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New Zealand
Customs rules for importing motor vehicles

GST ONLY AND NO IMPORT DUTY IS LEVIED ON MOTOR CARS OR MOTORCYCLES.
MANY IMPORTERS WILL ALSO QUALIFY FOR GST FREE ENTRY.

The Rules and Regulations for importing motor vehicles into New Zealand are fairly straightforward and the New Zealand Government has, over the years, been fairly consistent with it’s policy i.e. changes to the requirements are very infrequent.

IMPORT LICENCING & DRIVING LICENCES – an Import Licence is not required to import motor vehicles or motorcycles. A UK Driving Licence is normally valid for up to 3 months whereafter a Written Test and a Medical Examination should be taken so as to obtain a New Zealand Licence. Proof of any driving insurance no claims bonus in the UK can be used to reduce premiums in New Zealand.

NORMAL METHOD OF VALUATION – the Customs Value, upon which GST (Goods & Services Tax) is levied, is normally determined as being the actual purchase price paid less any costs included in that purchase price that are refunded before the vehicle arrives in New Zealand, less an allowance for depreciation if the vehicle has been personally owned and used by the importer for not less than 90 days prior to the date the vehicle arrives in New Zealand, plus the cost of shipment to New Zealand.

DEPRECIATION ALLOWANCE – if a vehicle has been personally owned and used overseas for more than 90 days then the following table shows the depreciation allowance to be deducted from the purchase price, so as to arrive at a ‘Customs Value’:
  • Less than 90 days = 0.0 %
  • More than 3 months but Less than 4 months = 13.0%
  • More than 4 months but Less than 6 months = 20.0%
  • More than 6 months but Less than 9 months = 27.5%
  • More than 9 months but Less than 12 months = 35.0%
  • More than 1 year but Less than 2 years = 50.0%
  • More than 2 years but Less than 3 years = 60.0%
  • More than 3 years but Less than 4 years = 70.0%
  • More than 4 years = 75.0%
DUTY & EXCHANGE RATES – Duty is no longer levied on motor cars or motorcycles however duty is levied on motorhomes & camper vans at a rate of 17.5% and on buses at a rate of 7%. The Customs Department in New Zealand use the exchange rate in force at the time the vehicle is entered into New Zealand, i.e. the day your Customs Import Entry to clear your vehicle is lodged. The exchange rates used are published in the New Zealand Gazette each fortnight and remain in force for a two week period. The exchange rate in current use at any particular time can be obtained from any Collector Of Customs.

GOODS & SERVICES TAX – GST is levied on the Customs Value, plus the total cost of shipping to New Zealand. The current rate of GST is 12.5% on all vehicles that do not have concessionary entry.

