1. New Zealand Customs Service Ministry for Primary Industries Joint Border Management System What it means and how much it costs

2. A modern global border system

3. 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

4. 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

5. What are we building? MPI: Biosecurity Food NZCS Tranche 2

6. 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

7. Tranche 1 cost recovery options Option 1: JBMS costs on import entries (IETF and biosecurity levy) Fee $GST excl Current fee Adjusted fee for volumes Option 1 fee top-up New proposed fee Change Import Entry (IETF)22.0020.676.4327.1023% ICR (air)26.6722.77- (15%) ICR (sea)312.89358.50- 15% Export Entry (SES)8.898.58- (4%) Export Entry (non- SES)12.6713.07- 3% OCR (air)6.677.48- 12% OCR (sea)20.0022.53- 13% Biosecurity levy11.1110.574.7615.3338%

8. Tranche 1 cost recovery options Option 2: JBMS costs on all Customs transaction fees and biosecurity levy – flat fee increases Fee $GST excl Current fee Adjusted fee for volumes Option 2 fee top-up New proposed fee Change Import Entry (IETF)22.0020.674.7725.4416% ICR (air)26.6722.774.7727.543% ICR (sea)312.89358.504.77363.2716% Export Entry (SES)8.898.582.5611.1425% Export Entry (non- SES)12.6713.072.5615.6323% OCR (air)6.677.482.5610.0451% OCR (sea)20.0022.532.5625.0926% Biosecurity levy11.1110.574.7615.3338%

9. Tranche 1 cost recovery options Option 3: JBMS costs on all Customs transaction fees and biosecurity levy – proportionate fee increases Fee $GST excl Current fee Adjusted fee for volumes Option 3 fee top-up New proposed fee Change Import Entry (IETF)22.0020.674.5225.1915% ICR (air)26.6722.774.9827.754% ICR (sea)312.89358.5078.48436.9840% Export Entry (SES)8.898.581.8410.4217% Export Entry (non- SES)12.6713.072.8015.8725% OCR (air)6.677.481.609.0836% OCR (sea)20.0022.534.8227.3537% Biosecurity levy11.1110.574.7615.3338%

10. 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

11. Proposed fee increases for options 1, 2 & 3 New proposed fees and comparison with the fee increases proposed in 2009 ($GST excl) Fee $GST excl Current fee Option 1: top-up IETF + bio levy Option 2: top-up all - flat fee Option 3: top-up all - % fee 2009 Import Entry (IETF)22.0027.1025.4425.1925.90 ICR (air)26.6722.7727.5427.7530.57 ICR (sea)312.89358.50363.27436.98316.79 Export Entry (SES)8.898.5811.1410.4211.49 Export Entry (non- SES)12.6713.0715.6315.8715.27 OCR (air)6.677.4810.049.089.27 OCR (sea)20.0022.5325.0927.3522.60 Biosecurity levy11.1115.33 15.41

12. 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 Information and feedback

13. 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? Questions and comments?