Service Performance Objectives - Output Performance

Output Class – Policy Advice

Description

Under this Output Class the New Zealand Customs Service provides policy advice and related services in relation to border security, border management and Customs revenue.

This includes analysis and advice to the Minister, Cabinet and Cabinet Committees, Parliamentary Select Committees, inter-departmental committees and other government agencies, as well as advice and assistance to overseas customs agencies and relevant international forums.

Quantity

The Chief Executive estimates:

• the policy work programme will be advanced to the position agreed or subsequently amended by agreement between the Minister and the Chief Executive;
• the international work programme will be advanced to the position agreed or subsequently amended by agreement between the Minister and the Chief Executive; and
• 160 – 200 draft responses to parliamentary questions and ministerial correspondence will be provided.

Quality

The Chief Executive expects:

• policy advice will conform to the quality characteristics outlined below, as assessed by the Minister’s satisfaction, and demonstrated in a sixmonthly survey;
  Quality Characteristics
  

  Purpose	The aim of the advice is clearly stated and it answers the questions set.
  Logic	The assumptions behind the advice are explicit and the argument is logical and supported by the facts.
  Accuracy	The facts in the papers are accurate and all material facts are included.
  Evaluation	Advice provided includes, where relevant, the outcomes to be achieved by the recommended course of action and the means by which that achievement will be evaluated.
  Options	An adequate range of options is presented and the benefi ts, costs and consequences of each option to the Government and the community are assessed.
  Consultation	Consultation has occurred with other government agencies and other affected parties and possible objections to proposals were identified.
  Practicality	The problems of implementation, technical feasibility, timing and consistency with other policies have been considered.
  Presentation	The format meets Cabinet Office and ministerial requirements; the material is effectively, concisely and clearly presented, has short sentences in plain English and is free of spelling or grammatical errors.

• 90 percent of draft replies to ministerial correspondence will be provided within 20 days of the time of receipt by Customs; and
• all relevant policy advice will be subject to formal peer review processes.

Cost

Outputs in this class will be provided within the appropriated sum of $2.778 million including GST. The GST exclusive sum of $2.469 million will be funded by Revenue Crown of $2.319 million and estimated revenue from third parties of $150,000.

Output Class – Intelligence and Risk Assessment Services

Description

Under this Output Class the New Zealand Customs Service provides intelligence and risk assessments that inform intervention strategies, including alerts for goods, people and craft crossing the border, for the management of risks and the enhancement of security.

Quantity

The Chief Executive estimates:

• 1,250 – 1,300 intelligence and operational risk products will be completed for external use, nationally and internationally;
• 75,000 alerts will be created or updated; and
• around 11 million organisational transactions will be scanned across alerts managed.

Quality

The Chief Executive expects:

• a minimum 90 percent of intelligence and operational risk assessments to identify actual operational risk; and
• 80 percent of national and international clients to be satisfi ed with the intelligence and risk products.

Cost

Outputs in this class will be provided within the appropriated sum of $4.105 million including GST. The GST exclusive sum of $3.649 million will be funded by Revenue Crown of $3.625 million and estimated revenue from third parties of $24,000.

Output Class – Clearance of International Passengers, Crew and Craft

Description

Under this Output Class the New Zealand Customs Service produces services relating to the clearance of international passengers, crew and craft arriving in and departing from New Zealand. This includes the profiling of potential risks and applying any alert instructions that might exist in respect of passengers and crew. Services are provided to ensure that arriving and departing craft comply with the law, to ensure passengers and crew comply with Customs, Immigration, Police and national security requirements, and to ensure that the import and export of goods complies with the law. Particular attention is paid to preventing the entry of controlled drugs and the illegal import or export of other controlled items.

Quantity

The Chief Executive estimates:

• 8.3 – 8.5 million air travellers will be cleared;
• 4,750 – 5,250 marine craft, other than marine small craft, will be cleared; and
• 1,100 – 1,300 marine small craft will be cleared.

Quality

The Chief Executive expects:

• 90 percent of arriving air passengers to exit Customs Control Points within 45 minutes of arrival;
• 99.9 percent of air and marine travellers subject to an alert to be processed in accordance with the alert instructions;
• 100 percent of arriving commercial craft will be evaluated for referral for intervention;
• 2.5 – 3 percent of arriving air and marine travellers will be referred for intervention;
• 0.75 – 1 percent of arriving air and marine travellers will be subject to baggage searches; and
• the requirements set out in the Memorandum of Understanding between the New Zealand Customs Service and the New Zealand Immigration Service (NZIS) to be complied with and any exceptions to be handled to the satisfaction of the NZIS.

Cost

Outputs in this class will be provided within the appropriated sum of $29.796 million including GST. The GST exclusive sum of $26.486 million will be funded by Revenue Crown of $21.754 million and estimated revenue from third parties of $4.732 million.

Output Class – Clearance of Import, Export and Excise Transactions

Description

Under this Output Class the New Zealand Customs Service provides services relating to the validation, checking, inspection, clearance and audit of import and export consignments, and excise returns. This includes services relating to various levels of intervention to detect error or fraud, to ensure import and export control systems are complied with, and to provide assurance that the correct classification, origin and value are declared and appropriate duties and taxes are being paid, and refunds, drawbacks and revenue foregone are correctly assessed.

Quantity

The Chief Executive estimates:

• 40.8 – 45.6 million import, including mail, transactions will be processed;
• 31.9 – 39.4 million export transactions will be processed;
• there will be 4,315 – 4,619 excise returns;
• 200 Secure Exports Partnerships will be signed; and
• 443 – 541 audits will be undertaken.

