1. Trade Facilitation Risk Management: New Zealand’s Experience
WTO Trade Facilitation Symposium, July 2012
Presented by: Andy Badrick Counsellor, 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
Compliance Strategy
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. Risk Management - Lessons Learned
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 6 6