Customs and Excise Bill

Customs and Excise Bill

Government Bill

209—2

As reported from the Foreign Affairs, Defence and Trade Committee

Commentary

Recommendation

The Foreign Affairs, Defence and Trade Committee has examined the Customs and Excise Bill and recommends that it be passed with the amendments shown.

Introduction

In 2013 the Government began a review to address concerns about the extensively-amended Customs and Excise Act 1996. The Act was considered to be too prescriptive, difficult to understand and apply, and to create unnecessary compliance costs. The Customs and Excise Bill would give effect to the results of that review by replacing the out-dated Act.

The bill would be used to manage the movement of people and goods into and out of New Zealand. It would provide the tools needed to protect New Zealand from people or goods that may cause harm. It would also empower Customs to collect duty on imports and excise on locally manufactured fuel, alcohol, and tobacco.

The objectives behind the bill include:

  • balancing the protection of the nation with individuals’ rights

  • providing transparent and easy-to-use legislation

  • enabling businesses and Customs to quickly adopt future changes in technology and business practice

  • improving assurance over the collection of revenue

  • supporting economic growth by making it easier for traders to do business

  • facilitating greater information-sharing between Customs and other agencies.

Most of the provisions in the bill have been carried over from the Act, but the structure and drafting of the legislation has been modernised.

This commentary covers the main changes we recommend to the bill. It does not discuss minor or technical changes.

When liability for excise duty and excise-equivalent duty arises

Excise duty is a duty imposed on domestically manufactured tobacco, fuel, and alcohol. Goods for export are not subject to excise.

Excise duty is not a sales tax, and the bill aims to reflect the overarching policy that revenue should be collected at the earliest point in the supply chain. For excise, this is at the point of manufacture.

We recommend amending clause 11(1) to clarify that excise, and excise-equivalent duty (duty for imported alcohol, tobacco, or fuel), are levied when goods are manufactured or imported.

Excise duty is normally payable when domestically manufactured goods are released from Customs’ control for “home consumption”. This is the point at which all relevant manufacturing processes are completed and the goods may be dealt with by the owner or manufacturer of the goods without further Customs permission or oversight.

Some of us are concerned that the remission of excise duty on goods negligently destroyed before release for home consumption will be dealt with in regulations, rather than in the bill itself.

When goods are subject to the control of Customs

The bill would carry over from the Act the statutory framework that provides for border processing and manufacturing to be undertaken in particular areas licensed by Customs. These are called Customs-controlled areas (CCAs).

Clause 6 of the bill as introduced defines when goods would be subject to the control of Customs.

Section 20(2) of the current Customs and Excise Act provides that goods that are moved between CCAs remain subject to the control of Customs. Section 20(2) of the Act has not been included in the bill because of the High Court’s decision on the DB Breweries Ltd (DB) case of 2016.1

High Court decision on DB Breweries Ltd case

In the DB case, DB applied for a refund of around $400,000 of duty paid on alcohol products that it had imported into New Zealand. The duty was paid on the goods, they were available for home consumption, and DB then moved the goods from one CCA to another CCA. The goods expired before DB was able to sell them, so the company sought a refund of the duty paid in order to recoup some of its loss.

The High Court found that section 20(2) of the Act effectively enables imported goods to retain their status of being subject to the control of Customs if they are moved to and held in another CCA. This was despite the fact that the duty had been paid, the goods had been risk-assessed, cleared by Customs, and released for home consumption.

The effect of the High Court’s decision is to extend the point in the supply chain at which duty may be refunded or remitted by the Crown, if the importer can arrange for the goods to be moved directly to another CCA after the goods have been cleared and the duty has been paid.

This has potentially significant implications for Crown revenue where applications for refund or remission are made on the basis of the decision, as it provides an importer with an indefinite timeframe within which to seek a refund. We understand that it is not possible to estimate how many applications for refund or remission could be made on the basis of the decision in the DB case. However, the decision would tilt the market in favour of big companies that can move their products between different CCAs that they own. Smaller companies do not have this option.

Although the High Court’s decision was about alcohol products, we heard that the risk is probably higher in relation to tobacco. This is because, under the Smoke-free Environments Act 1990, warning labels must change each year. This results in the regular withdrawal of tobacco products from the market, for which refund or remission of duty could be sought.

Some of us are concerned that manufacturers of tobacco products would still be unable to claim for remission where their goods have had to be destroyed. We consider that being unable to do so would be unfair.

Enabling payment of excise on all fuel manufactured in New Zealand

Currently excise on fuel is levied when the fuel is imported into New Zealand, and at the Marsden Point refinery. The vast majority of fuel in New Zealand is manufactured at the refinery.

Schedule 3 of the bill would set up the framework for the payment of excise duty and excise-equivalent duty. Clause 10 of Schedule 3 deals with the blending of motor spirits. It would create an additional point at which excise on fuel manufactured in New Zealand could be calculated, at the point when fuel companies add other substances (such as leftover fuels and additives). The other substances are added at tank farms, and increase the volume of fuel that finally leaves the tank farms for petrol stations.

We consider that all blending and other operations to produce motor spirit constitute manufacture. We note the Supreme Court’s decision in Terminals NZ v Comptroller of Customs [2013] NZSC 22 that the additional blending of fuel at tank farms is manufacture for the purposes of the Act. Therefore, excise is payable on the additional volume of fuel created.

We recommend replacing clause 10 of Schedule 3 with new clause 10. We also recommend deleting clause 3(3) of Schedule 3 and including it in clause 10 of Schedule 3 to clarify that clause’s purpose.

New clause 10 would preserve the existing excise point when fuel leaves the refinery, and create a new excise point. It provides for regulations to be made to set a formula to determine the additional volume. It would set out rules relating to blending, and to the removal of motor spirits from CCAs, making their purpose and operation clearer. This is important for the operation of the fuel excise regime.

Replacing additional duty with a compensatory interest and late payment penalty system

Clause 125 of the bill would provide that additional duty is a penalty imposed when a person does not pay enough duty or does not pay on time. Additional duty is made up of an initial charge of 5 percent of the unpaid duty, followed by a monthly incremental charge of 2 percent of any amount of core and additional duty still unpaid.

We are aware that the incremental and compounding nature of additional duty can result in debts that are disproportionate to the offending, particularly when the debts are incurred over a long period of time. Therefore we recommend deleting clause 125, and inserting subpart 7A into Part 3 of the bill.

New compensatory interest and late payment penalty system

New subpart 7A of Part 3 would set out a compensatory interest and late payment penalty system. This would replace the existing additional duty provisions.

The new system would be fairer and more proportionate for non-compliers, while still offering strong incentives to comply. It has been designed to be broadly consistent with Inland Revenue’s use-of-money interest scheme and its late payment penalty scheme. Our amendments would also remove inconsistencies in the way importers and excise clients are currently treated.

New subpart 7A of Part 3 includes remission provisions for compensatory interest and the late payment penalties that are modelled on the equivalent provisions in the Tax Administration Act 1994.

Our amendments would allow regulations to be made that address other circumstances for remission as they arise. They would also provide for partial remission of the interest charged for shortfall payments, if the duty payer could demonstrate that the error was inadvertent.

We also recommend amending clause 129(2) to require the chief executive to pay compensatory interest on overpayments of duty at the rate prescribed by regulations, rather than the Commissioner’s paying rate prescribed under the Tax Administration Act, if the overpayment was due to Customs’ error.

We recommend replacing clause 268 with new clause 268 (late payment of penalties: further penalties payable). The new clause would align the further penalties that are payable on late administrative penalties, with the late payment penalty in subpart 7A of Part 3 as discussed above.

Restricting the power to examine electronic devices

Clause 207 of the bill as introduced restricts Customs’ current power to search electronic devices. It does this by setting out thresholds and other safeguards that are designed to protect privacy.

In particular, clause 207 sets out a two-threshold test that would apply to the search of an electronic device by a Customs officer. A test of reasonable cause to suspect relevant offending would be used for an initial search of a device. To carry out a full search of a device, the Customs officer would need to have reasonable cause to believe that the device contained evidential material relating to relevant offending.

We recommend amending clause 180(6) to provide that the relevant threshold in clause 207 must be met before a device could be retained or a power exercised under clause 207. This would make clearer the relationship between the power to require documents to be presented to a Customs officer for inspection, and the thresholds related to the power to search an electronic device. It would also ensure that a device could only be retained where the relevant thresholds had been met.

We recommend retaining the existing protections for privilege in the bill as introduced in relation to initial searches. However, we recommend inserting clause 207(12A) to make it clear that if any information or document on a device subject to an initial search is privileged from disclosure under clause 233, then that clause would apply. However, the search of the device could otherwise continue.

We recommend inserting clause 207(12B) to extend to full searches the current privilege regime in the Search and Surveillance Act 2012, Part 4, subpart 5. This would provide for a greater range of privileges to be considered when carrying out a full search of a device. Privileged material should be protected during searches of electronic devices because of the nature of electronic searches and the high volume of material to be searched.

Information disclosure

Customs is the only agency that collects information about all goods and people entering and leaving New Zealand. Therefore, Customs’ information is in high demand. We understand that stakeholders want to know what is happening to the information they provide to Customs, and what safeguards are in place to protect it.

In examining the information disclosure provisions in the bill, we have carefully considered how to best balance the need for transparency in the collection, use, and disclosure of information, with parliamentary oversight. Audit and review mechanisms are also needed to detect and correct non-compliance with the conditions for disclosure. We also recognise the need for consistency across the range of disclosure provisions in the bill, and with information disclosure provisions in other statutes.

In considering these factors, we have sought advice from the Privacy Commissioner. However, we acknowledge that the Privacy Commissioner has no interest in, or jurisdiction over, the non-personal information that businesses provide to Customs. The information sought by other government agencies is a mixture of commercial and personal information.

Oversight of, and safeguards around, information disclosure

The alternative to considering requests for information on a case-by-case basis is to use a legal mechanism that provides for the ongoing disclosure of information and includes appropriate protections.

Clauses 293 and 294 of the bill as introduced provide for the disclosure of information by Customs to other government agencies for specified purposes. Our amendments to these clauses would increase the oversight of, and provide more safeguards around, the disclosure of information.

We recommend inserting new clause 298A to require Customs to publish on a website maintained by or on behalf of Customs, any written agreement, and any variation of an agreement, made under clauses 293, 294, 296, and 297. Clause 298A(3) would provide an exception to this where an agreement, a provision of an agreement, a variation of an agreement, or a provision in a variation, may be withheld under the Official Information Act 1982.

Information matching

Clauses 284 to 288 would continue the information-matching arrangements currently provided in the Customs and Excise Act that enable Customs to exchange information with other government agencies for such purposes as:

  • assisting with the administration of the Student Loan Schemes Act 2011

  • assisting with the recovery of financial support debt under the Child Support Act 1991

  • verifying benefit entitlements

  • fines enforcement.

Clause 288 would allow Customs and the Ministry of Justice to share information to enable the recovery of fines that are in serious default. Clause 288(6) would define serious default to mean a person who owes at least $1,000 “or any other amount not exceeding $5,000 that may be fixed by the Governor-General by Order in Council”. There would also have to be a current arrest warrant for the person.

The Regulations Review Committee has recommended that we amend subclause (6) because it authorises delegated legislation (Order in Council) to amend primary legislation—in this case, concerning the amount of $1,000.

We understand that the rationale behind the $1,000 threshold in clause 288(6) is to ensure that resources are targeted toward outstanding fines of a considerable value. However, the power to modify the value of the fines by Order in Council is carried over from the current Act, and has never been used. We recommend amending the definition of serious default in clause 288(6) so that the monetary threshold for “serious default” could be set by Order in Council, up to a maximum of $5,000.

Direct access to information for certain purposes

Clause 293 would provide for written agreements to be made between Customs and other government agencies to give those agencies direct access to information in Customs’ databases. This access would be for limited purposes.

Clause 293 of the bill as introduced provides for the chief executive of Customs to enter into a written agreement with the chief executive of another government agency for direct access to one or more Customs’ databases. We recommend that these agreements instead be entered into by the Minister of Customs and the Minister responsible for the agency accessing the information. This is provided for in our amendment to clause 293(2), and would increase the level of oversight for these arrangements.

We also recommend replacing subclause (3) with a new subclause (3). New subclause (3)(a) would provide that, before entering into a written agreement about information-sharing, the Ministers concerned must be satisfied that:

  • direct access to the information is reasonable and practical

  • there are adequate safeguards, including audit requirements, to protect the privacy of individuals

  • the agreement includes appropriate procedures for direct access to, and the use, disclosure, and retention of, the information.

We consider that these conditions would provide important checks and balances on the access to information under a written agreement.

New subclause (3)(b) of clause 293 would require any comments received from the Privacy Commissioner following consultation to be considered before an agreement is entered into, and when an agreement is varied. This would enhance the scrutiny of draft agreements.

Provision of information to government agencies

Clause 294 would allow Customs to enter into a written information-sharing agreement with another government agency. This would provide for the disclosure of information other than under an information-matching agreement or direct-access agreement.

We recommend amending clause 294 in a similar way to clause to 293. New subclause (2A) in clause 294 would require Ministers to make information-sharing agreements between government agencies. New subclause (3) would provide a list of things Ministers would need to be satisfied of before entering into a written agreement. Clause 294(3)(b) would provide that any comments received from the Privacy Commissioner following consultation be considered before an agreement is entered into, and when an agreement is varied.

Clause 294 of the bill as introduced would restrict the sharing of certain personal information to a narrow range of government functions. The information is grouped into two categories. Category 1 information, which excludes Category 2 information, would contain less sensitive information and may be disclosed for the purpose of assisting a government agency to carry out its functions. Category 2 would include more sensitive information and may be disclosed for the purpose of assisting a government agency to carry out a limited set of government functions. We recommend amending the definition of Category 2 information in clause 283 to include arrival and departure information so that this information may not be disclosed as Category 1 information. This would have the effect of excluding information about passengers from agreements made for Category 1 purposes.

Disclosure of information to private sector organisations

Clause 296 would restrict the information that the chief executive of Customs may share with a private sector organisation.

We recommend replacing clause 296(1) with new subclauses (1) and (1A) that would clarify the purpose of the clause. That purpose is to provide for the regular disclosure of information to private sector organisations, where the information would have to be made available under the Official Information Act.

Disclosure of information to overseas authorities

Clause 297 would provide for the disclosure of information to overseas authorities. We recommend amending clause 297(1), and consequentially clause 297(2), to make this purpose clearer.

We recommend inserting clause 297(5A) to allow the Privacy Commissioner to require the chief executive of Customs to periodically review an agreement entered into under this clause. New clause 297(5B) would provide that, where directed, the chief executive must undertake a review, and report to the Privacy Commissioner on its completion. This would enable the Privacy Commissioner to have active oversight of the information disclosure arrangements.

We recommend inserting clause 297A to enable the chief executive of Customs to issue directions to staff where information is shared with an overseas agency without a written agreement. New clauses 297(4)(a) and (b) would allow the directions to describe the circumstances in which the disclosures may be made, along with any criteria for disclosure of the information. This would make the situation clear for staff.

Clause 47 of the bill as introduced specifies the purposes for which commercial transportation operators may have to provide information to Customs (including Passenger Name Record information). Clause 47(2) would exempt Customs from information privacy principles 2 and 3 in section 6 of the Privacy Act 1993. We recommend removing clause 47(2) as it is unnecessary. This is because the collection of information from commercial transportation operators would not be in breach of those principles.

When domestic baggage to be presented

The bill would give Customs certain powers in situations involving craft which are on international journeys to or from New Zealand, and which include a domestic leg. This situation is known as “cabotage”, and is relatively uncommon.

An example is an Air New Zealand flight from Tokyo to Auckland via Christchurch. Some of the passengers disembark and are processed by Customs at Christchurch. A group of domestic passengers flying from Christchurch to Auckland board the plane, which then continues to Auckland carrying a mixture of domestic and international passengers and cargo.

A regular domestic passenger’s baggage is not subject to the control of Customs, and cannot be examined. The exception to this is if the baggage has been on a cabotage flight, as described above. This is because there is a risk that goods may be transferred from international passengers to domestic passengers, or to domestic cargo containers, without being checked by Customs.

We recommend amending clauses 30(1)(a)(ii) and (2)(a) and (c), to make it clearer that only domestic passengers who are on an aircraft that is completing a domestic sector as part of an international journey would be required to present their baggage. This would ensure that there is no confusion with passengers on regular domestic journeys.

Relationship with other law relating to information use and disclosure

We recommend inserting clause 282 to provide that nothing in this bill would limit or prevent the use or disclosure of information that is authorised or required by another law. Clause 282(2) would provide that nothing in the Privacy Act’s information privacy principles would limit the use or disclosure of personal information by Customs in carrying out its functions. This would clarify the relationship between the information privacy principles and the bill, concerning information use and disclosure.

Prohibition orders on goods

Clause 96 would enable specified goods or classes of goods to be prohibited from import or export by Order in Council. We discussed the need for existing export prohibition orders on goods, such as on pounamu, to continue until their expiry date, as established under the current Act.

We recommend inserting clause 3B into Schedule 1 of the bill. This would make any orders made under the current Act still subject to the three-year expiry period under sections 55 or 57 of that Act.

Provisional Customs value

Clause 102 is a new provision that would formalise an existing scheme that Customs operates. It would allow import entries to include a provisional Customs value for imported goods, where the importer cannot know the final value of their goods. This includes situations such as when royalty payments may be made, when transfer pricing influences the price, or when proceeds of the sale of goods after import accrue to the original exporter.

We recommend inserting clause 102(8A) to require the chief executive of Customs to consult the Commissioner of Inland Revenue when considering an application to include provisional Customs values that relate to a transfer pricing arrangement.

This would provide for situations where an importer conducts transfer pricing without a binding ruling from Inland Revenue. Inland Revenue is responsible for the regulatory oversight of transfer pricing, so consultation should occur when the chief executive of Customs exercises this discretion.

Cases requiring investigation for public health or law enforcement purposes

Under clause 187, in certain circumstances concerning public health or law enforcement, a Customs officer could direct a person crossing the border to remain in a designated place pending the arrival of authorised personnel from other agencies. Clause 187(5) would enable the extension of this power, by Order in Council, to include people who have contravened an Act other than those listed in clause 187(1)(b)(v).

The Regulations Review Committee has advised us that the power in clause 187(5) should only be extended by Parliament through statute, rather than by Order in Council.

We understand that clause 187(5) aims to ensure flexibility in response to urgent developments where amendments to clause 187 would not be possible. However, this power has not been used since the provision was originally inserted into the current Act. We consider that it would be appropriate to address extensions of clause 187 when new statutes are drafted. Therefore, we recommend deleting clauses 187(1)(b)(v)(H) and 187(5).

Aids that may be used during a preliminary search

Clause 189(6)(b) sets out the aids that may be used during a preliminary search of a person. We recommend amending clause 189(6)(b)(i) to remove the reference to X-ray. The intrusive method of X-ray should not be used during a preliminary search of a person.

Customs rulings

Clause 310 sets out how to apply for a ruling from Customs on a tariff classification, excise classification, the origin of goods, or whether goods are subject to a duty concession. This is currently in section 119 of the Act. Clause 310 would also introduce a new ability for importers to apply for a ruling from Customs on the appropriate method for valuing imported goods (a valuation ruling).

Submitters were interested in widening the scope of rulings further to include all matters in the bill. While we consider that the interpretation of legislation is properly the role of the courts, we understand the desire of businesses for certainty.

We support Customs’ intention to introduce an advisory service for tax and trade matters. This would enable excise manufacturers and traders to seek specific advice from Customs about how to meet their border requirements. Customs would base its advisory service on the model used by Inland Revenue to provide public advice in the form of interpretation statements and guidelines.

We understand that Customs will review the expanded ruling process two years after implementation of the bill, with a view to extending the power further. No change is needed to the bill to allow for this.

Timeframe for making a Customs ruling

Clause 313(2) would require the chief executive of Customs to make rulings within the time prescribed in regulations. Clause 313(3) states that the maximum time that could be set is 150 days.

Under regulation 73 of the Customs and Excise Regulations 1996, the current maximum time for making a ruling on the origin of goods is 150 days. The maximum time for all other types of rulings is 40 days.

