Chapter

NEW ZEALAND

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2000
Share
  • ShareShare
Show Summary Details
Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: August 5, 1982.
Exchange Arrangement
CurrencyThe currency of New Zealand is the New Zealand dollar.
Exchange rate structureUnitary.
Classification
Independently floatingThe exchange rate of the New Zealand dollar is determined on the basis of supply and demand in the foreign exchange market.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketYes.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payment arrangementsNo.
Administration of controlNo.
International security restrictions
In accordance with Executive Board Decision No. 144-(52/51)Yes.
In accordance with UN sanctionsCertain restrictions had been imposed on the making of payments and transfers for current international transactions with respect to Iraq, and similarly with respect to the Federal Republic of Yugoslavia (Serbia/Montenegro) in compliance with UN Security Council resolutions. Restrictions with respect to the Federal Republic of Yugoslavia (Serbia/Montenegro) resolution have been suspended since December 1995 in cases where it is clear that the assets, money, and securities are not subject to any claim or interest on the part of the successor states of the Former Socialist Federal Republic of Yugoslavia other than Serbia/Montenegro. Certain restrictions on the making of payments and transfers for current international transactions pursuant to the UN Security Council resolutions have been imposed with respect to the UNITA movement in Angola and Libya. Effective November 25, 1999, certain restrictions were imposed on the making of payments and transfers with respect to the Taliban (the Islamic State of Afghanistan).
Payment arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
Controls on exports and imports of banknotesThe Financial Transactions Reporting Act requires that imports and exports of banknotes be reported. A customs documentation form, required when entering or leaving the country, includes a requirement to declare amounts greater than $NZ 10,000 or its equivalent.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency convertible into foreign currencyYes.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsYes.
Convertible into foreign currencyYes.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsNo.
Import licenses and other nontariff measures
Negative listImport prohibitions and restrictions affect some 70 products or classes of products—primarily plants, animals, and products considered dangerous to human health or not in the public interest.
Import taxes and/or tariffsTariffs only apply to goods also produced in New Zealand. Over 90% of imports (by value) are imported free of duty, either because there is no New Zealand-made equivalent or because the imports are from preferential sources.



Most tariffs are ad valorem, except for many clothing products, where “alternative specific” tariffs apply. Tariffs on affected goods are either ad valorem (generally 19%) or a corresponding alternative specific tariff, which is expressed in dollars per unit, whichever is higher. Tariffs for most imports from nonpreferential sources are 6–8%. The only tariffs over 15% apply to some motor vehicle parts (17.5%), clothing (19%), and carpets and footwear (both 17.5%). Tariffs were last decreased on July 1, 1999.



Under the terms of the ANZCERTA and the SPARTECA agreements, imports from the participating countries enter New Zealand duty free. Eligible imports from developing countries are allocated tariff preferences, while the 48 least-developed countries are granted duty-free access for all products, except clothing and footwear.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirementsNo.
Export licenses
Without quotasCertain items classified as strategic goods may be exported only when specific requirements have been met and an export permit has been issued.
With quotasYes.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital and money market instrumentsNo.
Controls on derivatives and other instrumentsNo.
Controls on credit operationsNo.
Controls on direct investment
Inward direct investmentUnder the Overseas Investment Regulations, there are separate authorization procedures for “nonland,” “land,” and fishing quota investments, which apply both to new investors and to existing foreign-controlled firms. Nonland investments involving the acquisition of over 25% of the shares of a New Zealand company, and where, effective December 9, 1999, the consideration exceeds $NZ 50 million or which involve the purchase of property in excess of $NZ 50 million used in carrying on a business, are subject to a bona fide investor test. Established foreign-controlled enterprises also need approval for investments exceeding $NZ 50 million in areas unrelated to that consented to originally. However, since these investors were screened when they first invested, the procedure is straightforward. Under the Fisheries Act, a nonresident must obtain either an exemption or a permission to acquire or to continue holding a fishing quota, an interest in quota, annual catch entitlement, or provisional catch history.
Controls on liquidation of direct investmentNo.
Controls on real estate transactions
Purchase locally by nonresidentsForeign investment in certain types of land is subject to both a bona fide investor test and a “national interest” test. Land acquisitions that require authorization relate to any land exceeding five hectares in area or where the consideration exceeds $NZ 10 million, and islands or land containing or adjoining reserves, historic or heritage areas, and the foreshore or lakes in excess of 0.4 hectares.
Controls on personal capital movementsNo.
Provisions specific to commercial banks and other credit institutionsNo.
Provisions specific to institutional investorsNo.
Other controls imposed by securities lawsNo.
Changes During 1999
Arrangements for payments and receiptsNovember 26. Certain restrictions were imposed on the making of payments and transfers with respect to the Taliban (the Islamic State of Afghanistan).
Imports and import paymentsJuly 1. Tariff rates were decreased.
Capital transactions
Controls on direct investmentDecember 9. The limits above which authorization is needed for investments was raised to $NZ 50 million from $NZ 10 million.

    Other Resources Citing This Publication