Ensuring secure borders is one of the oldest functions of the state. Carrying out this responsibility in a very open world is more important and challenging than ever. The New Zealand Customs Service (Customs) has a major role to play in protecting New Zealand from the risks associated with the flow of people, goods and craft across our borders. Both New Zealanders and international communities must have confidence in New Zealand’s border security, the security and safety of New Zealand’s trade and travel channels, and Customs’ ability to facilitate legitimate trade and travel.
Our operating environment for the 2008/09 year was considerably different to what we had anticipated for the year and in comparison to the year before. The global economic downturn led to a drop in the volumes of trade and number of travellers to be processed. There was not, however, a corresponding drop in the level of risk we were required to manage. Risks to the Crown revenue base and the risk of other forms of illegal activity increased as the impacts of the economic conditions were increasingly felt by traders and individuals.
In addition to responding to that changed context – for example, by shifting resources into managing heightened risks and through policy responses such as adding compromise arrangements to our debt recovery practices – we also heightened our focus on improving service delivery and value-for-money.
Alongside core business, we focused on three main priorities from 2009:
- advancing the integration of trans-Tasman border clearance
- developing the Joint Border Management System and Trade Single Window
- increasing the interception of illicit drugs and precursor material entering New Zealand.
We have made pleasing progress on all three priorities.
Advancing the integration of trans-Tasman border clearance, our highest priority, was progressed through work that will lead to SmartGate, an automated system providing a self-processing option for travellers, being rolled out in New Zealand's main international airports over the next year.
Together with the Ministry of Agriculture and Forestry, we have progressed a detailed business case for the Joint Border Management System to replace both agencies’ ageing border processing systems. This now includes the proposed Trade Single Window, which will provide a “one stop shop” for traders to complete all border agency requirements for clearing goods and craft.
We have also been an active contributor to programmes addressing the increasing prevalence and impact of the drug "P" in our community. In 2008/09 Customs seized significantly more methamphetamine precursors than in the previous year, and we continue to work with other relevant agencies to address this problem.
More broadly, we responded on a number of levels to the expectation of increased value-for-money. We have identified a range of opportunities for savings and efficiencies, both short and longer-term, and we are also taking a more dynamic approach to managing resources. Where practicable, staff are redeployed from areas of falling volumes, such as primary passenger processing at airports, to higher priority areas such as risk management.
Our work continues to be of a strong cross-agency nature. For example, a longer-term programme of trans-Tasman travel initiatives has been collectively developed by border sector agencies. In addition to the introduction of SmartGate, there is a number of biosecurity-related measures to improve the border crossing experience for travellers, with a noticeable difference in the short-term. We have committed to do more work with our Australian colleagues to look at the feasibility of other initiatives over the longer-term.
Developing the Joint Border Management System/Trade Single Window, and its interface with the Immigration Global Management System, has also involved a lot of cross-agency dialogue at both a policy and a technical level.
In addition to our border sector engagement and other agency interactions, we have continued to work closely with our industry stakeholders on developments.
We have also worked actively in the global customs, trade, and law enforcement settings. In that context, free trade agreements, coordinated border management, globally networked customs, trade security, and trade recovery are dominant and important themes for New Zealand.
While it has been a challenging year, we take pride in the advances we have made on a number of fronts, and in the significant contributions made by our staff.
Martyn Dunne, CNZM
Comptroller of Customs