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Changes to requirements for deferred payment account holders to provide securities

Customs is changing the requirement for deferred payment account holders to provide securities.


Prior to 1 October 2019,  if a New Zealand incorporated company did not have a domiciled New Zealand director a security for the credit limit (a bank guarantee or cash deposit) was required.

New Zealand incorporated companies that have at least one Australian or New Zealand director, may no longer need to provide a security if our credit criteria is met. 

The principal credit criteria is the company will need to show that it has sufficient tangible net equity to support the credit limit sought. For audited financial statements the tangible net equity will need to equal or exceed the credit limit requested. For unaudited financial statements the tangible net equity will need to equal or exceed the credit limit by 200%.

Customs deducts the value of intangible items (such as goodwill) when calculating the tangible net equity. If a company has insufficient net equity a security will be required.

Please note this change does not apply to overseas incorporated companies, including those registered on the New Zealand Companies Register. In these cases a security will still be required.

We are reviewing current securities taken prior to 1 October. If a security was provided because of an overseas directorship, we will contact you to advise whether the security is still required.  If the security is no longer required it will be released back to your company’s bank account (cash deposit) or your bank (bank guarantee).  

We expect to complete this work by the end of March 2020.  Should you have any questions regarding the review process, please send an email to securityreview@customs.govt.nz and quote your Customs client code as reference.