Trade Facilitation Risk Management: New Zealand’s Experience

WTO Trade Facilitation Symposium, July 2012

Presented by: Andy BadrickCounsellor, New Zealand Customs Service

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» High assurance, light touch;

» Risk is managed as early as practicable in the supply chain;

» Partnerships to manage risk benefit everyone;

» Rules are accessible and easy to understand;

» Resources are targeted to areas of greatest importance;

» Decision making is driven by complete, accurate and timely information.

Principles of Trade Management at the NZ Border

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The Evolution of Risk Management in New Zealand Customs:

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Compliance Strategy

Create pressure down

Assist to comply

Deter by detection

Use the full force of law

Make it easy to comply

High

Low

Level of compliance costs

People who decide not to comply

People who don’t want to comply

People who are willing to do the right thing

People who try to, but don’t always succeed in doing the right thing

New Zealand’s Compliance Framework

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Standard Methodology:

» Single standard across Government;

» Supports better decision making;

» Flexible and adaptable;

» Universal application; and

» Allows for the control of impacts.

The Economic Benefits:

» Increased predictability and facilitation for business;

» Reduced compliance costs;

» Integrity of supply chain remains; and

» Comprehensive risk assessment.

New Zealand’s approach to Risk Management

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» Is not just about having good processes. It is a way of thinking

» Must rest on an effective regulatory environment;

» Is a continually evolving process;

» Requires a comprehensive approach;

» Enhances Trade Facilitations when there is both domestic and international co-operation

» Is an effective model for improving compliance and trade facilitation measures

Risk Management - Lessons Learned