Goods Clearance Fees changes
Changes to Goods Clearance Fees will no longer take effect on 1 June 2020.
Customs' Goods Clearance Fees deferral
The Government has approved a 12-month deferral of scheduled fee changes for Customs’ clearance of imported and exported goods across New Zealand’s borders.
Changes related to Goods Clearance Fees – previously due to start on 1 June 2020 – are now deferred for one year, with effect 1 June 2021.
The move aligns with the Government’s announcement in March to defer the fee reviews of all aviation and border sector agencies.
In December 2019, the Government agreed to changes to Customs fees for clearing imported and exported goods. The changes are now deferred for 12 months with effect 1 June 2020, and relate to:
- Customs’ Goods Clearance Fees
- Customs’ hourly rate for attendance outside working hours
- the recovery of certain costs incurred related to Customs’ services for holders of Intellectual Property Rights.
One change will be implemented from 1 June 2020 as planned – Customs will cease to require Intellectual Property Rights holders to provide Customs with a $5,000 security. Customs will communicate directly with rights-holders regarding the process for returning their security.
In August 2019 Customs sought public feedback on proposed changes to Goods Clearance Fees, recovering costs associated with enforcing Intellectual Property Rights, and the hourly rate for services provided outside standard working hours.
We received 65 submissions from a range of businesses and individuals - the majority from businesses and industry organisations that Customs interacts with. They are summarised in the Summary of Submissions report.
The submissions provided us with a clear picture of the potential impact of proposed changes and this feedback helped to refine the proposals presented to the Minister of Customs. The basis for Cabinet's final decisions are set out in the Cabinet Paper, the Cost Recovery Impact Statement with the final decisions recorded in the Cabinet Minute.
We will be making the individual submissions we received available shortly. Some will be withheld, in whole or in part, at the request of the submitter.
New and updated fees were to take effect on 1 June 2020. The new fees would have reflected where the cost of identifying risks in sea and air cargo lie. Some fees would have increased while other fees, predominantly in the exports space would have reduced.
Download the current Goods Clearance Fees information sheet (PDF 136 MB).
The background to this review set out in the documents listed below:
- Discussion document: Recovering the costs of Customs’ goods-clearance activities (PDF 1.5 MB)
- Information Sheet: Customs goods clearance fees review (PDF 235 KB)
The introduction of an Activity Based Costing model (PDF 2.5 MB) enabled us to identify how we use our resources (people, premises and equipment), and the cost of our goods clearance activities. As a result, we now have greater transparency around how we cost our activities and apply our fees - Pricing and Fee Setting Methodology (PDF 1.8 MB).
We have had our methodology quality assured by PricewaterhouseCoopers (PDF 1.1 MB) to ensure our approach and logic is sound.
You can read the Cabinet material: Public consultation on Customs' Proposed Goods Clearance Fees (PDF 1.2 MB).