FAQs related to Biosecurity Costs Regulations and Levy Orders Review Project 2009

MAF was asked by our stakeholders and our staff to simplify the current charging system. In analysing the activities required to clear goods and separating the fixed from the variable activity, we were able to identify common activities and their costs. These costs are to be recovered via the hourly rate charge thereby reducing the number of specific fees.

Zone 1 is 0–10 km of travel from the inspector’s base to a facility. The approximate time for the return journey is 44 minutes.  The Fee is made up of the Inspector’s time, fuel and running costs of the vehicle, and the cost of replacement of the equipment in the vehicle. The total cost of operating MAF vehicles in the Zone operations, has been broken down into the three zone components. For Zone 1 this is then divided by the number of Zone 1 activities per annum, giving the individual Zone 1 activity cost.

Yes, the Zone fee can be charged to the facility, or it can be apportioned amongst the number of tasks undertaken at that facility.

The costs such as air fares, accommodation, meals, etc. are apportioned by the Inspector to all of the facilities visited. Costs such as time taken per task, mileage, etc., are charged to the applicable task/facility.

The Inspector driving the vehicle is included in the Zone fee.  All other Inspectors in the vehicle are charged at the hourly rate.  Where multiple Inspectors have not been requested, but they arrive with the vehicle en route from one task to another, they will not be charged for.

MAF Biosecurity New Zealand is still being requested to work outside of its normal hours of operation. Our stakeholders need to know the likely costs prior to requesting the out-of-hours inspection and our mangers need to be able to plan for the resources required to undertake the work. The out-of -hours charge allows both parties to ascertain the scale of the cost and the scale of the work, and an assurance to MAF that those costs will be recovered.

The activity and time measured for vehicle clearances at ports were significantly different from those at transitional facilities because of differences in the inspection process. Most of the difference was in the inspection set-up time that was quicker for larger importers/companies at the port of arrival. The hourly rate charge for inspections performed at a transitional facility will encourage the facility operator to prepare better for the inspection and subsequently pay less. Over half of all New Zealand inspections at transitional facilities are those of used motor cycles. MAF considers that it is fairer and more equitable to apply different charging methods to the two different operation types.

The activities entailed in a biosecurity clearance of a cat, dog, rabbit or other small animals are very similar.  These animals are very often cleared in ‘out of normal business hours’ and on any of 365 days of the year. The $40 fee covers the activity required for one domestic pet animal to be cleared.

Historically MAF has never charged for assistance animals accompanying the person requiring assistance. We have now formalised this arrangement. Animals on training or being shipped will be charged for as domestic pets.

We are bound by legal obligations to comply with international agreements, to which New Zealand is a party. The specific rates for inspection of animals and animal material directly imported from the (EC) member countries are subject to the Agreement between the European Community and New Zealand on Sanitary Measures Applicable to Trade in Live Animals and Animal Products (the EC Agreement). The two fees are specific in their application and apply only to goods originating in the EC and are shipped directly to New Zealand.

The 2009 review of the Biosecurity Costs Regulations and levies proposed two options for cost recovery for biosecurity clearance services at the border.  Public consultation on the proposed changes to the biosecurity border clearance charging regime indicated preference for the option with a single biosecurity levy. This was also MAF’s preferred option. This option will save the levy administration costs by disestablishing the data collection, verification and invoicing systems for the two levies – the shipping container and gypsy moth levies. The biosecurity risk screening levy will also cease, and the new ‘biosecurity system entry levy’ will be collected at a single entry point in the New Zealand Customs Service computerised entry processing system

All of the fixed activity costs (including the first 15 minutes of risk assessing a Biosecurity Authorisation/ Clearance Certificate application) are estimated at $13 million per annum. This amount will be collected on about 1.2 million ‘trigger points’ in the New Zealand Customs Service computerised entry processing system. MAF’s variable border clearance costs constitute about $10 million per annum. This amount will be collected via the hourly rate charge and specific fees. There is no relationship between the first 15- minute processing time covered by the levy and the hourly rate charge.

There are several parts to this answer:

• The levy rate will be reviewed every year to ensure that any movement in the ‘trigger point’ numbers or in fixed activity volumes is accounted for and the levy rate is adjusted accordingly.
• Every three years the fixed activities will be reviewed and a further three year forecast will be undertaken. This will enable MAF to adjust the hourly rate and specific charges in the future revised regulations.
• Memorandum accounting will continue, while relevant changes will be made to specific accounts reflecting the new charging structure.

Unless the consignment is live animals or animal material imported directly from a European Community member country, the hourly rate charge will be applied to any time in excess of the first 15 minutes of processing time.

You will be charged at the hourly rate for the second interaction. The first interaction will be covered by the Biosecurity System Entry Levy.

