Introduction: Vietnam as a Strategic Import Source for New Zealand

In recent years, Vietnam has emerged as one of Southeast Asia's most dynamic manufacturing hubs, offering New Zealand businesses a compelling alternative to traditional sourcing destinations. With its rapidly industrializing economy, competitive production costs, and growing technical capabilities, Vietnam presents an attractive option for diversifying supply chains and reducing reliance on a single market.

The relationship between New Zealand and Vietnam has strengthened significantly, with bilateral trade growing over 44% in the past five years. With Vietnam currently ranked as New Zealand's 14th largest trading partner and two-way trade worth approximately NZ$2.68 billion, the potential for New Zealand businesses to leverage Vietnamese manufacturing capabilities has never been greater.

This comprehensive guide explores everything New Zealand businesses need to know about importing from Vietnam, including navigating customs regulations, understanding documentation requirements, optimizing logistics, and leveraging favorable trade agreements to maximize benefits.

Trade Framework: Agreements Benefiting New Zealand-Vietnam Trade

CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership)

The CPTPP has created substantial advantages for New Zealand businesses importing from Vietnam:

• Tariff Elimination: The agreement eliminates tariffs on most products imported from Vietnam, including:
  • Up to 27% duties on paper and paperboard products (eliminated by 2021)
  • Up to 18% duties on fish and seafood (eliminated by 2021)
  • Up to 34% duties on processed meats (eliminating by 2027)
  • Up to 15% duties on steel products (eliminating by 2028)
• Simplified Rules of Origin: The CPTPP harmonizes rules of origin, making it easier to qualify for preferential tariff treatment.
• Enhanced Market Access: The agreement improves access to services, including professional and technical services related to imports.

RCEP (Regional Comprehensive Economic Partnership)

The RCEP, which came into effect in January 2022, further enhances trade relations:

• Tariff Reductions: The agreement will eliminate tariffs on 87.8-98.3% of goods between RCEP members.
• Streamlined Procedures: RCEP simplifies customs procedures, reducing the time importers spend waiting for goods to clear customs.
• Non-Tariff Barriers: The agreement addresses barriers beyond tariffs, creating a more predictable trading environment.

For New Zealand importers, these agreements mean lower costs, simplified procedures, and greater certainty when sourcing from Vietnam.

New Zealand Customs Process: Step-by-Step Guide

Navigating New Zealand's customs procedures is a critical part of the import process. Here's a step-by-step breakdown:

1. Pre-Import Preparation

Before initiating an import from Vietnam, ensure you:

• Check Import Eligibility: Verify your products aren't on the Prohibited and Restricted Import list1.
• Register for a Customs Client Code: If you're importing commercially or importing goods valued over NZ$1,000, you'll need a Customs client code.
• Determine Harmonized System (HS) Codes: Identify the correct classification codes for your products to determine applicable duties and taxes.

2. Documentation Submission

All imports into New Zealand must be declared through one of these methods:

• Import Entry: For goods valued over NZ$1,000, submit an electronic Import Entry through a customs broker or directly via the Trade Single Window (TSW).
• Electronic Cargo Information (ECI): For goods valued under NZ$1,000, an ECI may be sufficient.

These must be lodged within 20 days of your goods arriving in New Zealand, though best practice is to submit before goods arrive.

3. Payment of Duties and Taxes

• Goods and Services Tax (GST): GST at 15% applies to most imports, calculated on the sum of:
  • Customs value of the goods
  • Overseas transport and insurance costs
  • Any applicable import duty
• Import Duty: While many tariffs on Vietnamese imports have been eliminated under the CPTPP, some products may still incur duties. Check the Tariff Finder to determine specific rates.
• Import Transaction Fee: A fee of NZ$29.26 applies to each import entry transaction.
• Biosecurity System Entry Levy: Currently set at NZ$26.45 (including GST) for imports that attract the Import Entry Transaction Fee.

