3. Context
Trends and Influences
Worldwide, and especially since 9/11, nations have given increased priority to assuring the security of their national borders and to ensuring that their own border management services – and particularly Customs’ service capabilities – are fit for purpose. Alongside heightened protection-related concerns, the volume, speed and complexity of international trade transactions, together with the increased volumes of people and craft movements, place new demands on Customs services worldwide.
There is now considerable uncertainty about global economic prospects over the medium-term, and the implications on growth in international trade and travel. A lower exchange rate is likely to cause a reduction in imports of consumer goods, at least in the short term, and an increase in the smuggling of them. A lower exchange rate should also make New Zealand’s exports more competitive and may make New Zealand more attractive as a travel destination, but the demand is likely to be lower in the short to medium term as economies adjust to the tighter economic climate.
International Border Sector Management
Border management must deal with a wide range of regulatory issues and threats to New Zealand’s economy, environment and society. Effective border management results from achieving the right balance between promoting prosperity through facilitating trade and travel, and meeting national protection and revenue priorities.
A nation’s border management standards must apply all local laws and other requirements together with many additional requirements, such as internationally applicable rules and regulations along with the conditions of many specific treaties and agreements. The ability to apply these standards without disrupting legitimate trade and travel flows requires smart border management.
Smart Border Management
A key to obtaining smarter border management is the ability to assess threats and risk as early, and as effectively, as possible. The major gains come when the sector has improved collective capability to assess threats beyond our borders. Intelligence driven risk management underpins this as it allows interventions to be effectively planned and targeted at all stages: pre-border, at the border and post border.
Suitable technology is vital for handling the complexity and volumes of information required to manage risk. But, increasingly, technology is available to whoever can buy or otherwise obtain it. Just as relevant technology can be a valuable tool in the hands of New Zealand’s border management agencies, likewise technology can assist criminals and others who are seeking to penetrate our border. Customs will use relevant technologies both to work effectively with our partners and stakeholders, and to counter the use of technology by would-be violators.
New Zealand Environment
It is essential that all government agencies with border-related interests work in integrated ways, and, in particular those agencies that work at the border.
New Zealand’s border management is now characterised by the close collaborative working arrangements that exist between the government agencies with a strong role or key interests at the border. These are the New Zealand Customs Service, the Ministry of Agriculture and Forestry, the Department of Labour, the Ministry of Transport, the Department of Internal Affairs and the New Zealand Food Safety Authority. The Chief Executives of these agencies form the Border Sector Governance Group. The shared agency commitment to promoting joined-up working in this way is promoted through the Border Sector Strategic Framework and Governance Group.
This commitment to working in a whole-of-government way also drives the development of closer functional relationships with a wider range of government agencies that have interests in border-related policy, transactions or movements (for instance, the Ministry of Health for pandemic related initiatives).
The Bar is Lifting
It is critical that our stakeholders (such as other traders, nations and the international community) have confidence that the New Zealand Customs Service delivers border control services with the highest levels of integrity and efficiency.
There are increasing demands on Customs’ capabilities and performance due to pressures from, for example; new technologies, volumes of transactions, changes in the supply chain, new threats and increased international requirements. To meet these challenges and to retain the confidence of stakeholders, Customs must perform at a level comparable with that of high-performing Customs services worldwide.
In the World Economic Forum’s Global Enabling Trade Report 2008, New Zealand’s border administration was ranked 3rd out of 118. This is a significant achievement, but for New Zealand to maintain its position, our management of the supply chain and border security needs to be continually improved upon.
The decisions and practices of other nations, international bodies and traders can directly and significantly impact the work of Customs. In practice, we may have little ability to influence the design of internationally mandated changes or have substantive choices about implementing them. We therefore need to be alert to relevant developments arising from the work of other nations and bodies such as the World Customs Organisation, and be able to respond to all new requirements in cost-effective ways.