. No-claims
the expression ‘personally owned’ shall MPI, importers should obtain an import bonus schemes also operate, so owners
extend to ships (boats), aircraft and clearance from Customs. The following should bring documentary evidence of
motor vehicles including motorcycles documents will be of assistance in past motor vehicle ownership.
(in this note referred to as ‘the goods’), clearing a motor vehicle:
Personal belongings in vehicles
which are: » passport, if the importer travelled It is recommended that you do not pack
» leased by the importer for a period overseas to purchase the vehicle personal belongings in your vehicle
of at least one year prior to the date » invoice receipt showing total price when it is being shipped to New Zealand
on which the importer departed paid and date of purchase for the following reasons:
from the country of exportation to
» registration papers or certificate of » if your vehicle is not containerised,
New Zealand, or the date on which
permanent export (UK), certificate items are very susceptible to
the goods were surrendered for
of title (USA), or de-registration pilferage and theft while the vehicle
shipping to New Zealand, whichever
certificate (Japan) is on the wharf awaiting shipment or
is the earlier, or
» invoice showing exporting costs collection, or on the vessel carrying
» purchased by way of a hire purchase the vehicle to New Zealand. The
(Japan)
agreement and the importer has vehicle is similarly ‘at risk’ after
had possession for at least one » invoice showing freight costs and
discharge onto a New Zealand wharf
year prior to the date on which the insurance to New Zealand
awaiting collection
importer departed from the country » bill of lading
» many shippers or carriers will not
of exportation to New Zealand, or » odometer reading at time of sale for accept your vehicle for shipment to
the date on which the goods were export to New Zealand New Zealand if it is packed with
surrendered for shipping to New » odometer reading at time of personal belongings
Zealand, whichever is the earlier, importation into New Zealand. » the shipper or carrier is required
provided that in both instances the After Customs clearance has been to present a complete list of what
terms of the lease or of the hire given, the vehicle should be presented is being transported, including the
purchase agreement, as the case may be, to a transport services delivery (TSD) contents of your vehicle, to Customs
have been complied with in full by the agent for inspection and a compliance
importer prior to property in the goods » the complete contents of your
audit. When this has been done, vehicles vehicle must be declared at the time
passing to the importer, and prior to including motorcycles should be
their importation into New Zealand. they are presented to Customs for
registered with the TSD agent. entry into New Zealand. If this is
Vehicles owned/registered by a
Production of false documents not done, you may be subject to a
company cannot be entered under
It is an offence to produce or deliver to fine and the vehicle and its contents
the concessionary entry (reference 80
a Customs officer any document that is may be seized.
concession) as the importer, being a
not genuine, erroneous or defective in a
separate legal entity to the company,
material particular. It is also an offence WHAT DO I NEED TO KNOW
cannot meet the 12 month personal ABOUT VEHICLE IMPORTS FROM
to make a declaration or a written
ownership requirement. AUSTRALIA, JAPAN, THE UK, OR
statement under Section 366-368 of the
EUROPE?
Customs and Excise Act 2018 that is
WHAT HAPPENS WHEN VEHICLES
ARRIVE IN NEW ZEALAND?
erroneous, not genuine or faulty. Importing a vehicle from Australia
Penalties can be as severe as a fine not When purchasing a vehicle in Australia,
Quarantine inspection and cleaning exceeding $10,000 or a term of it is standard practice to pay the dealer
All used vehicles are subject to a imprisonment not exceeding six months for accessories, registration, delivery,
quarantine inspection on arrival by for an individual. A fine of an amount and other associated costs in addition to
a MPI inspector. If the vehicle is not exceeding three times the value of the purchase price of the vehicle. If the
found to be contaminated with soil, the goods to which the offence relates importer arranges independently for the
plant material or animal material, can also be incurred. vehicle to be shipped to New Zealand,
it will require cleaning sufficient to Insurance the value for duty will be confined to
remove the contaminant. The importer Insurance cover can be arranged after those costs paid directly to the dealer.
is responsible for any charges for the owner’s arrival. New Zealand However, if the dealer arranges for the
inspection and cleaning (if required). insurance companies provide the usual vehicle to be shipped to New Zealand,
Advice on Private Motor Vehicle Imports Issue date October 2018 5CUSTOMS FACT SHEET 29
the value for duty is the price of the You should take advantage of the offer
vehicle on board the vessel at the port as the franchise holder has access to
of export (less depreciation, if eligible). an invoice, not available to the owner,
which excludes dealer commission
Importing a vehicle from Japan
from the price paid for the vehicle.
When buying a vehicle in Japan, it is
The invoice you received when buying
common practice to employ an agent
the vehicle includes this commission.
who has access to vehicle dealers and
The net invoiced price can then be used
auctioneers. As well as assisting in the
as the basis for arriving at a value for
purchase of the vehicle, the agent is
duty. Depreciation will also be granted
often used to prepare the appropriate
for the period of personal ownership/
documentation and arrange for the
use, but this period will only commence
vehicle to be shipped to New Zealand.
at the time physical delivery of the
The charges for these services are
vehicle is taken, not from the time at
considered to be associated with the
which the order or payment is made. In
purchase cost of the vehicle and are
other words, depreciation is not given
included in the value for duty and GST.
for a vehicle under construction.
Importing a vehicle from the United Where the distributor does not offer to
Kingdom clear your vehicle through Customs, the
It is relatively easy to purchase a new invoice you received forms the basis of
vehicle tax free in the United Kingdom the calculation to determine the value
and the invoiced price forms the value for duty.
for duty. However, if the sale includes
the cost of shipping to New Zealand, CAN I GET A WRITTEN ESTIMATE OF
value for duty is the cost of the vehicle THE CUSTOMS CHARGES PAYABLE
on board the vessel at the port of export. ON MY VEHICLE?
Based on the information contained in
Tax relief in the country of
this fact sheet, private importers should
purchase
be able to calculate the likely customs
It may be possible to purchase a vehicle
charges payable. Should you have any
for export without payment of local car
doubts about importing your vehicle or
tax and/or value added tax. Contact the
other questions on Customs matters,
manufacturer or dealer.
please contact Customs at the port
Vehicles sold on tourist delivery in New Zealand through which your
schemes vehicle is likely to be imported.
New Zealand residents travelling
overseas to Europe or the United FOR FURTHER INFORMATION
Kingdom are sometimes able to place Contact your nearest office of the
an order with the New Zealand vehicle New Zealand Customs Service, visit the
distributor for the brand concerned and Customs website www.customs.govt.nz
take delivery of the new car ‘tax free’ or call Customs on 0800 428 786
upon arrival at their destination. These (0800 4 CUSTOMS).
vehicles are sold under what is known as
the ‘tourist delivery vehicle’ scheme.
Some New Zealand distributors will be
prepared to import your vehicle for you
when you wish to return to this country.
Office of the Comptroller of Customs, PO Box 2218, Wellington
Phone: +64 4 901 4500 » Fax: +64 4 901 4555 » www.customs.govt.nz
ISSN 1175-396X
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