Tobacco products
- Document symbol
- G/LIC/N/3/NZL/10
- Original language
- English
- Published on
- 08/11/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another 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. The Customs and Excise (Tobacco Products) Amendment Bill included water-pipe tobacco in the import prohibition from 25 May 2022. A permit issued by the New Zealand Customs Service prior to importation is required.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The import prohibition applies to all tobacco products (manufactured tobacco), including wagter-pipe 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, water-pipe tobacco, and hand rolling tobacco but do not include cigars and similar products. The prohibition does not apply to:
• cigars, cigarillos, chewing tobacco, snuff and snus;
• tobacco imported by a person holding a permit issued under new Schedule 3A of the Customs and Excise Act 2018;
• 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).
Q3. The system applies to goods originating in and coming from which countries?
The system applies to goods originating in, and arriving from, all countries.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
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.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
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 water-pipe tobacco, 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, including water-pipe tobacco, leaf or refuse imported without a permit will be seized and destroyed.
It is not possible for the government (or the executive branch) to abolish the system without legislative approval.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
A permit must be applied for and issued before the goods are imported into New Zealand. Issuance of permits takes 5-10 days on average.
Q7.b. Can a licence be granted immediately on request?
No.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may 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.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Permits are issued by the New Zealand Customs Service.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
A permit may be refused if the application is incomplete or does not meet the requirements in the legislation. 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.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
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.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
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)
Q11. What documents are required upon actual importation?
Only the standard Customs clearance documentation is required.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
There is no permit application fee.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
If approved Customs will issue a permit valid for use as per the timeframes below:
For tobacco products including water-pipe tobacco:
• 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.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
No.
Q16. 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.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
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.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No.