Is it worth taking the car?

eric_amanda · Posted: Mon Jul 19, 2004 2:24 am Post subject: Is it worth taking the car?

Hi all

We are at quite a late stage now with our removals/shipping company collecting on tues/Weds. However we suddenly wondered whether it was worth shipping the car?

We have a Kia Sedona, 7 seater people carrier which is 3 1/2 yrs old. We just thought that the vast majority of what we are shipping would actually fit into the car and that cu.ft. wise it would not actually make much difference.

We will of course be talking to the shipping co first thing tomorrow, we just wondered if anyone had any thoughts/experiences etc.

Many thanks

Amanda & Eric

wilson182 · Posted: Mon Jul 19, 2004 2:36 am Post subject:

Hi Guys

Just slightly off the topic, which shipping co did you go for in the end?

Nice One

richard · Posted: Mon Jul 19, 2004 8:53 am Post subject:

I think that only one of the shippers that we had quotes from would let us put anything in our car and only then if they were car related e.g. tools.

It does sound like a bit of a tourtuous process and I would have thought at this late stage that the shipping company would charge you more anyway.

I am planning to take my car but I have a partnership visa so I won't be charged tax to take the car in to the country. Unless you are entering on a visa with "residence lasting indefinitely" then you will be charged GST.

Here are some details:-

DESTINATION NEW ZEALAND
RULES, REGULATIONS, & INFORMATION

SUMMARY OF THE RULES & REGULATIONS FOR IMPORTING MOTOR VEHICLES TO NEW ZEALAND

GST only and No Import Duty is levied on Motor cars or motorcycles.

The Rules and Regulations for importing Motor Vehicles into New Zealand are fairly straightforward and the New Zealand Government has, over the years, been fairly consistent with it’s policy i.e. changes to the requirements are very infrequent.

IMPORT LICENSING & DRIVING LICENCES – an Import Licence is not required to import motor vehicles or motorcycles. A UK Driving Licence is normally valid for up to 3 months whereafter a Written Test and a Medical Examination should be taken so as to obtain a New Zealand Licence. Proof of any driving insurance no claims bonus in the UK can be used to reduce premiums in New Zealand.

NORMAL METHOD OF VALUATION – the Customs Value, upon which GST (Goods & Services Tax) is levied, is normally determined as being the actual purchase price paid less a) any costs included in that purchase price that are refunded before the vehicle arrives in New Zealand b) an allowance for depreciation if the vehicle has been personally owned and used by the importer for not less than 90 days prior to the date the vehicle arrives in New Zealand.

DEPRECIATION ALLOWANCE – if a vehicle has been personally owned and used overseas for more than 90 days then the following table shows the depreciation allowance to be deducted from the purchase price, so as to arrive at a ‘Customs Value’:

Less than 90 days = 0.0%
More than 3 months but Less than 4 months = 13.0%
More than 4 months but Less than 6 months = 20.0%
More than 6 months but Less than 9 months = 27.5%
More than 9 months but Less than 12 months = 35.0%
More than 1 year but Less than 2 years = 50.0%
More than 2 years but Less than 3 years = 60.0%
More than 3 years but Less than 4 years = 70.0%
More than 4 years = 75.0%

DUTY RATES – Duty is no longer levied on Motor Cars or Motorcycles.

GOODS & SERVICES TAX CALCULATION – GST is levied on the Customs Value, plus the Total Cost of Shipping to New Zealand. The current rate of GST is 12.5%.

EXAMPLES OF GST PAYABLE CALCULATIONS – the calculation for a car or motorcycle costing £5000 and owned and used by the importer for more than 4 months but less than 6 months would be:

Purchase Price = £5,000
Purchase Price in NZ$(say £1 = NZ$2.7) = $13,500
Less Depreciation Allowance of 20% = $2,700
Customs Value = $10,800
Shipping & Marine Insurance Costs, say = $4,000
GST Value d) + e) = $14,800
GST Payable at 12.5% of f) = $1,850

If a car or motorcycle cost £5000 and was owned and used by the importer for more than 1 year but less than 2 years the calculation would be:

Purchase Price = £5,000
Purchase Price in NZ$(say £1 = NZ$2.7) = $13,500
Less Depreciation Allowance of 50% = $6,750
Customs Value = $6,750
Shipping & Marine Insurance Costs, say = $4,000
GST Value d) + e) = $10,750
GST Payable at 12.5% of f) = $1,344

