Chinese imports have several benefits, including low costs and variety. Hence, trade between New Zealand and China has been booming. So, how do you use this active import industry?
Starting the import process can be crushing, especially for a newbie. No worries, we can offer a helping hand.
This extensive guide can clean your path and show you the way. Here, we will cover the necessary information about the trade between these countries. At the end of the article, you will know how to import goods from China to New Zealand. Let’s begin!
Understanding the Import Process from China to New Zealand
Importers from New Zealand often face troubles when sourcing products. They don’t understand how to buy from China and sell in the local markets of New Zealand.
Sometimes, they order fake products from unreliable Chinese suppliers.
Source: Giphy
Understanding how the process works is crucial to knowing how to proceed. This section deals with understanding the import process between both countries.
You must know the background of the New Zealand Customs Service and its role. Then, it will be easy to draw the roadmap of imports from China to New Zealand.
1) New Zealand Customs Service and Its Role
The New Zealand Customs Service oversees all the country’s imports. They ensure compliance with New Zealand laws.
The NZCS protects New Zealand’s borders and facilitates international trade. Thus, they play a crucial role in imports and press customs charges.
2) Steps in the Import Process
It starts with sourcing items on a Chinese e-commerce platform. We will discuss the entire product sourcing process below.
Step 1: Sourcing Products
Find reliable suppliers through platforms like Alibaba or Global Sources. You must verify their credibility through reviews and references. You can check buyer reviews and ratings to learn what to expect when partnering with them.
You must learn how to verify Chinese supplier’s legitimacy before placing any order.
Step 2: Negotiating Terms
Ensure you discuss prices, payment terms, and delivery plans with your chosen supplier. Remember, all terms should be clear and agreed upon.
Step 3: Placing Orders
Place your import order once you are happy with the terms. You must keep records of all transactions. On most platforms, you will get a tracking number. This information is necessary to watch your product’s journey en route.
Step 4: Shipping and Logistics
Choose a reliable shipping service to have products delivered in New Zealand. Options include air freight, sea freight, and courier services, each with unique features.
For instance, air freight is faster than other transportation but more expensive. Thus, choose the option based on the urgency and fragility of the package.
Step 5: Customs Clearance
Submit necessary documents for customs clearance. It includes invoices, shipping documents, and any required permits. This stage is often tariff-free but might delay delivery.
Step 6: Delivery to Final Destination
Once cleared, arrange for delivery to your desired location in New Zealand.
3) Understanding the New Zealand And China Free Trade Agreement
The New Zealand and China Free Trade Agreement cuts import tariffs to support trade. Use this FTA to save on import duties.
There are also HS codes for Chinese imports. The HS codes classify goods for customs purposes and determine the applicable duties.
To avoid issues, you must ensure accurate HS codes for all your imports. A mix-up can lead to extra costs or unnecessary delays.
Key Regulations and Compliance Requirements for Importing to New Zealand
It is necessary to follow the key regulations to ensure a seamless import experience. However, you can only follow the rules you know. We recommend working with an agent to guide you through this process. Here are specific requirements and regulations to be aware of:
1) Classifying Your Goods
Correctly classify your goods to ensure correct duties and compliance. You can use the New Zealand Customs website for guidance. The page includes all the information you need to know about the process.
For instance, you should label food packages. These food packages should contain information such as the Chinese manufacturer’s registration number. The example is only a glimpse. There are several others that you should take note of.
2) Identifying Prohibited or Restricted Items
Check the New Zealand Customs website for prohibited or restricted items. Ensure your goods arriving from China are not on this list. Here is a quick run-through of some of the banned imports according to the customer website:
- Mobile phones
- Firearms and weapons such as swordsticks and butterfly knives
- Equipment for smoking or taking hard drugs
- Small, high-powered magnets, such as buckyballs.
- Anything used in a crime involving dishonesty
- There are also restricted items that demand a permit before import:
- Protected species under CITES
- Carnivorous plants
- Firearms and ammunition
- Handheld high-power laser pointers
- Gold
- Oil, gas, and coal
- Truffles
- Seafood
- Precious stones of any value
3) Import Permits and Licenses for Specific Goods
Some goods need import permits or licenses. As we have highlighted above, examples include food products and plants. Check with the Ministry for Primary Industries for requirements. Once you are familiar with the requirements, you can file for a permit.
4) The Fair Trading Act 1986
Your imports must meet the Fair Trading Act 1986. This act includes accurate labeling and product descriptions. Non-compliance with this act can lead to confiscation of imports in New Zealand. Hence, familiarize yourself well with all the requirements to get ahead.
