Goods shipped from Australia are not necessarily Australian-origin goods — and that distinction can make a real difference when they arrive in New Zealand.
It is an easy assumption to make. A New Zealand business buys goods from an Australian supplier. The invoice comes from Australia, the shipment leaves from Australia and the freight documents show Australia as the country of export.
So the goods must be Australian, and therefore duty-free under the Australia–New Zealand trade agreement. Not necessarily.
Country of export and country of origin are different
The country of export tells us where the shipment was exported from. The country of origin relates to where the goods were produced or manufactured and whether they satisfy the applicable rules of origin.
For example, an Australian wholesaler may sell a shipment containing clothing, electronics, machinery or other products manufactured in Italy, China, Vietnam or another country. Those goods do not automatically become Australian-origin simply because an Australian company sold them or because they were shipped from an Australian warehouse.
That distinction matters when an importer is claiming a preferential rate of Customs duty.
What about Australia–New Zealand duty-free trade?
Australia and New Zealand have one of the world’s longest-standing free-trade arrangements under ANZCERTA. However, preferential treatment is subject to rules of origin.
For goods to qualify as originating under the agreement, they must meet the relevant origin requirements. Depending on the product and how it was manufactured, this can involve where production occurred, the materials used and product-specific origin rules.
So the correct question is not simply, “Did this shipment come from Australia?” It is: “Do these goods qualify as Australian-origin goods for Customs purposes?”
For many products the normal tariff rate in New Zealand is already free, so origin may not result in additional duty. But other tariff classifications can attract duty, which makes getting the origin correct important.
One shipment can contain several origins
One commercial invoice might contain Australian-manufactured products, Italian-manufactured products, Chinese-manufactured products and products manufactured in other countries. They may all leave Australia in the same carton, pallet or container.
That does not necessarily mean every line should be treated identically for origin purposes. A Customs broker therefore needs more than the supplier’s Australian address. Depending on the goods and the tariff treatment being claimed, we may need information about the actual manufacturer, country of manufacture and evidence supporting a preferential origin claim.
Currency can create another complication
International shipments are also increasingly being supported by several invoices or invoices containing different currencies. For New Zealand Customs purposes, the Customs value ultimately has to be established in New Zealand dollars.
NZ Customs publishes its own exchange rates, normally for two-week periods. Where the commercial value is expressed in a foreign currency, the appropriate Customs exchange rate is used when establishing the NZ dollar value.
This means importers should send their broker the original commercial invoices showing the actual currency and transaction values rather than manually converting figures before providing the documents. If a shipment involves more than one invoice or currency, tell your broker clearly.
A small misunderstanding between AUD, USD and NZD can produce a significant difference in Customs value.
Our advice to importers
Before goods leave Australia for New Zealand, check three things:
Where were the goods actually manufactured?
Do not assume that an Australian supplier means Australian origin.
What tariff classification applies?
Origin becomes particularly important where the normal New Zealand tariff attracts duty and a preferential rate is being claimed.
Can the origin claim be supported?
If preferential treatment is being claimed, keep the manufacturer’s information, supplier declarations, certificates or other supporting evidence where applicable.
The same principle applies to imports from other countries with which New Zealand has trade agreements. Free-trade agreements can reduce or remove Customs duty, but the goods must first qualify under the relevant agreement.
Talk to your broker before the shipment arrives
Origin, valuation and tariff classification are much easier to sort out before an entry is lodged than after Customs raises a query.
If you are purchasing goods through Australia but the products were manufactured elsewhere, send us the commercial invoice and product details before shipping. Cusmode can review the likely tariff classification, origin position and Customs requirements before the cargo arrives in New Zealand.
Cusmode Customs Brokers NZ
Practical customs clearance advice for New Zealand importers and exporters.
This article provides general information only. Customs treatment depends on the individual goods, transaction and applicable legislation or trade agreement.
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