Fact Sheet 17 - Questions 8 to 9

What additional information should a trust supply?
What security is required?

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 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 level of security required must be appropriate to the applicant’s and Customs’ foreseeable requirements. This is usually a sum equivalent to the anticipated deferred charges for any two consecutive accounting period (months). In assessing this amount, it should be noted that any sum deferred in a month is not due for payment until the 20th day of the following month, by which time the total period of deferment could be up to seven weeks.

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Back to Fact Sheet 17