EXAMPLES OF GST PAYABLE CALCULATIONS – the calculation for a car or motorcycle costing £5000 and owned and used by the importer for more than 4 months but less than 6 months would be:
  1. Purchase Price = £5,000
  2. Purchase Price in NZ$ (say £1 = NZ$2.6)= $ 13,000
  3. Less Depreciation Allowance of 20% = $2,600
  4. Customs Value = $ 10,400
  5. Shipping & Shipment Protection Costs, say = $4,000
  6. GST Value d) + e) = $ 14,400
  7. GST Payable at 12.5% of f) = 1,800
If a car or motorcycle cost £5000 and was owned and used by the importer for more than 1 year but less than 2 years the calculation would be:
  1. Purchase Price = £5,000
  2. Purchase Price in NZ$ (say £1 = NZ$2.6) = $13,000
  3. Less Depreciation Allowance of 50% = $6,500
  4. Customs Value = $ 6,500
  5. Shipping & Shipment Protection Costs, say = $4,000
  6. GST Value d) + e) = $10,500
  7. GST Payable at 12.5% of f) = $1,313
CUSTOMS CHARGES FOR CAMPER VANS / MOTORHOMES – Import Duty on Camper Vans is 17.5% (7% for Buses) in addition to 12.5% Gst although they also receive the same depreciation allowances as Cars. An example calculation for a Camper Van costing £5000 and owned and used by the Importer for more than 4 months but less than 6 months would be:
  1. Purchase Price = £5,000
  2. Purchase Price in NZ$ (say £1 = NZ$2.6) = $ 13,000
  3. Less Depreciation Allowance of 20% = $2,600
  4. Customs Value = $ 10,400
  5. Duty at 17.5% of d) = 1,820
  6. Shipping & Shipment Protection Costs,  say = $4,000
  7. GST Value d) + e) + f) = $ 16,220
  8. GST Payable at 12.5% of g) = $2,028
  9. Total Duty & Gst of e) + h) = $3,848
USE OF OTHER VALUATION METHODS – under certain circumstances the New Zealand Collector Of Customs may determine a Customs Value in accordance with another valuation method. Instances where alternative methods of valuation may be used include:
  1. The vehicle was purchased overseas by the importer at a nominal price or an unrealistically low price.
  2. The vehicle was not purchased overseas in an actual sale but was otherwise acquired by the importer, such as bequeathed, donated, received as a gift or won as a prize by the importer.
  3. The vehicle was personally built overseas wholly or in part by the importer.
  4. Use of the depreciation allowance results in an unrealistic customs value.
  5. The vehicles overseas value was altered significantly after the date of purchase overseas by the importer and prior to its importation into New Zealand due to:
    • Any major restoration, modification or improvement other than necessary running repairs, replacement of parts and routine maintenance, OR
    • Any significant damage, as opposed to normal wear and tear, caused after the vehicle was acquired overseas by the importer.
  6. Another reason whereby the alternative method of valuation could be used is that if, even with the depreciation formula being applied, the use of the valuation method based on the price paid overseas would result in the all-up cost of the vehicle to the importer being many thousands of dollars higher than the equivalent used vehicle in New Zealand and the normal method of valuation would result in a substantial disadvantage to the importer.
ALTERNATIVE METHOD OF VALUATION – the alternative method of valuation for GST is generally based on the New Zealand market value of the vehicle, as imported. The New Zealand Customs Department cannot enter into correspondence regarding the market values of vehicles in New Zealand and it is the responsibility of the importer to obtain written evidence from an independent New Zealand motor vehicle Trader or Industry Expert or Organisation (such as a reputable Dealer or an Automobile Association) as to the current New Zealand market value as imported. From this valuation a series of deductions are made for items such as the total cost of shipment to New Zealand and GST and a figure to cover normal profit and expenses. Satisfactory evidence of all the costs involved in transporting the car to New Zealand and the post importation costs, must also be presented to the Collector Of Customs.

LEFT HAND DRIVE VEHICLES – under the Customs Import Prohibition Order there is a restriction on the importation of Left Hand Drive Vehicles. Consideration may be given upon application to the Ministry Of Transport, Land Transport Safety Authority, PO Box 2840, Wellington, Tel. No. (04) 494 8600, Fax. No. (04) 494 8601. If Approval is given then an undertaking is normally required not to sell the vehicle in New Zealand within 5 years of its importation if it is newer than 20 years old and also that you have owned and used the car overseas for at least 90 days. If the vehicle is over 20 years old then it must not be sold within 6 months of importation and it doesn’t have to be owned and used overseas first. In both cases the restriction on resale is lifted if the car is subsequently converted satisfactorily to Right Hand Drive.

TEMPORARY IMPORTS – these should be covered by a Carnet de Passages obtainable from the RAC 01454 208000. This allows importation for up to 12 months without payment of taxes or compliance with import rules and regulations. The vehicle must not be sold in New Zealand and must be re-exported back to the UK within 12 months.

QUARANTINE RULES – these are very strict in New Zealand. Most cars will need to be cleaned by the Ministry of Agriculture and Forestry (MAF) upon arrival unless they are already spotlessly clean.

