Fact Sheet 16 - Credit Facility for Customs Brokers
This fact sheet outlines the Broker Deferred Credit Facility (BDCF) offered by the New Zealand Customs Service (Customs) to approved customs brokers. It explains how the credit facility operates and how to apply to participate.
The BDCF is administered from the National Credit Control Unit (NCCU). It allows approved customs brokers to defer the payment of Customs charges (including GST) accounted for on Customs import entries lodged on behalf of importers.
How does the facility operate?What charges can be deferred?What charges cannot be deferred?How do I use the facility?How do I apply for admission to the facility?What additional information should a trust supply?What security is required?Will I receive regular statements?What happens if an import entry is cancelled?How do I pay?- How does the facility operate?
- A customs broker can apply for approval from Customs to open an account on the BDCF. The facility is a payment option that allows selected import entries currently classified as “CASH” to be cleared on a similar basis as a deferred import entry. The import entry (debt) is posted to the customs broker’s account, and a statement is issued and sent to the relevant customs broker for payment. The main advantages of the scheme are:
- Deferral of the payment of Customs charges for up to 21 days with a minimum period of seven days. The statement total must be paid in full on the due date.
- No requirement to immediately pay on each Customs import entry. Instead, customs brokers have an account with Customs and can settle a group of transactions with a single direct debit payment.
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- What charges can be deferred?
- All charges that are accounted for on Customs import entries can be deferred:
- Customs Duty.
- GST.
- HERA Levy.
- ALAC Levy.
- Import Transaction Fee.
- MAF Biosecurity Risk Screening Levy.
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- What charges cannot be deferred?
- You cannot use this facility to defer payment for charges relating to:
- Simplified Import Entries, unless an importer code is used.
- Assessment Notices.
- Temporary Import Entries.
- Sight Entries.
- Additional Duty Notices.
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- How do I use the facility?
- You can use your account at any Customs Port in New Zealand. An import entry can be placed onto your account at the time you lodge your client’s import entry. At the time of each lodgement, it is important to record your credit facility account number (broker code) and select broker deferred in the payment method field of the entry. This identifies the import entry as a BDCF type. (You are unable to change the payment status of an entry once the entry is cleared, however you may contact Customs to change the payment method) Please note: Charges on an import entry for an importer who is on the deferred payment scheme can not be charged through to the BDCF facility.
- The debt will be raised and posted to the broker’s account at the time the entry is passed. Entries are passed automatically by Customs following completion of the entry processing checks.
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- How do I apply for admission to the facility?
- Send the following to New Zealand Customs Service, National Credit Control Unit, PO Box 29, Auckland:
- Completed Application for Credit Facility for Brokers Registration form (NZCS 613).
- Completed Authority to Accept Direct Debits form (NZCS 615).
- Credit check application fee of $112.50 (GST inclusive) payable by cheque to Customs. (This enables Customs to obtain a credit review on your company from an approved credit agency. If your credit check is unsatisfactory you may need to provide a bank or equivalent guarantee to obtain approval to be admitted to the BDCF. However we will discuss with you the reasons why a security is required. A person dissatisfied with the decision to require a guarantee may appeal against that decision to a Customs Appeal Authority. Details of this process would be provided upon request.)
Note:
The credit check application fee may not be required where:
– A company is registered overseas.
– All of the directors of a company reside outside New Zealand.
– A company is controlled by a trust.
– A company is insolvent.
– A company has been trading for less than nine months.
In these situations a bank or equivalent guarantee would usually be required. (Please contact the NCCU to confirm this.)
- A curriculum vitae detailing your work history and experience as a customs broker, as well as evidence of any association with relevant professional bodies, for example, the Customs Brokers and Freight Forwarders Federation of New Zealand (CBAFF).
- A copy of the Certificate of Incorporation for a registered company.
- Personal identification of the person signing the application i.e. a copy of the application’s birth certificate, New Zealand passport or driver’s licence.
- The applicant will be required to provide evidence of the registration of any security in terms of the Personal Property Securities Act 1999.
If admission to the BDCF is granted you will receive written confirmation showing your broker code, IRD number, bank account number, postal address and credit limit (if applicable). Please check all details and advise the NCCU of any errors. Your account and corresponding file will be administered by the NCCU in Auckland.
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- What additional information should a trust supply?
- A copy of the trust deed.
- The type of trust involved (qualifying, non-qualifying, foreign).
