The Ultimate Checklist for First-Time Importers in New Zealand

11 Step Checklist for First-Time Importers in New Zealand

If you're in New Zealand and considering importing cargo, you're in the right place. Whether you're a first-time importer or have some experience but need guidance on logistics, these steps will help you navigate the process. The initial five steps on this checklist are entirely cost-free and offer crucial information to ensure that your importing plans align with your budget. From choosing an incoterm to getting cost estimates and applying for an NZ customs client code, we've got you covered every step of the way.

11 Step Checklist:

• Selecting an Incoterm
• Acquiring quote information
• Getting an estimated cost
• Retrieving a Duty and GST estimate
• Getting a Marine Insurance quote
• Crunching the numbers
• Making the Move
• Requesting a live quote
• Customs Client Codes
• Invoice matches the Quote
• Covering yourself

Step 1: Selecting an Incoterm‍

Selecting an incoterm should be one of the first things you do in the importing process.

For those new to importing, navigating through incoterms may seem like a daunting task. However, understanding these terms is essential for a successful shipping process. While there are many incoterms to grasp, focusing on key ones like EXW can simplify things. Many first-time importers opt for EXW terms, as it provides a full quote for the entire logistics process and are typically the most cost-effective solution.

Here’s a brief summery of what you need to know about EXW terms:

• If you're all about saving money and being flexible, EXW is like asking someone to pick up a cake from the bakery for you. You take charge once the goods are ready, giving you control over costs and flexibility of who handles your goods.
• The drawback is that you assume full responsibility for any damages, but don't worry; we'll cover that aspect in this checklist.

If EXW seems like a good fit for your needs then we can carry onto the next step! If you would like more information, check out our Incoterms blog.

Step 2: Acquiring Quote Information

Now that we've chosen EXW terms, let's determine the quantity of goods you intend to purchase from your supplier.

With EXW terms selected, you now need to determine the quantity of goods you plan to purchase from your supplier. If you're uncertain about the quantity of cargo you wish to import, you can opt for an amount that fits your budget. Once you've finalized the quantity, we can gather the key details needed to request a quote.

These are the main things you need to request from your supplier:

• Total CBM - How much space the cargo will take up in a shipping container
• Total Weight - How heavy the cargo is in (KG)
• Expected number of pallets/units the cargo will be packed on.
• Suppliers address - Where the goods need to be collected from.

Action: Reach out to your supplier with a message like this:

"We're looking to purchase (Quantity) of (Product name). Could you please provide the CBM, KG, estimated pallets/units, and your address? This information will help me explore shipping options with Freight Forwarders. If you're unable to provide these details, could you please share information on a previous shipment with similar quantities for estimating measurements?"

Logistics costs hinge on the size of your shipment, so having this information is vital for an accurate quote.

Step 3: Getting an Estimated Cost

Once you've gathered all the necessary information, you can proceed to obtain import costs.

Once you've gathered the CBM, weight, pallet/unit count, and your supplier's address, you have the necessary details to request an estimated shipping cost. Seeking a quote not only assists in calculating transportation expenses but also aids logistic specialists in evaluating if any regulatory actions, such as fumigation or inspections, are needed for your cargo.

Action: For a free quote visit our homepage where you can click Get a Free Quote for estimates on your transport costs.

Step 4: Retrieving a Duty & GST Estimate:

Having determined the transportation costs for your goods, the next step is to obtain an estimate for any applicable duty and GST charges.

After receiving an initial estimate for transporting your goods and finalizing the quantity of products you intend to purchase, you can proceed to obtain an estimate of any potential GST and duty charges.

Action: The quickest way to do this is to visit the Duty & GST estimator to get a rough idea on the costs to expect. Simply enter the currency where you are importing the goods from, specify the commodity, input the total cost of the goods, and provide the estimated freight amount, which you should have obtained from completing the previous steps.

Step 5: Getting a Marine Insurance quote

It's best to look into getting insurance before the goods are ready to import

When importing goods, protecting your investment is crucial. Marine insurance offers peace of mind by covering damages or losses during transit. If you don't have insurance, you can compare quotes from multiple marine insurers or inquire with your Freight Forwarder. Understanding coverage options and terms is key to ensuring your cargo's safety.

Action: It's your call whether you want to get insurance, but if you don't have your own marine insurance, you can either:

• Get quotes from various marine insurers in New Zealand that provide options for one-time imports.
• Or you can request insurance from the Freight Forwarder you received a quote from in step 3.

Step 6: Crunching the numbers

Now that you have all your estimated costs, it's time to check if it fits within your budget.