4. Biosecurity Clearance

New Zealand maintains strict biosecurity controls to protect its unique ecosystem:

• Biosecurity Inspection: Many imports require inspection by the Ministry for Primary Industries (MPI).
• Transitional Facilities: All sea containers and certain high-risk goods must be delivered to an MPI-approved Transitional Facility for inspection and possible treatment.
• Biosecurity Authority Clearance Certificate (BACC): This is required before goods can be released into New Zealand.

5. Customs Release

Once all requirements are met, Customs will issue a Delivery Order allowing collection of your goods. This typically happens after:

• All documentation has been verified
• All duties and taxes have been paid
• Any biosecurity concerns have been addressed

Documentation Requirements: Essential Paperwork

Proper documentation is crucial for smooth customs clearance. Here's what you'll need:

Required for All Imports

• Commercial Invoice: Detailed document showing the sale transaction, including product descriptions, quantities, and values.
• Packing List: Itemization of package contents, including weights and dimensions.
• Bill of Lading or Air Waybill: Transport document issued by the carrier.
• Certificate of Origin: Document certifying where the products were manufactured, crucial for claiming CPTPP or RCEP benefits.
• Import Entry or ECI: Formal customs declaration.

Additional Documentation (When Applicable)

• Phytosanitary Certificate: For plant products.
• Health Certificate: For food and animal products.
• Permits: For restricted items like certain foods, plants, or chemicals.
• Quality Testing Results: For products with safety standards.
• Product Safety Certification: For certain consumer goods.

Approved Transitional Facilities: A Critical Step

Biosecurity is a crucial concern for New Zealand, and most imports from Vietnam will need to pass through an Approved Transitional Facility (ATF):

What is an ATF?

An ATF is a location approved by MPI to temporarily hold, inspect, and process imported goods that may pose a biosecurity risk before they receive full clearance to enter New Zealand.

Costs Associated with ATFs

• Service Fees: ATF operators charge for their services, typically ranging from NZ$250-500 per container, varying by size and content.
• Storage Fees: If goods remain at the ATF beyond a free period (usually 3-5 days), daily storage charges apply.
• Treatment Costs: If treatments like fumigation are required, additional costs range from NZ$500-1,000 depending on container size.
• MPI Inspection Charges: Charged at an hourly rate of NZ$155.50 (excluding GST) for inspections.

Finding an ATF

MPI maintains a list of approved transitional facilities. Consider facilities that:

• Are conveniently located to reduce transportation costs
• Have experience with your specific product category
• Can provide additional services like storage or distribution

Logistics Options: Vietnam to New Zealand

Choosing the right logistics approach is essential for cost-effective importing:

Sea Freight

Average Transit Time: 18-25 days from main Vietnamese ports (Ho Chi Minh City, Hai Phong) to New Zealand ports (Auckland, Tauranga).

Costs:

• Full Container Load (FCL): NZ$2,000-4,000 for a 20ft container
• Less than Container Load (LCL): NZ$100-150 per cubic meter

Best For: Bulk shipments, non-urgent goods, cost-sensitive imports

Air Freight

Average Transit Time: 3-7 days door-to-door

Costs: NZ$5-15 per kg, depending on volume and specific requirements

Best For: High-value, low-weight items, urgent shipments, samples

Recommended Logistics Providers

Several logistics companies specialize in the Vietnam-New Zealand route:

• DHL Express
• Mainfreight International
• FWFreight
• Vestel Shipping
• Eurosender

These providers offer door-to-door service, handling documentation, customs clearance, and delivery to your facility.

Tariffs, Duties & Taxes: Understanding the Costs

GST

The standard GST rate in New Zealand is 15%, applied to the CIF value (Cost, Insurance, and Freight) plus duty.

Import Duties Under Trade Agreements

The CPTPP and RCEP have significantly reduced duties on Vietnamese imports:

• Completely Eliminated Duties: Many product categories now have zero tariffs under CPTPP, including most electronics, furniture, and footwear.
• Phased Elimination: Some categories are on a phased reduction schedule, with complete elimination by 2028.
• Remaining Duties: A few categories still maintain some duties, particularly certain textiles and agricultural products.

To determine specific duty rates for your products, use the What's My Duty estimator or consult with a customs broker.