CUSTOMS CHARGES FOR CAMPER VANS/MOTORHOMES – Import Duty on Camper Vans is 17.5% (9% for Buses) in addition to 12.5% Gst although they also receive the same depreciation allowances as Cars. An example calculation for a Camper Van costing £5000 and owned and used by the Importer for more than 4 months but less than 6 months would be:

Purchase Price = £5,000
Purchase Price in NZ$(say £1 = NZ$2.7) = $13,500
Less Depreciation Allowance of 20% = $2,700
Customs Value = $10,800
Duty at 17.5% of d) = $1,890
Shipping & Marine Insurance Costs, say = $4,000
GST Value d) + e) + f) = $16,690
GST Payable at 12.5% of g) = $2,086
Total Duty & Gst of e) + h) = $3,976

EXCHANGE RATES – the Customs Department in New Zealand use the exchange rate in force at the time the vehicle is entered into New Zealand, i.e. the day your Customs Import Entry to clear your vehicle is lodged. The exchange rates utilised are published in the New Zealand Gazette each fortnight and remain in force for a two week period. The exchange rate in current use at any particular time can be obtained from any Collector Of Customs.

USE OF OTHER VALUATION METHODS – under certain circumstances the New Zealand Collector Of Customs may determine a Customs Value in accordance with another valuation method. Instances where alternative methods of valuation may be used include:

The vehicle was purchased overseas by the importer at a nominal price or an unrealistically low price.
The vehicle was not purchased overseas in an actual sale but was otherwise acquired by the importer, such as bequeathed, donated, received as a gift or won as a prize by the importer.
The vehicle was personally built overseas wholly or in part by the importer.
Use of the depreciation allowance results in an unrealistic customs value.
The vehicles overseas value was altered significantly after the date of purchaseoverseas by the importer and prior to its importation into New Zealand due to:

Any major restoration, modification or improvement other than necessary running repairs, replacement of parts and routine maintenance, OR

Any significant damage, as opposed to normal wear and tear, caused after the vehicle was acquired overseas by the importer.
Another reason whereby the alternative method of valuation could be used is that if, even with the depreciation formula being applied, the use of the valuation method based on the price paid overseas would result in the all-up cost of the vehicle to the importer being many thousands of dollars higher than the equivalent used vehicle in New Zealand and the normal method of valuation would result in a substantial disadvantage to the importer.

ALTERNATIVE METHOD OF VALUATION – the alternative method of valuation for GST is generally based on the New Zealand market value of the vehicle, as imported. The New Zealand Customs Department cannot enter into correspondence regarding the market values of vehicles in New Zealand and it is the responsibility of the importer to obtain written evidence from an independent New Zealand Motor Vehicle Trader or Industry Expert or Organisation (such as a reputable Dealer or an Automobile Association) as to the current New Zealand market value as imported. From this valuation a series of deductions are made for items such as the total cost of shipment to New Zealand and GST and a figure to cover normal profit and expenses. Satisfactory evidence of all the costs involved in transporting the car to New Zealand and the post importation costs, must also be presented to the Collector Of Customs.

WRITTEN ESTIMATES OF GST PAYABLE – should there be doubts about amounts that would be payable upon importation of a vehicle to New Zealand or any of the Customs Requirements then the Collector Of Customs at the intended New Zealand port of entry should be contacted:

Auckland, PO Box 29, Tel. No. 377 3520.
Wellington, PO Box 2218, Tel. No. 473 6099.
Napier, PO Box 440, Tel. No. 835 5799.
Christchurch, PO Box 2098, Tel. No. 379 6660.
Dunedin, Private Bag 1928, Tel. No. 477 9251.

LEFT HAND DRIVE VEHICLES – under the Customs Import Prohibition Order there is a restriction on the importation of Left Hand Drive Vehicles. Consideration may be given upon application to the Ministry Of Transport, Land Transport Safety Authority, PO Box 2840, Wellington, Tel. No. (04) 494 8600, Fax. No. (04) 494 8601. If Approval is given then an undertaking is normally required not to sell the vehicle in New Zealand within 5 years of its importation if it is newer than 20 years old and also that you have owned and used the car overseas for at least 90 days. If the vehicle is over 20 years old then it must not be sold within 6 months of importation and it doesn’t have to be owned and used overseas first. In both cases the restriction on resale is lifted if the car is subsequently converted satisfactorily to Right Hand Drive.

ENTRY OF MOTOR VEHICLES BY IMMIGRANTS – a Motor Vehicle (including Motorcycles and Scooters) that has been owned and used prior to departure from the UK may be imported into New Zealand. The Vehicle may qualify for entry Free Of GST subject to certain conditions. Vehicles which do not qualify for this concession are subject to Full GST.

