Ah I see. Harsh.
Regarding the costs of shipping your stuff, I think further clarification is needed from the customs as to how they value the "price you paid" for your goods and how they could possibly work out any depreciation, (unpack every item and have it valued!?!) however,
Our removal company when asked about it have sent us this letter about a client of theirs;
Evidently the only way the client can appeal is to write to the Houses of Parliament in NZ to put their case forward!!!!His container arrived into NZ on the 28th December. Our client has just been billed for $3800 for the BMW and $6900 for his household effects, even though he now has residency, it doesn't count as the new ruling states "From the time the clients first arrived in NZ." As you can imagine he is very upset.
Going on a minimum 12.5% GST charge (probably more) his contents and shipping must have come in at about NZ$85000 or £34000 approx.
I just wonder if they will go on your marine insurance value (2.5% of actual value) and if you can provide a few receipts for some high value items but claim the rest is second hand or very old (as most of our stuff is!!) then maybe you might get away with GST charged on shipping £5000 (40ft, were planning on taking everything but the kitchen sink) and contents £15000 working out at about £2500
I suppose one way to look at it is ;
- Most "older" people will at least fill a smaller container with valuable or sentimental stuff so you're going to have to pay at least £500 to £1K for that
- If you ditched it and sold it in the UK, it would be virtually worthless and would cost way more than shipping and GST cost to buy in NZ.
- Being a "stranger in a strange land" might be a lot more bearable esp. for children if they are surrounded by the familiar at their new home.
- Being swamped by the unfamiliar could be the "final straw" and what price if your adventure fails and you return home?
I think we're just going to have to email customs and work out how to get the bill as small as possible, write a strongly worded [begging] letter to the NZ Government, and be prepared to bite the bullet and buy a smaller house!! [funds are very tight!]
Regards Mike [still smiling, just financially lighter!!]
Ian, I cannot get my head around this one. There does not seem to be any logic in this approach from customs. If they are trying to prevent people from arriving and changing their permit status then it is immigration who would set the rules, not customs.
So I contacted the removal company we plan to use and they assure me that the same arrangement as always applies...that once you have legal right to residence you can ship customs-free. He even forwarded an email from an Auckland-based mover who noted that a refundable bond system which used to exist is no longer available, and that now you have to wait for residency/work permit.
But I have read the document you (Ian) quote, and I agree totally with you on the wording...there is no ambiguity unless they left out the words "arrival of your goods" in place of "your arrival".
Surely more people on this forum have heard about this change and have some experience? Was there any info posted on NZIS's website?
Yes, there was, back in October and referring to changes to custom's rules effective 15 November 2007. BUT, it made it sound like the rules had eased, and that more people can now import their stuff free of charge. Does not appear to be the case at all.
Again, I agree with Ian that the wording in Custom's policy is unambiguous, and that you have to be arriving in person with the correct visa, to later be able to import your effects, even if your permit status has changed in the meantime.
We have contacted customs direct about this and :
This seems very rigid and inflexible but that is the way it is , evidently!!Thank you for your further enquiry.
The concession is based on the permit you have in your passport at the time of your arrival not what subsequent permit you may have when the goods arrive. So you will need to have one of the following permits stamped in your passport at the time of your first arrival to New Zealand
(1) A current visa or work permit that was issued for a minimum of 12 months
(2) Permanent Residence Permit
(3) A current work visa or work permit, issued under the Long Term Business Visa Policy of the New Zealand Immigration Service that was issued for minimum of 9 months.
If you have any permit other than the above and issued for a length of time less than those indicated above you will pay tax on any household goods imported. It does not matter what permit you have when the goods arrive it is based on the permit you have at the time of your first arrival to New Zealand.
Ian Perkins
For Comptroller of Customs
Oh and they calculate depreciation of the value of your goods like this :
However they still have not told us WHO is responsible for calculating the value, so yet another e-mail to add to the saga.The Client Service would work off the purchase price of the goods if you have this less depreciation for ownership and usage usually
0-3 months 10%.
3 -6 months 20%.
6-12 months 33.3%.
12-21 momths 50%.
If not this the second hand value
Then tax usually for household goods 7% on the value.
An gst on the purchase price + the insurance and freight to get the items to New Zealand converted to New Zealand dollars + duty x 12.5%.
This is a guide only.
Regards Mike
It is definitely a strange rule and I don't believe to be applied as was intended.
From the way I understand it, if you visit NZ for a holiday before you arrive for residence then under this rule you will still have to pay customs charges because it is based on the first time you enter.
This is clearly not what you would expect and I know that other legislation e.g. driving licenses used to have the same rule but were changed because it was unworkable and putting of tourists.
What I would like to see is the actual legislation that they are using, so far no-one has found out which legislation has been changed?
So, again, if anyone contacts customs about this issue could they please ask the full name of the legislation. At the very least I would like to know what was intended.
Ian
I sent an email to customs this morning, I will post any response I get back.
I certainly hope this isn't the case, it would cost us 10k to ship our household items and likely another 8k-10k for customs. If so, I will be bringing nothing but my suitcase.
Any suggestions on how to fit 4 mattress sets, 3 dressers and 300 books in a suitcase?
LD