Common Challenges and Solutions

Language and Cultural Barriers

Challenge: Communication difficulties can lead to misunderstandings about specifications, timelines, or quality standards.

Solution: Work with bilingual partners who understand both Vietnamese and New Zealand business cultures, such as Epic Sourcing with our on-the-ground team in Vietnam.

Quality Control

Challenge: Inconsistent product quality can damage your reputation and customer relationships.

Solution: Implement a robust quality control process including:

• Clear specifications and technical drawings
• Pre-production samples and approvals
• Mid-production inspections
• Pre-shipment quality checks

Logistics Delays

Challenge: Shipping delays, port congestion, or unexpected transportation issues can disrupt supply chains.

Solution: Build adequate lead times into your planning, consider multiple logistics options, and work with experienced freight forwarders who understand the Vietnam-NZ route.

Regulatory Compliance

Challenge: Navigating the complex web of import regulations, particularly biosecurity requirements.

Solution: Partner with experts who understand both Vietnamese export procedures and New Zealand import requirements, ensuring full compliance at every step.

Payment Security

Challenge: International transactions carry inherent risks, particularly with new suppliers.

Solution: Use secure payment methods like letters of credit, escrow services, or staged payments tied to production milestones.

Benefits of Sourcing from Vietnam for NZ Businesses

Cost Advantages

Vietnam offers significant cost benefits compared to other manufacturing locations:

• Labor costs approximately 40% lower than China
• Competitive raw material pricing
• Lower operational overheads

Manufacturing Capabilities

Vietnamese manufacturers have rapidly developed their capabilities:

• Growing expertise in electronics, textiles, furniture, and food processing
• Increasing capacity for customization and small-batch production
• Improving quality management systems and international certifications

Supply Chain Diversification

Sourcing from Vietnam helps New Zealand businesses:

• Reduce over-reliance on a single market (typically China)
• Create redundancy in supply chains
• Build resilience against trade disruptions or geopolitical tensions

Trade Agreement Benefits

The preferential terms under CPTPP and RCEP provide:

• Reduced or eliminated tariffs
• Simplified customs procedures
• Greater certainty in trade regulations
• Enhanced intellectual property protections

How Epic Sourcing Simplifies Vietnam Imports

At Epic Sourcing, we specialize in making the import process from Vietnam to New Zealand seamless and stress-free. Our comprehensive approach covers:

Local Expertise in Vietnam

Our on-the-ground team in Vietnam brings vital local knowledge and expertise:

• Deep understanding of Vietnam's manufacturing landscape
• Established relationships with reliable suppliers
• Fluency in Vietnamese language and business culture
• Regular factory visits and quality inspections

End-to-End Import Management

We handle every aspect of the import process:

• Supplier identification and verification
• Product development and sampling
• Quality control and compliance checks
• Documentation preparation and verification
• Logistics coordination and customs clearance
• Final delivery to your location

Risk Mitigation

Our structured approach minimizes common import risks:

• Thorough due diligence on potential suppliers
• Regular factory audits and quality inspections
• Comprehensive contract protection
• Complete supply chain visibility

Customs and Compliance Expertise

We ensure full compliance with both Vietnamese export and New Zealand import requirements:

• Correct documentation for preferential tariff treatment
• Biosecurity compliance management
• Transitional facility coordination
• Accurate tariff classification and duty calculation

Conclusion: Strategic Importing from Vietnam

Vietnam offers New Zealand businesses a compelling combination of cost advantages, quality manufacturing, and preferential trade terms. By understanding the customs procedures, documentation requirements, and logistics options, you can successfully navigate the import process and build a robust supply chain that enhances your competitive edge.

However, the complexities of international sourcing can be challenging, particularly for businesses new to importing from Vietnam. That's where Epic Sourcing's expertise makes all the difference—providing you with a seamless sourcing experience that minimizes risks while maximizing benefits.

Ready to explore how Vietnam sourcing could transform your business? Book a free strategy call with our sourcing specialists today and discover how we can help you navigate the import journey with confidence.