For fashion labels and clothing manufacturers, fabric is the lifeblood of business. For New Zealand’s fashion industry, this fabric is often sourced internationally. Data from Statistics New Zealand indicates that New Zealand’s imports of textile fabrics have been increasing over the last decade, amounting to NZ$61.46 million in the year that ended June 2023.
According to Mindful Fashion New Zealand’s Threads of Tomorrow–NZ Industry Value Report 2024, the country’s fashion, clothing, and textiles industry is currently heavily dependent on the international clothing and textiles market for imports. Local businesses largely depend on offshore manufacturers and materials across the upstream supply chain. For example, textile fabric imports from China amounted to NZ$21.15 million in the year ended June 2023.
This dependence on imported materials is attributed to the costs of manufacturing onshore, limited capacities to meet large-scale production requirements, and the lack of local textile manufacturing capabilities. As a fashion business, sourcing fabrics internationally can help you optimise costs while accessing unique materials.
If you rely on imported fabric for your fashion business, it’s imperative to understand New Zealand’s fabric import regulations and customs procedures. This guide will provide an overview of what you need to know when importing fabrics into New Zealand. We’ll also cover how DHL Express NZ’s reliable international logistics services can help you ensure a successful shipping experience.
Understanding New Zealand’s fabric import regulations
Import licenses
While New Zealand maintains a relatively open market for fabric imports, you should adhere to certain regulations to ensure a smooth journey through customs.
Generally, most fabrics do not require an import license or permit to enter New Zealand. Import licenses are authorisations granted by the government allowing the legal importation of goods into the country. Such licenses are usually required for goods such as firearms, food products, and hazardous materials.
However, specific import restrictions apply to certain fabrics that may harm public safety or the environment. Some of these textiles include:
- Textiles made from endangered animal products: To protect endangered wildlife, New Zealand prohibits the import of textiles made from materials such as ivory, tortoiseshell, and certain furs.
- Textiles treated with hazardous chemicals: Due to health and environmental risks, fabrics treated with substances such as azo dyes and asbestos are also restricted or banned.
- Textiles not meeting safety standards: Fabrics intended for specific uses must comply with safety standards. For example, fabric for children’s sleepwear needs to be less likely to burn or have a fire hazard information label.
Import tariffs
The tariff duty payable when shipping to New Zealand depends on your goods classification. In many cases, imported goods will attract no tariff duty at all.
However, a tariff of 5% or 10% may apply to some textiles. You can apply to customs for a tariff ruling request if you are unsure which HS Code your fabric should be classified under in the Tariff.
If you’re importing goods from a country with a trade agreement with New Zealand, you might enjoy preferential tariff rates.
Some of these countries are:
- Australia
- Singapore
- Thailand
- Malaysia
- ASEAN countries
Check the current Free Trade Agreements in force for more specific information on the countries that have lower duty rates with New Zealand.
Labelling requirements
Accurate labelling is crucial. It is the importer’s responsibility to ensure that the fabrics they bring in have the correct fibre content and care labels in compliance with the Consumer Information Standards (Fibre Content Labelling) Regulations 2000 and Consumer Information Standards (Care Labelling) Regulations 2000.
Typically, these labels state the fibre makeup and care instructions for the fabric. This information is meant to help ensure the proper maintenance and use of the product. Do check with your supplier if you have any concerns regarding the accuracy of the fabric labels. You can ask for more information about the tests the fabric has undergone to ascertain the appropriate care and fibre content.
Understanding these key aspects of New Zealand’s fabric import regulations can significantly streamline the import process.
Navigating New Zealand customs’ import procedures
Customs clearance process and documentation
After understanding New Zealand’s fabric import regulations, you also need to consider its specific customs procedures. While the supplier and carrier handle paperwork such as the commercial invoice, packing list document, bill of lading, and certificate of origin, some documentation is required on your end.
The customs clearance process typically requires you to lodge an electronic import entry with the New Zealand Customs Service, declaring the goods, their value, and any applicable tariffs or duties. Any applicable customs charges and Goods and Services Tax (GST) must be paid before the goods can be released. If the items you are bringing into New Zealand cost NZ$1000 or less, you will not have to pay anything to customs.
Customs officials may inspect the shipment to verify the information provided in the import entry and ensure compliance with import regulations. Once all requirements are met and charges are paid, the goods will be released for delivery to the importer. Upon receiving your fabric shipment, you will be asked to sign the bill of lading as proof of delivery.
Likewise, if you sell your finished garments internationally, do also pay attention to the documents you will need to ship clothing out of the country.
Potential delays
To avoid delays in the clearance process, it is good practice to ensure you have all the required documents accurately completed in time. For goods that require customs clearance, you should ensure that your import entry is completed within 20 days of the items’ arrival in New Zealand.
High import volumes can also be anticipated during the peak period between September and November as retailers stock up on inventory for the festive season. This can lengthen clearance times, so do consider arranging for your shipments in advance to avoid potential hold-ups.
Tips for a successful fabric importation experience
Quality control
Make sure that the imported fabrics will be up to your desired standards before making your order. Set clear specifications with your supplier, including details such as fabric type, composition, weight, colour, and performance requirements.
Before placing your order, it’s a good idea to request samples to verify the fabric’s quality, colour accuracy, and overall suitability for your intended use. This is especially so if you’re making a large order.
For additional peace of mind, you can also arrange for a third party inspection at the supplier’s facility before the shipment leaves.
Reliable partners
Having reliable partners is crucial. While fabric sourcing, it is helpful to conduct research and audits before selecting your supplier to ensure that they meet your quality requirements. Establish clear and consistent communication with your supplier to address any issues and concerns promptly.
On top of your suppliers, a trustworthy and experienced shipping partner can make a big difference in ensuring a seamless shipping process. For example, with their experience in customs brokerage, DHL Express NZ can help you to clear your shipments with customs as efficiently as possible. Additionally, our door-to-door international shipping and tracking services means that you can focus on your business operations with the peace of mind that your shipment is in capable hands.
Lead time management
Plan ahead to mitigate potential hiccups. This involves accounting for production time and customs clearance to ensure that you have the necessary inventory to keep your business operations running smoothly.
It’s also advisable to maintain a buffer stock of essential fabrics in case of unexpected shipping delays. This can help you to continue meeting demand even if delays occur.
Cost optimisation
As a business, you want to balance quality and value. To that end, there are several ways in which you can optimise your costs. For example, if you are importing from a country that has a Free Trade Agreement with New Zealand, take advantage of any preferential tariffs available.
Additionally, if you are importing smaller quantities of fabric, you can consider consolidating your shipments with other importers to reduce shipping costs.
Business success through smooth international shipping into NZ
With careful planning and execution, importing fabric into New Zealand can be a rewarding venture. Before you order your fabrics, do get up to date with the current import regulations and customs procedures.
Maintaining compliance with customs laws is vital for a disruption-free importation process. With the many steps and requirements involved, a reliable logistics partner such as DHL Express NZ can tremendously help in streamlining your fabric importation experience. Open a business account with DHL Express NZ to leverage our experience and speedy services, and give yourself more bandwidth to focus on your day-to-day operations.