Quality

The Chief Executive expects:

• a minimum 95 percent of all import and export transactions (other than those referred for compliance checks) will be processed (including assessment against business rules and intelligence alerts) within agreed timeframes; and
• revenue leakage of $15 million will be prevented as a result of compliance checking.

Cost

Outputs in this class will be provided within the appropriated sum of $44.023 million including GST. The GST exclusive sum of $39.132 million will be funded by Revenue Crown of $13.699 million and estimated revenue from third parties of $25.433 million.

Output Class – Revenue Collection, Accounting and Debt Management

Description

Under this Output Class the New Zealand Customs Service provides services relating to the receipt and processing of revenues owing from import tariffs, goods and services tax and excise-equivalent duties on imported goods and excise duty on domestically manufactured fuel, tobacco and alcohol products. This includes the cost of paying approved refunds and drawbacks of tariffs, excise and excise-equivalent duties. Customs also provides services relating to credit control and the management of debt and the receipt and processing of fees and levies on behalf of other agencies.

Quantity

The Chief Executive estimates:

• Crown Revenue to be collected this financial year will be $7.718 billion;
• $31.0 million Refunds/Drawbacks and $190.128 million Agency levy payments will be made; and
• 450 – 600 new applications for Deferred Payment and Credit Facility for Broker accounts will be processed.

Quality

The Chief Executive expects:

• professional, best practice credit management that complies with Customs Credit Control and Debt Management policies and procedures and is consistent with the Customs and Excise Act 1996 and related commercial legislation — e.g., the Companies Act 1993;
• effective and timely management of debt, with aged debt profiles to be trending downwards in volume and in dollars outstanding, and debt write-offs to be no more than 0.01 percent of total Crown Revenue collected; and
• continued cost-efficient collection on $7.718 billion of Crown Revenue within the output class funding allocated.

Cost

Outputs in this class will be provided within the appropriated sum of $2.411 million including GST. The GST exclusive sum of $2.143 million will be funded by Revenue Crown of $637,000 and estimated revenue from third parties of $1.506 million.

Output Class – Surveillance, Search and Containment

Description

Under this Output Class the New Zealand Customs Service provides services to control the risk of craft being used for the illegal entry or removal of people and goods from New Zealand.

Quantity

The Chief Executive estimates:

• 10,000 – 12,500 officer hours will be applied to patrol and surveillance; and
• 135 – 165 targeted operational responses will be made.

Quality

The Chief Executive expects to:

• carry out a minimum 80 percent of the planned patrol and surveillance hours in accordance with the patrol and surveillance plans for each location; and
• carry out a minimum 80 percent of the planned targeted response hours in accordance with the operational response plans for each event.

Cost

Outputs in this class will be provided within the appropriated sum of $6.662 million including GST. The GST exclusive sum of $5.922 million will be funded by Revenue Crown of $5.33 million and estimated revenue from third parties of $592,000.

Output Class – Investigation of Offences

Description

Under this Output Class the New Zealand Customs Service provides proactive and reactive investigative responses to serious transnational crime, transnational crime, and other border and revenue offences. This includes the investigation of specific offences, and/or information/ intelligence held or received involving any known or suspected border offending.

Quantity

The Chief Executive estimates:

• 1,085 investigation cases will be commenced; and
• 730 investigation cases will be completed.

Quality

The Chief Executive expects:

• a minimum 80 percent of cases meeting high and medium priority crime criteria will be investigated to completion;
• case management and legal review procedures to be in place to minimise the Crown’s exposure to the risks of litigation; and
• a minimum 70 percent of cases meeting high and medium priority crime criteria will be finalised within 12 months of commencement.

Cost

Outputs in this class will be provided within the appropriated sum of $9.167 million including GST. The GST exclusive sum of $8.149 million will be funded by Revenue Crown of $8.033 million and estimated revenue from third parties of $116,000.

Output Class – Prosecutions and Civil Proceedings

Description

Under this Output Class the New Zealand Customs Service provides services relating to the prosecution of offences under the Customs and Excise Act 1996 and civil proceedings provided for under that Act relating to the hearing of applications for the release of seized goods.

Quantity

The Chief Executive estimates:

• 35 – 50 prosecutions will be undertaken.

Quality

The Chief Executive expects:

• a minimum 80 percent of prosecutions lodged will be successful; and
• a maximum five percent of cases will incur adverse judicial comment.

Cost

Outputs in this class will be provided within the appropriated sum of $865,000 including GST. The GST exclusive sum of $769,000 will be funded by Revenue Crown of $766,000 and estimated revenue from third parties of $3,000.

Output Class – Technical Advisory Services

Description

Under this Output Class the New Zealand Customs Service provides services relating to the supply of binding rulings to external clients on tariff and excise classification, the application of tariff concessions, eligibility under the Rules of Origin and the interpretation of Rules of Origin. Customs also provides to external clients export classifications and general Customs information.

Quantity

The Chief Executive estimates:

• 240 binding rulings will be given.

Quality

The Chief Executive expects:

• a minimum 60 percent of rulings taken to appeal will be sustained; and
• a minimum 90 percent of classification and concession rulings and export classification opinions will be issued within 20 working days of lodgement of all the necessary information.

Cost

Outputs in this class will be provided within the appropriated sum of $1.89 million including GST. The GST exclusive sum of $1.68 million will be funded by Revenue Crown of $168,000 and estimated revenue from third parties of $1.512 million.