We understand that the maximum timeframe in each case is not the default period. However, the timeframe should balance the needs of businesses with the ability for Customs to provide a definite ruling in what can be technically complex areas.

No timeframe has yet been set for valuation rulings, and we understand that Customs will work with businesses to develop a suitable timeframe by regulation for these rulings.

Administrative reviews

Clause 324 refers to Schedule 7, which sets out the process for an administrative review. Several clauses in the bill give people the right to use the administrative review process where they are dissatisfied with a decision of Customs about an assessment of duty, or the issuing of a penalty notice.

The administrative review process in Schedule 7 would allow people who are dissatisfied with the decision of the chief executive of Customs to appeal that decision directly to Customs before making an appeal to the Customs Appeal Authority.

We recommend inserting new clauses 154K(5) and 154T, and amending clause 271(1), to provide for an administrative review of decisions made under the compensatory interest and late payment penalty schemes.

Attempts to commit an offence

Under clause 373, an attempt to commit an offence under the bill would be an offence punishable in the same way, and would give rise to the same cause for seizure of goods, as if the offence had actually been committed.

We recommend amending clause 373 so that the penalty for an attempted offence would be no more than half of the maximum penalty for a completed offence in accordance with section 311 of the Crimes Act 1961. This would be consistent with Customs’ current practice for charging people and determining penalties for attempted offences.

Limitation period for filing charging documents

Under clause 375(4), the limitation period for the filing of charging documents is five years after the date when the offence was committed. We recommend replacing clauses 375(4) and (5), and inserting clause 375(6), to lower the general limitation period for charging offences from five to four years. Certain specified offences would use the higher limitation period provided for under the Criminal Procedure Act 2011, and certain specified minor offences would use the lower limitation period provided for under that Act. The rest of the offences under the bill would use the new four-year general limitation period.

In recommending these changes, we have considered proportionality and fairness to defendants, as well as the need to provide Customs with reasonable opportunity to enforce the offences.

The making of regulations generally

The Regulations Review Committee commented on clause 380(1). We recommend replacing clause 380(1)(b) so that it reflects a more typical formulation of a general regulation-making power.

Recognising trusted traders

We explored the idea of including a “trusted trader” regime in the bill. This would provide a tailored regime for Customs to recognise highly compliant—or trusted—traders, with the aim of reducing their compliance costs.

We decided against this after considering the highly prescriptive and costly approach of trusted trader programmes overseas, and the work Customs is doing in this area.

We understand that Customs’ approach is to actively look for opportunities to reward highly compliant businesses by reducing compliance costs for them, while maintaining consistently high border standards.

We also understand that Customs currently meets the relevant international standards and best practice under:

  • the World Trade Organization Trade Facilitation Agreement

  • the Revised Kyoto Convention (this is the main trade facilitation Customs convention)

  • the World Customs Organization Framework of Standards to Secure and Facilitate Global Trade (the SAFE Framework). This contains supply chain security and facilitation standards, and provides the basis for Mutual Recognition Arrangements with other customs administrations—of which New Zealand has five).

We are aware that Customs is currently working with the Australian Department of Immigration and Border Protection to develop a pilot for a secure trade lane between New Zealand and Australia later in 2017. This would reduce the documentation that trusted traders need to provide to border authorities.

Customs also told us about its work with the Ministry for Primary Industries to develop a trusted trader pilot for a secure imports scheme. This would use third-party accreditation so that goods could pass through the border faster, with more robust risk assurance.

Clause 260 of the bill would carry over the Secure Exports Scheme from the Act. This gives priority to, and reduces delays for, those in the scheme who export to Australia, the United States of America, Japan, or Korea.

We appreciate that Customs is doing a lot to recognise trusted traders. However, we consider that this work may not be visible to Customs’ stakeholders. Therefore, we recommend inserting clause 416A to require Customs to report annually on initiatives to reduce compliance costs for businesses with a strong record of compliance. This would be included in Customs’ annual report.

Appendix

Committee process

The Customs and Excise Bill was referred to the committee on 6 December 2016. The closing date for submissions was 10 February 2017. We received and considered 30 submissions from interested groups and individuals. We heard oral evidence from 17 submitters at hearings in Wellington.

We received advice from the New Zealand Customs Service. The Regulations Review Committee reported to the committee on the powers contained in clauses 187(5), 288(6), and 380(1).

Committee membership

Todd Muller (Chairperson)

Hon Jo Goodhew

Dr Kennedy Graham

Hon Annette King

Hon Hekia Parata

Hon David Parker

Dr Shane Reti

Stuart Smith

Fletcher Tabuteau

Lindsay Tisch

Barry Coates replaced Dr Kennedy Graham for this item of business.

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Hon Tim Macindoe

Customs and Excise Bill

Government Bill

209—2

Contents

Commentary
Key
1Title
2Commencement
3Purposes of Act
4Overview of Act
5Definitions for Act
6Definition: subject to the control of Customs
7Application of Act to postal articles
8Application of Act to foreign Government ships
9Transitional, savings, and related provisions
10Act binds the Crown
11Excise duty and excise-equivalent duty levied
12Advance notice of arrival, etc
13Offences in relation to advance notice of arrival, etc
14Inward cargo report
15Offences in relation to inward cargo report
16Application of sections 17 to 25
17Craft must arrive at Customs place
18Offences in relation to craft that arrive at place other than Customs place, etc
19Persons leaving or boarding arriving craft before inward report made
20Offence in relation to leaving or boarding arriving craft before inward report made
21Authorisation for craft to arrive at place other than Customs place
22Craft that have arrived at place other than Customs place
23Offences in relation to craft that have arrived at place other than Customs place
24Inward report, etc
25Offences in relation to inward report, etc
26Requirement to answer questions and produce documents
27Offences in relation to failure to answer questions or produce documents
28Persons arriving in New Zealand to report to Customs officer or Police station
29Disembarkation
30Baggage to be presented on disembarkation, etc
31Persons departing from New Zealand to depart from Customs place
32Embarkation
33Outgoing baggage to be presented, etc
34Offence in relation to wilful failure to comply with requirements when arriving in, or departing from, New Zealand
35Craft may not depart without certificate of clearance, etc
36Offence in relation to craft departing without certificate of clearance, etc
37Certificates of clearance
38Offences in relation to granting of certificate of clearance
39Production of certificate of clearance, etc
40Offences in relation to production of certificate of clearance, etc
41Departure only from Customs place
42Offences in relation to departure only from Customs place
43Authorisation for craft to depart from place other than Customs place
44Craft departing from place other than Customs place
45Outward cargo report
46Offences in relation to outward cargo report
47Purposes for which powers under sections 48 and 49 may be exercised
48Chief executive may require commercial transportation operator to provide craft information
49Chief executive may require commercial transportation operator to provide PNR information
50Supplementary provision relating to requirement to provide craft or PNR information
51Disposal of craft or PNR information
52Offence in relation to failure to provide Customs with PNR information
53Other provision about arrival and departure information
54Defences for offences under subpart
55Designation of Customs places
56Areas required to be licensed as Customs-controlled areas
57Application for licence
58Chief executive may request further information
59Chief executive must determine application
60Fit and proper person test
61Grant of licence
62Exemption from requirement to be licensed directed by chief executive
63Variation of terms, conditions, or restrictions
64Revocation or suspension of licence
65Surrender of licence
66Closing of Customs-controlled area
67Exemptions in relation to Customs-controlled areas
68Offences in relation to Customs-controlled areas
69Offence in relation to failure to comply with term, condition, or restriction of licence
70Customs facilities in Customs-controlled areas, etc
71Offence in relation to Customs facilities in Customs-controlled areas, etc
72Storage charges
73Liabilities not affected by ceasing to act as licensee
74Goods specified in inward report to be treated as imported
75Entry of imported goods
76Entry of imported goods in multiple or split shipments
77Imported goods to be dealt with according to entry
78Unloading goods
79Offence in relation to unloading goods
80Samples or illustrations
81Entry of Part A goods
82Nil returns
83Transportation of imported goods
84Offences in relation to transportation of imported goods
85Removal of goods from Customs-controlled areas
86Offences in relation to removal of goods from Customs-controlled areas
87Transhipment requests
88Offences in relation to transhipment requests
89Entry of goods for export
90Goods entered for export to be exported immediately, etc
91Goods sold in duty-free store
92Goods for export not to be landed
93Time of exportation
94Customs-approved export seal may not be interfered with
95Prohibition on importation and exportation of objectionable publications, other indecent or obscene articles, and goods for dishonest purpose
96Prohibition on other imports or exports by Order in Council
97Prohibition on exports by Gazette notice: nuclear, biological, and chemical weapons, etc
98Production of licence, permit, or consent for goods
99Duty applies even if importation prohibited
100Duty on imported goods is debt owed to the Crown
101Importer must specify Customs value on entry
102Provisional Customs value
103Chief executive may revise Customs value
104Crown’s right of compulsory acquisition
105Entry of goods at preferential rates of duty
106Unsubstantiated preference claims
107Duty credits in respect of used goods
108Duty credits in respect of repurchased goods
109Responsibility to protect integrity of system for assessing and collecting duty
110Chief executive’s general obligation in relation to collection of duty
111Entry is assessment of duty by importer or licensee
112Importer to amend assessment that includes provisional Customs value
113Chief executive may assess duty where no entry made
114Assessment of excise duty and excise-equivalent duty where approval not complied with
115Assessment of excise duty on beer or wine otherwise exempt
116Assessment of excise-equivalent duty on goods imported for further manufacture
117Amendment of assessments
118Limitation of time for amendment of assessments
119Assessment to be taken to be correct
120Duty to be proportionate
121Duty on alcoholic beverages
122Time for payment of duty on imported goods: general rule
123Persons may be authorised to defer payment of duty on imported goods
124Other times for payment of duty
125Additional duty imposed
126Importer, etc, leaving New Zealand
127Chief executive may allow release of goods where appeal, etc, lodged
128Obligation to pay duty not suspended by appeal, etc
129Chief executive to pay interest on duty refunded on appeal, etc
130Duty is charge on goods
131Possession of goods if person claims to be purchaser for value without knowledge
132Related persons for purposes of section 131(5)
133Offence in relation to direction of chief executive under section 131(3)(b)
134Rights and duties of chief executive in relation to unpaid duty
135Ranking of duty
136Release of goods subject to duty
137Goods temporarily imported
138Goods temporarily imported for manufacturing, etc
139Liability for duty on goods wrongfully removed or missing
140Liability of owners of craft for duty on goods unlawfully landed
141Effect of payment of duty by one person on liability of other persons
142Incidence of altered duties
143Chief executive may refund duty paid in error
144Refunds of duty related to provisional Customs value
145Refunds of duty on goods under Part 2 of Tariff
146Other refunds and remissions of duty
147Power to apply refunds towards payment of other duties
148Recovery of duty refunded in error
149Drawbacks of duty on certain goods
150Where drawback has been allowed
151Minimum amounts of refunds and drawback
151ARecovery of refunds, etc made in error
152Reimportation of goods exported
153Outward processing
154Goods from Cook Islands and Niue
154AInterest payable for late or incorrect payments of duty in certain cases
154BCases involving late payment of duty
154CCases involving correction of self-assessed duty
154DCases where no entry or amendment under section 112 made
154EOther cases involving assessments or demands by chief executive
154FPenalties payable for late payments of duty in certain cases
154GCases in which penalties may be payable
154HInterest payable for incorrect refunds of duty or drawback incorrectly allowed in certain cases
154IRefunds of duty made because of error attributable to recipient, etc
154JDrawback allowed because of error attributable to recipient, etc
154KStatements of liability for interest and penalties
154LInterest: remissions and refunds for emergency events
154MInterest: remissions and refunds where inadvertent error by duty payer
154NPenalties: remissions and refunds where reasonable excuse for late payment of duty
154OPenalties: remissions and refunds for good payment record
154PInterest and penalties: remissions and refunds if duty determined not to be payable, etc
154QInterest and penalties: remissions and refunds if consistent with collection of highest net revenue over time
154RInterest and penalties: remissions and refunds in prescribed circumstances
154SPower to apply refunds towards payment of other amounts payable
154TAdministrative reviews and appeals in respect of decisions not to remit or refund
154UInterest and penalties are debt due to Crown, etc
155Application of subpart
156Goods forfeited
157Forfeiture to relate back
158Seizure of forfeited goods or goods suspected to be forfeited goods
159Securing seized goods
160Offence in relation to securing seized goods
161Notice of seizure
162Delivery of goods seized on deposit of value
163Sale of certain seized goods
164Application for review of seizure
165Condemnation of seized goods
166Condemnation of goods that are subject of appeal
167Goods forfeit on commission of offence
168Disposal of forfeited and condemned goods
169Exercise of powers in contiguous zone
170Boarding and searching craft
171Facilitation of boarding
172Offences in relation to facilitation of boarding
173Stationing Customs officers on board craft
174Securing goods on craft
175Firing on ship
176Power to order ship to leave New Zealand
177Offence in relation to power to order ship to leave New Zealand
178Detention of craft suspected to be involved in offences or smuggling migrants
179Offences in relation to detained craft
180Evidence of identity, entitlement to travel, etc
181Offence in relation to failure to produce evidence of identity, entitlement to travel, etc
182Verification of identity using biometric information
183Detention of persons failing to comply with direction under section 182(3)
184Questioning people persons about goods and debt
185Detention of people persons questioned about goods or debt and suspected to be involved in offences
186Completion of processing under Immigration Act 2009 and Biosecurity Act 1993
187Cases requiring investigation for public health or law enforcement purposes
188Offence in relation to requirements imposed under section 186 or 187
189Search of persons
190Search of persons suspected of having goods hidden on or about their person
191Detention of persons committing or about to commit certain offences
192Detention of persons who do not report to or remain at certain places
193Seizure of items found
194Powers in relation to unauthorised persons remaining in certain Customs-controlled areas
195Use of electronic communication devices prohibited in certain places
196Offence in relation to use of electronic communication device
197Questioning specified persons about arrival or departure
198Offence in relation to failure to produce evidence of identity, entitlement to travel, or other matters
199Detention of person to whom section 197 relates
200Detention for public health or law enforcement purposes
201Entry to Customs-controlled areas and CASEs
202Entry to examine goods subject to control of Customs
203Patrols, etc to detect offences
204Issue of search warrant
205Use of dogs and other aids
206Examination of goods subject to control of Customs
207Data in electronic devices that are subject to control of Customs
208Questioning employees of airlines and shipping companies about international cargo or domestic cargo
209Questioning certain persons about cargo to be exported
210Powers if vehicles suspected to be transporting certain goods involved in offences, etc
211Accounting for goods
212Production of goods
213Failure to produce or account for goods
214Temporary removal of goods from Customs-controlled area
215Offences in relation to temporary removal of goods from Customs-controlled area
216Powers if goods no longer under control of Customs suspected to be involved in offences or to be forfeited goods
217Verification of entries
218Cancellation and amendment of entries
219Security for payment of duty
220New security may be required
221Power to seize and detain risk goods or goods involved in certain offences, etc
222Power to seize, copy, and detain certain drugs and objectionable publications
223Detention of goods suspected to be instrument of crime or tainted property
224Custody of certain goods detained under section 223
225Offences in relation to custody of detained goods
226Return of goods detained under section 223
227Extension of investigation period
228Return of cash necessary to satisfy essential human needs
229Seizure and detention of dangerous civil aviation goods
230Requirement to produce documents
231Further powers in relation to documents
232Offence in relation to failure to comply with requirement under section 230 or 231
233Legally privileged communications
234Audit or examination of records
235Chief executive may take possession of and retain records and other documents
236Copying of documents obtained during inspection
237Retention of documents and goods obtained during inspection
238Unlawful travel documents
239Documents in foreign language
240Landing or mooring of Customs craft
241Written authority of agents
242Arrest of suspected offenders
243Protection of persons acting under authority of Act
244Definitions for sections 245 and 246
245Controlled delivery
246International controlled delivery
247New Zealand Customs Service
248Comptroller of Customs
249Customs officers
250Authorised persons: individual authorisations
251Authorised persons: class authorisations
252Identity cards
253Customs flag
254Power of chief executive to determine seals, etc
255Areas that may be licensed as CASEs
256Application for CASE licence
257CASE licence
258Customs facilities in CASEs, etc
259Offence in relation to Customs facilities in CASEs, etc
260Customs-approved secure exports schemes
261Customs-approved export seals
262Amendment or revocation of notice of appointment under section 261
263Definitions for subpart
264Imposition of penalty
265When penalty must be paid
266Calculation of amount of penalty
267No penalty in certain cases
268Additional penalty may be imposed
268Late payment of penalty: further penalties payable
269Additional Further penalty may be remitted or refunded
270Administrative review of, or appeal against, decision to issue penalty notice
271Administrative review of, or appeal against, decision to refuse to remit or refund additional further penalty
272General rules about penalties
273Obligation to pay penalty not suspended by review or appeal
274Definitions for subpart
275Use of automated electronic systems by Customs to make decisions, exercise powers, comply with obligations, and take related actions
276Publication of details of arrangements for use of automated electronic systems
277Variation and substitution of decisions made by automated electronic systems
278Appeals and reviews unaffected
279Definitions for subpart
280Customs’ general powers for using information
281Joint border management
282Use and disclosure of information by Customs under other Acts, etc
282Relationship between this Act and other law relating to information use and disclosure
283Definitions for subpart
283ARelationship between subpart and other provisions of Act
284Information matching for purposes of Student Loan Scheme Act 2011
285Information matching for purposes of Child Support Act 1991
286Information matching for purposes of benefit and benefit debt recovery
287Information matching for purposes of mutual assistance provision contained in social security agreement
288Information matching for purpose of fines enforcement
289No Crown liability to third parties for fines enforcement action
290Direct access to information for purposes of Student Loan Scheme Act 2011
291Direct access to information for purposes of Child Support Act 1991
292Direct access to information for purposes of benefit and benefit debt recovery
293Direct access to information for other purposes
294Disclosure of information other than under information matching agreement or direct access agreement
295Relationship between subpart and other provisions of Act
296Disclosure of information to private sector organisations
297Disclosure of information to overseas authority
297AChief executive of Customs may issue directions for disclosure of information under section 297(5)
298Relationship between section 297 and other law, etc
298APublication of agreements entered into under section 293, 294, 296, or 297
298Relationship between section 297 and other law, etc
299Registered user systems for electronic provision of documents
300Registration of users of registered user systems
301Access generally restricted to registered users
302Documents provided using registered user system must be provided in prescribed way
303Assignment, use, and security of unique user identifier
304Use of unique user identifier presumed secure
305Regulations in relation to access
306Offences in relation to unauthorised access to or improper use of registered user system
307Offence in relation to interference with registered user system
308Offences in relation to security of, or unauthorised use of, unique user identifiers
309Customs must keep records of transmissions to or from registered user systems
310Application for Customs ruling
311Time when application may be made
312Making application
313Making of Customs ruling
314When chief executive may decline to make ruling
315Notice of Customs ruling
316Effect of Customs ruling
317Confirmation of basis of Customs ruling
318Amendment of Customs ruling
319Effect of amendment to Customs ruling
320Cessation of Customs ruling, etc
321Appeal from decisions of chief executive
322No liability where Customs ruling relied on
323Publication of Customs rulings
324Process for administrative reviews
325Establishment of Customs Appeal Authorities
326Function of Customs Appeal Authority
327Customs Appeal Authorities generally
328Offence in relation to false or misleading statement intending to deceive
329Offence in relation to failure to attend, give evidence, supply certain things, etc
330Other offences in relation to Customs Appeal Authorities
331Keeping of records
332Application to keep records outside New Zealand
333Offences in relation to records
334Giving Customs access to records
335Offences in relation to failure to give Customs access to information records
336Interference with goods
337Interference with cargo
338Interference with seals, etc
339Unauthorised use of seals, interference with sealed Customs packages, etc
340Offences for failure to make entry, etc
341Offences in relation to erroneous or defective entries, etc
342Provisions relating to offences in relation to entries
343Offences in relation to declarations and documents that are erroneous
344Offence in relation to documents that are not genuine
345Offences in relation to declarations and documents that are known to be faulty
346Offences in relation to failure to update information supplied in advance
347Further offences in relation to records and information
348Defrauding Customs revenue of Customs
349Possession or custody of uncustomed goods or prohibited imports
350Purchase, sale, exchange, etc, of uncustomed goods or prohibited imports
351Possession or control of concealed goods
352Offence in relation to seized goods
353Threatening or resisting Customs officer
354Obstructing Customs officer or interfering with Customs property
355False allegation or report to Customs officer with intention of diverting deployment of Customs personnel, etc
356Killing or injuring Customs dog
357Personation of Customs officer
358Counterfeit seals, stamps, markings, substances, or devices
359Unauthorised presence in certain Customs-controlled areas
360Failure to answer questions
361False allegation or report to Customs officer alleging that offence committed
362Adapting craft for smuggling
363Possession of incomplete documents
364Offences in relation to use of goods
365Offences in relation to importation or exportation of prohibited goods
366Offences in relation to knowingly importing or exporting prohibited goods
367Offences in relation to knowingly importing or exporting objectionable publications
368Offence in relation to knowingly importing or exporting goods for dishonest purpose
369Publications imported or exported in course of official duties
370Offences in relation to exportation of goods
371Corporate liability
372Liability of principal and agent
373Attempts
374Court may order payment of money in respect of duty
375Filing of charging document
376Infringement offences and fees
377Infringement notices
378Procedural requirements for infringement notices, etc
379Infringement fees to be paid into Crown Bank Account
380Regulations generally
381Regulations in relation to stores
382Regulations in relation to entries
383Regulations in relation to collection of duty
384Regulations for determining country of produce or manufacture
385Regulations for recovering costs for attendance of Customs officers, etc
386Regulations for recovering costs of granting certificates of clearance, etc
387Regulations in relation to sale of goods by chief executive
388Regulations in relation to activities of Customs officers outside New Zealand
389Incorporation of provisions of international agreements by reference in regulations
390Levies for recovering border processing costs
391Contents of border processing levy order
392Trust accounts for levy money payable to chief executive
393Effect of levy order
394Compliance audits
395Auditors
396Offences in relation to levy orders
397Defences for offences in relation to levy orders
398Chief executive’s rules
399Interaction with subpart 1 of Part 3 of Legislation Act 2012
400Giving notice to companies
401Giving notice to bodies corporate other than companies
402Giving notice to individuals
403Disapplication of sections 400 to 402
404Receipt of notices
405Chief executive to give written reasons for decisions open to appeal to Customs Appeal Authority
406Declarations under Act
407Burden of proof
408Documents made overseas
409Proof of rules made by chief executive
410No limitation on claims by Crown to recover duties or in forfeiture proceedings
411Payments by chief executive out of public money
412Foreign currency
413Certificates of origin
414Fish, etc
415Use of force must be reported
416Annual report must state total of electronic devices searched
416AAnnual report must report on initiatives to reduce compliance costs for businesses with strong record of compliance
417Working hours of Customs
418Entry required for human remains
419Repeal of Customs and Excise Act 1996
420Other consequential repeals, revocations, and amendments
Legislative history

