Fact Sheet 7 - Questions 8 to 10

What is the Customs value of goods?
What information does Customs require to calculate the Customs value?
How does the exchange rate influence the value of my goods?

What is the Customs value of goods?

The Customs value, or the value for duty of imported goods, is used to calculate Customs tariff duty rates. The Customs value may not be the same as the amount paid for the goods, because deductions or additions are sometimes necessary. This primary method of valuing imported goods, used by Australia and New Zealand, is known as the transaction value system. It is based on the GATT (General Agreement on Tariffs and Trade) Customs Valuation Code, an internationally approved set of rules used by many trading nations. It enables fair, uniform, and neutral valuation of goods in recognition of commercial reality and prohibits arbitrary or fictitious Customs values. If, for any particular reason, the primary (transaction value) method may not be used, the Code stipulates the application of secondary methods for establishment of Customs values.

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What information does Customs require to calculate the Customs value?

• Name of the seller of the goods. 
• Name of the buyer of the goods.
• Complete description of the goods.
• The selling price to the purchaser of the goods.
• The cost of packaging the goods, which may include labour and other packaging expenses.
• The amount of any royalties payable.
• Particulars of other factors that may vary the selling price of goods such as discounts, rebate, compensation or other.
• The amount of any selling commission and brokerage payable in respect of the goods.
• The value of certain goods and services supplied by the buyer, free of charge or at reduced cost, for use in connection with the production and sale for export of the imported goods.
• The value of any part of the proceeds of any subsequent resale that accrues directly or indirectly to the seller.
• The cost of transportation and insurance including loading, unloading and handling charges.
• Other charges and expenses associated with the transportation of the imported goods until the goods have left the country of export.

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How does the exchange rate influence the value of my goods?

Where the invoiced amount is not in New Zealand dollars, it will be converted to New Zealand dollars at the rate in force on the day the documents are presented to Customs. Exchange rates used by the New Zealand Customs Service are set for a two-week period, and are published one week in advance. (These rates may differ slightly from the currency rates published by overseas trading banks.) The information can be obtained from the Customs website www.customs.govt.nz under Importers/Commercial Importers/Exchange Rates or by contacting the Customs National Call Centre on 0800-428 786 (0800 4 CUSTOMS).

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