Drawbacks

Drawback is the Customs procedure which provides for the refund of duty when goods are imported or excisable are re-exported. The minimum amount of drawback that can be claimed for commercial goods is NZ$50.00. There is no minimum amount for private exporters. For further information see Customs Fact Sheet 1 or more detail can be found below on:

Eligibility

Any person can legally claim drawback if they can provide and substantiate the required information. Drawback applies to:

• goods that were subject to duty on importation
• goods for export which have been produced in New Zealand and are subject to excise duty.

Import duty, excise duty and, in limited circumstances, Goods and Services Tax (GST) may be approved for drawback.

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Drawbacks of GST

Clients who are registered for GST purposes will not receive drawback of GST if the goods are of a kind used in their taxable activity. In addition, the following conditions apply:

• the goods must be found to be faulty or supplied in error
• for faulty goods, drawback must be claimed within 12 months from the date of import
• for goods supplied in error, drawback must be claimed within a two-month period from the date of import There is provision for this period to be extended but is considered on a case-by-case basis
• the person who imports the goods must also be the person who exports them.

Unlike other Customs administrations, there is no provision for travellers to obtain a refund of GST on their purchases when they leave the country. In order to purchase goods without payment of GST, travellers are required to purchase from a duty free shop or arrange for the retailer/supplier to export the goods.

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Application for drawback

An Export Entry form must be lodged with the New Zealand Customs Service at least six working hours (working hours are classified as 8:00am to 5:00pm Monday to Friday, excluding public holidays) before the goods are loaded for export:

• the entry type must be shown as drawback
• the import entry number on which duty was paid must be listed
• you may be required to produce the goods for examination
• invoices and other documents may be required to verify the claim.

Exporters who regularly claim drawback can arrange to lodge periodic drawback entries with Customs.

 

See Export Entries for more information, or contact your local Customs office.

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Re-import of drawback goods

Re-import of goods shipped under drawback is permitted except for certain types of motor vehicles. Duty is required to be paid on re-importation.

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Drawback on motor vehicles

Certain types of motor vehicles (such as motor homes and camper vans) are subject to conditions before a drawback or partial drawback of duty will be approved.

 

The exporter must be able to satisfy a requirement that the vehicle being exported will not be re-imported back into New Zealand within 12 months from date of export.

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