This page contains information about:

  • how to request a remission
  • remission eligibility.

About remissions

A remission is the cancellation or reduction of excise duty that would normally be payable. A remission applies before duty is paid. A refund returns money for duty that has already been paid.

Excise goods may be eligible for a remission if they meet the criteria in both: 

  • section 145 of the Customs and Excise Act 2018
  • regulations 60 - 64 of the Customs and Excise Regulations 1996.

Remissions are for goods that are: 

  • damaged or deteriorated 
  • destroyed 
  • lost 
  • stolen 
  • diminished in value in an export warehouse
  • of faulty manufacture 
  • abandoned to the Crown.

You need to apply to Customs for an excise duty remission, unless you have been approved by Customs to claim remissions in your excise entries for goods that are damaged, deteriorated or of faulty manufacture.

Request a remission

The Customs-controlled area (CCA) licensee or owner of the goods can request a remission using form NZCS 277. This is available on Business Connect or via PDF.

The digital form on Business Connect can be used to prefill information to save you time when submitting subsequent remission requests.

Business Connect form
  1. Log in to Business Connect using either:
    • your RealMe account
    • a RealMe account created for your organisation (you can create an unverified RealMe account using a generic office email address as the username).
  2. Complete and submit the Business Connect remission request form.
  3. A Customs officer will review your request and contact you to advise the next steps.
PDF form
  1. Download and complete NZCS 277 – Request an excise duty remission (PDF, 443 KB)
  2. Email your completed request form and supporting evidence to Excise-Licensing-National@Customs.govt.nz
  3. A Customs officer will review your request and contact you to advise the next steps.

Claiming remissions without an application

Customs may authorise licensees to claim remissions in excise entries for damaged, deteriorated, and faulty goods. Instead of applying for these types of remissions, licensees keep internal records documenting their remission eligibility and note of the goods remitted when submitting their excise entries. These licensees must use form NZCS 277 for any other types of remission.

Types of remissions

Damaged or deteriorated goods

Due to damage or deterioration, the goods are no longer the same as when they were manufactured and are unable to be used for their intended purpose. You may be eligible for a remission under section 145(1)(a) of the CEA 2018 and Regulation 60 Customs and Excise Regulations 1996

Examples:

  • Alcohol stored in a tank has oxidised.
  • Damage occurs to cans containing alcohol.

Eligibility

  • The condition of the product is altered, resulting in either:
    • value of the goods is reduced.
    • goods cannot be used as intended.
  • Goods have not been removed from Customs-control.
  • The damage or deterioration was not caused by:
    • a deliberate act
    • negligence by the licensee or anyone working for them.
  • Goods must be destroyed under Customs direction for a full remission/refund to be possible.

Evidence required

You will need to provide evidence showing:

  • the nature, cause and extent of the damage or deterioration
  • any other details to support your claim.

Evidence could include, but is not limited to:

  • technical/laboratory analysis (required for all deteriorated goods)
  • photos showing the deterioration or damage
  • any documentation that verifies the damage/deterioration or incident details (for example, insurance reports)
  • a sample of the damaged or deteriorated goods.
Destroyed goods

If an incident has destroyed your goods, leaving them unusable for their intended purpose with no residual value, you may be eligible for a remission under section 145(1)(a) of the Customs and Excise Act 2018 and regulation 61 Customs and Excise Regulations 1996.

Examples:

  • A tank splits, spilling alcohol on the ground.
  • A pallet containing bottled product falls, breaking the bottles.

Eligibility

  • The goods have been destroyed with no residual value.
  • The destruction was not caused by:
    • a deliberate act
    • negligence by the licensee or anyone working for them.
  • Reasonable care was taken to handle the product securely.
  • Goods have not been removed from Customs-control

Evidence required

You will need to provide evidence showing:

  • goods are destroyed
  • reasonable care was taken to prevent the destruction of the goods
  • documents or images that verify what happened and why it happened
  • any other details to support your claim

Evidence could include, but is not limited to:

  • photos of the destroyed product
  • CCTV images of the destruction
  • photos of equipment or documents showing the precautions in place to prevent goods from being destroyed
  • reports such as an Internal incident report or insurance report.
Lost goods

If goods were lost, are no longer in your CCA and cannot be recovered, you may be eligible for a remission under section 145(1)(a) of the Customs and Excise Act 2018 and regulation 61 Customs and Excise Regulations 1996.

Examples:

  • A tank splits, spilling alcohol down a drain.

Eligibility

  • The goods:
    • are no longer in the CCA
    • were not intentionally removed from the CCA
    • had not been removed from Customs-control prior to the loss.
  • The loss was not caused by:
    • a deliberate act
    • negligence by the licensee or anyone working for them.
  • Reasonable care was taken to prevent loss.

Evidence required

You will need to provide evidence verifying:

  • goods are lost
  • how the goods were lost
  • reasonable steps were taken to prevent the loss
  • any other details to support your claim.

Evidence could include, but is not limited to:

  • photos
  • reports such as an Internal incident report or insurance report
  • CCTV images of the product leaving the premises.
Stolen goods

If goods were stolen from your CCA and cannot be recovered, you may be eligible for a remission under section 145(1)(a) of the Customs and Excise Act 2018 and regulation 61 Customs and Excise Regulations 1996.

