New Low Value Goods Levy on Imported Goods less than $1000 from 1st April

Anyone been stung by this yet?

https://www.customs.govt.nz/customs-information-and-legislat…

Thought it was a scam at first, but DHL just collected NZ$2.21 + GST from me on an item I imported.

I think Aliexpress are building it into their pricing. Amazon seem to be itemising it as an 'import fees deposit' and then paying on behalf, but in other situations you have to pay the courier directly.

It's quite annoying as there will be no consistency.

The whole point of the $1000 customs limit was that it was deemed too inefficient to collect the GST low value items, then they started forcing the overseas suppliers to collect GST at point of sale and now there's an additional cost which you sometimes have to pay directly to the courier to get your item delivered.

Comments

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  • +1

    Annoying because I order all sorts of cheap plastic crap from overseas. But I think this is a great idea tbh.

    • Why is it a great idea?

      It doesn't bear any relation to the value of the goods. If multiple items arrive in one package you get charged once, but if the same items arrive in different packages you get charged more.

      Ali and Temu are already co-packaging items together to reduce their cost, so it's not even a very effective Temu tax.

      It seems to be just adding inefficiency and cost to businesses and consumers.

      • +3

        We impose strict regulations and other restrictions (generally reasonable ones IMO) on our own manufacturers, especially around things like minimum wage, workers right and the environment. We then allow countries who follow none of those, to export goods to us. Effectively creating a significant advantage to non domestic production and destroying our industrial capabilities.

        Plus this stuff is mostly plastic junk we're addicted too. You can't argue with the pricing, it's incredible. But it doesn't include the real costs to the environment and other issues.

        Tax the crap out of it IMO. And I say this as someone who buys plenty of this stuff.

  • +1

    The whole point of the $1000 customs limit was that it was deemed too inefficient to collect the GST low value items, then they started forcing the overseas suppliers to collect GST at point of sale and now there's an additional cost which you sometimes have to pay directly to the courier to get your item delivered.

    I suspect that what was previously inefficient to collect, has now become far more viable due to technological progression.

    Up to this point, I imagine that we were all paying for the costs anyway - it just came out of general tax (income tax, GST etc), whereas now it will be user-pays.

    Seems quite fair and reasonable to me that I should pay to cover the costs I create if I import something. I don't see why I should expect everyone else to pick up the tab for me.

    • +1

      But the item already has GST on it. Now there's a levy which also has GST applied. It's a tax on top of a tax.

      I just had to waste half an hour of my time at work working out why I had to pay DHL $2.20 + GST.

      Then I had to pay it with my credit card.

      Now I have to put an expense claim into Xero for $2.20+GST

      Next our accountant has to process that claim

      Then payroll needs to make a payment to me.

      That's likely already cost our business more than $100 just in wages alone.

      Now repeat this millions of times across the country. It's a massive cost to business and consumers.

      • Exactly.
        I personally don't care about $2.21 (or $2.09 sea freight).
        But wow, how much is this costing our nation in productivity loss.

  • Yes, I noticed an "import charges" of NZ$2.20 on my amazon order yesterday, total NZ$112.25. Just thought it was the usual BS made-up charge.

  • When a government cuts taxes, it usually has to make up that revenue somewhere else.
    That often shows up through increases in other charges, for example, higher rego fees, expanded GST collection on overseas purchases, toll roads, ACC levy increases, and higher FENZ levies etc etc.

    • +1

      "It's not a tax, it's a Levy" - Christopher Luxon (probably)

  • Yes, for a recent order, DHL wanted me to pay $2.21 + GST before they would release my order for delivery.
    At first, I thought it was a scam before I googled it.
    Thanks, National!

    • +1

      Seems like ridiculous overhead for a tiny amount of revenue. Couriers will have to employ more people to collect the money and will pass those costs on to customers. Businesses will have to waste their time paying tiny invoices that effectively cost more to process than their value.

  • Surprised there weren't more news articles about this.

    I guess I havent noticed as I havent been buying anything from overseas recently with shipping costs being so expensive and exchange rates with Aus and Euro being so bad.

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