A Guide to Importing, Exporting and Doing Business in New Zealand

A Guide to Importing, Exporting and Doing Business in New Zealand

New Zealand offers an ideal economic environment when it comes to international business. The World Bank has recognized New Zealand to be the second best country in the world as far as the simplicity of conducting business is concerned. New Zealand is also a good idea for business investments, taking into account the country’s strong economy, advantageous opportunities and bright prospects for the future.

Importing and exporting goods to New Zealand is a simple procedure. Since the country does not have an import licensing system in place at the moment, organisations and individuals can bring any goods into the country, barring prohibited items. Other than this, importing goods into New Zealand is subject to general restrictions such as quarantines, regulatory restrictions, and duties and taxes.

If you are planning to import or export goods into New Zealand, here are some points to be borne in mind. Every business venture should begin with market research. In depth research of the country’s market, will help you determine what goods you should import and export.

Once you have chosen a product, and determined the source of supply, it is essential to carefully study the import regulations of the country in order to comply with the guidelines of the Ministry of Economic Development. Information about quarantine regulations and restrictions on food imports can be obtained from the Ministries of Agriculture and Forestry, and Health. Customs rates and rules can be ascertained from the Customs Service, as well as from Customs brokers. Remember that a GST of 12.5% is applicable to imports, in addition to insurance, duty, and freight expenses.

Freight costs are an important area to consider, since these can be substantial. Look out for hidden costs in this area. You can compare rates of different freight forwarders to find the best price. Customs brokers are often freight forwarding agents as well, so you can find out about transporting items by air or sea through these brokers.

Finance is the next important aspect to consider when you are importing goods into New Zealand. Payment generally requires a letter of credit to assure the exporter that the goods will be paid for. These letters of credit also include details of the contract, such as the date of delivery.

Insurance is highly recommended while doing business in New Zealand. It is a good idea to insure your goods in New Zealand dollars, to protect yourself against loss during currency exchange.

With regard to exports, the environment is highly conducive to profits in this area. When exporting, you must insure that your goods or services are clearly described and defined in your export contract. Prices and currency should be mentioned, and if you want to protect yourself against currency fluctuations, it is advisable get a forward exchange contract. Payment may be done through telegraphic transfer or a letter of credit. Ensure that you are well informed about freight and insurance costs if you are planning to export items from New Zealand.