Global ID Best for NZ Business

Global ID Best for NZ Business

Internationally standardised D&B identification number will boost Kiwi competitiveness in global economy

Kiwi businesses will get a much-needed competitive boost in the global economy if recent proposals for a unified business identification system are adopted.

New Zealand companies will be brought in line with international standards if the government adopts a unique numerical identifier for businesses.

Dun & Bradstreet has supported a standardised numbering system since the creation of the DUNS Number in 1962, according to General Manager of D&B New Zealand, John Scott.

““The DUNS acts as a virtual fingerprint for each corporation, allowing New Zealand businesses to easily identify foreign entities entering the domestic market and vice versa.”

D&B has seen its ID system implemented with great success throughout its global network. The US government has already adopted the DUNS to enable US businesses to become government suppliers.

“By using a single data source to verify companies and streamline transactions, the US Federal Government has made it easier and quicker to do business in the country,” Mr Scott said.

The DUNS Number, a nine-digit identification sequence unique to each of the 200 million entities contained in D&B’s global database, is used and recommended by the United Nations and the European Union as the global standard for business identification.

“This is consistent with a recent World Bank study that shows it takes significantly less time to trade with the US than with the OECD on average because of reduced barriers to trade. This is something New Zealand firms need to keep in mind if we want to compete on a similar level.”

The disparity in trading time- with the US taking only six days to export goods but OECD countries taking 10 days- could be eased with the adoption of a standardised ID in New Zealand for all businesses.

Only incorporated entities have a DUNS Number in New Zealand, which is already in use by larger firms with client billing and customer relationship management systems.

“Attaching a DUNS Number to unincorporated and smaller entities will likely see increased and smoother cross-border trade as their activities will be easier to track,” Mr Scott said.

Key benefits of the DUNS Number include:

• Ease of corporate identification across borders due to the global presence of the DUNS

• Reduced barriers to trade by having a single data source designed specifically for corporate identification

• Enhanced ability to detect tax fraud, money laundering and terrorism financing activities due to the use of the DUNS in corporate linkage

• Cost-effective method of classifying invoices, requisitions, payments, customs clearance and other business documentation

• Improved communication with customers and suppliers via linked transactions and accounts

The DUNS Number is also the norm for all e-commerce transactions conducted by the Australian Federal Government. This is particularly significant in trans-Tasman trade as Australia is New Zealand’s largest export and import market, accounting for $10 billion of total exports and $7.7 billion of total imports last year.

Currently, New Zealand businesses are identified by their IRD number allocated by Inland Revenue, but given that the tax department is undergoing technology changes, officials believe a new identification number is needed.

Mr Scott believes that any new system should be applicable globally to ensure consistency at both the local and multinational level.

“By making it easier for companies to easily establish and verify their identity in other countries, the government can facilitate cross-border trade flows and strengthen New Zealand’s standing in the global economy.”

ENDS

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