1. Trade Facilitation Risk Management: New Zealands Experience WTO Trade Facilitation Symposium, July 2012 Presented by: Andy Badrick Counsellor, New Zealand Customs Service

2. NEW ZEALAND CUSTOMS SERVICE 2 »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. Principles of Trade Management at the NZ Border

3. NEW ZEALAND CUSTOMS SERVICE 3 The Evolution of Risk Management in New Zealand Customs:

4. NEW ZEALAND CUSTOMS SERVICE Compliance Strategy Create pressure down Assist to comply Deter by detection Use the full force of law Make it easy to comply High Low Level of compliance costs People who decide not to comply People who dont want to comply People who are willing to do the right thing People who try to, but dont always succeed in doing the right thing New Zealands Compliance Framework

5. NEW ZEALAND CUSTOMS SERVICE 5 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. New Zealands approach to Risk Management

6. NEW ZEALAND CUSTOMS SERVICE 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