WRITTEN ESTIMATES OF GST PAYABLE – should there be doubts about amounts that would be payable upon importation of a vehicle to New Zealand or any of the Customs Requirements then the Collector Of Customs at the intended New Zealand port of entry should be contacted:
Auckland, PO Box 29, Tel. No. 359 6655.
Napier, PO Box 440, Tel. No. 835 5799.
Wellington, PO Box 2218, Tel. No. 473 6099.
Christchurch, PO Box 14 086, Tel. No. 358 0600.
Dunedin, Private Bag 1928, Tel. No. 477 9251.
An alternative is to e-mail feedback@customs.govt.nz.

ENTRY OF MOTOR VEHICLES BY IMMIGRANTS – a motor vehicle (including motorcycles and Scooters) that has been owned and used prior to departure from the UK may be imported into New Zealand. The Vehicle may qualify for entry free of GST subject to certain conditions. Vehicles which do not qualify for this concession are subject to full GST.

CONCESSIONARY ENTRY FOR IMMIGRANTS & RETURNING NEW ZEALAND NATIONALS – a vehicle would be admitted free of GST provided that the Collector Of Customs was satisfied that:
  1. The importer has the intention of forthwith taking up Permanent Residence in New Zealand for the first time or is a returning New Zealand National that has lived overseas for more than 21 months - the term ‘Permanent Residence’ is interpreted as residence lasting indefinitely; and
  2. The importer has ‘Personally Owned And Personally Used’ the vehicle for at least one year before their date of departure for New Zealand or the date on which the vehicle was handed over for shipment to New Zealand, whichever is the earlier; and
  3. The vehicle is for the importers own personal use in New Zealand and not for sale, gift or disposal in any other way.
It can be seen that the minimum of one years ownership and use prior to the owners departure for New Zealand is a prime factor in determining whether a motor vehicle may be imported free of customs charges. The owner of a vehicle will not comply with the use condition if the vehicle is handed over for shipment to New Zealand before the anniversary of the date of delivery to them. For example, if a vehicle is delivered to the owner on 10th June it must not be handed in to be shipped to New Zealand before 10th June of the following year and, of course, the owner must not leave for New Zealand before this date. If an owner was separated from their vehicle for a short period within the minimum one years ownership period then consideration will be given, upon application to the Collector Of Customs, for the owner to still qualify for concessionary entry. Any number of vehicles owned by an immigrant may qualify for GST free admission provided the above requirements for each vehicle are met.

If an importer is not present in New Zealand when the vehicle arrives then Gst must be paid and then claimed back at a later date when they do arrive to take up permanent residence.

DEED OF COVENANT – if a vehicle is imported to New Zealand under the Concessionary Entry method the importer would be required to complete a legal agreement called a Deed Of Covenant. The Deed Of Covenant stipulates that if the vehicle was sold or otherwise disposed of within two years of its importation the Full GST must be paid, or some lesser sum as the Collector Of Customs may require, as if the vehicle was not imported under concession.

DOCUMENTARY EVIDENCE FOR GST FREE CONCESSION – documentary evidence of personal ownership and use of a vehicle must be produced to the Collector Of Customs as follows:
  1. Dated Receipt covering purchase and showing the actual date of delivery of the vehicle.
  2. Registration papers or copies certified by the appropriate Authority.
  3. Evidence of the date on which the vehicle was surrendered and the date on which it was loaded on the Vessel for shipment to New Zealand
  4. Passport showing Residency Visa and date of entering New Zealand to take up Permanent Residency.
CONCESSIONARY ENTRY FOR VEHICLES REGISTERED IN THE NAME OF A PRIVATE COMPANY – in cases where a vehicle has been Registered in the name of a Private Company and this Company is owned 100 percent by the importer and/or spouse, Concessionary Entry may be allowed provided that documentary evidence is produced to confirm 100 percent ownership of the Company. In all other cases such Company Cars would be considered for GST Free Entry on a case by case basis and it would need to be shown that the importer had full personal use of the vehicle as part of a salary package and that the vehicle was registered in the importers name prior to the departure for New Zealand.

Further information can also be found on the internet at: www.customs.govt.nz.
Some New Zealand Car Values can be found at: autotrader.co.nz.
Rules & Regulations for importing vehicles can be found at www.ltsa.govt.nz.