The Parliament of New Zealand enacts as follows:

1 Title

This Act is the Customs and Excise Act 2016.

2 Commencement

(1)

The following provisions of Schedule 3 come into force on the day after the date of Royal assent:

(a)

clauses 16 and 26(1) to (3):

(b)

Part 5.

(2)

Sections 113(3)(a), 114(6)(a), 115(5)(a), 116(6)(a), 117(3)(a), 139(7)(a), and 140(6)(a) come into force on—

(a)

the date that immediately follows the specified 6-month period; or

(b)

an earlier date specified by the Governor-General by Order in Council.

(3)

Subpart 3 of Part 5 comes into force as follows:

(a)

in relation to entries under section 89, on—

(i)

the date that immediately follows the specified 6-month period; or

(ii)

an earlier date specified by the Governor-General by Order in Council:

(b)

in relation to all other entries, on the specified date.

(4)

The rest of this Act comes into force on the specified date.

(5)

In this section,—

entries is to be read in accordance with the definition of entry in section 263

specified 6-month period means the 6-month period that starts with the specified date

specified date means the later of the following dates:

(a)

1 April 2018:

(b)

the date that immediately follows the 6-month period that starts with the date of Royal assent.

Part 1 Preliminary provisions

Purposes and overview

3 Purposes of Act

The purposes of this Act are as follows:

(a)

to levy excise duty and excise-equivalent duty:

(b)

to enable the collection of—

(i)

duty imposed under the Tariff Act 1988; and

(ii)

excise duty and excise-equivalent duty; and

(iii)

other types of duties, taxes, and levies:

(c)

to provide for the administration and enforcement of customs controls at the border and to facilitate border control through risk management:

(d)

to set out obligations of—

(i)

persons who cross the border; and

(ii)

persons who cause or allow goods, persons, or craft to cross the border:

(e)

to set out the powers of Customs in relation to goods, persons, and craft:

(f)

to restate, with some modifications, the law relating to customs:

(g)

to repeal the Customs and Excise Act 1996.

Compare: 1996 No 27 Long Title

4 Overview of Act

(1)

This Act is divided into 6 Parts.

Part 1

(2)

This Part (Part 1) deals with preliminary matters, including the following:

(a)

definitions of terms used in this Act (sections 5 and 6):

(b)

the application of this Act (sections 7 and 8):

(c)

transitional, savings, and related provisions (section 9 and Schedule 1):

(d)

how this Act binds the Crown (section 10 and Schedule 2).

Part 2

(3)

Part 2 levies excise duty and excise-equivalent duty (section 11 and Schedule 3).

Part 3

(4)

Part 3 is about the entry and exit of goods, persons, and craft into and out of New Zealand, including the following:

(a)

what is to happen when a craft transporting goods or persons—

(i)

is en route to New Zealand; or

(ii)

has arrived in New Zealand; or

(iii)

is departing from New Zealand (subpart 1):

(b)

the designation of ports and airports as Customs places and the licensing of Customs-controlled areas, including a requirement that certain activities relating to goods, persons, or craft must be carried out only in Customs-controlled areas that are licensed for those activities (subpart 2):

(c)

the entry of, and accounting for, imported goods, goods on which excise duty is levied, and goods that are being exported (subpart 3):

(d)

prohibitions on the importation and exportation of—

(i)

objectionable publications; and

(ii)

goods that are designed, manufactured, or adapted for a dishonest purpose; and

(iii)

other goods prohibited by Order in Council or by the Secretary of Foreign Affairs and Trade (subpart 4):

(e)

matters relating to duty on imported goods, including the valuation of imported goods for the purposes of duty (subpart 5 (including Schedule 4)):

(f)

excise duty and excise-equivalent duty credits (subpart 6):

(g)

the assessment, payment, and recovery of duty (subpart 7):

(ga)

interest and penalties for late or incorrect payments of duty, incorrect refunds of duty, and drawback incorrectly allowed (subpart 7A):

(h)

the forfeiture, seizure, and condemnation of goods (subpart 8 (including Schedule 5)).

Part 4

(5)

Part 4 sets out powers that are given to Customs, including the following:

(a)

powers in relation to craft:

(b)

powers in relation to persons:

(c)

powers to enter certain places:

(d)

powers to examine goods, search for goods, ask questions about goods, and do other things in relation to goods:

(e)

powers to require documents to be produced, to examine, copy, and retain documents, and to do other things in relation to documents.

Part 5

(6)

Part 5 deals with administrative matters, including the following:

(a)

the organisation of Customs (subpart 1):

(b)

the licensing of Customs-approved areas for storing exports, the approval of Customs-approved secure export schemes, and the use of Customs-approved export seals (subpart 2 (including Schedule 6)):

(c)

the imposing of administrative penalties for incorrect entries relating to goods (subpart 3):

(d)

the use of automated electronic systems for the making of decisions (subpart 4):

(e)

the use of information by Customs and joint border management systems (subpart 5):

(f)

the disclosure of information by Customs to other government agencies, the private sector organisations, and overseas authorities (subpart 6):

(g)

the regulation of electronic systems established by Customs to enable documents to be provided to Customs by persons registered to use the systems or by Customs to those persons (subpart 7):

(h)

the making of binding rulings by Customs (subpart 8):

(i)

administrative reviews of certain decisions made by Customs under this Act (subpart 9 (including Schedule 7)):

(j)

the establishment of Customs Appeal Authorities to determine appeals against certain decisions made by Customs under this Act (subpart 10 (including Schedule 8)).

Part 6

(7)

Part 6 deals with final and miscellaneous matters, including the following:

(a)

the keeping of records (subpart 1):

(b)

offences (subpart 2):

(c)

regulations, orders, and rules (subpart 3):

(d)

the giving of notices and other miscellaneous matters (subpart 4):

(e)

the repeal of the Customs and Excise Act 1996 and other consequential repeals, revocations, and amendments (subpart 5 (including Schedule 9)).

(8)

This section is only a guide to the provisions of this Act.

Definitions, application, and transitional provision

5 Definitions for Act

(1)

In this Act, unless the context otherwise requires,—

administrative review means a review under section 324 and Schedule 7

aircraft means any machine that can derive support in the atmosphere from the reactions of the air otherwise than by the reactions of the air against the surface of the earth

Armed Forces has the meaning given to that term in section 2(1) of the Defence Act 1990

arrive, as in arrive in New Zealand,—

(a)

in relation to a person, means to enter into New Zealand from a point outside New Zealand by any means, whether lawfully or unlawfully; and

(b)

in relation to a craft, means to arrive in New Zealand from a point outside New Zealand,—

(i)

whether lawfully or unlawfully; and

(ii)

whether or not the craft does any of the following:

(A)

lands, berths, moors, anchors, or stops at any place within New Zealand:

(B)

hovers above any place within New Zealand:

(C)

otherwise arrives at any place within New Zealand

authorised certification body means a body designated as an authorised certification body under section 413

authorised person means—

(a)

a person authorised under section 250 to carry out a function of a Customs officer under this Act; or

(b)

a person within a class of persons authorised under section 251 to carry out a function of a Customs officer under this Act

beer means an alcoholic drink made from yeast-fermented malt, water, and hops

biofuel means any gaseous or liquid fuel produced from biomass that can be used as a fuel for engines

biofuel blend means any product that results from blending biofuel with petrol, diesel, or other substances

biometric information, in relation to a person, means information that comprises—

(a)

1 or more of the following kinds of information:

(i)

a photograph of all or any part of the person’s head and shoulders:

(ii)

impressions of the person’s fingerprints:

(iii)

a scan of the person’s irises; and

(b)

an electronic record of the information that is capable of being used for biometric matching

cargo aggregator means a person who, for reward, aggregates cargo to be transported for different persons for transportation together on a craft—

(a)

in bulk cargo containers or otherwise; and

(b)

under a shared space, or other negotiated volume of cargo, arrangement with the craft’s owner or operator

cargo device means—

(a)

an intermodal container; or

(b)

a unit load device; or

(c)

a pallet; or

(d)

anything that is similar to anything referred to in paragraphs (a) to (c)

certified copy, in relation to a document, means a document certified as a true copy of the document by or on behalf of the chief executive under the seal of Customs

chief executive means the chief executive of the New Zealand Customs Service

chief executive’s rules means rules made by the chief executive under section 398(1)

commercial transportation operator means any of the following:

(a)

an owner or operator of a craft that transports goods or persons for commercial purposes—

(i)

from New Zealand to a point outside New Zealand; or

(ii)

from a point outside New Zealand to a point within New Zealand:

(b)

an agent of an owner or operator referred to in paragraph (a):

(c)

a person who organises the handling or transportation of goods or persons for commercial purposes—

(i)

from New Zealand to a point outside New Zealand; or

(ii)

from a point outside New Zealand to a point within New Zealand:

(d)

an agent of a person who organises the handling or transportation of goods or persons as referred to in paragraph (c):

(e)

an owner, occupier, or operator of a Customs-controlled area that is licensed to be used for—

(i)

the disembarkation, embarkation, or processing of persons arriving in, or departing from, New Zealand; or

(ii)

the processing of craft arriving in, or departing from, New Zealand:; or

(iii)

the loading or unloading of goods onto or from craft arriving in, or departing from, New Zealand:

(f)

any prescribed persons, or prescribed classes of persons, involved in any other way in the handling or transportation of goods or persons for commercial purposes—

(i)

from New Zealand to a point outside New Zealand; or

(ii)

from a point outside New Zealand to a point within New Zealand

contiguous zone is to be read in accordance with section 8A of the Territorial Sea, Contiguous Zone, and Exclusive Economic Zone Act 1977

contractor means a person who does work for valuable consideration on or in respect of any goods at the request of any other person (otherwise than as an employee of that other person) in circumstances where that other person supplies, but retains ownership of, some or all of the material used in the work

country includes a territory or a part of a country or territory

craft includes any aircraft, ship, or other machine or vessel, used or capable of being used for the transportation of goods or persons by air or by water

crime involving dishonesty has the meaning given to that term in section 2(1) of the Crimes Act 1961

Customs means the New Zealand Customs Service

Customs airport means an airport designated as a Customs airport under section 55

Customs Appeal Authority means an Authority established under section 325

Customs-approved area for storing exports or CASE means an area that—

(a)

is used for the purpose described in section 255(1) (whether or not it is used for any other purpose); and

(b)

is licensed as a CASE under section 255(1)

Customs-approved export seal has the meaning given to that term in section 261(2)

Customs-approved secure exports scheme means a scheme approved by the chief executive as a Customs-approved secure exports scheme under section 260

Customs-approved secure package means a package of a kind approved by the chief executive under Schedule 6 for the purposes of a Customs-approved secure exports scheme (see clause 2(a) of that schedule)

Customs-controlled area means an area that—

(a)

is required to be licensed under section 56; and

(b)

is so licensed

Customs craft means any craft employed (wholly or partly) in the service of Customs

Customs direction

(a)

means any request, direction, order, command, or instruction given by a Customs officer to any person—

(i)

to do, or to refrain from doing, any act; or

(ii)

to submit to a procedure for the purposes of this Act; and

(b)

includes—

(i)

any notice, poster, or sign publicly displayed by Customs in a Customs place or Customs-controlled area; and

(ii)

any direction contained in a prescribed form prescribed by regulations or the chief executive’s rules; and

(iii)

in relation to embarkation onto, or disembarkation from, a craft, any direction given by the person in charge of the craft, or by a crew member, at the direction of a Customs officer

Customs dog means a dog that is being used, or is intended for use, by Customs

Customs officer

(a)

means a person appointed as a Customs officer under section 249; and

(b)

includes, except in section 252, an authorised person in relation to the carrying out by that person of a function in accordance with—

(i)

that person’s authorisation under section 250; or

(ii)

section 251(5)

Customs place means a Customs port or Customs airport

Customs port means a port designated as a Customs port under section 55

Customs revenue means revenue managed by Customs on behalf of the Crown

Customs value, in relation to goods, means the Customs value of the goods determined in accordance with Schedule 4

dangerous item means any of the following:

(a)

a firearm (as that term is defined in section 11(2) of the Aviation Crimes Act 1972):

(b)

any dangerous or offensive weapon or instrument of any kind:

(c)

any ammunition:

(d)

any explosive substance or device:

(e)

any injurious substance or device of any kind that could be used to endanger a person’s safety

defence area has the meaning given to that term in section 2(1) of the Defence Act 1990

Defence Force has the meaning given to that term in section 2(1) of the Defence Act 1990

designated place means—

(a)

a Customs-controlled area; or

(b)

a Customs place; or

(c)

a Police station to which a person reports under section 28; or

(d)

a place where the chief executive permits authorises a craft to arrive at, or depart from, under section 21 or 43

Director-General of Biosecurity means the chief executive of the department of State that, with the authority of the Prime Minister, is responsible for the administration of the Biosecurity Act 1993

dishonest purpose, in relation to goods, is to be read in accordance with subsection (2)

document includes any of the following:

(a)

any form of writing on material:

(b)

information recorded, transmitted, or stored digitally or electronically, and any material subsequently derived from that information:

(c)

any label or mark:

(d)

any book, map, plan, graph, or drawing:

(e)

a any photograph, film, negative, or device in, on, or from which 1 or more visual images are capable of being stored or reproduced

domestic cargo means goods that—

(a)

are brought into a Customs-controlled area at a Customs place for transportation by air or sea to another Customs place on a craft that—

(i)

begins its journey outside New Zealand and, in the course of that journey, enters New Zealand and travels between at least 2 Customs places; or

(ii)

begins its journey at a Customs place and, in the course of that journey, travels to at least 1 other Customs place before departing from New Zealand; and

(b)

are—

(i)

within the Customs-controlled area referred to in paragraph (a); or

(ii)

on the craft referred to in paragraph (a)(i) or (ii) being transported from one Customs place to another Customs place; or

(iii)

having been transported from one Customs place to another Customs place, awaiting removal from a Customs-controlled area at the latter Customs place

domestic passenger means a passenger, not being an internationally ticketed passenger, who has an entitlement to air or sea travel for a domestic sector on—

(a)

a craft that—

(i)

begins its journey outside New Zealand; and

(ii)

in the course of that journey, enters New Zealand and travels between at least 2 Customs places; or

(b)

a craft that—

(i)

begins its journey at a Customs place; and

(ii)

in the course of that journey, travels to at least 1 other Customs place before departing from New Zealand

domestic sector means a journey within New Zealand from one Customs place to another Customs place

dutiable goods means goods of a kind subject to duty

duty means any of the following:

(a)

any duty, additional duty, tax, fee, charge, or levy imposed on goods under this Act:

(b)

a duty imposed under the Tariff Act 1988:

(c)

provisional safeguard duty, safeguard duty, and extended safeguard duty imposed under the Trade (Safeguard Measures) Act 2014:

(d)

a duty imposed under section 14, 16, 17, 17A, or 17B of the Dumping and Countervailing Duties Act 1988, including a duty resulting from the application of section 18 or 19 of that Act:

(e)

a duty or tax imposed by section 12 of the Goods and Services Tax Act 1985:

(f)

levies imposed by section 213(2)(c) of the Accident Compensation Act 2001:

(g)

levies imposed by the Energy (Fuels, Levies, and References) Act 1989

duty-free store means a Customs-controlled area that is licensed to be used for the storing of dutiable goods on which the duty has not been paid, pending their sale to persons arriving in, or departing from, New Zealand

eligible person, in relation to an area, means a person who—

(a)

is the owner or occupier of the area; or

(b)

is operating in the area

Excise and Excise-equivalent Duties Order has the meaning given to that term in clause 16(4) of Schedule 3

Excise and Excise-equivalent Duties Table has the meaning given to that term in clause 16(4) of Schedule 3

export warehouse means a Customs-controlled area that is licensed to be used for the depositing, keeping, or securing of imported goods, or of Part A goods, without payment of duty, pending their export

exportation,—

(a)

in relation to goods, means the shipment of the goods in any craft for transportation to a point outside New Zealand, except where otherwise expressly provided; and

(b)

in relation to prohibited exports that are objectionable publications or other documents, includes their transmission by any means (other than by broadcasting) from New Zealand to a point outside New Zealand

exporter

(a)

means any person by or for whom goods are exported; and

(b)

includes any person who, on or at any time after entry of the goods for export but before the goods are exported, is or becomes—

(i)

the owner of the goods; or

(ii)

entitled to the possession of the goods; or

(iii)

beneficially interested in the goods

fail to comply includes contravene

forfeited goods means goods that are forfeited to the Crown under section 156

function, as in a function of a person or body, includes the following:

(a)

a power of the person or body:

(b)

an obligation of the person or body:

(c)

a service that the person or body provides

goods means all kinds of movable personal property (including animals), subject to sections 95(3) to (6), 96(11) and (12), 97(10) and (11), and 222(5)

importation,—

(a)

in relation to goods, means the arrival of the goods in New Zealand in any manner, whether lawful or unlawful, from a point outside New Zealand; and

(b)

in relation to prohibited imports that are objectionable publications or other indecent or obscene articles or other documents, includes their transmission by any means (other than by broadcasting) into New Zealand from a point outside New Zealand

importer

(a)

means any person by or for whom goods are imported; and

(b)

includes—

(i)

the consignee of the goods; and

(ii)

any person who, on or at any time after the importation of the goods but before the goods cease to be subject to the control of Customs, is or becomes—