CONCESSIONARY ENTRY – a vehicle would be admitted Free Of GST provided that the Collector Of Customs was satisfied that:

The importer has the intention of forthwith taking up Permanent Residence in New Zealand for the first time - the term ‘Permanent Residence’ is interpreted as residence lasting indefinitely; and
The importer has ‘Personally Owned And Personally Used’ the vehicle for at least one year before their date of departure for New Zealand or the date on which the vehicle was handed over for shipment to New Zealand, whichever is the earlier; and
The vehicle is for the importers own personal use in New Zealand and not for sale, gift or disposal in any other way.

It can be seen that the minimum of one years ownership and use prior to the owners departure for New Zealand is a prime factor in determining whether a motor vehicle may be imported free of customs charges. The owner of a vehicle will not comply with the use condition if the vehicle is handed over for shipment to New Zealand before the anniversary of the date of delivery to them. For example, if a vehicle is delivered to the owner on 10th June it must not be handed in to be shipped to New Zealand before 10th June of the following year and, of course, the owner must not leave for New Zealand before this date. If an owner was separated from their vehicle for a short period within the minimum one years ownership period then consideration will be given, upon application to the Collector Of Customs, for the owner to still qualify for concessionary entry. Any number of vehicles owned by an immigrant may qualify for GST free admission provided the above requirements for each vehicle are met.

DEED OF COVENANT – if a vehicle is imported to New Zealand under the Concessionary Entry method the importer would be required to complete a legal agreement called a Deed Of Covenant. The Deed Of Covenant stipulates that if the vehicle was sold or otherwise disposed of within two years of its importation the Full GST must be paid, or some lesser sum as the Collector Of Customs may require, as if the vehicle was not imported under concession.

DOCUMENTARY EVIDENCE FOR GST FREE CONCESSION – documentary evidence of personal ownership and use of a vehicle must be produced to the Collector Of Customs as follows:

Dated Receipt covering purchase and showing the actual date of delivery of the vehicle.
Registration papers or copies certified by the appropriate Authority.
Evidence of the date on which the vehicle was surrendered and the date on which it was loaded on the Vessel for shipment to New Zealand
Passport showing Residency Visa and date of entering New Zealand to take up Permanent Residency.

CONCESSIONARY ENTRY FOR VEHICLES REGISTERED IN THE NAME OF A PRIVATE COMPANY – in cases where a vehicle has been Registered in the name of a Private Company and this Company is owned 100 percent by the importer and/or spouse, Concessionary Entry may be allowed provided that documentary evidence is produced to confirm 100 percent ownership of the Company. In all other cases such Company Cars would not be considered for GST Free Entry even though the importer may have had sole use and/or responsibility for the vehicle.

Further information can also be found on the internet at: www.customs.govt.nz.
Some New Zealand Car Values can be found on the Internet at: autopoint.co.nz.

--------------------------------------------------------------------------------

VEHICLE SAFETY REGULATIONS

The New Zealand Land Transport Safety Authority has introduced a new set of rules for Vehicle Imports and full information can be obtained from PO Box 2840, Wellington, Tel. No. (04) 494 8600, Fax. No. (04) 494 8601, e-mail: info@ltsa.govt.nz (website: www.ltsa.govt.nz) or from Mr. Perry Kerr at the NZ Motor Industry Association, PO Box 31 387, Lower Hutt, Wellington, Tel. No. (04) 570 2248, Fax. No. (04) 570 2249, e-mail: perryk@xtra.co.nz.

The regulations concern two sets of standards for frontal impact and for door retention, interior impact, seat and anchorages, external projections, head restraints, rear view mirrors, fog lamps, running lamps, indicators, plate lamps, reversing lamps, side lamps, headlamps, brakes, stop lamps, tyres and wheels, glazing, hi-level brakelamps, door retention, reflectors, windscreen washers, steering systems, space saver tyres, replacement parts and airbags.

The frontal impact standards (the European equivalent is UN/ECE Regulation No. 94 (E/ECE/324-E/ECE/TRANS/505/rev.1/Add.93)) do not seem to apply to Motorcycles (LC Vehicles), to most 4WD Off Road cars (MC Vehicles), to Motorhomes (MB Vehicles), to Vans and Pick Ups (NA Vehicles). Cars (MA Vehicles) over 20 years old seem also to be exempt. The frontal impact standards will apply to all cars up to 20 years old and to 4WD Off Road Cars manufactured from 2003 onwards. The second set of Other Standards apply to all other cars and vehicles manufactured after 01/01/91 and to Motorcycles from 01/10/02. Many cars built for the European market, and especially newer models, may already comply with the required standards. Some other cars can be modified to meet the Other Standards but not the Frontal Impact Standard.

