Buying direct from overseas manufacturers can transform a young brand’s margins. It also transforms its cash flow — and not in a good way at first. This guide walks through the stages of an import, what each one costs, and how to plan the money so a container of great product doesn’t sink the business.
The five cash stages of an import
- Deposit. Paid when you confirm the order and production starts. Commonly a share of the order value — 30% is typical, but it varies.
- Balance. Usually due before the goods ship, or against shipping documents.
- Freight and insurance. Sea or air, paid to your freight forwarder.
- Arrival costs. Customs and biosecurity levies, duty (if any), GST on imports, customs broker fees, port charges and local cartage.
- Selling. Finally, the goods reach your warehouse or 3PL and you can start selling.
The time between stage 1 and stage 5 is often two to three months for a sea shipment from Asia, sometimes more. That’s the gap you need to fund.
Build a landed-cost budget
“Landed cost” is what each unit really costs you once it’s sitting in your warehouse. A simple template:
| Cost line | Notes |
|---|---|
| Supplier price × units | From the pro-forma invoice |
| Origin charges | Depending on Incoterm |
| International freight | Sea (LCL or FCL) or air |
| Insurance | Often a small percentage of goods value |
| Customs and biosecurity levies | Per entry or per consignment |
| Duty | Based on tariff classification and origin |
| GST on imports | 15% on the customs value plus freight, insurance and duty |
| Customs broker | Their fee for lodging the entry |
| Port and destination charges | Terminal handling, documentation |
| Local cartage | Port to your warehouse |
Divide the total by units to get landed cost per unit — then check your margin still works. Our unit economics guide shows how.
Customs changes from 1 April 2026
New Zealand Customs replaced its previous fee model with Goods Management Levies from 1 April 2026. According to a summary by freight forwarder EasyFreight and Customs’ own industry information pack:
- the combined Customs and MPI levy per entry for high-value goods increased for sea imports and decreased for air imports,
- per-consignment charges now apply to low-value goods ($1,000 or under), which adds up for businesses importing many small parcels,
- the $1,000 de minimis for duty collection stays, but GST still applies to low-value goods,
- the levies are separate from, and additional to, duty and GST.
If you’ve been importing lots of small air parcels to test products, it’s worth reviewing whether consolidating shipments now makes more sense.
Incoterms: who pays for what
Incoterms are standard terms that set out where the supplier’s responsibility ends and yours begins. The common ones for NZ importers:
- EXW (Ex Works): you handle everything from the supplier’s premises. Cheapest quote, most work.
- FOB (Free On Board): the supplier gets goods onto the vessel at the origin port; you pay sea freight onwards. The most common choice for small importers.
- CIF (Cost, Insurance and Freight): the supplier pays freight and insurance to NZ, but you still pay destination charges, duty and GST. Watch for inflated destination charges.
- DDP (Delivered Duty Paid): the supplier handles everything including duty and GST. Convenient, but you have less visibility of costs.
Sea vs air: timing and trade-offs
| Sea freight | Air freight | |
|---|---|---|
| Speed | Weeks on the water plus port time | Days |
| Cost | Much lower per kg for bulk | Much higher per kg |
| Best for | Planned orders, heavy or bulky goods | Urgent restocks, light high-value goods |
| Cash tied up | Longer | Shorter |
A common strategy: bring the bulk by sea, well ahead of peak, and keep a small air-freight budget for fast restocks of best-sellers.
Plan for delays
Production runs late. Vessels are rolled to the next sailing. Ports get congested. Biosecurity inspections happen. Build slack into every step:
- ask your supplier for a realistic production date, then add a buffer,
- avoid timing launches or promotions to the exact week stock is due,
- don’t structure repayments so they depend on goods arriving on a specific day.
Currency: the hidden cost
Most suppliers invoice in US dollars (sometimes euros, yuan or other currencies). If the NZ dollar falls between your deposit and your balance payment, your landed cost rises.
Ways importers manage it:
- Pay in full up front if the supplier offers a discount and you can afford it.
- Fix the rate for the balance payment in advance through your bank or an FX provider (a forward contract).
- Use an FX provider rather than a standard bank transfer, which can reduce conversion costs.
- Budget a buffer of a few percent for currency movement.
Your bank or a specialist FX provider can explain these options in detail.
Funding an import
Because imports are paid in stages, a line of credit is often the best fit: draw for the deposit, again for the balance, again for freight and customs, then repay as stock sells. A lump-sum loan can suit a single large order paid in one go.
- Businesses trading about six months or more may qualify for unsecured funding sized to turnover.
- Newer importers, or larger orders, can use a property-secured loan of $20,000 to $1m against NZ property they or a supporting party own.
See import order funding for details, or send a 60-second enquiry — it doesn’t affect your credit score — and a lending specialist will map funding to your supplier’s payment milestones.