The figures indicate that 83 per cent of New Zealand exports are affected by non-tariff barriers. Exported products reportedly encounter an average of nine separate obstacles across the markets in which they are sold. While these requirements may appear minor, their combined cost can become substantial.
The issue is important because New Zealand exporters already face higher costs. Additional compliance expenses make it difficult for smaller businesses to compete internationally. The issue highlights why international expansion requires more than identifying overseas customers. Before entering a new market, companies must understand the full costs involved in trading overseas.
The situation may create opportunities for businesses that provide export compliance and professional advisory services. Investors should consider whether companies in these areas could benefit from increasing demand for solutions that make international trade easier.
What this means for businesses and investors
Small business owners should identify which products and customers could be affected by the proposed tariffs. Reviewing inventory levels and pricing can help businesses understand where financial pressure could emerge.
Tax, accounting and record-keeping considerations
Businesses involved in importing or exporting should maintain accurate transaction records. These records can become particularly important when determining the correct tariff treatment and supporting financial and tax reporting.
Additional import costs may also affect inventory valuations, cost of goods sold and profit margins. Businesses should ensure their accounting systems accurately capture any changes rather than treating unexpected tariff expenses as miscellaneous costs without proper analysis.
Practical steps to discuss with your accountant
Review cash-flow forecasts under different tariff scenarios, assessing whether pricing changes are required. Examine the tax treatment of additional import costs and check whether contracts adequately protect the business against sudden changes in duties.
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Disclaimer:The information in this article is general in nature and does not constitute financial, investment, taxation, legal or accounting advice. Readers should obtain professional advice relevant to their individual circumstances before acting on any information contained in this publication.
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