ANNOUNCEMENT 26 Mar 2020

On March 26th, 2020, the New Zealand Customs Service granted general tariff concessions on 3 products. They also granted a firm-specific tariff concession on inline blending systems.

NUMBER OF INTERVENTIONS

3

  • 1 harmful
  • 0 neutral
  • 2 liberalising

SOURCE

New Zealand Customs Service, Tariff Concession Notices, “Tariff Concession Approval Notice No. 2020/12." Available at:
https://www.customs.govt.nz/globalassets/documents/tariff-concession-notices/tariff-concession-approval-notice-12-2020.pdf

New Zealand Customs Service, Tariff Concession Notices, “Tariff Concession (Advertisement) Notice No. 2020/07”. Available at:
https://www.customs.govt.nz/globalassets/documents/tariff-concession-notices/tariff-concession-advertisement-notice-07-2020.pdf

New Zealand Customs Service, Tariff Concession Notices, “Tariff Concession (Advertisement) Notice No. 2020/06”. Available at:
https://www.customs.govt.nz/globalassets/documents/tariff-concession-notices/tariff-concession-advertisement-notice-06-2020.pdf

Inception date: 01 Jan 2020 | Removal date: open ended

Import tariff

On March 26th, 2020, the New Zealand Customs Service published the Tariff Concession Approvals, Withdrawals and Declines Notice (No. 12) 2020 granting general tariff concessions on peanut flour, multi-tool trailers, and spare and service parts of the vessel Moana Chief. The affected products were classified under the tariff subheadings 1901.90.09, 87.16, and all the tariff subheadings under Chapter 89. With the new regulation, the affected goods now enjoy a 0% import duty. 

According to the World Trade Organization tariff download facility, the prior average tariff on peanut flour was 5%. 

The average tariff on multi-tool trailers was previously 5% for tariff subheadings 8716.10, 8716.20, 8716.31, 8716.39, and 8716.40, and 2.5% for tariff subheading 8716.80.

In addition, the New Zealand Customs Service modified the wording on the tariff subheading 87.16 from "multi-tool trailer, being a wheeled vehicle drawn by another, comprising any or all of the following chassis: slurry tank, muck spreader, silage box or tipping box, whether or not imported separately or complete; including parts and accessories " to "multi-tool trailer, being a wheeled vehicle drawn by another, comprising any or all of the following chassis: slurry tank, muck spreader, silage box or tipping box, agricultural flat deck or low loader, whether or not imported separately or complete; including parts and accessories."

The prior average tariffs on spare and service parts of the vessel Moana Chief (as there are 14 tariff subheadings under Chapter 89 with previous tariffs) ranged from 2.5% to 5%.

The following tariff subheadings under Chapter 89 already benefitted from a 0% import duty: 8901.20, 8906.10, and 8908.00.

Tariff concessions are generally approved for goods where no suitable alternative goods are produced locally in New Zealand. In the case of the general tariff concessions adopted in Notice (No. 12) 2020, the concessions were requested by ADM Australia Pty Limited and The China Navigation Company NZ.

The tariff concession retroactively entered into force on January 1st, 2020 for multi-tool trailers, and February 1st, 2020 for peanut flour and the spare and service vessel parts. 

Inception date: 01 Oct 2019 | Removal date: 28 Feb 2022

Import tariff

On March 26th, 2020, the New Zealand Customs Service granted a firm-specific tariff concession on an inline blending system, under the tariff subheading 8479.82.00. The tariff concession is granted only to SCR Solutions Limited following their application to the New Zealand Customs Service in February 2020.

According to the World Trade Organization's tariff facility, the previous import duty on the subject products was 5%.

The implementation date of the tariff concession is retroactive in nature and entered into force on October 1st, 2019. It is temporary and will last until February 28th, 2022. 

SCR Solutions Limited is a diesel exhaust fluid producer in New Zealand.

Notably, tariff concessions are generally approved for goods where no suitable alternative goods are produced locally in New Zealand. 

Inception date: 01 Oct 2019 | Removal date: 28 Feb 2022

Tax or social insurance relief

On May 26th, 2020, the government of New Zealand granted a tariff concession on an inline blending system, which retroactively entered into force on October 1st, 2019, and will last until February 28th, 2022. As the duty concessions only apply to SCR Solutions Limited, the GTA recorded this as a discriminatory selective tax concession. 

SCR Solutions Limited is a producer of diesel exhaust fluid in New Zealand.