Standards & Regulations FAQs
Customs will collect the new levy on behalf of MAF, using existing systems and reducing duplication of government resources.
The biosecurity risk screening levy will be applied to all goods that attract Customs' import entry transaction fee. The import entry transaction fee is charged on commercial imports with duty and/or GST liability of $50 or more, and on private imports of good with a value of $1,000 or more and a duty and/or GST liability of $50 or more.
This levy is part of a whole-of-government response to border management, which will result in more effective goods clearance at the border. It is a fairer, more consistent charge on importers and is significantly lower than the previous charge of $28.70 (GST inclusive) on identified risk goods.
Automated risk assessment of all import documentation will fund biosecurity screening for goods coming into New Zealand. It will also reduce MAF Biosecurity New Zealand Clearance's administrative tasks, thus freeing up extra inspection capability without additional cost to industry.
MAF is improving procedures for assessing imported goods for biosecurity risk. Under the 2003 Regulations, risk assessment on import documentation is performed manually and MAF recovers the cost through an import documentation fee. This fee has been applied to risk goods only, but all imported goods need to be assessed for risk.
The Biosecurity (Costs) Regulations 2003 have been in place since May 2003 and charges have not been amended since then. The new charges reflect current costs and changes in MAF’s operations. In its provision of cargo clearance services, MAF needs to:
- Ensure that any changes in practices required at the border are adequately cost recovered;
- Avoid under and over recovery of costs over time;
- Ensure charges remain fair and equitable.
The key changes are:
- An increase in the MAF hourly rate inspection charge to $100 per hour;
- A new method of charging to recover costs relating to the primary screening of import documentation; a biosecurity risk screening levy of $3.38 will be charged on all imported goods that attract New Zealand Customs Service's import entry transaction fee. The biosecurity risk screening levy replaces the current inspection of import documentation fee from 1 October 2006. The levy will be collected by Customs on behalf of MAF.
- A new method of charging to pay for sea container clearance system costs and the increased monitoring and verification activities required by the revised import health standard for sea containers; A levy will be charged on all imported sea containers of $16 for full sea containers and $7 for empty containers.
- The number of categories of inspection charges for used vehicles has been reduced from 15 to four and the fee structure has been simplified. Inspection and re-inspection of used vehicles will be charged at the same rates.
After the release of its discussion paper Border Clearance Costs and Organism Identification Requirements in April 2006, MAF found that it needed to make modifications to some of its proposals outlined in that discussion paper in light of the consultation feedback received and changes in trade volumes and some costs. The reasons for this were:
- The volume of used vehicles, containers and general cargo had fallen further than anticipated;
- The Office of the Auditor- General had released its report on Managing biosecurity risks associated with high-risk sea containers recommending that MAF undertake additional work on containers;
- Some further costs had been identified.
Consequently, the shipping container levy was increased to enable more work to be undertaken on sea containers and the biosecurity risk screening levy was increased to fund more risk profiling effort and systems development as recommended by the Office of the Auditor-General report and further internal work. The hourly inspection rate was also increased slightly to ensure sustainability of the fees for the next 3 years.
The new charges under the Biosecurity (Costs) Regulations 2006 become effective from 7 September 2006. Imported goods that land in New Zealand and require biosecurity clearance from 7 September onwards will be charged the fees contained in the Biosecurity (Costs) Regulations 2006.
Importers will be able to pay in cash for fees incurred under the Biosecurity (Costs) Regulations 2006.
A charge for waiting time will be applied in the Biosecurity (Costs) Regulations 2006. This is payable at the applicable hourly rate for a MAF inspector or veterinary inspector for the time each inspector spends in waiting for the goods to become available.
Those being charged can minimise charges by ensuring compliance with the required standards and thus avoid additional inspections. Importers/transitional facilities can minimise charges by ensuring that risk goods are available for inspection at the time that has been booked, and that labour is provided for unpacking and repacking goods. Transitional facilities also need to be kept to the required standard.
