New Zealand - Customs and duties

Customs taxation is based principally on an ad valorem scale, but specific duties are applied to some goods. Rates of duty payable depend on the country of origin. With the exception of some automotive products, preferential rate scales for the United Kingdom were phased out by 1 July 1977, as a result of that nation's entry into the European Community. In 1978, preferential rates for Commonwealth countries were also discontinued. Two years earlier, New Zealand had introduced a revised generalized system of preferences (GSP) favoring the developing countries. Tariffs range from 0% to 30%. New Zealand hopes to reduce all tariffs to 0%–15% after the year 2000. There is also a goods and services tax (GST) of 12.5% that applies to CIF (cost, insurance, and freight) value.