(A)

the owner of the goods; or

(B)

entitled to the possession of the goods; or

(C)

beneficially interested in the goods

international cargo means any cargo that—

(a)

has arrived in New Zealand from a point outside New Zealand; or

(b)

is to be exported from New Zealand

internationally ticketed passenger means a person who has an entitlement to air or sea travel for a domestic sector that is a domestic sector included in tickets for an international journey that—

(a)

began outside New Zealand; or

(b)

began in New Zealand and is to continue outside New Zealand

liquefied petroleum gas

(a)

means propane, propylene, butane, butylene, or isobutane; and

(b)

includes a mixture consisting wholly or principally of a liquefied petroleum gas any substance or substances referred to in paragraph (a), whether or not the mixture also contains any other hydrocarbon

manufacture,—

(a)

in relation to goods that are tobacco, means any of the following processes:

(i)

curing, cutting, pressing, grinding, crushing, or rubbing raw or leaf tobacco, or otherwise preparing raw or leaf tobacco or manufactured or partially manufactured tobacco:

(ii)

making cigarettes from tobacco:

(iii)

putting up for use or consumption scraps, waste, chippings, stems, or deposits of tobacco resulting from processing tobacco; and

(b)

in relation to goods that are a fuel, means any operation or process that is involved in the production of the goods; and

(c)

in relation to goods that are neither tobacco nor a fuel, means any of the following:

(i)

any operation or process that is involved in the production of the goods:

(ii)

any of the following processes that takes place on premises that are not licensed, or required to be licensed, under the Sale and Supply of Alcohol Act 2012:

(A)

filtering the goods, diluting the goods, or blending the goods with other goods (whether the other goods are the same as, similar to, or different from the goods):

(B)

putting the goods for the first time into a container (for example, a bag, barrel, bottle, can, cask, drum, or keg) in which they might be presented, or from which they might be dispensed, for sale to the public or any member of the public:

(C)

labelling or marking, for the first time, containers filled with the goods

manufactured tobacco means tobacco that has been manufactured or prepared for smoking or any other purpose

manufacturing area means a Customs-controlled area that is licensed to be used for the manufacture of Part A goods

marae includes the area of land on which all buildings, such as the wharenui (meeting house), the wharekai (dining room), ablution blocks, and any other associated buildings, are situated

Minister means the Minister of Customs

New Zealand, subject to section 169(1), means—

(a)

any land within the territorial limits of New Zealand; and

(b)

the waters of the territorial sea of New Zealand (as that term is defined in section 3 of the Territorial Sea, Contiguous Zone, and Exclusive Economic Zone Act 1977)

Normal Tariff has the meaning given to that term in section 2(1) of the Tariff Act 1988

objectionable publication means a publication (as that term is defined in section 2 of the Films, Videos, and Publications Classification Act 1993) that is objectionable within the meaning of that Act in the hands of all persons and for all purposes

occupier, in relation to land, means

(a)

means the owner of the land; or and

(b)

any other person (including a lessee, licensee, or tenant) includes a lessee or tenant, a licensee, or a person who has the right to occupy the land under other authority

operator,—

(a)

in relation to a business, means any person actively engaged (whether alone or with others) in the carrying on of the business; and

(b)

in the case of a body corporate, includes—

(i)

every director, manager, secretary, or other similar officer engaged in the direct control or management of the body corporate’s business; and

(ii)

a person who purports to act in any of the capacities referred to in subparagraph (i)

overseas company has the meaning given to that term in section 2(1) of the Companies Act 1993

owner,—

(a)

in relation to a craft, includes—

(i)

the charterer of the craft; and

(ii)

any person acting as agent for the owner or charterer; and

(b)

in relation to goods, includes—

(i)

the importer; and

(ii)

any person having possession of the goods; and

(iii)

any person who is beneficially interested in the goods; and

(c)

in relation to land, means—

(i)

the person who is entitled to receive the rack rent in respect of the land; or

(ii)

the person who would be entitled to receive the rack rent in respect of the land if the land were let to a tenant at the rack rent

package includes—

(a)

any means used or capable of being used to pack, cover, enclose, contain, or encase goods for transportation; and

(b)

any cargo device

Part A goods has the meaning given to that term in section 11(8)

passenger name record or PNR, in relation to any person, means the electronic record created by a commercial transportation operator for a journey booked by or for the person, which typically includes the following information:

(a)

the person’s name:

(b)

the person’s contact details:

(c)

the place where the person, or another person, booked the intended travel:

(d)

the date on which the person, or another person, booked the intended travel:

(e)

the name of any other person with whom the person intends to travel:

(f)

whether the person paid for his or her own intended travel, and the manner of payment:

(g)

the person’s travel movements before the intended travel:

(h)

any change in the person’s travel from the travel originally booked:

(i)

whether the person has checked baggage

personal information means information about an identifiable person (including (without limitation) biometric information)

postal article means any article or thing of any kind (including a letter, parcel, or package) received by or transmitted through—

(a)

a registered postal operator; or

(b)

an air courier company

prescribed means prescribed by regulations, except—

(a)

where it is stated that a matter is to be prescribed by the chief executive’s rules; and

(b)

in sections 390, 391, and 398

prohibited exports means goods whose exportation is prohibited under section 95, 96, or 97 (whether conditionally or unconditionally)

prohibited goods means prohibited exports or prohibited imports

prohibited imports means goods whose importation is prohibited under section 95 or 96 (whether conditionally or unconditionally)

Public Service has the meaning given to that term in section 2 of the State Sector Act 1988

reasonable period means a period that is not longer than necessary in the circumstances

registered postal operator means a person who is registered as a postal operator under the Postal Services Act 1998

registered user has the meaning given to that term in section 299(3)

registered user system has the meaning given to that term in section 299(3)

regulations means regulations made by Order in Council under section 380(1)

removed for home consumption, in relation to Part A goods that are manufactured in a manufacturing area, is to be read in accordance with clause 3 of Schedule 3 (except where clause 3(7) applies)

sealed Customs package means—

(a)

a Customs-approved secure package; or

(b)

a package in relation to which a Customs-approved export seal has been used

ship

(a)

means a ship, boat, or other vessel used in navigation, whether or not it has any means of propulsion; and

(b)

includes—

(i)

a hovercraft or any other thing deriving full or partial support in the atmosphere from the reaction of air against the surface of the water over which it operates; and

(ii)

a submarine or other submersible

shipment, in relation to goods, includes loading the goods into or onto a craft

spirits

(a)

means ethyl alcohol, whether denatured or not; and

(b)

includes—

(i)

spirituous beverages, including brandy, gin, rum, vodka, and whisky; and

(ii)

every description of spirituous liquor derived from ethyl alcohol

subject to the control of Customs, in relation to goods, is to be read in accordance with section 6

Tariff has the meaning given to that term in section 2(1) of the Tariff Act 1988

Tariff classification, in relation to goods, means the classification of those goods under Part 1 of the Tariff

Tariff heading has the meaning given to that term in section 2(1) of the Tariff Act 1988

Tariff item has the meaning given to that term in section 2(1) of the Tariff Act 1988

tobacco includes cigars, cigarettes, and snuff

transport includes carry or convey

uncustomed goods means goods on which duty has become due and payable but is unpaid

unlawfully exported means exported in contravention of this Act or any other enactment

unlawfully imported means imported in contravention of this Act or any other enactment

vehicle means a conveyance for use on land, whether or not it is also capable of being used on or over water.

(2)

For the purposes of this Act, goods are for a dishonest purpose if—

(a)

the goods have been designed, manufactured, or adapted with intent to facilitate the commission of a crime involving dishonesty; or

(b)

the goods, having regard to all relevant circumstances, can reasonably be considered to be—

(i)

part of, or involved in, an attempt to commit a crime involving dishonesty to which section 72 of the Crimes Act 1961 applies; or

(ii)

related to a conspiracy to commit a crime involving dishonesty to which section 310 of the Crimes Act 1961 applies.

(3)

For the purposes of this Act, a contractor who does work on or in respect of any goods is treated as having manufactured them.

(4)

In this Act, a reference to an item in the Excise and Excise-equivalent Duties Table includes any item that is subsequently included in the table and that, with or without modification, replaces or corresponds to the earlier item.

Compare: 1996 No 27 ss 2(1), (3), 28(2), 32B(5), 38A, 54(1)(aa), (ab), (ac), (9), 38A, 56(1)(a), (ab), (ac), (2A), 59, 60(1), 64A(1), 69(1)(b), 79A(2), 138, 209(1)(cab), (7), 225(1)(l), (la), 276(2)

6 Definition: subject to the control of Customs

For the purposes of this Act, goods are subject to the control of Customs,—

(a)

if the goods are imported goods,—

(i)

from the time of importation:

(ii)

until the time when the goods are lawfully removed for home consumption or exportation from a Customs-controlled area:

(b)

if the goods are lawfully removed from a Customs-controlled area under a conditional permit or other authorisation granted under section 85(1)(b),—

(i)

from the time of their removal:

(ii)

until the time when the chief executive is satisfied that the conditions of the permit or other authorisation have been met:

(c)

if the goods are to be exported (whether or not under drawback) and are in a package in relation to which a Customs-approved export seal has been used,—

(i)

from the time when the seal is first used:

(ii)

until the goods depart from New Zealand:

(d)

if the goods are to be exported (whether or not under drawback) under a Customs-approved secure exports scheme,—

(i)

from the time when the goods are first secured in a Customs-approved secure package:

(ii)

until the goods depart from New Zealand:

(e)

if the goods are to be exported under drawback,—

(i)

from the earlier of the following:

(A)

the time of the claim for drawback:

(B)

the time when the goods are brought into a Customs-controlled area or a CASE (whether or not the goods are later transported from that area to another area of any kind, and, if the goods are so transported, during the transportation):

(ii)

until the goods depart from New Zealand:

(f)

if the goods are to be exported otherwise than under drawback,—

(i)

from the time when the goods are brought into a Customs-controlled area or a CASE (whether or not the goods are later transported from that area to another area of any kind, and, if the goods are so transported, during the transportation):

(ii)

until the goods depart from New Zealand:

(g)

if the goods are on board any craft to which section 170 applies, at all times that the craft is within New Zealand:

(h)

if the goods are Part A goods that are manufactured in a manufacturing area,—

(i)

from the time of manufacture:

(ii)

until—

(A)

the goods are removed for home consumption; or

(B)

the goods depart from New Zealand, if that occurs without the goods having been removed for home consumption:

(i)

if the goods are owned by, or in the possession of, an internationally ticketed passenger who is using air or sea travel for a domestic sector,—

(i)

from the time, at the commencement of the domestic sector, when the goods are—

(A)

brought into a Customs-controlled area that is licensed to be used for the disembarkation, embarkation, or processing of persons arriving in, or departing from, New Zealand; or

(B)

accepted for transportation by an airline or a shipping company:

(ii)

until the time, at the end of the domestic sector, when the goods are lawfully removed from a Customs-controlled area that is licensed to be used for the disembarkation, embarkation, or processing of persons arriving in, or departing from, New Zealand:

(j)

if the goods are owned by, or in the possession of, a domestic passenger who is using air or sea travel for a domestic sector,—

(i)

from the time, at the commencement of the domestic sector, when the goods are—

(A)

brought into a Customs-controlled area that is licensed to be used for the disembarkation, embarkation, or processing of persons arriving in, or departing from, New Zealand; or

(B)

accepted for transportation by an airline or a shipping company:

(ii)

until the time, at the end of the domestic sector, when the goods are lawfully removed from a Customs-controlled area that is licensed to be used for the disembarkation, embarkation, or processing of persons arriving in, or departing from, New Zealand:

(k)

if the goods are domestic cargo to which neither paragraph (i) nor paragraph (j) applies,—

(i)

from the time when the goods are brought into a Customs-controlled area at a Customs place:

(ii)

until the time when the goods are lawfully removed from that or any other Customs-controlled area.

Compare: 1996 No 27 s 20(1)

7 Application of Act to postal articles

(1)

This Act applies to postal articles, and goods contained in postal articles, in the same way that it applies to other goods, subject to regulations made under for the purposes of subsection (3).

(2)

For the purposes of this Act, a postal article is treated as being produced or delivered to a Customs officer when it is brought into a Customs-controlled area.

(3)

Regulations may do any of the following:

(a)

provide for that any separate postal articles (and the goods contained in them) to may be treated as a single postal article consigned to a single person (whether the postal articles are addressed to the same person or different persons):

(b)

prescribe the persons who are treated as the importers or exporters of those postal articles or goods.

Compare: 1996 No 27 s 276(1), (3), (4)

8 Application of Act to foreign Government ships

Nothing in this Act or in any enactment made under this Act limits the immunities of the following:

(a)

any foreign warship:

(b)

any other foreign governmental ship operated for non-commercial purposes:

(c)

any foreign military aircraft:

(d)

members of the crew of any ship or aircraft to which paragraphs (a) to (c) apply.

Compare: 1996 No 27 s 4(8)

9 Transitional, savings, and related provisions

The transitional, savings, and related provisions set out in Schedule 1 have effect according to their terms.

10 Act binds the Crown

This Act binds the Crown except as provided in Schedule 2.

Compare: 1996 No 27 s 3

Part 2 Excise duty and excise-equivalent duty

11 Excise duty and excise-equivalent duty levied

(1)

Excise duty and excise-equivalent duty are levied when goods are manufactured or imported in accordance with Schedule 3.

(2)

Excise duty is a duty levied in respect of alcohol, tobacco, and fuel that are manufactured in New Zealand (Part 1 of Schedule 3).

(3)

Excise-equivalent duty is a duty levied in respect of imported alcohol, tobacco, and fuel where excise duty would have been levied in respect of the alcohol, tobacco, or fuel had it been manufactured in New Zealand (Part 2 of Schedule 3).

(4)

Details of the alcohol, tobacco, and fuel in respect of which excise duty and excise-equivalent duty are levied, and the rates at which those duties are levied, are set out in the Excise and Excise-equivalent Duties Table (Part 3 of Schedule 3).

(5)

For excise duty, see Part A of the Excise and Excise-equivalent Duties Table.

(6)

For excise-equivalent duty, see Part B of the Excise and Excise-equivalent Duties Table.

(7)

Subsections (2) to (6) are only a guide to Schedule 3.

(8)

In this Act, Part A goods means goods specified in Part A of the Excise and Excise-equivalent Duties Table.

Part 3 Entry and exit of goods, persons, and craft

Subpart 1—Arrival and departure of goods, persons, and craft

Pre-arrival of craft in New Zealand

12 Advance notice of arrival, etc

(1)

The person in charge of a craft that is en route to New Zealand (from a point outside New Zealand) must, within the prescribed time, provide Customs with an advance notice of arrival, unless otherwise approved by the chief executive.

(2)

The advance notice of arrival must—

(a)

be provided in the way prescribed by the chief executive’s rules; and

(b)

be accompanied by any supporting documents that the chief executive considers appropriate.

(3)

The person in charge of the craft must ensure that the craft, on its arrival in New Zealand, proceeds directly to the Customs place notified in the advance notice of arrival (see subsection (5)(e)), unless otherwise directed by a Customs officer.

(4)

The advance notice of arrival, and any supporting documents, may be provided to Customs on behalf of the person in charge of the craft by—

(a)

the owner or operator of the craft; or

(b)

an agent of the owner or operator.

(5)

Rules made under for the purposes of subsection (2)(a) must, at a minimum, require an advance notice of arrival to include details of the following:

(a)

the impending arrival of the craft:

(b)

its journey:

(c)

its crew:

(d)

its passengers:

(e)

the Customs place at which the craft will arrive.

Compare: 1996 No 27 s 21

13 Offences in relation to advance notice of arrival, etc

(1)

The person in charge of a craft commits an offence if the person fails to comply with—

(a)

section 12(1) to (3); or

(b)

a direction given by a Customs officer under section 12(3).

(2)

A person who commits an offence under subsection (1) is liable on conviction to—

(a)

imprisonment for a term not exceeding 12 months; or

(b)

a fine not exceeding $15,000.

(3)

A person commits an offence if the person provides Customs with—

(a)

an advance notice of arrival under section 12(1) that is erroneous in a material particular, misleading, or not genuine; or

(b)

a supporting document under section 12(2)(b) that is erroneous in a material particular, misleading, or not genuine.

(4)

A person who commits an offence under subsection (3) is liable on conviction—

(a)

in the case of an individual, to—

(i)

imprisonment for a term not exceeding 12 months; or

(ii)

a fine not exceeding $15,000:

(b)

in the case of a body corporate, to a fine not exceeding $75,000.

Compare: 1996 No 27 s 191(1)(a), (2)

14 Inward cargo report

(1)

This section applies to cargo on a craft if the craft—

(a)

is en route to New Zealand (from a point outside New Zealand) or has arrived in New Zealand; or

(b)

is transporting goods that—

(i)

are subject to the control of Customs; and

(ii)

were brought into New Zealand (from a point outside New Zealand) by that craft or any other craft.

(2)

The persons referred to in subsections (3) and (4) must, within the prescribed time, provide Customs with an inward cargo report in respect of cargo on the craft, as provided for in accordance with those subsections (whether or not the person owns, or has any proprietary interest of any kind in, all or any part of the cargo).

(3)

Any person who is, or who is the agent of, the owner or operator of the craft must provide an inward cargo report in respect of all the cargo on the craft.

(4)

Any cargo aggregator who, in the course of that cargo aggregator’s business, has arranged with the owner or operator of the craft for the transportation of cargo on the craft under a shared space, or other negotiated volume of cargo, arrangement must provide an inward cargo report in respect of the cargo that is the subject of the arrangement.

(5)

An inward cargo report must—

(a)

be provided in the way prescribed by the chief executive’s rules; and

(b)

be accompanied by any supporting documents that the chief executive considers appropriate.

(6)

The chief executive may allow a person not to provide an inward cargo report in respect of all or any part of any cargo—

(a)

if 1 or more other persons have already provided an inward cargo report in respect of the cargo or the part of it; or

(b)

for any other reason that the chief executive considers appropriate.

Compare: 1996 No 27 s 21A

15 Offences in relation to inward cargo report

(1)

A person referred to in section 14(3) or (4) commits an offence if the person—

(a)

fails to comply with section 14(2) and (5); or

(b)

provides Customs with an inward cargo report under section 14(2) that is erroneous in a material particular, misleading, or not genuine; or

(c)

provides Customs with a supporting document under section 14(5)(b) that is erroneous, misleading, or not genuine.

(2)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $20,000:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 s 192A

Arrival of craft in New Zealand

16 Application of sections 17 to 25

(1)

Sections 17 to 25 apply to any craft that—

(a)

arrives in New Zealand; or

(b)

is transporting persons, or goods subject to the control of Customs, brought into New Zealand (from a point outside New Zealand) by that craft or any other craft.

(2)

In those sections, references to a craft arriving at a place include references to a craft landing, berthing, mooring, anchoring, or stopping at a place or hovering above a place.

Compare: 1996 No 27 s 24(1)

17 Craft must arrive at Customs place

(1)

If, in accordance with section 12(3), applies to a craft is required to proceed to a Customs place notified in an advance notice of arrival, the person in charge of the craft must ensure that the craft arrives only at that the Customs place notified in the advance notice of arrival, unless otherwise directed by a Customs officer under section 12(3).

(2)

The person in charge of any other craft must ensure that the craft arrives only at a Customs place.

(3)

If a craft is directed by a Customs officer under subsection (1) section 12(3) to arrive at a place other than the Customs place notified in the advance notice of arrival, no person may leave or board the craft unless authorised to do so by a Customs officer.

(4)

This section does not apply to a craft that—

(a)

is compelled by accident, stress of weather, or other necessity to arrive at a place otherwise than in accordance with subsection (1) or (2) or a direction given by a Customs officer under subsection (1); or

(b)

is required by any statutory or other requirement relating to navigation to arrive at a place otherwise than in accordance with subsection (1) or (2) or a direction given by a Customs officer under subsection (1); or

(c)

is authorised under section 21 to arrive at a place other than a Customs place, but only if—

(i)

the craft arrives only at that place; and

(ii)

any conditions of the authorisation are met.

