Waste Minimisation (Tyres) Regulations 2023

In an update aimed at promoting waste minimisation, the New Zealand Customs Service announces the introduction of a fee for regulated tyres, effective from 1 March 2024, under the Waste Minimisation (Tyres) Regulations 2023. This initiative is part of a broader strategy to address environmental concerns related to tyre disposal and recycling. The following outlines key information regarding tyre classifications, customs rulings, and the implications of these regulations for importers and stakeholders.

The classification of tyres for various vehicles—including all-terrain vehicles (ATVs), sport utility vehicles (SUVs), utility vehicles, and those used in agricultural, forestry, construction, mining, and industrial handling—has been clarified in light of the new regulations. Each category has specific tariff subheadings based on vehicle type and tyre characteristics, such as tread and rim diameter. For instance, ATV tyres are classified under tariff subheading 4011.90, while tyres for SUVs fall under 4011.10.09. The distinction between tyres for personal transport vehicles and those for goods transport or multipurpose vehicles is made clear, with further classification based on the tyre’s design and intended use.

Additionally, the document addresses the classification of tyres with rims attached and trailer tyres, both with and without rims, providing guidance on the appropriate tariff headings and subheadings for these items. It is noteworthy that the classification process adheres to the General Rules of Interpretation (GRIs), ensuring a consistent and transparent approach to determining the correct tariff subheadings.

The introduction of the Waste Minimisation (Tyre) Fee raises questions regarding its inclusion in the Customs Value (VFD). The determination of whether this fee forms part of the “price paid or payable” is crucial for establishing the customs value of imported goods. Importers are advised to consult the Customs Valuation Guide for further guidance on this matter.

Regarding administrative penalties for erroneous classification of loose tyres, the document reiterates that inaccuracies in tariff classification are considered materially incorrect and may result in penalties. Importers and customs brokers are reminded of their responsibilities to ensure accurate classification and to adhere to the stipulations of the Customs and Excise Act 2018.

What should foreign companies do?

Foreign companies and importers are encouraged to seek clarification and apply for customs rulings where necessary to ensure full compliance with these changes.