- Its place of domicile.
- Its structure (including the nature of its directorate).
- The worth of the trustee company.
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- What security is required?
- A security for payment (i.e. a bank or equivalent guarantee) will be required for the following:
- A company registered overseas pursuant to Part XVIII of the Companies Act 1993.
- A New Zealand registered company where all of its directors reside outside New Zealand.
- A trust.
- An entity in receipt of an unsatisfactory credit check.
- A company that is insolvent and/or a person who is or has been the subject of a bankruptcy administration.
- A company that has been trading for less than nine months.
A bank guarantee must be executed on or in the format of the Customs form Guarantee for Payment of Sums Due to the New Zealand Customs Service (NZCS 608).
- The guarantor must be a New Zealand based bank or finance company acceptable to Customs. Customs may also consider a cross guarantee in the same form executed by a creditworthy New Zealand registered company with a director resident in this country.
- The guarantor must agree to cover each and every sum deferred, up to an overall maximum amount, which may be outstanding at any time. The maximum amount (the account credit limit) must be sufficient to cover all liabilities likely to occur at any one time.
- For an entity in receipt of an unsatisfactory credit check, upon request, the amount of a security may be amended and/or one security may be substituted for another.
- The requirement of the security is subject to review, upon application, usually after a period of 12 months for new brokers.
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- Will I receive regular statements?
- Account statements will be generated at the close of each fortnight ending on a Wednesday, with payment due seven days thereafter. The statement will be posted to the address specified in the application for registration. The statement will show:
- Broker code.
- The company’s name and address.
- The period covered by the statement.
- The date on which each transaction was posted to the account.
- The lodgement number of each entry and the customs broker’s job number.
- The name and the total debt of each importer.
- The amount of each debit or credit.
- The net amount payable and due date. (This is deemed to be due notice for the amount and time of direct debit payment as required by standard banking practice.)
You will be able to check your statement against your copy of the import entries lodge by you. Customs brokers will be advised of relevant changes made by Customs to the entry after lodgement, by computer, phone or letter, depending upon the system used to lodge entries.
If you need to query your statement, contact the National Call Centre (NCC) on 0800-428 786, Fax: 09-359 6730, E-mail: feedback@customs.govt.nz, or the NCCU, Phone: 09-359 6360, Fax: 09-359 6604, E-mail: creditlimit@customs.govt.nz .back to top
- What happens if an import entry is cancelled?
- Cancelled BDCF import entries will appear on your statement and will automatically reduce the amount due on that statement.
Note:
Credits (other than refunds/drawbacks) processed after the statement date may reduce the amount of the direct debit.back to top
- How do I pay?
- Payment must be made in full by direct debit. A statement produced on a Wednesday will be due for payment on Wednesday of the following week (five working days later).
If payment is not received in full by the due date:
Under
- Section 87(1) of the Customs and Excise Act 1996, an additional duty of five percent of the unpaid amount shall be imposed.
- Compounding additional duty of two percent shall be imposed for each successive month the debt remains unpaid.
- Your credit payment facility will be automatically withdrawn.
- Duty payable on any future importations will be required before delivery from Customs control is given.
- Guarantee held may be brought to charge.
- Customs reserves its right to:
– Take possession of uncustomed goods and to sell them in satisfaction of the
outstanding charges (duty constitutes a charge on goods).
– Seek to recover the debt from the importer.
– Undertake any other enforcement action that its sees fit.
Note: In completing the application, you will be required to complete a declaration acknowledging responsibility for payment of all duty/GST due from the importer to Customs, and that Customs has the right to seek payment from you for any duty owing to Customs without first seeking payment from the importer.
Can my acount be reinstated?
Reinstatement of your account may be considered when the payment default of the account was due to a genuine error and where that error is rectified immediately. If you fail to meet the reinstatement criteria, you will be required to:
- Make payment of the deferred account in full, including the statement amount.
- Provide an approved guarantee. Customs may review this upon written application after a minimum of six months.
For further information, contact your nearest office of the New Zealand Customs Service, visit the Customs website www.customs.govt.nz, or call National Credit Control Unit on 09-359 6360 or E-mail: creditlimit@customs.govt.nz
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Guarantee for Payment of Sums due to the New Zealand Customs Service - NZCS 608
Application for Credit Facility for Customs Broker Registration - NZCS 613
Authority to Accept Direct Debits - NZCS 615