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IMPORT LICENSING AND DRIVING LICENCES – an import licence is not required to import motor vehicles. A UK driving licence is valid for up to 12 months whereafter it must be converted to an NZ licence at a fee of about $50 and an eyesight test must be taken. Proof of any driving insurance no claims bonus in the UK can be used to reduce premiums in New Zealand.

CUSTOMS VALUATION – the customs value, upon which GST (Goods and Services Tax) is levied, is normally determined as being the actual purchase price paid, less an allowance for depreciation if the vehicle has been personally owned and used by the importer for more than 90 days prior to the date the vehicle arrives in New Zealand, plus the cost of shipment.

DEPRECIATION ALLOWANCE – if a vehicle has been owned and used overseas for more than 90 days then the following table shows the depreciation allowance to be deducted from the purchase price, before adding the cost of shipment, so as to arrive at a ‘customs value’:

• less than 90 days = 0.0 %
• more than 3 but less than 4 months = 13.0 %
• more than 4 but less than 6 months = 20.0 %
• more than 6 but less than 9 months = 27.5 %
• more than 9 but less than 12 months = 35.0 %
• more than 1 but less than 2 years = 50.0 %
• more than 2 but less than 3 years = 60.0 %
• more than 3 but less than 4 years = 70.0 %
• more than 4 years = 75.0 %.

DUTY AND EXCHANGE RATES – duty is no longer levied on motor cars or motorcycles. The customs service in New Zealand use the exchange rate in force at the time the vehicle is entered into New Zealand, i.e. the day the customs import entry to clear your vehicle is lodged. The exchange rates used are published each fortnight. The exchange rate in current use at any particular time can be obtained from any Collector of Customs.

GOODS AND SERVICES TAX – GST is levied on the customs value plus the total cost of shipping to New Zealand. The current rate of GST is 15% on all vehicles that do not have concessionary entry.

CUSTOMS CHARGES FOR CAMPER VANS / MOTORHOMES – import duty on camper vans and motorhomes is 10% plus the 15% GST. The same depreciation allowances as for cars applies.

USE OF OTHER VALUATION METHODS – under certain circumstances the New Zealand Customs Service may determine a customs value in accordance with another valuation method. Instances where alternative methods of valuation may be used include:

• the vehicle was purchased overseas at a nominal price or an unrealistically low price
• the vehicle was acquired as a prize or gift or was bequeathed
• the vehicle was personally constructed overseas wholly or in part by the importer
• the vehicle value has altered significantly after the date of purchase overseas due to any major restoration, modification or improvement or if any significant damage has occurred, or 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 taxes is generally derived from the New Zealand market value of the vehicle as imported. The New Zealand Customs Service 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 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.

TEMPORARY IMPORTS – these should be covered by a Carnet de Passages obtainable from the RAC in the UK (tel: 08000 468375) or online at their website. 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. The cost of a Carnet is about £300 plus 5% of the car value x 1.5.

LEFT-HAND DRIVE VEHICLES – under the Customs Import Prohibition Order, and the NZ Transport Agency, Private Bag 6995, Wellington 6141, (tel. 0800 690 000), there is a restriction on the importation of left-hand drive vehicles. These controls are handled by a Transport Delivery Agent (TSD) and these are the same as the entry certifiers. The requirements are that 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 it has been owned and used 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 but 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.

QUARANTINE RULES – these are very strict in New Zealand. Most cars will need to be cleaned by the Ministry of Agriculture and Forestry (MAF) / Biosecurity upon arrival unless they are already spotlessly clean. Pre-shipment cleanliness certificates are not necessary as each vehicle is individually inspected upon arrival in New Zealand.

NZ CUSTOMS QUESTIONS – should there be doubts about amounts that would be payable upon importation of a vehicle or any of the customs requirements then the NZ Customs Service can be contacted at feedback@customs.govt.nz (tel: +64 9 300 5399 or 0800 428 786).

CONCESSIONARY ENTRY FOR IMMIGRANTS AND RETURNING NEW ZEALAND NATIONALS – a vehicle would be admitted free of GST (and duty if applicable) provided that the NZ Customs Service was satisfied that the importer has lived overseas for more than 21 months and has the intention of forthwith taking up permanent residence in New Zealand, or is a returning New Zealand national – the term ‘permanent residence’ is interpreted as residence lasting indefinitely and 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, whichever is the earlier; and the vehicle is for the importer's own personal use in New Zealand and not for sale, gift or disposal in any other way.

The minimum of one year of ownership and use is a prime factor in determining concessionary entry and an importer of a vehicle would 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 or, of course, if the importer left for New Zealand before this anniversary date.

If an importer is not present in New Zealand when the vehicle arrives then taxes must be paid and cannot be reclaimed at a later date even when they do arrive to take up residence.

REFERENCE 80 UNDERTAKING – if a vehicle is imported to New Zealand under the concessionary entry method the importer would be required to complete a written undertaking that would stipulate that if the vehicle was sold or otherwise disposed of within two years of its importation the full taxes must be paid, or some lesser sum as the NZ Customs Service may require, as if the vehicle was not imported under concession.

DOCUMENTARY EVIDENCE FOR TAX FREE CONCESSION – documentary evidence of more than 12 months personal ownership and use of a vehicle must be produced to the NZ Customs Service as follows:

• dated receipt covering purchase and showing the actual date of delivery of the vehicle
• registration papers or copies certified by the appropriate authority
• 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
• passport showing permanent residency visa (or a working visa for at least 12 months or a visitor's visa valid for at least 3 years) and date of entering New Zealand. Returning NZ nationals should provide their passport and comprehensive proof that they have resided outside of New Zealand for the previous 21 months.

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% by the importer and / or spouse then concessionary entry may be considered provided that documentary evidence is produced to confirm 100% 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 importer's name prior to their departure for New Zealand.

Further information about customs rules, plus a guide to prices and useful website and contact addresses, can be found in the New Zealand Info Pack (PDF).