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Strengthening supply chains and reducing delays for transTasman traders

08.49am 25 May 2018

Last week the Government announced significant new funding for Customs in Budget 2018. This is a major milestone for us as it shows they recognise and support the work we are doing to protect New Zealand’s border.

$58.1 M, over four years, will be invested to help boost our efforts in disrupting drug smuggling networks.

This will enable us to build on a number of initiatives such as increasing our offshore presence, targeting the cross-border flow of criminal proceeds, strengthening the security of our supply chains, improving our maritime presence, and enhancing our community and industry engagement.

As part of enhancing our presence and security within the supply chain, we will be looking to boost staff numbers as well as invest in tools such as additional vehicles and x-ray units.

While it is still early days, we will keep you informed as implementation of this programme of work progresses.

On the trade side of our operations, we will also receive $0.85 M to help reduce delays for our exporters, specifically focused on two trials for transTasman trade.

Australia is our top export destination and our second largest import source across goods and services. However, the cost of compliance for New Zealand businesses is much higher compared to the OECD average for similar countries.

The funding will be used to run a full trial of a Secure Trade Lane, following the successful proof of concept trial towards the end of 2017 and a second proof of concept trial anticipated in the near future.

Ecommerce mail volumes from Australia have increased exponentially in the last several years, and projections show that this will continue to increase. The budget funding will also be used to build on the success of the International Post Green Lane trial by developing ongoing IT capability for exchange of electronic mail data.

The allocation will be used to fund a small project team on a short-term basis, technology-related expenses for Customs.

More information will be provided once further planning has been carried out in liaison with the relevant industry partners.