Calculate all expenses associated with importing, including product cost, shipping fees, customs duties, GST, and consider other potential expenses that could arise, such as insurance costs, storage fees if you don't have storage to store your goods, or any additional services required during transit such as MPI inspections. Additionally, it's crucial to leave some room in your budget for unexpected expenses or fluctuations in currency exchange rates.

Action: Evaluate all potential expenses. Crunching the numbers will provide a clear picture of whether importing the product is financially feasible for your business.

Step 7: Making the Move

After reviewing your budget and if you feel confidant you can take the plunge of investing into your product

If you're satisfied with your budget and ready to proceed with purchasing the cargo, clearly communicate the agreed incoterm (EXW) to your supplier. This open dialogue with your supplier helps streamline the process and ensures everyone is on the same page

Action: Communicate with your supplier that you want to:

• Purchase the goods
• Advise the incoterm you intend to use (EXW)
• Request an estimate on when your goods will be ready

Step 8: Requesting a Live Quote

Requesting a live quote is the next step once your cargo is available and you have received the final measurements of your goods.

By now, your supplier should have provided the necessary information, such as the updated CBM, pallet/unit count, and KG, which are crucial for obtaining an accurate quote to transport your goods. If you haven't received these details yet, don't hesitate to reach out to your supplier to receive this information.

Action: Simply head over to our homepage and click on "Get a Free Quote." Input all the updated information to receive a current quote hassle-free.

We'll leverage our extensive network of Freight Forwarders to secure the best available rate for your freight, ensuring you receive competitive pricing and reliable service whilst guiding you through the process.

Step 9: Customs Client Codes

At this stage, you've confirmed a Freight Forwarder to manage your cargo, and they should be starting to organise the logistics from your supplier's depot.

Now, the next step is to obtain an import customs client code. In New Zealand, Customs Client Codes (CCCs) are essential for businesses or individuals importing or exporting goods. They are mandatory for goods valued at $1000 NZD or more, as you won't be able to receive your goods without one. Make sure to apply as soon as possible.

Action: Here's how to get your own Customs client code:

• Open the application link here Client Code Application form
• Complete all applicable boxes. Incomplete submissions will lead to rejection, requiring you to revise and resubmit.
• Sign the application
• Send the Application form and a clear ID photo via email to clientcodes@customs.govt.nz.
• If you don't receive a response within 2-5 business days call 0800 428 786.

Once your application is approved, you will receive a customs client code comprising eight numbers and one letter, for example, 12345678A. This code will be utilized for any future imports or exports related to the registered business or individual so it’s important you keep note of this number. For more information visit our blog about Customs Client Codes.

Step 10: Invoice matches the Quote

Here is where the responsibility shifts over to the Freight Forwarder to handle the transportation of your cargo from the suppliers address for delivery to your specified address.

From here on out, you've completed the heavy lifting by selecting an incoterm, obtaining quotes and securing a customs client code. Since you've opted for EXW terms, the process is streamlined by your Freight Forwarder.

They will take care of the rest, ensuring everything runs smoothly for the delivery of your goods. Things to expect during transit:

• Departure and arrival times: They inform you when your shipment leaves the origin point and when it's expected to arrive at its destination.
• Customs clearance: They provide updates on the progress of customs clearance procedures, including any documentation required or issues encountered.
• Transit status: They keep you informed about the current location and status of your shipment during transit, such as when it's in transit, arrived at a port, or out for delivery.
• Delays or disruptions: If there are any delays or disruptions during transit, such as weather-related issues or port congestion, freight forwarders notify you and provide updates on revised delivery schedules.
• Documentation updates: They ensure all necessary documentation, such as bills of lading, invoices, and certificates of origin, are in order and inform you of any updates or changes required.

Action: Roughly one week prior to vessel arrival, you should receive an invoice from your freight forwarder. Ensure that the logistics invoice aligns with the quoted amount and that it includes the GST and duty if applicable.

Step 11: Covering Yourself:

After receiving your shipment, remember to take photos! This not only provides you with engaging content for your social media but also serves as evidence of the condition of goods

Action: Upon receiving your shipment, ensure to inspect all items to confirm that everything you ordered is present and in good condition. In case of any discrepancies or damages, take photos and forward them to your Freight Forwarder and insurance broker for review.

Congratulations on completing the essential steps outlined in this checklist for first-time importers! By following these guidelines, you've navigated through the complexities of importing cargo into New Zealand with confidence and ease. From selecting the right incoterm to obtaining quotes, and securing a customs client code, you've confidently tackled each aspect of the process.

I hope this checklist has been a valuable resource in streamlining your cargo's journey and making the importing process a stress-free experience for you. Should you have any further questions or require additional assistance, feel free to reach out. Happy importing!