Compare: 1996 No 27 ss 21(1)(b), 24(1), 25(1), (4)

18 Offences in relation to craft that arrive at place other than Customs place, etc

(1)

The person in charge of a craft commits an offence if the person fails to comply with section 17(1) or (2).

(a)

section 17(1) or (2); or

(b)

a direction given by a Customs officer under section 17(1).

(2)

A person who commits an offence under subsection (1) is liable on conviction to—

(a)

imprisonment for a term not exceeding 12 months; or

(b)

a fine not exceeding $15,000.

(3)

A person (other than a Customs officer) commits an offence if the person fails to comply with section 17(3).

(4)

A person who commits an offence under subsection (3) is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 191(1)(a)(v), (d), (g), (2), (4)

19 Persons leaving or boarding arriving craft before inward report made

No person may leave or board a craft unless authorised to do so by a Customs officer—

(a)

from the time of the craft’s arrival at a Customs place:

(b)

until an inward report has been provided to Customs under section 24(1)(a).

Compare: 1996 No 27 s 24(2)

20 Offence in relation to leaving or boarding arriving craft before inward report made

(1)

A person (other than a Customs officer) commits an offence if the person fails to comply with section 19.

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 191(1)(e), (4)

21 Authorisation for craft to arrive at place other than Customs place

(1)

The chief executive may authorise a craft to arrive at a place other than a Customs place.

(2)

Before giving an authorisation under subsection (1), the chief executive must consult the following persons:

(a)

the Director-General of Biosecurity:

(b)

the chief executive of the Ministry of Health:

(c)

the Commissioner of Police:

(d)

if the proposed authorisation relates to an aircraft, the Director of Civil Aviation:

(e)

if the proposed authorisation relates to a ship, the Director of Maritime New Zealand:

(f)

every other department of State whose operations may, in the opinion of the chief executive, be affected by the giving of the authorisation.

(3)

An authorisation under subsection (1) may be given subject to any conditions that the chief executive considers appropriate (for example, conditions about the goods or persons that may be transported on the craft).

Compare: 1996 No 27 s 25(1)(b), (1A), (1B)

22 Craft that have arrived at place other than Customs place

(1)

This section applies if a craft arrives at a place other than a Customs place.

(2)

The same powers may be exercised, and the same obligations apply, under this Act in relation to—

(a)

the craft as if it arrived at a Customs place; and

(b)

the goods and persons on the craft as if those goods and persons were in a Customs-controlled area following the arrival of the craft.

(3)

The person in charge of the craft—

(a)

must immediately report to a Customs officer or to a constable; and

(b)

must not, without the consent of a Customs officer, allow—

(i)

any goods to be unloaded from the craft; or

(ii)

any of the crew or passengers to leave the vicinity of the craft; and

(c)

must comply with any directions given by a Customs officer in respect of any goods or persons transported on the craft.

(4)

No person may unload goods from the craft without the consent of a Customs officer, except where section 78(a) or (b) applies.

(5)

No member of the crew and no passenger may leave the vicinity of the craft without the consent of a Customs officer.

(6)

Every member of the crew and every passenger must comply with any directions given by a Customs officer.

Compare: 1996 No 27 s 25(1C)–(3)

23 Offences in relation to craft that have arrived at place other than Customs place

(1)

The person in charge of a craft commits an offence if the person fails to comply with section 22(3).

(2)

A person commits an offence if the person fails to comply with—

(a)

section 22(4) or (5); or

(b)

a direction given by a Customs officer under section 22(6).

(3)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 191(1)(f), (g), (4)

24 Inward report, etc

(1)

On the arrival of a craft at a Customs place,—

(a)

the owner of the craft and the person in charge of the craft must ensure that an inward report is provided to Customs within the prescribed time, unless otherwise approved by the chief executive; and

(b)

the person in charge of the craft must comply with any Customs direction as to—

(i)

the movement of the craft within the Customs place; or

(ii)

the unloading of goods, or the disembarkation of persons, from the craft.

(2)

The inward report must—

(a)

be provided in the way prescribed by the chief executive’s rules; and

(b)

be accompanied by any supporting documents that the chief executive considers appropriate.

(3)

The inward report and supporting documents need not include information that has already been provided to Customs under section 12(1) or (2)(b) or 14(2) or (5)(b).

Compare: 1996 No 27 s 26

25 Offences in relation to inward report, etc

(1)

The owner of a craft and the person in charge of the craft each commit an offence if—

(a)

they fail to comply with section 24(1)(a); or

(b)

an inward report that is provided is not provided in accordance with section 24(2).

(2)

The person in charge of a craft commits an offence if the person fails to comply with a Customs direction given to the person under section 24(1)(b).

(3)

A person who commits an offence under subsection (1) or (2) is liable on conviction to a fine not exceeding $5,000.

(4)

The owner of a craft and the person in charge of the craft each commit an offence if—

(a)

an inward report that is provided under section 24(1)(a) is erroneous, misleading, or defective in any material particular; or

(b)

any supporting document that is provided under section 24(2)(b) is erroneous, misleading, or not genuine.

(5)

A person who commits an offence under subsection (4) is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $20,000:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 ss 191(1)(h), (4), 192

26 Requirement to answer questions and produce documents

(1)

This section applies to the following:

(a)

a craft that has arrived in New Zealand:

(b)

a craft that is departing from New Zealand:

(c)

a craft that is within New Zealand and that is transporting international cargo or international crew or any international passenger, whether or not the craft is also transporting domestic cargo or any other persons:

(d)

a craft that is within New Zealand and that a Customs officer has reasonable cause to suspect has been, or is about to be, involved in—

(i)

the commission of an offence under this Act; or

(ii)

the importation or exportation of any dutiable, uncustomed, prohibited, or forfeited goods.

(2)

A Customs officer may question any person referred to in subsection (4) about any of the matters referred to in subsection (5), and the person must answer the Customs officer’s questions.

(3)

A Customs officer may request a person referred to in subsection (4) to produce to the officer any document relating to any of the matters referred to in subsection (5) that is in the person’s possession or under the person’s control.

(4)

The persons are as follows:

(a)

the owner of the craft:

(b)

the person in charge of the craft:

(c)

a member of the crew of the craft:

(d)

a passenger on the craft.

(5)

The matters are as follows:

(a)

the craft:

(b)

the craft’s journey:

(c)

any goods or persons that are on, or have been on, the craft.

(6)

In this section,—

international crew means the crew, or any member of the crew, of a craft that is on a journey that—

(a)

began outside New Zealand; or

(b)

began in New Zealand and is to continue outside New Zealand

international passenger means a person who has an entitlement to travel on a craft within New Zealand where that travel is part of an international journey that—

(a)

began outside New Zealand; or

(b)

began in New Zealand and is to continue outside New Zealand.

Compare: 1996 No 27 s 22(1), (2)

27 Offences in relation to failure to answer questions or produce documents

(1)

A person referred to in section 26(4) commits an offence if the person—

(a)

refuses to answer any question put to that person by a Customs officer under section 26(2); or

(b)

knowingly gives a false answer to any question put to that person by a Customs officer under section 26(2); or

(c)

fails to comply immediately with any request made to that person by a Customs officer under section 26(3).

(2)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

Compare: 1996 No 27 s 191(1)(b), (3)

Arrival and departure of persons

28 Persons arriving in New Zealand to report to Customs officer or Police station

Except as otherwise provided in this Act, every person arriving in New Zealand must, on his or her arrival,—

(a)

immediately report to—

(i)

a Customs officer; or

(ii)

a Police station; and

(b)

remain at the place where he or she reported to the Customs officer, or at the Police station, for any reasonable time that Customs requires to enable a Customs officer to carry out any function under this Act in relation to that person.

Compare: 1996 No 27 s 27

29 Disembarkation

(1)

This section applies to every person who is on board a craft that arrives in New Zealand.

(2)

The person must comply with every Customs direction concerning disembarkation.

(3)

Every person who has disembarked must, unless otherwise directed by Customs,—

(a)

proceed to a Customs-controlled area; and

(b)

remain there for any reasonable time that Customs requires to enable a Customs officer to carry out any function under this Act in relation to that person.

(4)

Regulations may prescribe exemptions from subsection (2) or (3).

Compare: 1996 No 27 s 28

30 Baggage to be presented on disembarkation, etc

(1)

This section applies to—

(a)

every person who—

(i)

disembarks from a craft that has arrived in New Zealand; or

(ii)

disembarks from a craft that is at the end of a domestic sector, if the domestic sector is part of a journey of the kind referred to in paragraph (a) or (b) of the definition of domestic passenger in section 5(1); and

(b)

the person’s accompanying baggage and any other goods in the person’s possession or under the person’s control.

(2)

The person must—

(a)

make the baggage and other goods available for an examination under this Act by a Customs officer; and

(b)

comply with any Customs direction relating to the movement of the baggage or other goods—

(i)

within a Customs place or Customs-controlled area; or

(ii)

from any craft to a Customs-controlled area; and

(c)

comply with any other Customs direction given to facilitate an examination under as referred to in paragraph (a).

(3)

Regulations may prescribe exemptions from subsection (2).

(4)

Any person who is moving or handling any baggage or other goods to which this section applies must comply with any Customs direction relating to the movement of the baggage or other goods—

(a)

within a Customs place or Customs-controlled area; or

(b)

from any craft to a Customs-controlled area.

Compare: 1996 No 27 s 29

31 Persons departing from New Zealand to depart from Customs place

(1)

Every person who departs from New Zealand must depart from a Customs place unless otherwise authorised by a Customs officer.

(2)

Regulations may prescribe exemptions from subsection (1).

(3)

This section does not apply to a person who departs from New Zealand on a craft that is not required to depart from a Customs place in accordance with section 41(3) and (4) or an approval given by the chief executive under section 41(1).

Compare: 1996 No 27 s 30

32 Embarkation

A person preparing to board a craft for departure from New Zealand must comply with any Customs direction concerning embarkation.

Compare: 1996 No 27 s 31

33 Outgoing baggage to be presented, etc

(1)

This section applies to—

(a)

every person who arrives at a Customs place or a Customs-controlled area for embarkation onto a craft that has, as its destination, a point outside New Zealand; and

(b)

the person’s accompanying baggage and any other goods in the person’s possession or under the person’s control.

(2)

The person must—

(a)

make the baggage and other goods available for an examination under this Act by a Customs officer; and

(b)

comply with any Customs direction relating to the movement of the baggage or other goods—

(i)

within the Customs place or Customs-controlled area; or

(ii)

from a Customs-controlled area to any craft; and

(c)

comply with any other Customs direction given to facilitate an examination under as referred to in paragraph (a).

(3)

Regulations may prescribe exemptions from subsection (2).

(4)

Any person who is moving or handling any baggage or other goods to which this section applies must comply with any Customs direction relating to the movement of the baggage or other goods—

(a)

within the Customs place or Customs-controlled area; or

(b)

from a Customs-controlled area to any craft.

Compare: 1996 No 27 s 32

34 Offence in relation to wilful failure to comply with requirements when arriving in, or departing from, New Zealand

(1)

A person commits an offence if the person wilfully fails to comply with any requirement imposed on the person by or under any of sections 28 to 33.

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 180

Departure of craft

35 Craft may not depart without certificate of clearance, etc

(1)

The person in charge of a craft must not cause or allow the craft to depart from a Customs place for a point outside New Zealand without a certificate of clearance granted under section 37, unless otherwise approved by the chief executive.

(2)

The person in charge of a craft that has arrived in New Zealand must not cause or allow the craft to depart from any place in New Zealand (whether or not its destination is a point outside New Zealand) without the permission of Customs.

(3)

A permission under subsection (2) may be given subject to—

(a)

the production of any documents required by the chief executive; or

(b)

any other conditions that the chief executive considers appropriate.

(4)

Regulations may prescribe exemptions from subsection (2).

Compare: 1996 No 27 s 33

36 Offence in relation to craft departing without certificate of clearance, etc

(1)

The person in charge of a craft commits an offence if the person fails to comply with section 35(1) or (2).

(2)

A person who commits an offence under this section is liable on conviction to—

(a)

imprisonment for a term not exceeding 12 months; or

(b)

a fine not exceeding $15,000.

Compare: 1996 No 27 s 193(1)(a), (2)

37 Certificates of clearance

(1)

A Customs officer may grantBefore a certificate of clearance is granted in respect of a craft, if the person in charge of the craft, must

(a)

within the prescribed time, provides Customs with an advance notice of departure; and

(b)

produces any other documents required by a Customs officer in relation to any of the following:

(i)

the craft:

(ii)

the craft’s passengers, crew, cargo, or stores:

(iii)

the craft’s intended journey; and

(c)

compliescomply with all requirements under this Act or any other enactment in relation to the following:

(i)

the craft:

(ii)

the craft’s passengers, crew, cargo, or stores:

(iii)

the craft’s intended journey.

(2)

Before granting a certificate of clearance in respect of a craft, a Customs officer may ask the person in charge of the craft any question in relation to any of the following, and the person must answer the question:

(a)

the craft:

(b)

the craft’s passengers, crew, cargo, or stores:

(c)

the craft’s intended journey.

(3)

Despite subsection (1), a Customs officer must not grant a certificate of clearance in respect of a craft if the person in charge of the craft refuses or fails to answer any question asked under subsection (2).

(4)

A certificate of clearance may be given subject to any conditions that the chief executive considers appropriate.

(5)

A certificate of clearance must be given in the form prescribed by the chief executive’s rules.

(6)

The advance notice of departure referred to in subsection (1)(a) must—

(a)

be provided in the way prescribed by the chief executive’s rules; and

(b)

be accompanied by any supporting documents that the chief executive considers appropriate.

(7)

The advance notice of departure and any supporting documents may be provided, on behalf of the person in charge of the craft, by—

(a)

the owner or operator of the craft; or

(b)

an agent of the owner or operator.

Compare: 1996 No 27 ss 33(1), 34, 34AA

38 Offences in relation to granting of certificate of clearance

(1)

The person in charge of a craft commits an offence if the person—

(a)

fails to comply with section 37(1)(a) and (6); or

(b)

fails to produce any documents required by a Customs officer under section 37(1)(b); or

(c)

refuses to answer any question put to that person by a Customs officer under section 37(2); or

(d)

knowingly gives a false answer to a question put to that person by a Customs officer under section 37(2).

(2)

A person who commits an offence under subsection (1) is liable on conviction to a fine not exceeding $5,000.

(3)

The owner of a craft and the person in charge of the craft each commit an offence if—

(a)

an advance notice of departure that is provided under section 37(1)(a) is erroneous, misleading, or defective in any material particular; or

(b)

any supporting document that is provided under section 37(6)(b) is erroneous, misleading, or not genuine.

(4)

A person who commits an offence under subsection (3) is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $20,000:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 ss 193(1)(b), (3), 194

39 Production of certificate of clearance, etc

(1)

This section applies to the person in charge of a craft in respect of which a certificate of clearance has been granted under section 37.

(2)

A Customs officer may require the person to produce the certificate of clearance for examination by a Customs officer.

(3)

A Customs officer may ask the person any question in relation to any of the following matters, and the person must answer the question:

(a)

the craft:

(b)

the craft’s passengers, crew, cargo, or stores:

(c)

the craft’s intended journey.

Compare: 1996 No 27 s 36

40 Offences in relation to production of certificate of clearance, etc

(1)

The person in charge of a craft commits an offence if the person—

(a)

fails to produce a certificate of clearance when required by a Customs officer under section 39(2); or

(b)

refuses to answer any question put to that person by a Customs officer under section 39(3); or

(c)

knowingly gives a false answer to a question put to that person by a Customs officer under section 39(3).

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 193(1)(d), (3)

41 Departure only from Customs place

(1)

The person in charge of a craft must not cause or allow the craft to depart for a point outside New Zealand other than from a Customs place.

(2)

The person in charge of a craft, in respect of which a certificate of clearance to depart from a Customs place for any point outside New Zealand has been granted under section 37, must ensure the following, unless otherwise approved by the chief executive:

(a)

that the craft departs immediately from that Customs place:

(b)

that the craft does not go to any other place in New Zealand.

(3)

Regulations may prescribe exemptions from subsection (1) or (2).

(4)

This section does not apply to—

(a)

a craft that is authorised to depart from a place other than a Customs place under section 43, but only if—

(i)

the craft departs from that place; and

(ii)

any conditions of the authorisation are met; or

(b)

a craft that departed from a Customs place in accordance with subsection (1) or (2), or from a place authorised under section 43, but was required or compelled to berth, land, anchor, or return to a place that is not a Customs place by—

(i)

any statutory or other requirement relating to navigation; or

(ii)

accident, stress of weather, or other necessity.

Compare: 1996 No 27 s 37

42 Offences in relation to departure only from Customs place

(1)

The person in charge of a craft commits an offence if the person fails to comply with section 41(1) or (2).

(2)

A person who commits an offence under this section is liable on conviction to—

(a)

imprisonment for a term not exceeding 12 months; or

(b)

a fine not exceeding $15,000.

Compare: 1996 No 27 s 193(1)(e), (2)

43 Authorisation for craft to depart from place other than Customs place

(1)

The chief executive may authorise a craft to depart from New Zealand from a place other than a Customs place.

(2)

Before giving an authorisation under subsection (1), the chief executive must consult the following persons:

(a)

the Director-General of Biosecurity:

(b)

the chief executive of the Ministry of Health:

(c)

the Commissioner of Police:

(d)

if the proposed authorisation relates to an aircraft, the Director of Civil Aviation:

(e)

if the proposed authorisation relates to a ship, the Director of Maritime New Zealand:

(f)

every other department of State whose operations may, in the opinion of the chief executive, be affected by the granting of the authorisation.

(3)

An authorisation under subsection (1) may be given subject to any conditions that the chief executive considers appropriate (for example, conditions about the goods or persons that may be transported on the craft).

Compare: 1996 No 27 ss 25(1A), (1B), 37(3)

44 Craft departing from place other than Customs place

If any craft is to depart, or has departed, for a point outside New Zealand from a place other than a Customs place, the same powers may be exercised, and the same obligations apply, under this Act in relation to—

(a)

the craft as if it were to depart, or had departed, from a Customs place; and

(b)

the goods and persons that are to be on, or are on, the craft as if those goods and persons are or were in a Customs-controlled area preceding the departure of the craft.

Compare: 1996 No 27 ss 25(1C), 37(3)

45 Outward cargo report

(1)

This section applies to cargo on a craft if—

(a)

the craft is to depart, or has departed, for a point outside New Zealand from a place in New Zealand; and

(b)

the cargo is for discharge outside New Zealand.

(2)

The persons referred to in subsections (3) and (4) must, within the prescribed time (which may be a time before or after the craft’s departure from New Zealand), provide Customs with an outward cargo report in respect of cargo on the craft as provided for in accordance with those subsections (whether or not the person owns, or has any proprietary interest of any kind in, all or any part of the cargo).

(3)

Any person who is, or who is the agent of, the owner or operator of the craft must provide an outward cargo report in respect of all the cargo on the craft.

(4)

Any cargo aggregator who, in the course of that cargo aggregator’s business, has arranged with the owner or operator of the craft for the transportation of cargo on the craft under a shared space, or other negotiated volume of cargo, arrangement must provide an outward cargo report in respect of the cargo that is the subject of the arrangement.

(5)

An outward cargo report must—

(a)

be provided in the way prescribed by the chief executive’s rules; and

(b)

be accompanied by any supporting documents that the chief executive considers appropriate.

(6)

The chief executive may allow a person not to provide an outward cargo report in respect of all or any part of any cargo—

(a)

if 1 or more other persons have already provided an outward cargo report in respect of the cargo or the part of it; or

(b)

for any other reason that the chief executive considers appropriate.

Compare: 1996 No 27 s 37A

46 Offences in relation to outward cargo report

(1)

A person referred to in section 45(3) or (4) commits an offence if the person—

(a)

fails to comply with section 45(2) and (5); or

(b)

provides Customs with an outward cargo report under section 45(2) that is erroneous in a material particular, misleading, or not genuine; or

(c)

provides Customs with a supporting document under section 45(5)(b) that is erroneous, misleading, or not genuine.

