A new levy regime that has come into effect has made the goods management system fairer by better reflecting the risks and costs associated with border clearance.
Customs Minister Casey Costello said the changes were about fairly recovering costs and also addressing a significant increase in the volume of low-value goods (worth less than NZD 1,000) crossing the border.
Low-value goods imports, people buying online from the likes of Amazon and Temu, more than tripled from 2017/18 to 2023/24, from 7.8 million packages to 24 million packages annually.
“Businesses pay customs levies on the goods they import, but people shopping online in this way often don’t,” she said.
“That growth meant substantially more processing work at the border, and taxpayers were funding almost all the costs involved. That changes from today.”
Customs and the Ministry for Primary Industries make a critical contribution to New Zealand’s economic prosperity and growth by ensuring trade can flow as safely and efficiently as possible.
According to Biosecurity Minister Andrew Hoggard, they protect against biosecurity risks, which could devastate the primary sector, and illegal drugs and other criminal activity that harms communities, costing the economy hundreds of millions of dollars every year, while also preventing illegal export activity and ensuring exports can enter overseas markets with minimal delay or disruption.
“The new goods management fees properly reflect the costs of this work and sit within a long-standing government cost recovery framework where costs are recovered from those who use border services or create the need for them,” said Hoggard.
Costello added that Customs calculates that over four years from 2025/26 to 2028/29, the new goods levy regime will shift NZD 71 million in costs from taxpayers to importers and exporters who create the need for border management services.
The changes taking effect include:
- Different rates for sea and air consignments for both high-value goods (over NZD 1000) and low-value goods (less than NZD 1000 – Customs only).
- Consignment-based charging for low-value goods, replacing charges per cargo report.
- Charging low-value goods transported by international mail.
- Ending taxpayer subsidies for low-value goods and commercial vessels, with full cost recovery for Customs and MPI services.
- The introduction of a commercial vessel charge.
- The introduction of charging international transshipments and empty shipping containers. (Customs only)
The changes were approved by Cabinet last year following extensive industry and public consultation. Customs and MPI have been working with industry stakeholders to ensure that the changes are implemented smoothly.
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