Deemed Values
Catch in Excess of Your ACE Holdings — Deemed Values
When the amount of your reported catch is more than the amount of ACE that you own you will be issued with a deemed value invoice. Deemed value invoices must be paid within 20 days of the date on the invoice. If you do not pay your deemed value invoice on time, and the amount of the deemed values that you owe is $1000 or more, your fishing permit will be suspended.
There are two types of deemed values, interim and annual deemed values. The Ministry for Primary Industries sets both interim and annual deemed value rates for each quota management stock. The annual deemed value rate for a stock will always be higher than the interim deemed value rate.
Interim deemed values — If your reported catch for the month is more than your ACE as at the 15th day of the following month, then you will be charged an interim deemed value. Interim deemed values will be charged each month for all quota stocks, for the first eleven months of the fishing year for that stock. If you subsequently purchase ACE to reduce or eliminate your overfishing, you will be issued a deemed value credit for the amount of the reduction. You can then request FishServe to refund this credit or apply the credit to other deemed values that you may have incurred.
Annual deemed values — If your reported catch for the fishing year for a stock is more than your ACE on the 15th day of the month following the end of the fishing year, you will be charged an annual deemed value. The annual deemed value is calculated by multiplying the total amount overfished for the year, by the annual deemed value rate for that stock. For some stocks a differential annual deemed value will be used. Any interim deemed values that have already been paid will be deducted from this figure and this will leave the annual deemed value that will be charged.
Deemed Value invoices include GST.
You can also use our Deemed Value Calculator to calculate your deemed values or you can use the examples below.
Example 1 - Interim Deemed Value
Each month a comparison is made of the ACE that you own, and the catch that you have reported since the beginning of the fishing year. This is notified to you on a Monthly Balance Notification. When the amount of reported catch for a stock is more than the amount of ACE that you own, the amount of overfishing will appear in the 'Balance' column as a negative.
| Stock | Catch for April | ACE Holdings - | Total Catch for Year = | Balance |
|---|---|---|---|---|
| SNA1 | 1,000 | 3,000 | 3,300 | -300 |
To calculate the Interim deemed value you need to:
300 x 7.2 = $2,160.00
If you then purchase 100kg of ACE, you will receive a credit of $720 (100kg x 7.2)
Example 2 - Annual Deemed Values
If differential rates do not apply to a stock, the annual deemed value is calculated in the same manner as the interim deemed value except the annual rate is used in place of the interim rate. If differential deemed value rates have been set for a stock, staggered rates will be used in the calculation.
| Stock | Catch for April | ACE Holdings - | Total Catch for Year = | Balance |
|---|---|---|---|---|
| SNA1 | 1,000 | 3,000 | 6,300 | -3,300 |
Step 1: To work out the amount of differential annual deemed values that you will be charged, you first need to know the percentage that you are overfished by.
To do this you need to do the following calculation:
e.g. 6300 / 3000 x 100 = 210%
In the above example, the client had 6,300kgs of 'Catch YTD' and 3,000kgs of 'Closing ACE'. This means that they caught 210% of their ACE. In other words, they caught 110% more ACE than they had available, so they are 110% overfished.
Step 2: If differential rates apply to a stock, a different rate will apply to each portion of your overfishing. The way that the rates apply is illustrated below with SNA1:
| Amount Overfished | Deemed Value Rate |
|---|---|
| 0 to 5% overfished | $8.00 per kg |
| More than 5% to 10% overfished | $10.00 per kg |
| More than 10% to 20% overfished | $12.00 per kg |
| More than 20% to 30% overfished | $14.00 per kg |
| More than 30% to 40% overfished | $16.00 per kg |
| More than 40% to 50% overfished | $18.00 per kg |
| More than 50% to 60% overfished | $20.00 per kg |
| More than 60% overfished | $22.00 per kg |
Step 3: To work out the dollar value of your overfishing, you will need to do the following calculation:
Multiply your 'Closing ACE' figure by the percentage overfished in each band. In first band in the above example 3000 x 5% = 150kg. This is the amount of overfishing that will be charged at the annual rate
The following example shows the amount in dollars that will be charged if a client was 110% (3300kg) overfished in SNA1:
| Amount of Overfishing | Deemed Value Rate | $ Amount |
|---|---|---|
| The first 150kg | $8.00 per kg | $1,200.00 |
| The next 150kg | $10.00 per kg | $1,500.00 |
| The next 300kg | $12.00 per kg | $3,600.00 |
| The next 300kg | $14.00 per kg | $4,200.00 |
| The next 300kg | $16.00 per kg | $4,800.00 |
| The next 300kg | $18.00 per kg | $5,400.00 |
| The next 300kg | $20.00 per kg | $6,000.00 |
| The last 1500kg | $22.00 per kg | $33,000.00 |
| Total Overfishing 3,300kg | Total deemed value amount | $59,700.00 |
If you have been invoiced for interim deemed value amounts during the fishing year, these will be credited when the annual deemed value is invoiced.
For example, if you were charged the interim rate of $7.20 for 3,300kgs of overfishing for SNA1, you would have already been invoiced $23,760. This means that you will receive an interim deemed value credit for $23,760 and further annual deemed value invoice for $59,700. If you have paid your interim deemed values during the year, the amount due will be the difference (e.g. $59,700 minus $23,760 paid = $35,940 due).
Chatham Island Deemed Value Rate
The Chatham Island deemed value rates (both annual and interim) will apply to fish, aquatic life, or seaweed landed to and received by a Licensed Fish Receiver in the Chatham Islands.
In order to qualify for this rate, you will have to apply to FishServe on the approved form. Contact us for a "Declaration that stocks will be landed and received by a Licensed Fish Receiver (LFR) on the Chatham Islands" form to be sent out to you. You will need to state the stocks that you will be landing to a Licensed Fish Receiver in the Chatham Islands. Once the application is accepted, the Chatham Island rate will apply to the specific stocks from that date forward. FishServe is not permitted to apply the Chatham Island rates for fish that has been landed previously in the Chatham Islands.
The Ministry for Primary Industries require FishServe to check that the fish, aquatic life, or seaweed was actually landed on the Chatham Islands. If we find that the catch was not landed to and received by a Licensed Fish Receiver on the Chatham Islands, we are required to reverse the charge, and apply the full rate. We also have to advise the Ministry for Primary Industries of such cases. Therefore it is important for you to advise FishServe if you do not land, or are no longer landing, fish in the Chatham Islands. This will ensure the correct deemed value rate will be applied to any catch in excess of your ACE.