(2)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $20,000:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 s 194B

Further powers in relation to arrival and departure information

47 Purposes for which powers under sections 48 and 49 may be exercised

(1)

The chief executive’s powers under sections 48 and 49 may be exercised for any of the following purposes:

(a)

the carrying out of any function of the chief executive, Customs, or a Customs officer under this Act (other than subpart 6 of Part 5):

(b)

the prevention, detection, investigation, prosecution, and punishment of offences that are, or that if committed in New Zealand would be,—

(i)

customs offences of any kind; or

(ii)

other offences punishable by imprisonment:

(c)

the processing of international passengers at the border by public authorities:

(d)

the protection of border security:

(e)

the protection of the health and safety of members of the public.

(2)

Information privacy principles 2 and 3 in section 6 of the Privacy Act 1993 do not restrict the application of sections 48 and 49 in relation to personal information.

Compare: 1996 No 27 ss 38B(1), 282A(1), (2)

48 Chief executive may require commercial transportation operator to provide craft information

(1)

The chief executive may, by notice in writing, require a commercial transportation operator to comply with this section on and after the specified date.

(2)

The commercial transportation operator must provide Customs with all specified information—

(a)

that relates to any craft referred to in subsection (3); and

(b)

that the operator holds (whether in New Zealand or elsewhere) or has access to.

(3)

The craft are craft that—

(a)

have arrived in, or departed from, New Zealand on or after the specified date; or

(b)

are arriving in, or departing from, New Zealand on or after the specified date; or

(c)

are scheduled to arrive in, or depart from, New Zealand on or after the specified date.

(4)

The specified information in relation to any craft must be provided—

(a)

within the specified time or, if there is no specified time, as and when required by Customs; and

(b)

in the specified way.

(5)

In this section, specified means specified in the chief executive’s notice under subsection (1).

(6)

The information that may be specified for the purposes of subsection (2) includes (without limitation) the following:

(a)

what the craft is transporting:

(b)

the date and time of the craft’s arrival in, or departure from, New Zealand:

(c)

whether the craft’s arrival or departure has occurred, is occurring, or will occur:

(d)

if the craft is transporting goods,—

(i)

loading and discharge particulars:

(ii)

storage details of the goods:

(iii)

other records relating to the goods:

(e)

if the craft is transporting persons,—

(i)

the number of persons on the craft:

(ii)

the seating arrangements or on-board accommodation arrangements:

(iii)

baggage storage details.

Compare: 1996 No 27 ss 38D, 38F(1)

49 Chief executive may require commercial transportation operator to provide PNR information

(1)

The chief executive may, by notice in writing, require a commercial transportation operator to comply with this section on and after the specified date.

(2)

The commercial transportation operator must provide Customs with all specified information—

(a)

that is included in the passenger name record of any person referred to in subsection (3); and

(b)

that the operator holds (whether in New Zealand or elsewhere) or has access to.

(3)

The persons are persons who—

(a)

have arrived in, or departed from, New Zealand on or after the specified date; or

(b)

are arriving in, or departing from, New Zealand on or after the specified date; or

(c)

are intending to arrive in, or depart from, New Zealand on or after the specified date.

(4)

The specified information in relation to any person must be provided—

(a)

not earlier than 72 hours before the scheduled departure of the craft on which the person is travelling to or from New Zealand; and

(b)

not later than 24 hours after the scheduled departure of that craft; and

(c)

in the specified way.

(5)

In this section, specified means specified in the chief executive’s notice under subsection (1).

(6)

The chief executive must have regard to the standards and recommended practices for the conduct of the international civil aviation system established by the International Civil Aviation Organization under the Convention on International Civil Aviation when specifying—

(a)

the information required to be provided by the commercial transportation operator; and

(b)

the way in which that information is to be provided.

Compare: 1996 No 27 ss 38E, 38F(1)

50 Supplementary provision relating to requirement to provide craft or PNR information

(1)

The chief executive’s powers under sections 48 and 49 to specify the way in which any information is to be provided to Customs include (without limitation) the power to specify any of the following:

(a)

the form in which the information is to be provided:

(b)

any declaration that must be provided with the information and signed.

(2)

The chief executive may, by notice in writing, in any circumstances specified in the notice, exempt a commercial transportation operator from complying with some or all of the operator’s obligations under section 48 or 49.

(3)

However, an exemption under subsection (2) from providing information in the way specified in the chief executive’s notice under section 48(1) or 49(1) must be conditional on the provision of that information in some other way that is acceptable to the chief executive.

(4)

To avoid doubt, a commercial transportation operator is not required to provide information under section 48 or 49 that the operator holds, or has access to, about an employee unless the information is information of a kind that is also generally held by the operator, or to which the operator generally has access, in relation to passengers.

Compare: 1996 No 27 s 38F(2), (3)

51 Disposal of craft or PNR information

Customs must not keep information provided under section 48 or 49 for longer than 3 years, unless—

(a)

all identifying particulars are deleted from the information; or

(b)

the retention of the information is required for the purpose of—

(i)

investigating and prosecuting an offence under this Act or any other enactment; or

(ii)

protecting border security.

Compare: 1996 No 27 s 38O

52 Offence in relation to failure to provide Customs with PNR information

(1)

A commercial transportation operator commits an offence if the operator fails, without reasonable excuse, to provide Customs with—

(a)

any specified information required under section 48(2) in accordance with section 48(4); or

(b)

any specified information required under section 49(2) in accordance with section 49(4).

(2)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $20,000:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 s 205A

53 Other provision about arrival and departure information

Customs may, for the purposes of passenger and crew processing, monitoring the movement of craft and persons, and border security, collect any of the following information about craft and persons arriving in, or departing from, New Zealand:

(a)

details of craft movements, including the craft name and registration number or identifier, estimated date and time of arrival or departure, and place of origin and destination:

(b)

personal information, including the person’s name, date of birth, sex, biometric information, passport number, nationality, and travel movements.

Compare: 1996 No 27 s 279

Defences

54 Defences for offences under subpart

(1)

It is a defence to a prosecution for an offence under this subpart if the defendant proves—

(a)

that, in any case where it is alleged that anything required to be done was not done, the defendant took all reasonable steps to ensure that it was done; or

(b)

that, in any case where it is alleged that anything unlawful was done, the defendant took all reasonable steps to ensure that it was not done.

(2)

Subsection (1) does not apply to an offence under section 34 or 52.

Compare: 1996 No 27 s 195

Subpart 2—Customs places and Customs-controlled areas

Customs places

55 Designation of Customs places

(1)

The chief executive may, by notice in the Gazette, designate any port or airport as a Customs port or Customs airport.

(2)

A designation under subsection (1) may be subject to any conditions or restrictions that the chief executive considers appropriate.

Compare: 1996 No 27 s 9

Customs-controlled areas

56 Areas required to be licensed as Customs-controlled areas

(1)

An area may not be used for any of the following purposes unless it is licensed by the chief executive as a Customs-controlled area:

(a)

the manufacture of Part A goods:

(b)

the deposit, keeping, or securing of imported goods, or of Part A goods, without payment of duty, pending their export:

(c)

the temporary holding of imported goods for the purpose of examining those goods under section 206:

(d)

the disembarkation, embarkation, or processing of persons arriving in, or departing from, New Zealand:

(e)

the processing of craft arriving in, or departing from, New Zealand:

(f)

the loading or unloading of goods onto or from craft arriving in, or departing from, New Zealand:

(g)

any other prescribed purpose.

(2)

Subsection (1) is subject to sections 62 and 67.

Compare: 1996 No 27 ss 10, 68

57 Application for licence

(1)

An eligible person may apply to the chief executive for an area to be licensed as a Customs-controlled area.

(2)

An application must be made in the way prescribed by the chief executive’s rules.

Compare: 1996 No 27 s 11(1)

58 Chief executive may request further information

The chief executive may, at any time, require an applicant to provide any further information the chief executive considers relevant for the purposes of the application.

Compare: 1996 No 27 s 11(2)

59 Chief executive must determine application

(1)

The chief executive must determine an application by—

(a)

granting a licence for the area; or

(b)

refusing the application; or

(c)

giving a direction under section 62.

(2)

The chief executive must not grant a licence for the area unless the chief executive is satisfied that the applicant is a fit and proper person to be granted a licence for the area.

(3)

Subsection (2) does not limit the chief executive’s discretion to decide on other grounds not to grant a licence.

(4)

The chief executive must notify an applicant in writing of any decision made by the chief executive under this section.

(5)

An applicant who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 12(1), (6), (7)

60 Fit and proper person test

(1)

In determining whether an applicant is a fit and proper person to be granted a licence for an area, the chief executive may consider any of the following:

(a)

any serious or repeated failure by the applicant to comply with this Act or the Biosecurity Act 1993:

(b)

any conviction of the applicant for an offence under the Hazardous Substances and New Organisms Act 1996, the Immigration Act 2009, the Civil Aviation Act 1990, the Wine Act 2003, or the Maritime Transport Act 1994:

(c)

any current or previous bankruptcy of the applicant under the Insolvency Act 1967 or the Insolvency Act 2006:

(d)

any conviction of the applicant, in New Zealand or in another country, for an offence involving dishonesty or drugs:

(e)

whether the applicant is or has been prohibited, under section 382, 383, 385, or 386A of the Companies Act 1993, from being a director or a promoter of, or from taking part in the management of, a company:

(f)

any prescribed matters:

(g)

any other matters that the chief executive considers relevant.

(2)

In subsection (1)(a) to (e), references to the applicant include references to any of the applicant’s directors or senior managers.

61 Grant of licence

A licence for a Customs-controlled area—

(a)

must specify—

(i)

the applicant as the licensee; and

(ii)

the area for which it is granted; and

(iii)

the purpose or purposes referred to in section 56(1) for which the area is licensed; and

(b)

may be granted subject to the payment by the licensee of the prescribed annual licence fee (if any); and

(c)

may be granted subject to any other terms, conditions, or restrictions that the chief executive considers appropriate.

Compare: 1996 No 27 s 12(2), (3)

62 Exemption from requirement to be licensed directed by chief executive

(1)

Subsection (2) applies if—

(a)

an eligible person applies for an area to be licensed as a Customs-controlled area; and

(b)

the chief executive considers that it is not in the public interest, or that it is impracticable or unnecessary, for the area to be licensed as a Customs-controlled area.

(2)

The chief executive may direct that the area—

(a)

need not be licensed as a Customs-controlled area; and

(b)

is exempt from the provisions of this Act specified in the direction.

(3)

A direction under subsection (2) may be given—

(a)

in respect of the whole or any specified part of the business carried on in the area; and

(b)

subject to any terms, conditions, or restrictions that the chief executive considers appropriate.

Compare: 1996 No 27 s 12(4), (5)

63 Variation of terms, conditions, or restrictions

(1)

The chief executive may, by notice in writing to the licensee of a Customs-controlled area,—

(a)

vary or revoke a term, condition, or restriction imposed under section 61(c); or

(b)

impose a new term, condition, or restriction under section 61(c).

(2)

A licensee who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 13

64 Revocation or suspension of licence

(1)

The chief executive may revoke or suspend a licence for a Customs-controlled area if—

(a)

the licensee has not paid the prescribed annual licence fee prescribed for the purposes of section 61(b) (if any) at or within the time the licensee is required to pay it; or

(b)

there has been a failure to comply with a term, condition, or restriction imposed under section 61(c); or

(c)

the area in respect of which the licence was granted is being used solely for purposes other than the purpose or purposes for which the area is licensed or is not being used for any purpose at all; or

(d)

the licensee is no longer an eligible person in relation to the area; or

(e)

the chief executive is not satisfied, in accordance with section 60, that the licensee is a fit and proper person to hold the licence.

(2)

The chief executive must notify the licensee in writing if the chief executive intends to revoke or suspend a licence.

(3)

Subsection (2) does not apply if the chief executive considers that there is good reason not to give notice of the revocation or suspension.

(4)

If the chief executive revokes or suspends a licence, the chief executive must notify the licensee in writing of the revocation or suspension.

(5)

A person who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 14

65 Surrender of licence

A licence for a Customs-controlled area may be surrendered at any time by the licensee giving 1 month’s notice in writing to the chief executive.

Compare: 1996 No 27 s 15

66 Closing of Customs-controlled area

Duty is immediately due and payable on all goods within a Customs-controlled area that are or were subject to the control of Customs if—

(a)

the licence for that Customs-controlled area is revoked, suspended, or surrendered; and

(b)

the chief executive does not allow the goods to be—

(i)

removed to another Customs-controlled area; or

(ii)

exported.

Compare: 1996 No 27 s 16

67 Exemptions in relation to Customs-controlled areas

(1)

Regulations may prescribe exemptions from section 56(1).

(2)

Subsection (1) does not apply in relation to the manufacture of tobacco.

(3)

Regulations exempting an area used for the manufacture of Part A goods from section 56(1)(a) may (without limitation) prescribe any of the following conditions in accordance with section 380(3):

(a)

conditions as to the nature of the goods being manufactured:

(b)

conditions as to the source of any product used in the manufacture of the goods:

(c)

conditions limiting the use that may be made of the goods (for example, permitting personal use only):

(d)

conditions limiting the age of any person involved in the manufacture or use of the goods:

(e)

conditions limiting the quantity of goods that may be manufactured by any measure or other form of description.

(4)

Section 56(1)(a) does not apply to—

(a)

the manufacture of tobacco by an individual in the individual’s private dwelling if—

(i)

the individual is 18 years or over; and

(ii)

the individual manufactures the tobacco exclusively for his or her personal use and not for sale or other disposition to any other person; and

(iii)

the leaves or plants used in the manufacture of the tobacco are grown—

(A)

on the land on which the individual’s private dwelling is located; and

(B)

exclusively for the individual’s personal use and not for sale or other disposition to any other person; or

(b)

the manufacture by an individual of beer, wine, or spirits in his or her private dwelling if the individual manufactures the beer, wine, or spirits exclusively for the individual’s personal use and not for sale or other disposition to any other person; or

(c)

the manufacture of biofuel or a biofuel blend by an individual on the land where his or her private dwelling is located if the individual manufactures the biofuel or biofuel blend exclusively for the individual’s personal use and not for sale or other disposition to any other person.

(5)

The maximum amount of tobacco that an individual may manufacture under subsection (4)(a) in any period of 12 months beginning with 1 July and ending with 30 June is 5 kilograms.

Compare: 1996 No 27 ss 10, 68(2), 68A, 68B, 68C, 286(1)(a)(i), (1A)

68 Offences in relation to Customs-controlled areas

(1)

A person commits an offence if the person, without reasonable excuse, fails to comply with section 56(1)(a).

(2)

A person who commits an offence under subsection (1), other than an offence involving goods that are tobacco, is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding the greater of the following:

(i)

$5,000:

(ii)

an amount equal to 3 times the value of the goods to which the offence relates:

(b)

in the case of a body corporate, to a fine not exceeding the greater of the following:

(i)

$25,000:

(ii)

an amount equal to 3 times the value of the goods to which the offence relates.

(3)

A person who commits an offence under subsection (1) involving goods that are tobacco is liable on conviction,—

(a)

in the case of an individual, to—

(i)

imprisonment for a term not exceeding 6 months; or

(ii)

a fine not exceeding $20,000; or

(iii)

both:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

(4)

A person commits an offence if the person, without reasonable excuse, fails to comply with section 56(1)(b) to (g).

(5)

A person who commits an offence under subsection (4) is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

Compare: 1996 No 27 ss 189, 200(1)(e), (3), (4)

69 Offence in relation to failure to comply with term, condition, or restriction of licence

(1)

A person commits an offence if the person, without reasonable excuse, fails to comply with a term, condition, or restriction imposed under section 61(c) in relation to a licence for a Customs-controlled area.

(2)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

Compare: 1996 No 27 s 190

70 Customs facilities in Customs-controlled areas, etc

(1)

The chief executive may, by notice in writing, require the licensee of a Customs-controlled area to do any of the following:

(a)

provide and maintain any operating areas, accommodation, facilities, buildings, equipment, or storage that the chief executive considers reasonably necessary and suitable for Customs to carry out any of its functions under this Act:

(b)

store goods subject to the control of Customs in any manner and location that the chief executive considers appropriate.

(2)

A licensee who is dissatisfied with a requirement imposed by the chief executive under subsection (1) may, within 20 working days after the date on which notice of the requirement is given, appeal to a Customs Appeal Authority against the requirement.

(3)

The licensee of a Customs-controlled area may, subject to subsection (4), levy Customs a reasonable charge for any operating areas, accommodation, facilities, buildings, equipment, or storage provided in accordance with subsection (1)(a).

(4)

A licensee may not levy any charge on Customs for any operating area in a Customs-controlled area where that operating area is used for processing persons, craft, or postal articles arriving in, or departing from, New Zealand.

(5)

Subsection (4) applies despite anything to the contrary in the Airport Authorities Act 1966.

Compare: 1996 No 27 s 18

71 Offence in relation to Customs facilities in Customs-controlled areas, etc

(1)

The licensee of a Customs-controlled area commits an offence if the licensee, without reasonable excuse, fails to comply with a requirement imposed on the licensee by the chief executive under section 70(1).

(2)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

Compare: 1996 No 27 s 200(1)(a), (2)

72 Storage charges

Regulations may prescribe any of the following:

(a)

circumstances in which the licensee of a Customs-controlled area must not make charges for the reception or storage of imported goods in that area:

(b)

periods in respect of which the licensee of a Customs-controlled area must not make charges for the reception or storage of imported goods in that area.

Compare: 1996 No 27 s 19

73 Liabilities not affected by ceasing to act as licensee

The obligations and liabilities under this Act for anything done or omitted to be done by the licensee of a Customs-controlled area while licensed are not affected by the fact—

(a)

that the licensee ceases to act as a licensee; or

(b)

that the licence is revoked, suspended, or surrendered.

Compare: 1996 No 27 s 17

Subpart 3—Entry and accounting for goods

Imported goods

74 Goods specified in inward report to be treated as imported

The following goods are treated as having been imported unless the contrary is proved:

(a)

all goods specified in the inward report for any craft under section 24(1)(a):

(b)

all goods that are not required to be specified in the inward report for any craft under section 24(1)(a) because of section 24(3).

Compare: 1996 No 27 s 86(8)

75 Entry of imported goods

(1)

Goods that are imported, or are to be imported, must be entered by the importer—

(a)

in the way prescribed by the chief executive’s rules; and

(b)

within the prescribed time or any additional time that the chief executive allows.

(2)

Without limiting subsection (1)(a), an entry that relates to goods that are dutiable due to the volume of alcohol present in the goods must specify, in the way prescribed by the chief executive’s rules, the volume of alcohol present in the goods.

(3)

If an entry relates to a craft that is imported under its own power, the craft must, for the purposes of the entry, be treated as having been imported as cargo and unloaded on its arrival.

(4)

A Customs officer may ask a person entering goods under this section any question about the goods, and the person must answer the question.

(5)

A person entering goods under this section must, on the request of a Customs officer, do any of the following:

(a)

present the goods to the officer:

(b)

remove any covering from the goods:

(c)

unload or open any thing on, or in which, the goods are transported:

(d)

open and unpack any package that the officer wishes to examine.

(6)

A person entering goods under this section may, while the goods are subject to the control of Customs and subject to any conditions that a Customs officer considers appropriate,—

(a)

inspect the goods; or

(b)

draw samples from the goods.

(7)

If imported goods are not entered in accordance with this section, or claimed within the prescribed period,—

(a)

duty becomes due and payable on the goods; and

(b)

the goods may be sold or otherwise disposed of by the chief executive.

Compare: 1996 No 27 ss 39, 44

76 Entry of imported goods in multiple or split shipments

(1)

An importer may apply to the chief executive to allow goods to be—

(a)

imported in multiple or split shipments; and

(b)

entered by the importer under the same Tariff classification that they would have been entered under if they had been imported in 1 shipment.

(2)

The chief executive may allow the goods to be entered under the same Tariff classification dealt with as referred to in subsection (1)(a) and (b) if, after considering any prescribed criteria, he or she considers that the goods could not reasonably be imported in 1 shipment.

(3)

An approval A decision under subsection (2) may be subject to any conditions that the chief executive considers reasonably necessary.

