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A Proposed Pathway towards future reform of New Zealand’s de minimis threshold

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  • Steel, Will
  • Daglish, Toby
  • Marriott, Lisa
  • Gemmell, Norman
  • Howell, Bronwyn

Abstract

Imports into New Zealand are tax free if the duty and GST payable is less than $60. This has resulted in an effective value threshold of between $226 and $399, significantly higher than many of our trading partners. We examine other nations' thresholds and border practices with a view to whether NZ should lower its de minimis threshold. We further examine other options, strongly recommending changing to a minimum customs value definition. However, we do not support collection of duties/GST through financial intermediaries, instead proposing the establishment of a multilateral system. Finally, we outline shortcomings in Customs’ cost - benefit analysis and accordingly present three alternative methodologies for future assessment of the de minimis threshold.

Suggested Citation

  • Steel, Will & Daglish, Toby & Marriott, Lisa & Gemmell, Norman & Howell, Bronwyn, 2013. "A Proposed Pathway towards future reform of New Zealand’s de minimis threshold," Working Paper Series 19319, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    • Handle: RePEc:vuw:vuwcsr:19319
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    File URL: https://ir.wgtn.ac.nz/handle/123456789/19319
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    References listed on IDEAS

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    1. Erik Brynjolfsson & Astrid Dick & Michael Smith, 2010. "A nearly perfect market?," Quantitative Marketing and Economics (QME), Springer, vol. 8(1), pages 1-33, March.
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