18637 Demonstrate Knowledge of the Application of GST in the Context of Customs and Excise
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Title / Demonstrate knowledge of the application of GST in the context of Customs and Excise requirements
Level / 5 / Credits / 8
Purpose / People credited with this unit standard are able to: explain the principles of GST legislation and its implication in a Customs and Excise context; explain the zero-rating for GST of goods under section 11 of the Goods and Services Tax Act 1985; and explain the imposition of GST on imported goods under section 12 of the Goods and Services Tax Act 1985.
Classification / Public Sector Services > Customs and Excise
Available grade / Achieved
Explanatory notes
1Legislation, policies and procedures relevant to this unit standard include:
Goods and Services Tax Act 1985;
Customs and Excise Act 1996;
Customs and Excise Regulations 1996;
The State Services Code of Conduct, Standards of Integrity and Conduct (available from
New Zealand Customs Service Code of Conduct (available from NZ Customs Service, PO Box 2218, Wellington 6140,
2Excisable goods refers to goods on which excise duty is payable in accordance with Part A of the Excise and Excise-equivalent Duties Table, Customs and Excise Act 1996.
3Demonstration of knowledge of all outcomes must, where applicable, be referenced to relevant legislation.
Outcomes and evidence requirements
Outcome 1
Explain the principles of GST legislation and its implication in a Customs and Excise context.
Evidence requirements
1.1Concepts and features associated with a value added tax system are described and the distinction between Customs and IRD responsibilities are identified and explained.
Rangeexamples of concepts and features may include but are not limited to – taxable activity, registration, returns, types of supplies, time of supply, tax invoices, output tax, input tax, adjustments.
1.2The linkages between the Customs and Excise Act 1996 and the Goods and Services Tax Act 1985 are identified and explained.
1.3GST processes as they apply to Customs activity are explained.
1.4The liability, or otherwise, for GST is identified in terms of relevant legislation.
RangeNew Zealand returned goods, repaired goods, excisable goods that cannot be accounted for.
1.5Exempt supplies are described in accordance with legislation.
Rangeincludes but is not limited to – financial services, donated goods and services, fine metals, personal effects, concessions.
Outcome 2
Explain the zero-rating for GST of goods under section 11 of the Goods and Services Tax Act 1985.
Evidence requirements
2.1Conditions where a zero rate GST applies to goods entered for export is explained.
2.2Provisions for other goods that qualify for a zero rate of GST are explained.
Rangesealed bag system, inbound and outbound travellers, repairs, renovations and modifications, other returned New Zealand goods, extent of zero rate.
2.3Provisions for applying a zero rate to temporary import entries are explained.
Outcome 3
Explain the imposition of GST on imported goods under section 12 of the Goods and Services Tax Act 1985.
Evidence requirements
3.1The range of imported goods on which Customs levies, collects, and receives GST are identified and explained.
3.2The process for establishing the value of imported goods subject to GST is explained.
3.3Provisions that apply to the collection, payment and enforcement of GST levied on imported goods are explained.
Status and review information
Registration date / 16 July 2010Date version published / 16 July 2010
Planned review date / 1 February 2015
Accreditation and Moderation Action Plan (AMAP) reference / 0121
This AMAP can be accessed at
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA, or an inter-institutional body with delegated authority for quality assurance, before they can report credits from assessment against unit standards or deliver courses of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and which are assessing against unit standards must engage with the moderation system that applies to those standards.
Consent requirements and an outline of the moderation system that applies to this standard are outlined in the Accreditation and Moderation Action Plan (AMAP). The AMAP also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements.
Comments on this unit standard
Please contact The Skills Organisation if you wish to suggest changes to the content of this unit standard.
The Skills OrganisationSSB Code 100401 / New Zealand Qualifications Authority 2018