Update to New Zealand Customs’ consultation on proposed rule changes for visiting yachts to New Zealand

 

Customs have recently announced a rule change for visiting yachts to New Zealand and the way that the Temporary Import Entry (‘TIE’) scheme works.

Previously the convention was that a foreign owned vessel could enter NZ under a TIE for up to 24 months on a duty and GST free basis, with a condition being that Customs’ permission must be sought before that vessel is sold or marketed. Where previously Customs would typically grant such permission, under the new rule change vessels under TIE must be imported (and pay 15% GST and 5% duty) prior to being able to be marketed or sold in New Zealand.

This policy revision has been applied without apparent consideration for the wider implications to the New Zealand marine industry, nor for situations where a foreign owned vessel is being sold to a foreign buyer. Dawson and Associates have previously indicated concern that this will have a chilling effect on foreign yachts applying for TIEs and disincentivise visits to New Zealand for cruising and refit purposes as the potential exposure to duty and GST is too high.

This change was applied in a largely un-consulted manner and the New Zealand marine sector has been active in engaging Customs to better understand the policy change and advocate for a nuanced approach to be applied, including with a petition on Change.org.

Since this point, Customs have been engaged in limited consultation and have recently released their anticipated timeframe for decision making.

  • 15 August 2025 – Customs’ draft findings and interim decisions will be shared with the New Zealand Maritime Industry Association

  • 20 August 2025 – Customs to make final decision regarding policy position

  • 28 August 2025 – Customs to share final decision with the New Zealand Maritime Industry Association

  • 3 September 2025 – Industry submitters to receive an information pack from Customs on the final decision

  • Early-mid September – Information session to be held for wider marine industry

  • March 2026 – Changes will be implemented ahead of the 2026 arrival season

On this basis we anticipate Customs’ position being made clear shortly, which will provide additional certainty to yacht owners considering coming to New Zealand, and those owners whose yachts are currently in New Zealand under TIE.

There has been some confusion throughout Customs’ policy change and the associated consultation around the continuation of the TIE scheme. At no point has it been suggested that the TIE scheme is being removed, meaning that foreign owned vessels will still qualify for temporary duty and GST free entry to New Zealand. What is subject to change is the ability for vessels in New Zealand under a TIE to be sold without the need to import them, a change which potentially adds significant cost to the process of marketing and selling a vessel.

Until Customs releases its final position in late August this uncertainty will likely continue, however we know that Customs are already requiring vessels under TIE be imported prior to being marketed or sold.

Dawson and Associates repeats its concerns that this policy change will have a detrimental effect on the New Zealand yachting sector, including support and onshore operators, and recommends that anyone with concerns make a submission to Customs directly and make their voice heard.

Dawson and Associates are able to assist with advice on your entry requirements, including the requirements to apply for a TIE. If you are looking to purchase a vessel in New Zealand that is under a TIE, or own a foreign flagged vessel and wish to apply for a TIE, please contact Peter Dawson on +64 27 229 9624 peter@maritimelaw.co.nz or Troy Stade on +64 27 368 6730 troy@maritimelaw.co.nz.

 
Marine regulation, Vessel sale & purchaseNick Ippolito