Import Duties on Apparel Manufacturing

IBISWorld forecasts the rate of import duties on apparel manufacturing to be kept steady at 10.0% during 2024–25. The last textile, clothing and footwear (TCF)–related tariff reduction to occur was in July 2009, when import duties on apparel were reduced from 12.5% to 10.0%. The rates are imposed by government legislation and are set years in advance. The New Zealand Central Government has pursued a general reduction in tariffs since the late 1980s, including lowering tariffs on textile, clothing and footwear. TCF-related tariffs were reduced to 17.0% in July 2006 and fell in each proceeding year to 10.0% in July 2009. TCF-related tariffs have since been held at 10.0%. On 28 February 2022, the UK signed a free trade agreement with New Zealand. Under the agreement, tariffs of up to 10.0% on clothing and footwear were removed.

The reduction in tariff rates until 2009 has contributed to a significant increase in clothing and footwear imports over the past decade. This trend has had a significant effect on the overall apparel market. Retailers and wholesalers have been able to source products directly from overseas manufacturers at a cheaper cost, supporting retail operations and limiting purchase expenses. However, local clothing producers have struggled with an influx of low-cost imports and have been increasingly unable to compete based on price because of high domestic wages and rent expenses. As a result, many domestic manufacturers have shifted production offshore over the past five years.