With the implementation of the CPTPP free trade agreement, Canadian companies are increasingly seeking new shipping solutions to and from New Zealand.
The foundation of New Zealand’s economy is exporting agricultural commodities. Leading Canadian exports to New Zealand include machinery and equipment, wood, printed material, and meat.
A few quick points to consider when shipping international between Canada and New Zealand
- Canada Post is the preferred option for individuals shipping small parcels and personal items to New Zealand (see Canada Post shipping options below).
- Market dominant carriers, such as UPS, FedEx have high base pricing. Discounted shipping can be obtained directly or via one of their partners
This post provides a deeper dive and explores of the main elements of international shipping between New Zealand and Canada:
Things to consider when shipping to New Zealand from Canada:
- New Zealand customs for goods shipped from Canada
- Carrier options for shipping New Zealand from Canada
- Shipping terms to New Zealand delivery duty paid or unpaid?
- CPTPP and duty free entry for qualifying Canada origin goods
- CPTPP duty free entry for New Zealand Origin goods imported to Canada
- Carrier Options for Shipping Canada FROM New Zealand
- Common Canadian import fees for shipments from New Zealand
- Information required for a shipping quote between Canada and New Zealand
Disclaimer: The information in all Jet Worldwide online content, including this post, is for general information only.
New Zealand Parcel Clearance for Shipments from Canada
Goods shipped to New Zealand must be accompanied by an invoice for customs or other supporting documents.
New Zealand customs duty and taxes on the applicable HS Code and the "CIF Value." The CIF value is the value of the item plus the cost of insurance and freight). The Goods and Service Tax (GST) of 15% is applied to all imported goods sent from Canada for import to New Zealand.
Duty rates in New Zealand can range from duty free for such things as most electronics and accessories to 10% for clothing an other fashion items.
The rate of duty payable is determined by the HS Code classification of the goods in the New Zealand Tariff, Most tariffs range from 0% to 10%. These duty rates apply mostly to clothing, footwear, and carpeting. Most computer software and hardware can be imported to New Zealand duty free.
Duty Free importing of Canadian parcels to New Zealand
Most single parcels with a declared value less than $400 NZD (around $330 CAD) can be imported duty Free (but GST of 15% still applicable).
Information required by New Zealand Customs (and to be included on the commercial invoice) include:
- Shipper Address and contact details
- Importer details
- Details of the shipment: Item(s), value and reason for import
- Invoice Terms (FOB, CIF, etc.)
- If a multi-piece shipment, it must be noted what is each box
Shipping Terms to Consider When Shipping to New Zealand
The default option for shipping internationally from Canada is Delivery Duty Unpaid (DDU). Common carriers use the term ExWorks (EXW) which essentially assigns all import related costs (duty, taxes, and other fees) to the receiver/ importer. Shippers from Canada can choose to pay the import fees on behalf of the receiver via a Delivery Duty Paid (DDP) options that many carriers offer. See our blog on IncoTerms and shipping terms for packages and online orders.
The disadvantage of paying import fees on behalf of the receiver is that the bulk of the import fees are often from a value added tax that the importing business may otherwise be able to claim back.
CPTPP Duty free clearance of goods shipped to New Zealand From Canada
Goods approved with proper “proof of origin’ supporting paperwork can be exported from Canada for duty free clearance in New Zealand.
Benefiting from Canada' s Free Trade Agreements.
Proof of Origin
The key part of all trade agreements is ensuring the goods qualify under the rules of origin. Many incorrectly assume that if goods are sent from a qualifying country, they should qualify for duty free status. Country of origin is not determined solely by where the goods are sent from.
The country of origin rules have been simplified under CPTPP but can still get complex. The guidelines for country of origin qualification include:
- Goods are considered originating if they are wholly obtained, such as goods that are grown, raised, caught, or extracted in Canada/CPTPP country.
- Goods are considered originating if they are produced in Canada or a CPTPP country entirely from originating materials.
- Goods are originating if they are produced in Canada/CPTPP country from non-originating materials that undergo production in Canada/ CPTPP country, such that the resulting good satisfies the applicable product-specific rule of origin. The value of the non-originating goods that are part of the originating product can be considered dutiable.
Duty Free import for parcels sent from Canada to New Zealand under the CPTPP
The amazing part of CPTPP is that parcels containing products valued less than US$1000 (in local currency) do not require a certification of origin to claim CPTPP preferential tariff treatment.
Parcels containing products under US$1000 (in local currency) can be considered for duty free status if the following conditions include:
- A signed statement completed by the importer, exporter or producer certifying that the goods originated from a CPTPP country. This statement is required on the commercial invoice and we recommend adding an additional stand alone statement/ supporting document.
- The goods must meet the origin rules. For example, marks to indicate that the goods are not a product of a CPTPP country will disqualify the goods and have issues related to mis-declarations.