Compare: 1996 No 27 s 39A

77 Imported goods to be dealt with according to entry

Imported goods, in respect of which entry has been made and passed, must be immediately dealt with in accordance with—

(a)

the entry; and

(b)

the provisions of this Act in respect of the goods so entered.

Compare: 1996 No 27 s 41

78 Unloading goods

No person may unload goods that are subject to the control of Customs from a craft except—

(a)

in accordance with a permit or other authorisation granted by the chief executive (which may be subject to any conditions that the chief executive considers appropriate); or

(b)

where the safety of the craft, or the goods or persons on the craft, is threatened by—

(i)

collision, fire, the stress of weather, or similar circumstances; or

(ii)

any other prescribed circumstances.

Compare: 1996 No 27 s 43

79 Offence in relation to unloading goods

(1)

A person commits an offence if the person, without reasonable excuse, fails to comply with section 78.

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 199

80 Samples or illustrations

(1)

The importer of goods must provide (free of charge) any samples, illustrations, drawings, documents, or plans relating to the goods that may be required by a Customs officer for the purposes of this Act.

(2)

A Customs officer must not require more than the smallest sample possible for the required purpose.

Compare: 1996 No 27 s 45

Part A goods

81 Entry of Part A goods

(1)

Part A goods that are manufactured in a manufacturing area must be entered on the goods being removed for home consumption.

(2)

The entry must be made—

(a)

in the way prescribed by the chief executive’s rules; and

(b)

within the prescribed time.

(3)

If excise duty is levied in respect of the goods by reference to the volume of alcohol present in the goods, without limiting subsection (2)(a), the entry must specify the volume of alcohol in the way prescribed by the chief executive’s rules.

(4)

The goods must be entered—

(a)

by the licensee of the Customs-controlled area from which the goods are removed; or

(b)

in the prescribed circumstances, by the owner of the goods.

(5)

In subsection (4)(a), the reference to the Customs-controlled area from which the goods are removed is, in relation to goods that are removed for home consumption under clause 3(4) or (5) of Schedule 3, a reference to the manufacturing area in which they are used or treated as being manufactured. Customs-controlled area in which the goods are, as the case requires,

(a)

treated as being manufactured; or

(b)

used or destroyed, lost, or otherwise physically disposed of.

(6)

Part A goods, in respect of which entry has been made and passed, must be immediately dealt with in accordance with—

(a)

the entry; and

(b)

the provisions of this Act in respect of the goods so entered.

Compare: 1996 No 27 ss 70, 71(aa), 286(1)(m), (n), 288(1)(f) s 70

82 Nil returns

(1)

This section applies only in prescribed circumstances.

(2)

The licensee of a Customs-controlled area must make a return to Customs in respect of any prescribed period if,—

(a)

during the prescribed period, specified goods are held in the Customs-controlled area; and

(b)

none of those goods are removed from the Customs-controlled area during the prescribed period or, if any are removed, their removal does not constitute being removed for home consumption.

(3)

The return must be made—

(a)

in the way prescribed by the chief executive’s rules; and

(b)

within the prescribed time.

(4)

In this section, specified goods means Part A goods that—

(a)

are manufactured in a manufacturing area; and

(b)

have not been removed for home consumption.

Transportation within New Zealand

83 Transportation of imported goods

Except as otherwise allowed by the chief executive, no person may place any imported goods that are subject to the control of Customs in any craft, vehicle, or other conveyance for transportation within New Zealand until entry has been made in respect of the goods in accordance with section 75(1).

Compare: 1996 No 27 s 46

84 Offences in relation to transportation of imported goods

(1)

A person commits an offence if the person, without reasonable excuse, fails to comply with section 83.

(2)

A person who commits an offence under this section, other than an offence involving goods that are tobacco (whether manufactured or not), is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

(3)

A person who commits an offence under this section involving goods that are tobacco (whether manufactured or not) is liable on conviction,—

(a)

in the case of an individual, to—

(i)

imprisonment for a term not exceeding 6 months; or

(ii)

a fine not exceeding $20,000; or

(iii)

both:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 s 200(1)(b), (2), (2A)

85 Removal of goods from Customs-controlled areas

(1)

Goods that are subject to the control of Customs must not be delivered or removed from a Customs-controlled area except—

(a)

with the permission of Customs after entry has been made in accordance with section 75 or 89 and passed; or

(b)

under a permit or other authorisation granted by the chief executive in respect of those goods, which may be subject to any conditions that the chief executive considers appropriate; or

(c)

by a Customs officer in the carrying out of his or her functions under this Act; or

(d)

as otherwise provided by subsection (2) or any other provision of this Act.

(2)

Part A goods that are manufactured in a manufacturing area may be removed from a Customs-controlled area if—

(a)

their removal constitutes being removed for home consumption; or

(b)

they are removed for export or to an export warehouse.

(3)

The chief executive may, while goods remain subject to the control of Customs, revoke any permission given in respect of the goods under subsection (1)(a).

(4)

The chief executive may, by notice in writing, vary or revoke the conditions to which a permit or other authorisation granted under subsection (1)(b) is subject.

(5)

A person who is dissatisfied with a decision of the chief executive under subsection (1)(b) or (4) may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 47

86 Offences in relation to removal of goods from Customs-controlled areas

(1)

A person commits an offence if the person, without reasonable excuse, delivers or removes goods that are subject to the control of Customs from a Customs-controlled area in contravention of—

(a)

section 85; or

(b)

any condition of a permit or other authorisation granted under section 85(1)(b).

(2)

A person who commits an offence under this section, other than an offence involving goods that are tobacco (whether manufactured or not), is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

(3)

A person who commits an offence under this section involving goods that are tobacco (whether manufactured or not) is liable on conviction,—

(a)

in the case of an individual, to—

(i)

imprisonment for a term not exceeding 6 months; or

(ii)

a fine not exceeding $20,000; or

(iii)

both:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 s 200(1)(c), (2), (2A)

Transhipments: international and domestic

87 Transhipment requests

(1)

This section applies to cargo that—

(a)

is imported on a craft; and

(b)

has not been entered for home consumption; and

(c)

has been, at all times since it was imported, subject to the control of Customs.

(2)

Any person may make a transhipment request to the chief executive to allow the cargo to be—

(a)

transhipped domestically to a place within New Zealand at which it is intended that the cargo will be entered for home consumption; or

(b)

transhipped internationally to a place outside New Zealand while remaining subject to the control of Customs at all times before the cargo’s departure from New Zealand.

(3)

A transhipment request must—

(a)

be made within the prescribed time; and

(b)

be made in the way prescribed by the chief executive’s rules; and

(c)

be accompanied by any supporting documents that the chief executive considers appropriate.

(4)

The chief executive must, as soon as is reasonably practicable after a transhipment request is made, grant or decline the transhipment request.

(5)

A transhipment request granted by the chief executive authorises the removal of the cargo from a Customs-controlled area for the transhipment purposes, and on the conditions (if any), specified by the chief executive when granting the request.

(6)

A transhipment request granted by the chief executive does not affect the application of any other enactment to the cargo (for example, the Biosecurity Act 1993).

(7)

A person who is dissatisfied with a decision of the chief executive under subsection (4) may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 48A

88 Offences in relation to transhipment requests

(1)

A person who makes, or purports to make, a transhipment request under section 87 commits an offence if—

(a)

the person fails to make the request to the chief executive within the prescribed time prescribed for the purposes of section 87(3)(a); or

(b)

the request does not contain all the information relating to the cargo that is required to be contained in it by rules made under for the purposes of section 87(3)(b); or

(c)

any information that is included in the request is erroneous in a material particular, misleading, or not genuine; or

(d)

any supporting document that accompanies the request under section 87(3)(c) is erroneous, misleading, or not genuine.

(2)

Section 54 (defences for offences) applies to an offence under this section as if this section were in subpart 1 of this Part.

(3)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $20,000:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 ss 194C, 195

Exportation of goods

89 Entry of goods for export

(1)

Goods that are exported, or are to be exported, must be entered by the exporter—

(a)

in the way prescribed by the chief executive’s rules; and

(b)

within the prescribed time or any additional time that the chief executive allows.

(2)

If an entry relates to a craft that is exported under its own power, the craft is treated as exported when it departs from New Zealand.

(3)

A Customs officer may ask a person entering goods under this section any question about the goods, and the person must answer the question.

(4)

A person entering goods under this section must, on the request of a Customs officer, do any of the following:

(a)

present the goods to the officer:

(b)

remove any covering from the goods:

(c)

unload or open any thing on, or in which, the goods are transported:

(d)

open and unpack any package that the officer wishes to examine.

(5)

Except as otherwise allowed by the chief executive, goods must not be loaded for export until entry has been made in accordance with subsection (1) and passed.

(6)

The chief executive may revoke permission to export the goods in respect of which an entry has been passed if the chief executive has reasonable cause to suspect that the goods endanger, or threaten to endanger,—

(a)

border security; or

(b)

New Zealand’s trade interests or international obligations; or

(c)

the life, health, or safety of a person or group of persons; or

(d)

the safety of the craft that will transport the goods, or of other goods to be transported on that craft.

Compare: 1996 No 27 ss 49(1), (2), (5), (6)

90 Goods entered for export to be exported immediately, etc

(1)

Goods that have been entered for export must be exported immediately—

(a)

by the person making the entry or the owner of the goods; and

(b)

in accordance with—

(i)

the entry; and

(ii)

the provisions of this Act relating to the exportation of goods.

(2)

If goods entered for export are not exported according to the entry, the person making the entry must immediately give Customs notice of the failure (including the reasons for it).

(3)

If notice has been given in accordance with subsection (2), the chief executive—

(a)

must cancel or amend the entry; and

(b)

may, where applicable, allow the goods to cease to be subject to the control of Customs.

Compare: 1996 No 27 s 51(1), (2)

91 Goods sold in duty-free store

Despite section 90(1), an export entry may be made in respect of goods that are stored in a duty-free store when they are sold to a person who has arrived in New Zealand, but only if the terms or conditions to which the licence for the duty-free store is subject allow the entry to be made at that time.

Compare: 1996 No 27 s 51(3)

92 Goods for export not to be landed

(1)

Goods loaded for export may be landed only at a place outside New Zealand.

(2)

Despite subsection (1), a Customs officer may allow the unloading and reloading of goods for export.

Compare: 1996 No 27 s 52

93 Time of exportation

(1)

For the purposes of this Act, the time at which goods are treated as exported is the time when the exporting craft departs from the last Customs place at which the craft calls before proceeding to a point outside New Zealand.

(2)

Subsection (1) is subject to sections 89(2) and 156(2).

Compare: 1996 No 27 ss 53, 225(2)

94 Customs-approved export seal may not be interfered with

No person may interfere with a Customs-approved export seal that has been applied to a package of goods, except as provided in section 261(3)(c).

Compare: 1996 No 27 s 53A(4)

Subpart 4—Prohibited imports and prohibited exports

95 Prohibition on importation and exportation of objectionable publications, other indecent or obscene articles, and goods for dishonest purpose

(1)

The importation of the following is prohibited:

(a)

objectionable publications:

(b)

all other indecent or obscene articles:

(c)

goods that are for a dishonest purpose.

(2)

The exportation of the following is prohibited:

(a)

objectionable publications:

(b)

goods that are for a dishonest purpose.

(3)

Subsection (4) applies to an objectionable publication if, apart from that subsection, the objectionable publication would not be goods.

(4)

The objectionable publication—

(a)

is goods for the purposes of this Act; but

(b)

is not goods for the purposes of section 12 of the Goods and Services Tax Act 1985.

(5)

Subsection (6) applies to any article referred to in subsection (1)(b) if, apart from subsection (6), the article would not be goods.

(6)

The article—

(a)

is goods for the purposes of this Act as it applies in relation to imported goods or the importation of goods (including (without limitation) for the purposes of the definition of prohibited imports in section 5(1)); but

(b)

is not goods for the purposes of section 12 of the Goods and Services Tax Act 1985.

Compare: 1996 No 27 ss 54(1)(aa)–(ac), (1A), 56(1)(a)–(ac), (1A)

96 Prohibition on other imports or exports by Order in Council

(1)

The Governor-General may, by Order in Council, on the recommendation of the Minister, prohibit the importation or exportation of—

(a)

any specified goods; or

(b)

any specified class of goods.

(2)

A prohibition under this section may—

(a)

be general or be limited to—

(i)

the importation of goods—

(A)

from a specified place:

(B)

by or from a specified person or class of persons:

(ii)

the exportation of goods—

(A)

to a specified place:

(B)

by or to a specified person or class of persons:

(b)

be subject to conditions.

(3)

A conditional prohibition may allow the importation or exportation of goods under the terms of a licence, permit, or consent granted by—

(a)

the chief executive; or

(b)

any other person named in the order.

(4)

A licence, permit, or consent under subsection (3) may be granted before or after the importation or exportation of the goods.

(5)

The Minister must not make a recommendation for the purposes of subsection (1) unless he or she considers that the proposed prohibition is necessary in the public interest.

(6)

The Secretary must maintain an up-to-date list of all goods and classes of goods whose exportation is prohibited under this section because they have or may have a strategic use.

(7)

The Secretary must make the list maintained under subsection (6) available by—

(a)

notifying the chief executive of it; and

(b)

publishing it on an Internet site maintained by, or on behalf of, the Secretary.

(8)

To avoid doubt, any failure to publish a list under subsection (7) does not invalidate the prohibition of the exportation of any goods or classes of goods mentioned in the list.

(9)

An Order in Council that prohibits the exportation of goods extends and applies to the shipment of the goods for use as stores by a craft, except as otherwise specified in the order.

(10)

The explanatory note of an Order in Council under this section must indicate that—

(a)

it is a confirmable instrument under section 47B of the Legislation Act 2012; and

(b)

it is revoked at a time stated in the note, unless earlier confirmed by an Act of Parliament; and

(c)

the stated time is the applicable deadline under section 47C(1)(a) or (b) of that Act.

(11)

In this section,—

goods includes documents that are not otherwise goods

Secretary means the Secretary of Foreign Affairs and Trade

strategic use, in relation to goods, means use for 1 or more of the purposes listed in section 97(2)(a) to (f).

(12)

Documents that are not otherwise goods and whose importation or exportation is prohibited under this section—

(a)

are goods for the purposes of the rest of this Act (apart from section 97) as it applies in relation to, as the case may be,—

(i)

imported goods or the importation of goods (including (without limitation) for the purposes of the definition of prohibited imports in section 5(1)); or

(ii)

exported goods or the exportation of goods (including (without limitation) for the purposes of the definition of prohibited exports in section 5(1)); but

(b)

are not goods for the purposes of section 12 of the Goods and Services Tax Act 1985.

Compare: 1996 No 27 ss 54(2)–(4), 54A, 56(2)(a), (b), (2A), (2G)–(4), (8), 56A

97 Prohibition on exports by Gazette notice: nuclear, biological, and chemical weapons, etc

(1)

The Secretary may, by notice in the Gazette after consultation with the Minister, prohibit the exportation of goods described by any use to which they may be put, if the Secretary considers that the prohibition is necessary in the public interest.

(2)

A notice under subsection (1) must describe goods by reference only to uses that relate (directly or indirectly) to 1 or more of the following purposes:

(a)

the development, production, or deployment of nuclear explosive devices and their means of delivery:

(b)

the development, production, or deployment of biological weapons and their means of delivery:

(c)

the development, production, or deployment of chemical weapons and their means of delivery:

(d)

military use or applications:

(e)

the development, production, or deployment of military goods or other goods that have a civilian use but that are intended for military use or that may have military applications:

(f)

terrorist acts.

(3)

A prohibition in a notice under subsection (1) may—

(a)

be general or be limited to the exportation of goods—

(i)

to a specified place:

(ii)

by or to a specified person or class of persons:

(b)

be subject to conditions.

(4)

A conditional prohibition may allow the exportation of goods under the terms of a licence, permit, or consent granted by—

(a)

the chief executive; or

(b)

any other person named in the notice.

(5)

A licence, permit, or consent under subsection (4) may be granted before or after the exportation of the goods.

(6)

A prohibition in a notice under subsection (1) applies to any goods only if the Secretary has determined that the goods are covered by the prohibition.

(7)

If the Secretary makes a determination under subsection (6) in respect of any goods, the Secretary must notify the chief executive and each relevant exporter as soon as practicable.

(8)

If a person (the exporter) is aware, or should reasonably be aware, that any goods that the exporter wishes to export are intended for, or may be put to, any of the uses set out in a notice under subsection (1),—

(a)

the exporter must inform the Secretary; and

(b)

the Secretary must, as soon as practicable,—

(i)

decide whether to make a determination under subsection (6) in respect of the goods; and

(ii)

either—

(A)

make a determination and notify the chief executive and the exporter in accordance with subsection (7); or

(B)

notify the exporter that the Secretary is not going to make a determination; and

(c)

the exportation of the goods is prohibited until the exporter receives the Secretary’s notification under paragraph (b)(ii).

(9)

A notice under subsection (1) is a disallowable instrument for the purposes of the Legislation Act 2012 and must be presented to the House of Representatives under section 41 of that Act.

(10)

In this section,—

biological weapon has the meaning given to that term in section 2 of the New Zealand Nuclear Free Zone, Disarmament, and Arms Control Act 1987

chemical weapons has the meaning given to that term in Article II of the Schedule of the Chemical Weapons (Prohibition) Act 1996

goods includes documents that are not otherwise goods

military includes any armed force, paramilitary force, Police force, or militia

nuclear explosive device has the meaning given to that term in section 2 of the New Zealand Nuclear Free Zone, Disarmament, and Arms Control Act 1987

Secretary means the Secretary of Foreign Affairs and Trade

terrorist act has the meaning given to that term in section 5 of the Terrorism Suppression Act 2002.

(11)

Documents that are not otherwise goods and whose exportation is prohibited under this section—

(a)

are goods for the purposes of the rest of this Act as it applies in relation to exported goods or the exportation of goods (including (without limitation) for the purposes of the definition of prohibited exports in section 5(1)); but

(b)

are not goods for the purposes of section 12 of the Goods and Services Tax Act 1985.

Compare: 1996 No 27 s 56(1)(c), (2)(c), (2A)–(2F), (3), (4)

98 Production of licence, permit, or consent for goods

(1)

This section applies to—

(a)

prohibited goods that may be imported or exported under a licence, permit, or consent; and

(b)

goods whose importation or exportation is prohibited under any other enactment, except under a licence, permit, or consent.

(2)

The chief executive may do any of the following until satisfied that the importation or exportation of the goods is permitted under a licence, permit, or consent:

(a)

refuse to pass an entry for the goods:

(b)

not allow the goods to be exported:

(c)

not allow the goods to be removed from a Customs-controlled area.

Compare: 1996 No 27 s 58

99 Duty applies even if importation prohibited

Goods are not exempt from duty just because their importation is prohibited under an enactment.

Compare: 1996 No 27 s 54(7)

Subpart 5—Import duties

Debt owed to the Crown

100 Duty on imported goods is debt owed to the Crown

(1)

The duty on all imported goods is a debt—

(a)

due to the Crown immediately on importation of the goods; and

(b)

owed by the importer or importers of the goods; and

(c)

recoverable, by the chief executive (on behalf of the Crown), in any court of competent jurisdiction.

(2)

To avoid doubt, the right to recover duty as a debt due to the Crown is not affected by the fact that—

(a)

the goods have ceased to be subject to the control of Customs; or

(b)

a bond or any other security has been given for the payment of duty; or

(c)

no proper assessment of duty has been made under this Act; or

(d)

a deficient assessment of duty has been made under this Act; or

(e)

a provisional Customs value has been included in the entry for imported the goods under section 102.

(3)

If there is more than 1 importer, the debt is owed by all of them jointly and severally.

Compare: 1996 No 27 s 86(1), (2), (4), (5)

Valuation of goods

101 Importer must specify Customs value on entry

(1)

Every entry for imported goods must include the Customs value of the goods determined in accordance with Schedule 4.

(2)

Subsection (1) is subject to section 102.

