Speaker A
Welcome back, we're starting to get a fair few grumbles from you about customs charges on stuff you're buying on the internet.
Learn how NZ Customs charges GST, duty, and fees on online purchases and why you might get unexpected bills when importing goods.
Key Takeaways
- All overseas purchases are subject to GST and possibly customs duty and fees.
- Customs charges must be paid if the total exceeds NZD 60 before goods are released.
- The $400 threshold to avoid charges is not fixed and varies by product and exchange rates.
- Customs charges fund government revenue, not Customs staff or services.
- Consumers should be aware of potential extra costs when shopping online internationally.
Summary
- Online spending in New Zealand has increased by 19%, exceeding $3 billion annually.
- All goods imported into NZ are subject to GST and sometimes customs duty, depending on the product.
- Customs inspects packages randomly and charges GST, duty, import transaction fees, and possibly biosecurity fees.
- If the total customs charges exceed NZD 60, the importer must pay before receiving their goods.
- Many buyers are surprised by these charges as they assume paying online covers all costs.
- The 'magic number' of $400 for avoiding customs charges is a myth; charges depend on product tariff and exchange rates.
- Customs charges collected go to the NZ government’s consolidated revenue fund, not to Customs officers.
- Importers are considered individuals importing goods regardless of intent to resell.
- Customs charges can significantly increase the cost of online purchases, causing frustration among consumers.
- Calculating exact customs charges can be complex and may require detailed information from the Customs website.
Full Transcript — Download SRT & Markdown
Speaker B
You're asking, how come you're getting pinged for GST and duty and stuff when it's never happened before and how do they make up those charges anyway?
Speaker C
The amount of dosh we spend online has jumped 19% in a year to more than $3 billion.
Speaker C
2 million Kiwis will buy something on the net this year alone.
Speaker C
And we don't just buy Kiwi, we buy from just about everywhere.
Speaker C
But it's going to get to you somehow, and if it's coming from overseas, it all goes through the hands of New Zealand Customs.
Speaker C
Excuse me, guys, have you ever had anything stopped at customs?
Speaker D
I bought a dress I bought it from online in America and it's paying $80 in tax for it, which I didn't know about.
Speaker E
No, but my friends have.
Speaker F
And I have to pay and the customs for the GST as well.
Speaker G
All goods coming into the country are subject to GST.
Speaker G
And when we speak to customs duty, it varies from product to product.
Speaker C
But sometimes you do get away with it and your package arrives within days.
Speaker C
Other times you get told.
Speaker G
It'd be customs duty.
Speaker H
$23.19 GST, $39.44.
Speaker G
An import transaction fee.
Speaker H
$22 GST on the import transaction fee, $3.30.
Speaker G
And it might be a biosecurity fee in addition to that.
Speaker H
It totals $101.41.
Speaker C
Ouch.
Speaker C
Amy Webster's a hairdresser, she lives in Dunedin and loves shopping online on sites like.
Speaker H
Trade Me and eBay and just recently bought off Boohoo.
Speaker C
Boohoo is one of the many clothing websites driving a big increase in internet shopping.
Speaker C
And most people say they buy this way because.
Speaker I
It's easier.
Speaker J
Cheaper as well, yeah.
Speaker K
It's easier.
Speaker E
Cheap and fast and good.
Speaker C
Same with Amy, so a bit of a shock to be slapped with a bill.
Speaker C
And she wants to know.
Speaker H
Why?
Speaker C
Amy bought a bunch of dresses at Boohoo for $238 and then another lot a week later in a sale for $130.
Speaker C
The second package arrived within a week, but the first, no sign of it.
Speaker H
So I went on and tracked them and found out they were getting held for clearance.
Speaker G
And your assumption might well be, you know, I've clicked, I've paid my money.
Speaker G
The goods are on the way and that's all there is to it.
Speaker C
Which is exactly what Amy thought until she got a bill for $101.
Speaker H
On top of what I bought, it's a lot of money to have to pay.
Speaker C
And she has to pay it.
Speaker C
When you buy something online from overseas, Customs consider you to be an importer.
Speaker H
It makes no sense to me because I'm not buying the clothes to sell.
Speaker C
Customs says that doesn't matter if your goods are inspected.
Speaker C
And there is duty and GST owed, you have to settle your bill before they release them.
Speaker G
Essentially, it's cash on delivery.
Speaker C
Here's how it works, when your goods arrive in New Zealand, Customs checks them at random.
Speaker C
If yours are picked and the goods you're buying are subject to duty charges, they start an invoice, duty plus GST, which is 15% of the New Zealand value of the postage.
Speaker C
Plus shipping and duty charges, plus an import fee and then any other fees like biosecurity.
Speaker C
When they add these up, if the bill is less than 60 bucks, you don't get charged.
Speaker C
If it's over, you do.
Speaker C
So it's like income tax, you have to pay it.
Speaker G
They are a variation of the combination of taxes across the streams of income and purchasing in New Zealand.
Speaker C
Amy reckons 42%, which is what they're asking her to pay, is way too much.
Speaker H
I think they really need to lower the fee, there's a lot of charges on there like biosecurity fees and transporting fees that I don't think should be on there.
Speaker G
We have some sympathy with people obviously paying customs charges in that.
Speaker G
But the duty and GST is levied by New Zealand government and we enforce the rules.
Speaker G
The money being collected by the Customs Service at the border goes into the consolidated revenue fund for New Zealand Inc.
Speaker G
And it's obviously spent by the government.
Speaker G
It doesn't go to the Customs Service or to customs officers.
Speaker C
None of this is of any comfort to poor old Amy, who's trying to save for her uncle's wedding in Bali.
Speaker C
The dress she wanted to wear to the wedding is still being held by Customs.
Speaker H
Yeah, I got another couple of weeks, otherwise I'm going to have to pay the duty.
Speaker G
Amy's been treated like any other person importing goods into New Zealand on an individual basis.
Speaker G
In this particular case, it's over the de minimis and the money is payable to the New Zealand government.
Speaker B
Now, you might have heard of the magic number of the price of your order is below around $400.
Speaker B
You won't get pinged for GST and customs.
Speaker A
Not true, unfortunately, it's a bit of a myth as the magic number will change depending on factors like which tariff applies to the product you're buying.
Speaker A
And even the exchange rate.
Speaker A
There are too many factors to explain here.
Speaker B
You can work it out from the information on the Customs website, but a warning, you might need a spreadsheet and it makes your brain hurt.
Topics:NZ Customscustoms chargesGST New Zealandimport dutyonline shopping NZimport feesNew Zealand Customsinternational shippingcustoms clearanceimport tax