MAF screens for biosecurity risk approximately 70,000 ECI reports per annum at the cargo manifest level. This activity was not cost recovered under the 2006 biosecurity cost recovery regime. About 2-3 % of an average number of 3,000,000 consignments per annum have biosecurity risk content.  Charging $12.50 per ECI report would equate to approximately 29 cents per consignment.  This was seen as being fair and equitable to the total importing community in this pathway, rather than establishing another specific fee.

Charges and fees prescribed in the Regulations are reviewed every three years. The levy rate is reviewed annually. The rate of levy is notified in the Gazette before the beginning of a levy year that starts on 1 July.  If the levy rate has to be increased in a new levy year, MAF must consult the persons considered to be representatives of importers likely to be substantially affected by the levy. No consultation is required, if the levy rate remains the same or goes down

According to section 78 of the GST Act, the amount of fees and charges set by the Regulations and the levy rate prescribed by the new levy order, including its maximum amount, will automatically increase by the amount of the increase in GST.

MAFBNZ will advise all stakeholders on details of the new GST-inclusive fees and charges applicable from 1 October 2010 through the next issues of the Cost Regulations Review Project newsletters planned for August–September 2010. 

From this review, the Assistant Direct Cargo of MAF Biosecurity New Zealand has been appointed the ‘owner’ of cost recovery for cargo biosecurity clearance activities at the border. The point of contact will be the Assistant Director Cargo.

Including this work into the 2009 review of the Biosecurity Costs Regulations was cost efficient as it eliminates the need for a separate regulatory change process including another public consultation on a single fee. Besides, the Biosecurity Costs Regulations are not limited to the border clearance charges only.  The ruminant protein facility audits and associated costs are applicable to a small number of industry parties involved in production of animal feed containing ruminant protein. This activity and associated costs have no effect on the biosecurity border clearance charges or the biosecurity system entry levy.

If a container is identified as high risk MAFBNZ requires your agent to contact us immediately.

MAFBNZ will then undertake the inspection (generally an external inspection if it is being done on the wharf) as quickly as possible. In certain circumstances, the external inspections may be carried out at your transitional facility under MAFBNZ supervision. Internal inspections of high risk containers also need to be arranged by your agent. Instructions are outlined on the Biosecurity Authority Clearance Certificate, a copy should be forwarded to you by the agent.

While MAFBNZ will conduct inspections as soon as possible there are occasions when, because of other workloads, it might take us a few days to get to your container.

Yes, you can arrange for another facility to unload the container for you. Alternatively, if your facility is approved but there is currently no Accredited Person on site, you may use another already registered Accredited Person who may work at another location.

Data from the BACC Application form and electronic / scanned copies of supporting documentation will be sent electronically via ECN to MAFBNZ.

If a container is considered high risk or is non-compliant any additional work undertaken by MAFBNZ will be charged for. MAFBNZ inspections on and off wharf are charged at a rate of $100.00 per hour (1/4 hour minimum) and we also charge for travel to the inspection site.

All sea containers arriving in New Zealand must be accompanied by a Quarantine Declaration.

This must be filled in by the exporter before the container leaves the country of origin. If containers do not have a Quarantine Declaration they will be considered high risk and may be subject to delays and additional inspection and treatment costs.

A wide range of goods can be imported into New Zealand. Certain goods will have to meet specific import conditions before clearance.

To check if you can import a particular item you will need to refer to the relevant Import Health Standard.

• List of accredited person training providers

The approved operator must be able to retrieve, at the request of a MAFBNZ Inspector, records (for 7 years) covering:

• All imported sea containers brought into the facility, including all of the following information where relevant to the particular containers or goods received:
  • date of arrival at the facility
  • container number
  • ship & voyage number
  • product and quantity unpacked
  • country of export
  • date of container devanning
  • confirmation that internal and external checks were conducted
  • name of the accredited person(s) who undertook the above checks
  • record of contaminants found and whether MAFBNZ was notified
  • any remedial action taken
• Operational procedures to ensure the requirements of all relevant MAFBNZ standards are followed.
• A copy of the transitional facility approval certificate.
• A copy of the operator's approval certificate.
• A list of accredited persons available to conduct container checks.
• A copy of the current standard (Requirements of Transitional Facilities for Sea Containers Standard).
• A copy of the current Import Health Standard for Sea Containers From all Countries.

To receive sea containers to your premises you must apply for your premises to become a MAFBNZ approved Transitional Facility for sea containers.

There is an Import Health Standard (IHS) for importing sea containers. This standard describes the conditions that need to be met by sea containers imported into New Zealand.

If you find something in or on a container (including cargo or wood packaging) immediately call 0800 80 99 66; be sure to note this on your log sheet.