To import a vehicle that does not have exemption a Statement of Compliance is required from the vehicle manufacturer or their UK representative. The manufacturers representative contact list in New Zealand is available from the MIA on the LTSA website although it may be worthwhile checking with the UK manufacturer first to see if they can provide a Statement of Compliance. The fee for the Statement can be £0 to £100 in the UK or NZ$300 to NZ$800 in New Zealand depending on the make of vehicle and once obtained it must be checked by an NZ Entry Certifier (contact list available at www.ltsa.govt.nz) preferably prior to shipment. In NZ there are currently only 4 Entry Certifiers listed (three in Auckland and one in Wellington) and their fees are about NZ$350. Please note that vehicle manufacturers or their representatives are under no obligation to issue Statements of Compliance and it is strongly recommended that the situation regarding your particular vehicle be clarified before shipment from the UK is effected. Once a vehicle arrives in NZ it must be examined by an Entry Certifier – there may not be an EC available in the South Island.

On the Ltsa website is a list of vehicles by make and model that, if required, do or do not meet the required frontal impact standards. The same NZ Manufacturers Representatives can also advise on compliance to Other Standards. Some guidelines of vehicles that may comply are Jaguar models from 1995, Mercedes Benz from Germany from 1992, Bmw all current series and some previous series models if fitted with twin airbags, Audi/VW from 1997, Porsche from 1987, Saab from 1985, all Volvo except 300/400 series, Alfa Romeo only the latest models from 1999, Peugeot mostly from 1998, Fiat only the very latest models from 1999, Ford from about 1994 and Rover with SAR chassis no. from 000101 onwards. Japanese makes vary from model to model and there is a comprehensive listing of chassis no. for each model listed on the website.

TO SUMMARISE:
Motorcycles up to 2002, 4wd off road up to 2003 and cars over 20 years old are exempt from the Frontal Impact Standard. All 4wd and cars manufactured from 1991 must comply with the Other Standards. A Statement of Compliance is required, normally from the NZ manufacturers representative, which covers Frontal Impact, where applicable, and Other Standards. This Statement, if obtainable, must be checked by an Entry Certifier in NZ preferably prior to shipment.

If a vehicle seems to be exempt a check must still be made with an Entry Certifier. If a vehicle requires compliance to frontal impact and does not appear on the website list it is unlikely to be able to enter NZ. If a vehicle requires compliance to Other Standards it is more likely to comply if it either appears on the frontal impact compliance list and / or it was manufactured more recently for the European market.

For a full resume on these Rules and Regulations visit the following links on the internet:

www.ltsa.govt.nz
www.ltsa.govt.nz/publications/infosheets/infosheet-2-13-europe.html
www.ltsa.govt.nz/importing/mia-list.html
www.ltsa.govt.nz/factsheets/44.html
www.ltsa.govt.nz/importing/frontal-impact-compliance-status.html

--------------------------------------------------------------------------------

eric_amanda · Posted: Thu Jul 22, 2004 9:00 am Post subject:

Hello

Well we decided not to take the car, it was all too late and Confused

we didn't even bother asking the removals company.

Anyway, they packed us up completely yesterday, all in a day. They (Crown Relocations) arrived at 10.20am and left at 8.40pm. 3 packers and they worked really hard, anything that stood still for a minute got wrapped & packed! Nice One

give them a big Clapping

we were really impressed.

Amanda & Eric

xanctus · Posted: Thu Jul 22, 2004 12:16 pm Post subject:

I always think that taking the car into another country is quite painful. Because it has to go lots of regulations and stuffs, isn't it?

karltsmith · Posted: Thu Jul 22, 2004 1:18 pm Post subject:

Hi Eric and Amanda,

I'm glad you were happy with Crown...they did a good job for us as well as you know! I hope it all continues to go smoothly.

Re the car....if want to buy another Kia Sedona you will find dealerships in NZ ....only one I know of is in Albany on the North Shore. Prices, choice and value for money will astound you if you shop around so don't be too disappointed. If you want to conact me for some advice on car dealers and what to look out for call me when you arrive.

Cheers Karl Nice One

rodders · Valued Member Joined: 25 Nov 2003 Posts: 134