Required data for duty free CPTPP clearance to New Zealand
In order to claim the preferential tariff treatment to New Zealand from Canada under the CPTPP, a set a data elements referred to as a ‘certification origin’ must be provided by the exporter, producer or importer of the goods by adding the information to any document (e.g., Commercial Invoice) accompanying the shipment or if preferred, by providing it on a separate document. The data elements do not have to follow a prescribed format but must contain the minimum data elements listed below. In addition, the imported goods must originate and be exported from a CPTPP ratified country.
- Indicate the Certifier (Importer, Exporter or Producer)
- Name, Address and Contact Information of the Certifier
- Name, Address and Contact Information of the Exporter (if different from the certifier)
- Name, Address and Contact Information of the Producer (if different from the certifier, or exporter)
- Name, Address and Contact Information of the Importer
- Description and HS Tariff Classification for the Goods
- Origin Criterion for the Goods
- Blanket Period
- Authorized Signature and Date
Note: The certification of origin must be signed and dated by the Certifier and accompanied by the following statement:
“I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification”
For full details regarding the minimum data requirements for the certification of origin, please refer to Annex 3-B of the CPTPP agreement.
Understanding certification of origin and when it is needed
New Zealand origin goods shipped FROM New Zealand to Canada
Canadian companies can more easily take advantage of duty free clearance from New Zealand, a CPTPP Country.
Proof of origin requirements under Canada's free trade agreements
The value for duty amount for all of Canada's free trade agreements (including CPTPP) for which the proof of origin / certificate of origin is waived was changed to $3,300 CAD in July 2020. This change was made to harmonize the regulations with the new NAFTA/CUSMA.
For imports not exceeding $3,300 to Canada, the requirement for proof of origin is waived. The requirement on the importer to maintain records (for example, commercial invoice and B3) applies even if the CBSA does not require a certification of origin or if a requirement for a certification of origin has been waived.
DUTY FREE ≠ TAX FREE:
It is important to understand that CPTPP applies to duty assessments but not taxes. All goods - even those cleared duty free - are subject to taxes New Zealand taxes (including 15% GST).
Disclaimer: The information in this blog is for general information only. Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities.
Carrier Options for shipping New Zealand from Canada
Shipping to New Zealand via Canada Post
Canada Post offers the lowest cost options for individuals shipping small non urgent parcels. Shipments sent via Canada Post are imported and delivered by The New Zealand Post.
Shipping New Zealand from Canada Post international packet services
- Canada Post Small Packet service to New Zealand (Air and surface)
- Canada Post Tracked Packet to New Zealand: Delivery within 3 weeks
Shipping New Zealand from Canada Post parcel shipping options
- Canada Post International Parcel to New Zealand Surface
- Canada Post Xpresspost to New Zealand: Delivery within 2 weeks
- Get a comparison quote for shipping to New Zealand
Shipping to New Zealand via UPS and FedEx Canada
FedEx and UPS are North Americas largest carriers and, along with DHL, offer reliable express delivery to New Zealand.
FedEx and UPS shipping options from Canada to New Zealand include
- International air express priority shipping
- International economy air shipping option to New Zealand
Shipping New Zealand from Canada via Purolator
Purolator is a leading domestic delivery carrier in Canada. They are part of Canada Post.
Purolator provides delivery to New Zealand via partners - such as UPS Canada.
Shipping from Canada for delivery to New Zealand via Jet Worldwide
Jet Worldwide shares our logistics expertise (as evidenced by our industry leading blog articles) and global parcel shipping solutions: Including shipping to New Zealand. Contact Jet's logistics professionals.
Carrier Options for shipping from New Zealand to Canada
The common carrier options for shipping Canada from New Zealand include the New Zealand Post (preferred option for individuals shipping small parcels and personal items), DHL, FedEx and UPS.
FedEx and UPS Shipping Services to Canada from New Zealand Include:
- International Priority Air Express to Canada
- International economy air shipping from New Zealand
CourierPost and Pace have been rebranded under the NZ Post brand. Parcels shipped via New Zealand Post to Canada are imported and delivered by Canada Post.
Importing Goods to Canada Shipped from New Zealand
Goods imported to Canada valued over CA$20 are subject to duty and taxes. Consignments valued under CA$3,300 can be imported via Canada's low value system (LVS).
New Zealand origin goods may qualify for preferential duty free entry under Canada New Zealand CPTPP trade agreement regardless of value.
Get a quote for shipping between New Zealand and Canada
Jet Worldwide gives access to all companies seeking shipping quotes between New Zealand and Canada for parcels pallets, and online orders.
Contact our logistics team: For a quote for shipping online orders, provide details including shipping volume, item(s) being shipped, average value and weight of each parcel. The more details the better :).
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