Hoki fish. Photo: jackf/123RF
The deputy secretary of trade says the seafood industry is not making the most of free trade deals.
Vangelis Vitalis said FTAs with the UK and European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) eliminated tariffs on some seafood - giving New Zealand an advantage over other countries.
However at the recent Seafood Conference, he told the industry the Ministry of Foreign Affairs and Trade has crunched some numbers - which show seafood exporters are not making the most of them.
"You're exporting mussels to Mexico and paying a 20 percent tariff that means for every $100 of exports you're giving $20 to the Mexican customs administration, but the CPTPP which came into force five years ago eliminated that tariff, you shouldn't be paying it.
"Large parts of the industry are still paying it, when you're exporting and filling out the paperwork there's a box that asks 'are you seeking the free trade agreement preference' you need to tick that box."
Vitalis said MFAT estimates 40 percent of seafood exports to the UK are still paying tariffs - which were eliminated a year ago.
When asked why exporters have to tick a box instead of getting the automatic saving - he said unfortunately the other markets require the paperwork.
He pointed the Seafood Industry towards MFATS tariff finder where exporters can search individual products and countries.
Seafood New Zealand chief executive Lisa Futschek said the talk was a wake-up call and shows gaps in communication.
"Look, I think it was was really important information for us to receive and we weren't aware that we're not taking full advantage of our FTAs.
"MFAT does a really fantastic job in negotiating these agreements for us and clearly we want our industry to be making full advantage of them."
Futschek said it appears the problem is at the importer end where the paper work is not be filled in correctly.
"It's highlighted a gap between what the officials are telling us around what is required and what our sector had understood was required.
"So now that we've identified that we're going to be in a really happy position of being able to maximise the returns from these amazing free trade agreements."