Tips to Evaluate Quality Control Measures for Imported Goods
When importing goods, quality control is a crucial concern. So, how do you ensure that your goods are at peak quality when you import them? Here are a few resourceful tips you can put to use:
1) Work with Third-Party Quality Control Companies in China
Hire third-party quality control companies to inspect your goods. They ensure products meet your standards. While they cost a little, they are never as expensive as importing fake or adulterated products.
OwlSourcing provides many extra services, including quality inspection, to help importers from New Zealand. We can perform various operations tailored to different stages of the production process. You can find our services in the following table;
| Quality Control Operation | Meaning |
| Pre-Production Inspection | We can check raw materials and components before manufacturing begins |
| During Production Inspection | We can monitor production processes and product quality mid-manufacturing |
| Pre-Shipment Inspection | We examine finished products before they leave the factory |
| Container Loading Check | We ensure proper loading and packaging of goods for shipment |
| Factory Audit | We can assess a manufacturer’s facilities, processes, and quality systems |
| Lab Testing | We can analyze products for;
|
2) Leverage Pre-Shipment Inspections
Choose pre-shipment inspections to ensure your package contains everything agreed upon. This lets you check goods’ quality and quantity before being shipped, preventing you from receiving substandard products or less quantity.
3) Understand Chinese Quality Standards vs. New Zealand Requirements
Understand the differences between quality control in China and New Zealand quality standards. Ensure your products comply with New Zealand standards. Always specify this when you are negotiating with suppliers.
4) Develop a Quality Control Checklist for Chinese Manufacturers
You can create a checklist to ensure manufacturers meet your quality expectations. Add the specifications, materials, and testing procedures. This way, the manufacturers know what you expect and can act accordingly.
5) Manage Product Samples and Production Runs
Request product samples before placing large orders. Buying product samples from China is easy.
Ask the supplier to conduct production runs to test quality and consistency. These two steps help ensure everything goes smoothly. If everything is fine, you can trust the supplier with bigger batches.
Customs Clearance Procedures in New Zealand
What are the various steps your product has to take to get cleared in New Zealand? Here is what you should know:
Step 1: Get a New Zealand business number for importing. This number is required for all importing activities.
Step 2: Submit import declarations through the Trade Single Window (TSW). This platform streamlines the customs clearance process.
Step 3: Understand JBMS. The Joint Border Management System (JBMS) integrates customs and biosecurity processes.
Step 4: Perform Biosecurity Inspections for Chinese goods. They safeguard New Zealand’s environs from pests and diseases. Ensure your goods meet biosecurity standards. That explains why the country has tight requirements for importing exotic animals.
Step 5: Manage customs holds and resolve clearance issues. Customs holds can delay your imports. You must resolve issues promptly by providing necessary information and complying with regulations. Ensure your import follows the rules laid down on their website.
Tricks for Cutting Import Duties and Taxes
Import duties are crucial parts of New Zealand’s imports. However, there are ways to reduce the potential fees. Here are tips to note:
1) Use the NZ-China FTA for Preferential Tariffs
The NZ-China FTA offers preferential tariffs for many goods. You can use this agreement to reduce import costs. You can check the customs website to see which goods fall under this category.
2) Know the Tariffs on Low-Value Goods
Some countries have a threshold that segregates low-value goods from duties and taxes. Check the current threshold to plan your imports.
3) Correctly Classify Chinese Goods to Avoid Overpayment
Accurate classification ensures correct duties and taxes. Avoid overpayment by using the proper HS codes.
4) Use Bonded Warehouses for Duty Deferment
Bonded warehouses enable you to defer duties until goods are up for sale. It helps manage cash flow.
5) Use Duty Drawback Opportunities for Re-exports
Duty drawback programs give refund duties on re-exported goods. You can use these programs to save on import costs.
These tips provide significant financial benefits, but they require knowledge of customs regulations. Thus, you should hire a reliable China sourcing service provider who understands them.
Read More:
- Top Ways to Find a Reliable Sourcing Agent in China
- Import Tariffs from China to the US: How much is the US import customs duty?
- How to Source Products From China: A Step-by-Step Guide
Final Thoughts!
Sourcing products from China to New Zealand can be profitable for businesses. It gives access to various affordable goods.
However, you need to be careful since there are many fake suppliers. Some of them can affect your business with subpar products or scams. Besides, you must learn New Zealand’s import regulations to ensure smooth customs clearance.
You cannot learn all these aspects in a go. It can be time-consuming for your import business. To streamline the process, you must hire an experienced global sourcing agent. An agent can guide you through every step of importing from China to New Zealand.
