Mutual recognition arrangement

What is the mutual recognition arrangement and why was it developed?
What is the Secure Export Scheme (SES) and why was this programme selected?
Why was the SES programme selected?
How will Secure Exports Scheme (SES) partners be able to benefit?
How will it benefit New Zealand's overall trade facilitation and supply chain security?
What other supply chain initiatives has NZ Customs been developing?
How does the arrangement complement the work of the World Customs Organisation (WCO)?
What about with other countries?

What is the mutual recognition arrangement and why was it developed?

The mutual recognition arrangement is a formal document between the New Zealand Customs Service and other international Customs administrations, such as the US and Japan.

The arrangement is a 'world first' under the World Customs Organisation's (WCO) Framework of Standards to Secure and Facilitate Global Trade. The standards are designed to enhance supply chain security compliance in return for facilitation benefits for traders in supply chain security programmes.

This arrangement was developed as part of New Zealand's commitment to global trade security and it acknowledges New Zealand's Secure Exports Scheme (SES) whereby partners maintain security standards over their export trade.

This means that overseas border agencies treat SES partners' goods as 'low security risk' when imported into mutually recognised countries. Under the arrangement, SES partners will receive cargo facilitation benefits for goods exported to countries under this arrangement.

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What is the Secure Export Scheme (SES) and why was this programme selected?

The New Zealand Customs Service started the SES programme in 2004. Currently there are just over 100 export partners in the SES. Participation in the scheme is voluntary. Goods exported by SES partners are packed and transported securely, without interference, to the place of shipment.

In return, partners benefit by facing less risk of delays from Customs intervention and inspection.

SES partners include Fonterra, ENZA, Gallagher Group, PGG Wrightson Seeds, H Dawson & Sons (Wool) NZ Ltd, and Fisher & Paykel Appliances Ltd.
 
The partnership requires the participants to have met minimum requirements to ensure export goods cannot be tampered with or used to smuggle contraband. The consignment of goods is then sealed with a Customs-approved seal which signals that it is under Customs control and can be considered secure by overseas administrations.

For further information on the SES, go to New Zealand Customs Service Secure Exports Scheme, or refer to Fact Sheet 34, 34A, 34B, 34C and 34D New Zealand Customs Service information fact sheets.

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Why was the SES programme selected?

The SES is an existing programme that is recognised by administrations of overseas trading partners. The SES is recognised by some overseas Customs administrations as having the necessary security criteria for mutual recognition, and is consistent with the WCO Framework of Standards to Secure and Facilitate Global Trade.

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How will Secure Exports Scheme (SES) partners be able to benefit?

Benefits can include:

• Approved secure supply chain from point of pack to port of loading.
• Predictability of supply chain in relation to less government intervention resulting in minimal disruption and therefore less compliance costs.
• Discounted Customs transactions fees.
• Approved high security bolt and cable seal.
• Likelihood of trade disruption minimised in the event of heightened security as supply chain security is assured.

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How will it benefit New Zealand's overall trade facilitation and supply chain security?

This arrangement is part of a comprehensive package of security initiatives that show the rest of the world New Zealand is committed to trade facilitation within secure supply chains – it shows that New Zealand is prepared to 'walk the talk' on the commitment it has made to all our trading partners through the World Customs Organisation (WCO) that we support trade facilitation within a secure trading environment.

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What other supply chain initiatives has NZ Customs been developing?

New Zealand has been operating a comprehensive set of security initiatives that support trade facilitation within secure supply chains since 2004. All export cargo is subjected to a detailed cargo screening process that utilises a robust electronic risk management system. Export cargo must be given a New Zealand Customs clearance before the goods are loaded for export. Since 2005 x-ray technology and radiation detection equipment has been used to scan cargo of interest.

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How does the arrangement complement the work of the World Customs Organisation (WCO)?

The Arrangement, in combination with our other security initiatives, is consistent with the security outcomes identified within the WCO Framework of Standards to Secure and Facilitate Global Trade.

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What about with other countries?

The New Zealand Customs' programme of security initiatives has been designed to provide confidence in the 'low security risk' nature of all exports from New Zealand. As other countries develop their own security programme New Zealand will be poised to negotiate similar facilitation benefits as part of any mutual recognition arrangement.

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