Basic information
Outline of the system
The Customs and Excise Act 2018 was amended (the Customs and Excise (Tobacco) Amendment Act 2020) to make tobacco products, tobacco leaf and tobacco refuse, prohibited imports from 1 July 2020 unless a permit has been granted by the New Zealand Customs Service and the conditions of the permit have been met. A permit issued by the New Zealand Customs Service prior to importation is required.
Product coverage
The import prohibition applies to all tobacco products (manufactured tobacco), tobacco leaf and tobacco refuse imported into New Zealand unless a permit has been issued by the New Zealand Customs Service. Tobacco products are defined to include cigarettes, pipe tobacco, and hand rolling tobacco but do not include cigars and similar products. The prohibition does not apply to:
• cigars, cigarillos, water-pipe tobacco, chewing tobacco, snuff and snus;
• tobacco imported by a person holding a permit issued under new Schedule 3A;
• tobacco imported by a person who brings tobacco into the country with them (for example, as part of their duty-free allowance); and
• tobacco that enters New Zealand but only temporarily (for example, as part of an international transhipment).
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
The purpose of the new requirements is to tighten border controls to reduce revenue evasion by increasing Customs' visibility on imports and closing off import channels used by smugglers. The measures are consistent with the principles of the World Health Organisation Framework Convention on Tobacco Control.
Questions for products under restriction as to the quantity or value of imports
Not applicable.
The system applies to products originating from which country?
The system applies to goods originating in, and arriving from, all countries.
Expected duration of licensing procedure
Legal requirements
Is the licensing statutorily required?
Section 95A of the Customs and Excise Act 2018 provides for the import prohibition. The details of the permit regime are set out in Schedule 3 clause 3A of the Customs and Excise Act 2018. No tobacco products, including leaf and refuse, can be received through the international mail. These goods cannot be imported using a registered postal operator. Tobacco must only be imported using a freight forwarder, the fast-freight courier system or as bulk sea or air cargo. Any tobacco products, leaf or refuse imported without a permit will be seized and destroyed.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
Is it possible for the government to abolish the system without legislative approval?
It is not possible for the government (or the executive branch) to abolish the system without legislative approval.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
Any importer who is over 18 years of age can apply for a permit to import tobacco products as long as they meet the conditions imposed by the Chief Executive of the New Zealand Customs Service.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Address
Telephone
Fax
E-mail address
Website
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Documentation requirements
What information is required in applications?
A copy of the tobacco products application form can be found here:
nzcs-258-application-for-a-permission-to-import-tobacco-products.pdf (customs.govt.nz); and
for tobacco leaf and refuse:
nzcs-259-application-for-a-permission-to-import-tobacco-leaf-or-refuse.pdf (customs.govt.nz)
What documents is the importer required to supply with the application?
Window of submission of an application
How far in advance of importation must application for a licence be made?
A permit must be applied for and issued before the goods are imported into New Zealand.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
To obtain a permit, a person must submit an application in the prescribed manner. There are no limitations as to the period of the year during which application for importation of a consignment may be made.
Issuing the license
Can a licence be granted immediately on request?
No.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Issuance of permits takes 5-10 days on average.
Which administrative body is responsible for approving application of licences?
Permits are issued by the New Zealand Customs Service.
Must the applications be passed on to other organs for visa, note or approval?
Are there any other conditions attached to the issue of a licence?
There are no quantitative restrictions on permits issued for tobacco products. For permit holders importing tobacco leaf or refuse to be used other than manufacturing tobacco products in an area licensed by Customs, the approved permit will stipulate a maximum quantity that can be imported.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
There is no permit application fee.
What is the amount of the fee or charge?
Is there any deposit or advance payment required associated with the issue of licences?
Not applicable.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
A permit may be refused if the application is incomplete or does not meet the requirements in the legislation.
Are the reasons for any refusal given to applicants?
Have applicants a right of appeal in the event of refusal to issue a licence?
An applicant who is dissatisfied with a decision of the chief executive under clause 3 of Schedule 3A of the Customs and Excise Act 2018 may, within 20 working days after the date on which the notice of the decision is given, appeal to a Customs Appeal Authority against that decision.
If so, to what bodies and under what procedures?
An applicant who is dissatisfied with a decision of the chief executive under clause 3 of Schedule 3A of the Customs and Excise Act 2018 may, within 20 working days after the date on which the notice of the decision is given, appeal to a Customs Appeal Authority against that decision.
Importation
Are there any limitations as to the period of year during which importation may be made?
To obtain a permit, a person must submit an application in the prescribed manner. There are no limitations as to the period of the year during which application for importation of a consignment may be made.
What documents are required upon actual importation?
Only the standard Customs clearance documentation is required.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
If approved Customs will issue a permit valid for use as per the timeframes below:
For tobacco products:
• Private importer or commercial importer not holding a deferred payment account: a single use permit (i.e., a single importation);
valid for 12 months from the date of issue.
• A commercial importer holding a deferred payment account: a multiple use permit valid for three years from the date of issue.
• A Customs-controlled Area (CCA) licensee, being a duty-free store, export warehouse, or licensed manufacturer: a multiple use permit valid for so long as the CCA licence remains in force.
For tobacco leaf or refuse:
If approved Customs will issue a permit valid for use as per the timeframes below:
• An approved importer: a multiple use permit valid for 12 months from the date of issue.
• A Customs-controlled Area (CCA) licensee, being a licensed manufacturer of tobacco products: a multiple use permit valid for so long as the CCA licence remains in force.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
No.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No. A permit to import is not transferable. Attempts to use a permit issued to a third party will result in the permit being revoked.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Not applicable.