A Proposed Pathway Towards Future Reform of New Zealand’s De Minimis Threshold
AbstractImports 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.
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Bibliographic InfoPaper provided by Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation in its series Working Paper Series with number 2807.
Date of creation: 2013
Date of revision:
GST; Imports; Value threshold; Border practices; Duties;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-05 (All new papers)
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- Erik Brynjolfsson & Astrid Dick & Michael Smith, 2010. "A nearly perfect market?," Quantitative Marketing and Economics, Springer, vol. 8(1), pages 1-33, March.
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