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Joint Border Management System What it means and how much it costs. New Zealand Customs Service Ministry for Primary Industries. A modern global border system. Existing aging technology presents an increasing risk of failure
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Joint Border Management System What it means and how much it costs New Zealand Customs Service Ministry for Primary Industries
Existing aging technology presents an increasing risk of failure Inflexible systems that will not be able to meet evolving expectations for border management and international facilitation initiatives Current resource-intensive agency processing will struggle to cope with volumes and complexity over time Current cargo and craft clearance messages not international standard-compliant and insufficient for border agency needs Duplicated processes across Customs and MPI and different approaches for managing border risks Why NZ needs JBMS
What did you want in 2009? Joined up agency requirements and channels Greater electronic interface to MPI Less cost and effort in providing information to agencies System connection options XML messaging Online client code applications with faster responses 24/7 Recognition of clients who consistently comply Certainty of clearance requirements – before cargo arrival International trade facilitation opportunities
What are we building? Tranche 2 NZCS MPI: Biosecurity Food
Tranche 1 cost recovery options No increases from 2008/09 cost recovery budgets except for adding JBMS Tranche 1 costs 3.25-year initial cost recovery period Start 1 April 2013 Fees are first adjusted to reflect changes in transaction volumes Four fee options proposed
Tranche 1 cost recovery options Option 1: JBMS costs on import entries (IETF and biosecurity levy)
Tranche 1 cost recovery options Option 2: JBMS costs on all Customs transaction fees and biosecurity levy – flat fee increases
Tranche 1 cost recovery options Option 3: JBMS costs on all Customs transaction fees and biosecurity levy – proportionate fee increases
Tranche 1 cost recovery options Option 4: JBMS costs on all Customs transaction fees and biosecurity levy – flat fee increases (Option 2) + food-related fees
Proposed fee increases for options 1, 2 & 3 New proposed fees and comparison with the fee increases proposed in 2009 ($GST excl)
Information and feedback • Web: www.jbmsconsultation.govt.nz • Email: jbms@customs.govt.nz • Fax: 04 901 4555 • Mail: JBMS Cost Recovery Submissions • NZ Customs Service, PO Box 6140 • Wellington • Submissions close: 16 July 2012 • Policy decisions advised: late September • Regulations passed: by Feb 2013 • Start date for new fees: 1 April 2013
Questions and comments? • Page 26 of Discussion Document: • Do you agree that increases to the Customs transaction fees and MPI biosecurity levy are the most practical way to cover industry’s share of costs, rather than through new fees? • Is the likely scenario for transaction volumes reasonable? • Any other factors to be taken into account? • Any further comments on the proposal?