Eligibility 

  • The goods:
    • were taken from the CCA
    • had not been removed from Customs-control prior to the theft.
  • The loss was not caused by:
    • a deliberate act
    • negligence by the licensee or anyone working for them.
  • Duty cannot be remitted on goods stolen by the licensee’s employees.
  • Reasonable security measures were in place to secure the goods and prevent theft.

Evidence required

You will need to provide evidence showing:

  • goods are stolen
  • where in the CCA the goods were stolen from
  • how the goods were stolen
  • reasonable security is in place to prevent theft
  • an attempt has been made to claim duty from your insurance provider
  • if goods have previously been stolen, reasonable security improvements were made following the previous theft
  • any other details to support your claim.

Evidence could include, but is not limited to:

  • CCTV images
  • photos
  • site map showing where the goods were located when they were stolen and relevant security controls in place (for example, fences and locks)
  • police report
  • insurance report
Diminished in value in an export warehouse

If the value of goods decreased while stored in an export warehouse, the export warehouse can apply for a remission under section 145(1)(a) of the Customs and Excise Act 2018 and regulation 62 of the Customs and Excise Regulations 1996.

An export warehouse is a CCA licensed for the purpose of the deposit, keeping, or securing of imported goods, or of Part A goods, without payment of duty, pending their export.

Eligibility

  • the monetary value of the goods has decreased while stored at an export warehouse
  • the goods were stored pending export.
  • the reduction in value occurred prior to removal from Customs-control.
  • if the goods have not been removed from Customs-control, they may be eligible for a remission
  • if the goods have been removed from Customs-control, they may be eligible for a refund.

Duty will only be remitted or refunded in full if the goods are destroyed under direction from Customs.

Evidence required

You must provide evidence that shows the monetary value of the goods is now less than it was at the point the goods entered the export warehouse.

You will need to provide evidence showing:

  • the value of the goods when the product entered the export warehouse
  • the lower valuation of the goods
  • when the goods were received in and left from the export warehouse (as applicable).

Evidence could include, but is not limited to:

  • sales receipts
  • invoices
  • purchase agreements
Faulty manufacture

If something went wrong in the manufacturing process resulting in the product not being what was intended, unfit for consumption or unsellable, you may be eligible for a remission or refund under section 145(1)(a) of the Customs and Excise Act 2018 and Regulation 63 Customs and Excise Regulations 1996.

Examples: 

  • a mistake with recipe ingredients results in product not being what was intended
  • faulty machinery resulted in the product being processed incorrectly
  • product contaminated in the manufacturing process
  • damage to cans or bottles during the canning or bottling process.

Evidence required

You will need to provide evidence showing the manufacturing fault.

Evidence could include, but is not limited to:

  • technical or laboratory testing or reports
  • photos showing the fault or equipment failure
  • notification of the fault
  • product sample

Abandoning goods to the Crown

Goods still under Customs control may be abandoned to the Crown in some situations. Please contact Customs if you are considering abandoning your goods to the Crown.

Incidents that occur when goods are transported between CCAs

Additional remission criteria applies if the incident occurred while goods were being moved between Customs-controlled areas.

To remain eligible for a remission:

  • the movement must have been authorised by Customs (for example, in an Alcohol Excise Plan general or permit)
  • all conditions of the movement authorisation must have been complied with
  • the incident was not caused deliberately or due to negligence of anyone involved in the movement.

If the transport operator is at fault, the licensee is still responsible for paying duty and seeking reimbursement from the operator or their insurer.

Claiming duty in insurance claims

If your goods are damaged, destroyed, lost, or stolen, include excise duty in your insurance claim. If the insurer covers the duty, include the goods in your entry and pay duty as normal – there is no need to apply for a remission or advise Customs of the incident.

Disposing of goods

To have excise duty fully remitted for goods that are:

  • damaged
  • deteriorated
  • faulty
  • diminished in value
  • abandoned

you must destroy and dispose of them in a manner agreed with Customs.

Explain how you intend to destroy and dispose of your goods in your remission request. Wait for Customs' approval before proceeding. You are responsible for all destruction costs and for ensuring compliance with environmental and local regulations. Your remission will be finalised once you submit proof of destruction and disposal to Customs.

Evidence required

Evidence required depends on the situation.

Licensee destroys goods

Customs will request evidence such as:

  • photos of destruction and disposal along with a declaration listing goods disposed of.
  • sealed tops of destroyed bottles held until next visit by a Customs officer or Customs auditor.

Alternatively, a Customs officer might attend in person to observe the destruction and disposal.

Third party destruction company destroys goods

Customs requires a destruction certificate or confirmation of goods destroyed from the destruction company.

What happens if your remission is declined

Customs can only approve remissions where they are allowed for in legislation. If Customs declines your remission request, you will be advised the reasons for this. You must then include the goods in your next excise entry as normal.

If you are not satisfied with Customs’ decision, you have 20 days to submit an appeal to the Customs appeal authority.