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Trade Facilitation Risk Management: New Zealand’s Experience

Trade Facilitation Risk Management: New Zealand’s Experience. WTO Trade Facilitation Symposium, July 2012 Presented by: Andy Badrick Counsellor, New Zealand Customs Service. Principles of Trade Management at the NZ Border. High assurance, light touch;

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Trade Facilitation Risk Management: New Zealand’s Experience

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  1. Trade Facilitation Risk Management: New Zealand’s Experience WTO Trade Facilitation Symposium, July 2012 Presented by: Andy BadrickCounsellor, New Zealand Customs Service

  2. Principles of Trade Management at the NZ Border • 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.

  3. The Evolution of Risk Management in New Zealand Customs:

  4. New Zealand’s Compliance Framework High People who decide not to comply Use the full force of law People who don’t want to comply Deter by detection Level of compliance costs People who try to, but don’t always succeed in doing the right thing Assist to comply Make it easy to comply People who are willing to do the right thing ComplianceStrategy Low Create pressure down

  5. New Zealand’s approach to Risk Management • 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.

  6. 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 6

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