91Ï㽶»ÆÉ«ÊÓƵ

There are advantages and also potential challenges for Northern Ireland companies doing business in New Zealand.

Advantages of exporting to New Zealand

New Zealand can offers numerous benefits to companies looking to do business in the region including:

• similar legal and financial systems to the UK
• excellent test market for niche and high-value products and services
• English speaking
• low corruption levels
• stable political system
• ranks first of 189 economies for ease of doing business
• geographic position allows for easy access to Pacific Island market
• opposite time zones allow for 24 hour working
• small but developed market
• strong Intellectual Property (IP) and regulatory systems

Challenges of exporting to New Zealand

Doing business in New Zealand is very similar to doing business in the UK. If your product or service is successful in the UK, there's a good chance you'll be successful in New Zealand. At present there are no major challenges to UK companies.

There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies. Opportunities exist across a wide range of sectors, including infrastructure, technology, agri-technology and e-commerce.

New Zealand's small open market also makes it a sound choice for Northern Ireland SME companies new to exporting.

There are opportunities for UK companies across a broad range of industries.

Infrastructure

New Zealand is investing heavily to update and create new critical infrastructure to cope with increased demand. An estimated 129 billion New Zealand dollars is expected to be spent on capital projects between 2019 and 2029 (New Zealand Treasury, 2019) which will present opportunities for UK businesses. Cyclone Gabrielle (February 2023) has also presented new infrastructure challenges and opportunities.

Technology

Technology is New Zealand’s fastest growing industry (New Zealand Technology Investment Association, 2021), with the sector increasing 11% between 2019 and 2020. Telecommunications, computer and information services were the third largest UK service export to New Zealand in the 4 quarters to the end of Q1 2019 (ONS, 2019).

Fintech

New Zealand’s fintech sector is the fastest-growing component of the technology sector. The 5 year compound annual growth rate is 38% and 5 year revenue growth is 705 million New Zealand dollars. The profitability in the New Zealand financial sector provides opportunities for innovative UK fintech companies. It is a small, yet dynamic market with tech savvy consumers and a sophisticated, profitable financial services sector.

Agri-technology

Agriculture is New Zealand’s largest export sector. Both the UK and New Zealand share similar challenges of clean growth including enhancing productivity in human nutrition whilst protecting the environment.

E-commerce

There has been an exponential growth in online shopping in New Zealand with over half of all Kiwis regularly shopping on their devices. With no local presence of eBay or Amazon, domestic platforms such as Trade Me and The Market dominate the e-commerce sector creating opportunities for UK retail companies.

Food and drink

New Zealand is an excellent choice for UK food and drink producers looking for smaller markets to expand into. The food and drink sector are important to New Zealand’s economy both in terms of exports and its domestic market.

There are a lot of things to consider before you start exporting to New Zealand.

It's essential to find out about local rules and regulations on tax and duty in your intended market.

VAT

Goods and Services Tax (GST) is a tax on most goods and services in New Zealand. The current GST rate is 15%. .

Import duties

All goods imported into New Zealand for business or commercial purposes are liable for customs duty, GST and other applicable fees. Indicative rates can be found in the . .

Standards and technical regulations

All products sold in New Zealand must be safe. The two key laws that deal with product safety are the:

• Consumer Guarantees Act, which gives minimum standards of quality for goods and services
• Fair Trading Act, which promotes product safety

Importers must ensure products meet the minimum standards for the products to be allowed to enter the country. You can check the required standards at .

Labelling requirements

Packaging must meet New Zealand consumer health and environmental legislation. There are specific labelling requirements for:

• chemical products
• cosmetics
• electronic goods
• foodstuffs
• most therapeutic products

All labelling must use the metric system.

You can read guidance on food labelling from .

Payment terms

Payment terms and method should be set out in your contract and must be factored into prices. For business-to-business transactions these can range from immediate payments on receipt of goods (often with a negotiated small discount) to a negotiated 60-day payment.

Intellectual property

Intellectual property (IP) rights are territorial. Rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.

The Intellectual Property Office’s  provides practical information to help you protect, manage and enforce your IP abroad. Further 91Ï㽶»ÆÉ«ÊÓƵ can be accessed through the service’s network of . Based in key UK export markets, they provide guidance to British businesses on local IP matters.

Business culture

In general, business etiquette is very similar to the UK. Face-to-face meetings can be very important to develop business relationships and prompt replies to enquires are recommended. Visits should be planned in advance – ideally at least four weeks.

Punctuality is very important. New Zealanders tend to be informal in their business interactions. First-name terms tend to be the norm in most business situations. Directness and plain speaking are valued.

New Zealanders often take holidays during school holiday periods, especially over the New Zealand summer holiday period, which is January. As a result, visits during these times may not be productive.

Logistical challenges

New Zealand’s distance from the UK means you may face challenges in:

• travelling (at least 24 hours from the UK by plane)
• the time difference (12 to 13 hours ahead of the UK)

The UK has signed a Free Trade Agreement (FTA) with New Zealand which will make exporting to New Zealand cheaper, faster and more secure for UK businesses.

How to utilise the FTA

The UK-New Zealand FTA contains many new improvements and opportunities for UK businesses seeking to export to New Zealand.

From more flexible rules of origin and customs clearance, to specialised 91Ï㽶»ÆÉ«ÊÓƵ for small traders.

• Find  including guidance on proving rules of origin, accessing simpler customs, and benefiting from zero tariffs.
•   with market opportunities and the steps you need to take to utilise the agreement.

Benefits of the UK-New Zealand FTA include:

• more flexible rules of origin when exporting goods that are better suited to modern supply chains
• equal treatment and improved business environment for UK businesses operating in New Zealand
• easier travel rules for UK businesspeople wishing to deliver services in New Zealand

Some of the provisions in the new FTA will apply automatically, whilst others may require you to take action first before you can benefit. The action(s) you will need to take also depends on the type of goods or services you are selling.

Developing exports to New Zealand could be a key part of growing your business. But breaking into the market can be challenging. The right 91Ï㽶»ÆÉ«ÊÓƵ and advice can significantly improve your prospects.

Invest NI offers a comprehensive range of advice, plus additional 91Ï㽶»ÆÉ«ÊÓƵ services for businesses.

• The include 91Ï㽶»ÆÉ«ÊÓƵ with market research and market visits.
• Invest NI sector specialists can help you assess the opportunities for your business and advise on the best way forward.
• Invest NI can advise on how to .
• Invest NI can advise on and may be able to provide financial 91Ï㽶»ÆÉ«ÊÓƵ directly to businesses.

As well as Invest NI, there are other sources of 91Ï㽶»ÆÉ«ÊÓƵ.

• The Northern Ireland Chamber of Commerce (NICC) provides .
• Department for Business and Trade (DBT) in-market 91Ï㽶»ÆÉ«ÊÓƵ - eligible UK businesses can access trade expertise and knowledge on exporting to specific countries from the DBT global network of international market hubs.
• UK Tradeshow Programme - UK businesses exporting, or thinking about exporting, can apply for 91Ï㽶»ÆÉ«ÊÓƵ to exhibit at, or attend, approved overseas trade shows and conferences; potentially receive grants to offset some costs.
• A freight forwarder can organise delivery and customs clearance, minimising the logistical problems you deal with directly. 
• Your bank can advise you on the most appropriate form of financing and how to protect yourself against foreign exchange risks and non-payment.