Duty-free alcohol permits

What a duty-free alcohol permit is

Excise duty is a tax on alcohol, fuel and tobacco products made or sold in New Zealand.

Customs issues three types of duty-free alcohol permits that allow alcohol to be received, used, or on-supplied without paying excise duty. Permits help ensure that duty-free alcohol is used for the purposes provided for in legislation.

You might not need a permit under some circumstances:

• A permit isn't required to buy ethyl alcohol, only for obtaining it duty-free.
• A permit isn’t required to buy alcohol from duty-free stores, such as at airports.

Types of duty-free alcohol permits

Permit to receive and use alcohol duty-free for approved purposes (NZCS 241)

This permit is issued to businesses, organisations and private individuals who source alcohol from New Zealand manufacturers. Alcohol can only be used for a commercial, industrial, educational, or scientific purpose approved by Customs (except for manufacturing alcoholic beverages) where no alternative product can be used.

Permit to receive and on-supply alcohol duty-free (NZCS 242)

This permit is issued to businesses that intend to supply alcohol to holders of NZCS 241 permit (Permit to receive and use alcohol duty free for approved purposes). This permit allows holders to receive alcohol from a New Zealand manufacturer at a duty-free rate if they are not licenced to manufacture their own alcohol.

Permit to import alcohol duty-free for approved purposes (NZCS 243)

This permit is issued to businesses importing undenatured ethyl alcohol with an abv 80% or higher or importing alcoholic beverages that will be used either:

• for a purpose approved by Customs
• supplied to holders of NZCS 241 Permits to receive and use duty free alcohol for approved purposes.

For information about applying for one of these permits, see the section ‘Apply for a permit’ below.

Apply for a permit

First time, or new, permit applications

Applications for a permit can be submitted through Business Connect. You will need to register for a RealMe account or use your existing RealMe to apply.

Business Connect application form for a duty-free alcohol permit

As an alternative, you can download and complete the PDF form below. Once completed, email the form to Customs via the email address provided on the form.

NZCS 240 - Apply for a permit to receive and use, or receive and on-supply, or import, alcohol duty-free (PDF, 242 KB)

You will need to provide the following information when applying for a permit:

• Photo ID (all applicants)
• Proof of enrolment and course documentation verifying how the alcohol will be used (private individuals applying to use alcohol for educational purposes)

Customs will assess your application to see if it meets the criteria for any of the duty-free alcohol permits. If your application is approved, Customs will issue you the relevant permit for your situation. The permit will contain the details of Customs’ approval, including the type of alcohol and quantity of alcohol you are permitted to obtain with the permit, and what you are allowed to do with the alcohol.

Renewing a permit

If you already have, or previously had, a NZCS 241 or NZCS 242 permit, and require more alcohol for the same purpose, you can apply to renew your permit.

Reasons you might renew your permit:

• your permit has expired, or is near its expiry
• you have used up the quantity of alcohol allowed on your permit
• details on your permit have changed.

Renewals must be requested using either of these:

• Business Connect application form for a duty-free alcohol permit
• NZCS 240 - Apply for a permit to receive and use, or receive and on-supply, or import, alcohol duty-free (PDF, 242 KB)

You must provide your current or most recent permit to Customs including the record of alcohol supplied under the authority of the permit.

The Customs Officer reviewing your application may ask you to provide additional relevant documentation, such as the record of how you used the alcohol received under your previous permit, or sales records to verify needing a larger quantity of alcohol.

Prefilling application details on Business Connect

If you previously applied for a permit using Business Connect, you can pre-fill the renewal application using the information from your previous application by following these steps:

1. Log in to Business Connect
2. Using the options on the left side of the screen, navigate to the “My Applications” page
3. Under “My applications”, select the “Completed” tab
4. Select the “Duplicate” option next to the record of your previous permit application
5. Review your responses to the application questions and update anything that has changed, upload a copy of your previous permit, and submit your application.

Permit conditions

The conditions you must follow as a duty-free permit holder are detailed on your permit. The conditions vary depending on the type of permit and the situation. Information about some of the conditions is detailed.

Use of alcohol

Alcohol obtained with a permit can only be used for the purpose stated on the permit.

Address

Alcohol can only be delivered to the address on the permit.

Tracking alcohol supplied

When a vendor supplies alcohol under a permit, they need to note the details of the quantity, strength, and date of supply on the reverse side.

Disposal restrictions

The alcohol, including any waste resulting from its use, cannot be sold, or processed to use in manufacturing alcoholic beverages. Customs must approve any disposal.

Record keeping

Permit holders must maintain records that account for alcohol received, supplied and/or used under the authority of your permit. These include, as applicable:

• when receiving alcohol: date of alcohol received, quantity received, supplier.
• when using alcohol: date used, quantity used, what it was used for, who used it.
• when supplying alcohol: permit holder the alcohol was supplied to, their permit number, type of alcohol and quantity of alcohol supplied, delivery details.
• current stock levels and stocktakes
• any loss of alcohol received under the permit
• disposal of alcohol (you need approval from Customs to dispose of alcohol obtained using a duty-free alcohol permit)

Records must be kept for at least seven years and provided to Customs if requested.

Audits

Customs may request access to the premises where alcohol purchased with a permit is stored or used. Customs may take samples of the alcohol, or products made or used with the alcohol.

Misuse

If permit conditions are not followed, Customs can charge duty on the alcohol that was purchased using the duty-free permit.

Notifying Customs of changes

Permit holders must notify Customs of any changes to details on the permit, or if the permit is no longer required prior to its expiry.

Compliance with safety standards

Alcohol is hazardous due to its flammability, health risks and potential environmental impact. Permit holders must comply with all applicable hazardous goods requirements, including those from Worksafe, the Environmental Protection Agency, and the New Zealand Transport Agency.

Expiry date

Permits are valid for 24 months. Provisions specific to each permit type are below.

Permit to receive and use alcohol duty-free for approved purposes (NZCS 241)

Alcohol can be received for up to 24 months from the date of issue, or until the quantity of alcohol permitted has been reached. Alcohol can continue to be used for the approved purpose after the permit expires.

Permit to receive and on-supply alcohol duty-free (NZCS 242)

Alcohol can be received for up to 24 months from the date of issue, or until the quantity of alcohol permitted has been reached. Alcohol can continue to be supplied to NZCS 241 permit holders after the permit expires.

Permit to import alcohol duty-free for approved purposes (NZCS 243)

You have 24 months from the date of issue to use the concession on an import entry.  

Claiming an import concession (NZCS 243 only)

The permit can only be used once and for a single import entry. You must apply the import concession at the time the import entry for the alcohol is lodged. If you use a Customs broker to lodge your import entries, provide your permit to your Customs broker before they submit the import entry.