July 8, 2001 - NEW ZEALAND REFIT

OK, I admit we are in love with New Zealand, but seeing through that, it is a great place to do major boat work.

By the time we arrived in New Zealand, 18 months ago, we had been living aboard and cruising THETA VOLANTIS nonstop since 1994. Apart from running repairs, the only major work we had done on THETA VOLANTIS was to replace all the deck hatches due to the paint falling off the old ones. The boat had served us well and we decided it was time to put something back in by way of a refit.

So, arriving in NZ, we planned a host of upgrades, from replacing the plastic deckhouse windows with toughened glass through to a complete overhaul of the engines--main, generator and dive compressor engine as well as some interior work--varnishing, new upholstery etc.

It has to be said that all of the different Kiwi companies we used worked hard, and were globally very competitively priced and extremely competent. Some examples: The skilled engineer who totally stripped and rebuilt our generator charged NZ$40 an hour, which works out at about US$17. The stainless steel fabricators charged slightly less, about NZ$35, so I had numerous custom-made items fabricated for a fraction of the cost pretty much anywhere else in the world that can provide that high level of competency.

A further bonus is that the major ports where cruisers hang out for refit work, Whangarei and Tauranga to name but two, are surrounded by companies which can provide specialist services, not necessarily for boats, but whose skills are quickly utilized. A powder coating company operated 5 minutes from our mooring in Tauranga, so a grubby aluminum switch panel got recoated in matt black for NZ$5 (US$2), and now looks very smart.

Although we tried to source products locally, because of manufacturer pricing policies we found it cheaper to buy some items from the US and have them shipped out. For example, for the VHF radio we bought, the cost from the manufacturer to the local supplier was higher than the West Marine price even including shipping costs, so it paid to shop around the world.

NZ has so many advantages in this area, that when we were transiting the Pacific, several boats we met were coming there just for the refit--the money saved more than paying for the trip.

NOTES ON TAX:

New Zealand has two different taxes, Duty and GST.

Tax on Boat Parts

Any item that is fitted to the yacht is provided GST free, that includes the labor to fit the item. You may be required to pay GST for obviously portable items, e.g. outboard motors.

Tax-Free Stores

Yachts leaving New Zealand are entitled to GST-exempt stores. GST is 12% in New Zealand so it is well worth taking advantage of this benefit. The term "stores" includes food, drinks (including alcohol), cleaning materials, medicines, fuel etc. These do not have to be purchased from special stores; unlike duty-free goods--see below--you can use whichever supermarket/wine merchant you like. However we found it easier to get a letter from the Inland Revenue than to try to explain things to supermarket supervisors armed with only our boat's papers. The Inland Revenue will supply you with a letter saying you are entitled to GST-free goods and you simply need to take a copy along to the store when you buy your goods. Our letter was valid for 3 weeks so it gave us plenty of time to provision.

Duty-Free Goods

Departing yachts are also entitled to duty-free goods, but the process is more complicated, and unless you want to take on board largish quantities of cigarettes and spirits, it is not worth the bother. (There is no duty on diesel and only 6% on wine/beer.)

To obtain Duty Free you must buy from an authorized supplier and have it delivered to your yacht less than 24 hours before your departure. We found the prices offered by the Duty Free suppliers for wine higher than we could buy from the supermarket inclusive of duty.

(For another cruiser's perspective on doing major refits in New Zealand, see George Backhus's reports of September 22, 1998 and February 28, 1999.)