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Late payment penalties

How late payment penalties are applied.

About late payment penalties

Late payment penalties are charged when you make a late payment, ie you do not pay import duties by the due date, or excise within the prescribed timeframe.

Rates for late payment penalties are:

  • 1% of the amount owing on the day after payment is due
  • 4% of the amount owing on the 8th day after payment is due. 

If you have paid your duty on time for the past two years and have a good payment history then we will automatically remit your late payment penalties. If you are eligible you’ll see this on your statement of liability.

If you are charged with late payment penalties, you will also be charged compensatory interest. See interest and penalties for unpaid duty for descriptions of non-compliance which attracts both interest and penalties.

When late payment penalties are charged

Late payment penalties are charged only when the amount owing (ie that which is subject to late payment penalty) is $1,000 or more. They are charged to the duty payer. See further detail in the Customer Guide: Compensatory interest and late payment penalties (PDF 2 MB) 

Remissions and refunds

The Act sets out the grounds for refund or remission of late payment penalties. You can apply for refund or remission using the form: NZCS 255 Application to remit or refund compensatory interest and/or late payment penalties (DOC 261 KB)

Further information

You can also read Customs operational policy for compensatory interest and late payment penalties.