Customs' import entry guidelines on how to account for international transportation and insurance costs, where goods have been sold for export to New Zealand on a Cost Insurance and Freight (CIF) or similar basis, are set out below. These guidelines should be used by anyone lodging import entries to ensure that a consistent approach is followed.
Note: the treatment applied under (3) below should not be taken as the default option. All reasonable steps must be taken to obtain a breakdown of individual costs before the import entry is submitted on the basis of the third option below.
Customs will continue to actively confirm the validity and accuracy of import entries irrespective of the treatment adopted.
Treatment of different import entry situations
1. All costs are identified separately
If the cost of the goods, international transportation and insurance are identified separately: Customs' value of the goods must be determined. The Customs value along with the costs of international transportation and insurance should be entered into the relevant fields of the import entry.
2. No breakdown of costs are provided
If the cost of the goods, international transportation and insurance are bundled into a single figure: The person lodging the import entry should take all reasonable steps to obtain a breakdown of the transportation and insurance costs in respect of the shipment, supported by suitable evidence, before completing the relevant fields of the import entry.
3. Breakdown of costs cannot be obtained
If the person lodging the import entry has exhausted all reasonable avenues to obtain the breakdown of costs, e.g. through making enquiries with the importer, seller or freight forwarder: The import entry may be treated in the following way:
(a) Provided that the cost of the goods and costs of international transportation and insurance are included in the bundled price, the total CIF price (including any required additions) may be declared as the Customs value. A value of $0.00 may be entered in the freight and insurance fields of the import entry; or
(b) The Customs value must be established by proceeding sequentially through the other methods of Customs valuation (refer Schedule 2 of the Customs and Excise Act 1996) until the Customs value can be determined. A written independent quote with the same shipping route must also be obtained from a freight forwarder in relation to the shipment. The determined Customs value and quoted transportation and insurance costs are then to be entered into the appropriate fields of the import entry.
For either treatment detailed in (3) above, the person lodging the import entry must make a brief comment in the remarks field specifying which treatment has been applied.
For further information on these guidelines, please contact Trade Assurance at Trade.Assurance@customs.govt.nz. For enquiries relating to the Customs value of the goods, please contact Client Services at VOC@customs.govt.nz.