Compare: 1996 No 27 s 60(1)

102 Provisional Customs value

(1)

An importer may include a provisional Customs value in an entry for imported goods—

(a)

if—

(i)

the importer is a party to a transfer pricing arrangement that involves the supply and acquisition of the imported goods; and

(ii)

a binding ruling applies to the importer in relation to the transfer pricing arrangement; and

(iii)

because of that binding ruling, it is not reasonably practicable to finalise the Customs value of the imported goods at the time the entry is being made; or

(b)

if the Customs value of the imported goods would be determined under Part 1 of Schedule 4 (transaction value method) except that, at the time the entry is being made, any adjustments that are required to be made under clause 7(b)(iv) or (v) of Schedule 4 cannot be made because of a lack of sufficient information (as that term is defined in clause 2(1) of Schedule 4); or

(c)

under an approval given by the chief executive under subsection (5).

(2)

A provisional Customs value must be a reasonable estimate of the Customs value of the goods based on the information that is available to the importer at the time the entry is being made.

(3)

Until the final Customs value is provided (see sections 112 and 117(4)), the provisional Customs value must be treated as the Customs value for the purposes of this Act.

(4)

In subsection (1)(a),

binding ruling

(a)

has the meaning given to that term in section 3(1) of the Tax Administration Act 1994; and

(b)

includes a mutual agreement procedure under a double tax agreement that is in force under section BH 1 of the Income Tax Act 2007

transfer pricing arrangement has the meaning given to that term in section GC 6(2) of the Income Tax Act 2007.

(5)

The chief executive may, for the purposes of subsection (1)(c), give approvals for the inclusion of provisional Customs values in entries.

(6)

An approval may be given—

(a)

to a particular importer in relation to particular goods or a class of goods; or

(b)

so as to apply generally to a class of importer or a class of goods (or both).

(7)

An approval may be given subject to any terms, conditions, and restrictions that the chief executive considers appropriate.

(8)

The chief executive may—

(a)

vary any terms, conditions, or restrictions that an approval is subject to; or

(b)

withdraw an approval.

(8A)

Before giving an approval of the type referred to in subsection (6)(a) that relates wholly or partly to the application of a transfer pricing arrangement, the chief executive must consult the Commissioner of Inland Revenue in relation to the appropriateness of the transfer pricing arrangement.

(9)

An approval of the type referred to in subsection (6)(b) must be published on an Internet site that—

(a)

is maintained by, or on behalf of, the chief executive; and

(b)

is publicly available free of charge.

(10)

Subsection (11) applies if the chief executive has reasonable grounds to believe that a person has failed to comply with subsection (2) or section 112 in relation to a provisional Customs value that the person included in an entry.

(11)

The chief executive may, by notice to the person, suspend the person’s right to include provisional Customs values in entries.

(12)

The suspension may be for—

(a)

a definite period; or

(b)

an indefinite period, which may be brought to an end by the chief executive on an application by the person.

(13)

A person who is dissatisfied with any of the following decisions may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision:

(a)

a refusal to give an approval of a type referred to in subsection (6)(a):

(b)

a decision under subsection (7) or (8) in relation to an approval of a type referred to in subsection (6)(a):

(c)

a decision under subsection (11) or subsections (10) to (12).

(14)

In this section,

binding ruling

(a)

has the meaning given to that term in section 3(1) of the Tax Administration Act 1994; and

(b)

includes a mutual agreement procedure under a double tax agreement that is in force under section BH 1 of the Income Tax Act 2007

transfer pricing arrangement has the meaning given to that term in section GC 6(2) of the Income Tax Act 2007.

103 Chief executive may revise Customs value

(1)

If the chief executive is satisfied that the Customs value of imported goods in an entry is incorrect,—

(a)

the chief executive may revise the Customs value; and

(b)

if the revised value is different,

(i)

the revised value must be treated as the Customs value for the purposes of this Act; and

(ii)

Customs must notify the importer of the revised value and the basis for the calculation (including, if applicable, the relevant provisions of Schedule 4).

(b)

the revised value must be treated as the Customs value for the purposes of this Act; and

(c)

Customs must notify the importer of the revised value and the basis for the calculation (including, if applicable, the relevant provisions of Schedule 4).

(2)

Subsection (1) applies regardless of whether—

(a)

goods are still subject to the control of Customs; and

(b)

any duty has been paid.

(3)

An importer who is dissatisfied with a decision of the chief executive under subsection (1)(a) may, within 20 working days after the date on which notice is given under subsection (1)(b)(c)(ii), appeal to a Customs Appeal Authority against that decision.

(4)

Without limiting section 102(3), the chief executive’s power under subsection (1) may be exercised in relation to a provisional Customs value if the chief executive is satisfied that the provisional Customs value does not comply with section 102(2).

Compare: 1996 No 27 s 61

104 Crown’s right of compulsory acquisition

(1)

For the purpose of protecting the public revenue against undervaluation of goods subject to ad valorem duty, goods for which entry is made may be acquired by the Crown at any time while they remain subject to the control of Customs.

(2)

The right under subsection (1) may be exercised by the chief executive.

(3)

The goods are acquired when the chief executive signs a warrant for their acquisition in the prescribed form.

(4)

The goods become the property of the Crown immediately the warrant is signed.

(5)

Customs must notify the importer in writing, as soon as is reasonably practicable, if the chief executive has signed a warrant under this section.

(6)

If goods are acquired by the Crown under this section and no appeal is made under subsection (10),—

(a)

the chief executive must sell the goods; and

(b)

the proceeds of sale must be accounted for as Customs revenue.

(7)

Customs must pay the importer of the goods for the goods within 10 working days of their acquisition.

(8)

The price payable by the Crown for the goods is the sum of the following:

(a)

the Customs value of the goods included in the entry for the goods:

(b)

any charges for freight, insurance, and other matters incidental to the importation of the goods that the chief executive considers reasonable:

(c)

any duties already paid on the goods.

(9)

Nothing in this section affects—

(a)

any other powers of Customs in respect of the goods; or

(b)

any liability of the importer or any other person in respect of an offence committed in respect of the goods.

(10)

An importer who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 63

Origin and preferential Tariff provisions

105 Entry of goods at preferential rates of duty

(1)

This section applies if a person claims, under this Act or any other enactment or authority, a rate of duty for goods that is lower than the rate set out in the Normal Tariff in respect of those goods.

(2)

The chief executive may require the claim to be verified—

(a)

at the time of entry of the goods; or

(b)

at any subsequent time (including any time after the goods have ceased to be subject to the control of Customs).

(3)

If the chief executive requires a claim to be verified at the time of entry of the goods and the claim is not verified to the chief executive’s satisfaction, the goods may not be entered at the lower rate of duty.

Compare: 1996 No 27 s 66

106 Unsubstantiated preference claims

(1)

If the chief executive is satisfied that the country of production or manufacture of goods cannot be properly ascertained, the goods are treated (for the purposes of this Act or any other enactment or authority) as the produce or manufacture of a country that is subject to the rates of duty set out in the Normal Tariff.

(2)

Customs must advise an importer by notice in writing of any decision of the chief executive under this section.

(3)

An importer who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

(4)

This section applies whether or not the goods are subject to the control of Customs.

Compare: 1996 No 27 s 67

Subpart 6—Excise duty and excise-equivalent duty credits

107 Duty credits in respect of used goods

(1)

This section applies if—

(a)

goods (the used goods) are used in a manufacturing area in the manufacture, by the licensee of the area, of any Part A goods (the manufactured goods); and

(b)

the manufactured goods are removed for home consumption; and

(c)

the licensee is liable to pay excise duty levied in respect of the manufactured goods when they are removed for home consumption.

(2)

The licensee may claim a credit when entering the manufactured goods under section 81(1).

(3)

The credit that may be claimed is any excise duty or excise-equivalent duty that has been paid in respect of the used goods, excluding any additional duty imposed under section 125.

(4)

If the credit exceeds the excise duty referred to in subsection (1)(c), the excess may, at the discretion of the chief executive, be—

(a)

applied against any other excise duty that the licensee is liable to pay; or

(b)

refundedpaid to the licensee.

Compare: 1996 No 27 s 85(1), (3)(a), (4)

108 Duty credits in respect of repurchased goods

(1)

This section applies if—

(a)

Part A goods that are manufactured in a manufacturing area (the manufactured goods) are sold by the licensee of that area; and

(b)

the licensee repurchases the manufactured goods at the same price at which they were sold.

(2)

In the prescribed circumstances, the licensee may claim a credit when making an entry under section 81(1).

(3)

The credit that may be claimed is any excise duty levied in respect of the manufactured goods that has been paid by the licensee.

(a)

is any excise duty that was levied in respect of the manufactured goods before the repurchase and that has been paid by the licensee; but

(b)

excludes any additional duty imposed under section 125.

(4)

If the credit exceeds the excise duty that the licensee is liable to pay under the entry, the excess may, at the discretion of the chief executive, be—

(a)

applied against any other excise duty that the licensee is liable to pay; or

(b)

refundedpaid to the licensee.

Compare: 1996 No 27 s 85(2), (3)(b), (4)

Subpart 7—Assessment, payment, and recovery of duty

General responsibilities of chief executive, etc

109 Responsibility to protect integrity of system for assessing and collecting duty

(1)

The chief executive, Customs, and every Customs officer must, in carrying out their functions under this Act or any other enactment, at all times use their best endeavours to protect the integrity of the system for assessing and collecting duty.

(2)

Without limiting its meaning, the integrity of the system for assessing and collecting duty includes—

(a)

duty payers’ perceptions of that integrity; and

(b)

duty payers’ rights to have their liabilities for duty determined fairly, impartially, and according to law; and

(c)

duty payers’ rights to have their individual affairs kept confidential and treated with no greater or lesser favour than the affairs of other duty payers; and

(d)

duty payers’ responsibilities to comply with the law; and

(e)

the responsibilities of those administering the law to maintain the confidentiality of the affairs of duty payers; and

(f)

the responsibilities of those administering the law to do so fairly, impartially, and according to law.

110 Chief executive’s general obligation in relation to collection of duty

(1)

The chief executive must secure the collection, over time, of the highest net revenue from duty that is practicable within the law, having regard to—

(a)

the resources available to the chief executive; and

(b)

the importance of promoting compliance, especially voluntary compliance, by all duty payers with this Act and any other enactment relating to any duty; and

(c)

the compliance costs incurred by duty payers; and

(d)

the objectives of imposing any duty; and

(e)

Customs’ other responsibilities and the resources needed to fulfil those other responsibilities.

(2)

Subsection (1) applies despite any other provision of this Act or any other enactment.

Assessment of duty by importer or licensee

111 Entry is assessment of duty by importer or licensee

An entry for goods made under this Act is an assessment by the importer or licensee (as the case may be) of the duty payable in respect of those goods.

Compare: 1996 No 27 s 88(1)

112 Importer to amend assessment that includes provisional Customs value

(1)

This section applies if an importer includes a provisional Customs value in an entry for imported goods under section 102(1).

(2)

The importer must amend the assessment for the goods to include the final Customs value—

(a)

within the prescribed time; and

(b)

in the way prescribed by the chief executive’s rules.

Assessment of duty by chief executive

113 Chief executive may assess duty where no entry made

(1)

If the chief executive has reasonable cause to suspect that duty is owed on goods by a person who has not made an entry for the goods, the chief executive may assess the duty at the amount he or she considers appropriate.

(2)

Customs must, by notice in writing, advise the person of the assessment.

(3)

If the person is dissatisfied with a decision of the chief executive under this section, the person may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

(4)

For the purposes of subsection (1), it does not matter if

(a)

the person was not required to make an entry for the goods; or

(b)

no entry was required to be made for the goods by any person.

Compare: 1996 No 27 s 88(2)–(4)

114 Assessment of excise duty and excise-equivalent duty where approval not complied with

(1)

This section applies if the chief executive—

(a)

has, in respect of any goods, granted an approval under—

(i)

item 99.35.10L, 99.35.30E, 99.44.10K, 99.44.30D, or 99.55.00D in Part A of the Excise and Excise-equivalent Duties Table; or

(ii)

item 2207.10.19, 2207.10.29, or 2207.20.01 or any of items 2208.90.62 to 2208.90.97 22.07 or 22.08 in Part B of the Excise and Excise-equivalent Duties Table; and

(b)

has reasonable cause to suspect that—

(i)

any conditions of the approval have not been complied with; and

(ii)

the non-compliance was intentional or negligent.

(2)

The chief executive may make an assessment of excise duty or excise-equivalent duty (as the case may be) in respect of the goods.

(3)

If an assessment is made, the rate of duty to be applied is the rate that would be applicable if the chief executive had not granted the approval.

(4)

The duty is payable by the person to whom the approval was granted.

(5)

Customs must, by notice in writing, advise that person of the assessment.

(6)

If that person is dissatisfied with a decision of the chief executive under this section, that person may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

Compare: 1996 No 27 s 83(1)–(4), (6), (7)

115 Assessment of excise duty on beer or wine otherwise exempt

(1)

If the chief executive has reasonable cause to suspect that any quantity of beer or wine that has been entered as exempt from excise duty under clause 6 of Schedule 3 has later been dealt with otherwise than in accordance with clause 6(1)(a) or (2)(a) of that schedule, the chief executive may make an assessment of excise duty.

(2)

The duty is payable by the following persons:

(a)

the licensee of the manufacturing area in which the beer or wine was manufactured:

(b)

the individual who manufactured the beer or wine.

(3)

The liability of those persons is joint and several.

(4)

Customs must, by notice in writing, advise those persons of the assessment.

(5)

If any of those persons is dissatisfied with a decision of the chief executive under this section, the person may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

Compare: 1996 No 27 s 84(1)–(3)

116 Assessment of excise-equivalent duty on goods imported for further manufacture

(1)

This section applies if—

(a)

excise-equivalent duty is not levied on any imported goods on the basis that the goods are imported for further manufacture; and

(b)

the chief executive has reasonable cause to suspect that the goods have been dealt with otherwise than on that basis.

(2)

The chief executive may make an assessment of excise-equivalent duty on the goods as if they had been imported otherwise than on that basis.

(3)

The duty is payable by the importer.

(4)

If there is more than 1 importer, their liability is joint and several.

(5)

Customs must, by notice in writing, advise the importer of the assessment.

(6)

If the importer is dissatisfied with a decision of the chief executive under this section, the importer may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

117 Amendment of assessments

(1)

Subject to section 118, the chief executive may amend (or further amend) an assessment of duty even if—

(a)

the goods to which the duty relates are no longer subject to the control of Customs; or

(b)

the duty originally assessed has been paid.

(2)

Customs must, by notice in writing, advise the person who is liable for the duty if the amendment has the effect of—

(a)

imposing a fresh liability; or

(b)

altering an existing liability.

(3)

If that person is dissatisfied with a decision of the chief executive under this section, that person may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

(4)

Without limiting subsection (1), the chief executive’s power under that subsection may be exercised in a case where section 112 applies

(a)

to include the final Customs value in the assessment if the importer fails to do so within the prescribed time; or

(b)

to amend the final Customs value included in the assessment by the importer.

(4)

Without limiting subsection (1), the chief executive’s power under that subsection may be exercised

(a)

to amend a provisional Customs value included in an assessment that does not comply with section 102(2):

(b)

to include the final Customs value in an assessment if the importer fails to do so within the time prescribed for the purposes of section 112(2)(a):

(c)

to amend the final Customs value included in an assessment by an importer under section 112.

Compare: 1996 No 27 s 89

118 Limitation of time for amendment of assessments

(1)

If an assessment of duty has been made under this Act, the chief executive may not amend the assessment so as to increase the amount of the assessment any later than 4 years after the date on which the original assessment was made.

(2)

Despite subsection (1), in a case where, in the opinion of the chief executive, an entry for the goods was fraudulent or wilfully misleading, the chief executive may amend the assessment at any time so as to increase the amount of the assessment.

(3)

In subsection (2), entry has the meaning given to that term in section 263.

Compare: 1996 No 27 s 94

119 Assessment to be taken to be correct

(1)

Every assessment made by the chief executive under this Act, including an assessment made by way of amendment, must be taken to be correct.

(2)

Duty is payable on the goods accordingly unless, on an administrative review or an appeal,—

(a)

a different amount is determined to be the duty payable on the goods; or

(b)

it is determined that no duty is payable.

Compare: 1996 No 27 s 91(1)

Particular rules relating to assessment of duty

120 Duty to be proportionate

When duties are imposed according to a specified quantity, weight, size, or value, the duties must be charged proportionately on a greater or smaller quantity, weight, size, or value.

Compare: 1996 No 27 s 107(1)

121 Duty on alcoholic beverages

(1)

The chief executive executive’s rules must determine prescribe, for the purposes of this Act, the means of ascertaining the volume of alcohol present in an alcoholic beverage.

(2)

If duty is to be calculated relative to the alcohol content of a beverage and the volume of alcohol increases or diminishes by a natural process while the beverage is subject to the control of Customs, duty is payable relative to in accordance with the volume present in the beverage at the time of entry under section 75 or 81 of alcohol as so increased or diminished.

Compare: 1996 No 27 s 107(2)

Payment Times for payment of duty

122 Time for payment of duty on imported goods: general rule

Except as otherwise provided in this Act, the duty on imported goods must be paid to Customs when—

(a)

the goods have been entered in accordance with section 75 and the entry has been passed for home consumption; or

(b)

the goods have been entered in accordance with section 75 for removal to a manufacturing area; or

(c)

the goods have been wrongfully landed, or otherwise wrongfully dealt with, without having been entered in accordance with section 75; or

(d)

an offence under this Act has been committed in respect of the goods.

Compare: 1996 No 27 ss 75(3), 86(3)

123 Persons may be authorised to defer payment of duty on imported goods

(1)

The chief executive may,—

(a)

subject to any terms and conditions that he or she considers appropriate, authorise a person or a class of persons to defer the payment of duty on imported goods to a time after the time given by section 122; and

(b)

for that purpose, determine a duty accounting period.

(2)

The chief executive may—

(a)

suspend or withdraw an authorisation given under subsection (1)(a); or

(b)

vary any term or condition under which the authorisation is given; or

(c)

vary any duty accounting period determined under subsection (1)(b).

(3)

The chief executive must, by notice in writing, advise the persons affected of a decision of the chief executive under this section.

(4)

A person who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 86(6), (7), (9)

124 Other times for payment of duty

(1)

See clause 5 of Schedule 3 in relation to the payment of excise duty.

(2)

Duty that results from an amendment of an assessment under section 112 must be paid to Customs within 20 working days after the date on which the assessment is amended.

(3)

Duty that results from an assessment under section 113 must be paid to Customs within 20 working days after the date on which written notice of the assessment is given by Customs.

(4)

Excise duty or excise-equivalent duty that is assessed under any of sections 114 to 116 must be paid to Customs within 20 working days after the date on which written notice of the assessment is given by Customs.

(5)

Duty that results from an amendment of an assessment under section 117 must be paid to Customs within 20 working days after the date on which written notice of the amendment is given by Customs.

(6)

Duty that is demanded under section 139(4) or 140(4) must be paid to Customs within 20 working days after the date on which the demand is given.

(7)

If the chief executive has reasonable cause to believe that a person will be unable to pay any duty within the time given by subsection (2), (3), (5), or (6),—

(a)

the chief executive may, by notice in writing, require the person to pay the duty within an earlier time specified in the notice; and

(b)

the person must pay the duty within that earlier time.

(8)

If a person who is liable for duty is dissatisfied with a decision of the chief executive under subsection (7), the person may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 ss 83(5), 84(4), 90(1)–(1C)

125 Additional duty imposed

(1)

This section applies if

(a)

any excise duty is not paid within the time prescribed under clause 5(1)(a) of Schedule 3 or at the time given by clause 5(2) of that schedule; or

(b)

any duty the payment of which has been deferred in accordance with section 123 is not paid within the deferred time for payment; or

(c)

any duty is not paid within the time given by section 124(2), (3), (5), (6), or (7).

(2)

Additional duty is imposed, and added to the unpaid duty, as follows:

(a)

additional duty of 5% of the amount of the unpaid duty; and

(b)

additional duty of 2% of the amount (including additional duty) still unpaid at the end of the period of 1 month after the time referred to in subsection (1)(a), (b), or (c); and

(c)

additional duty of 2% of the amount (including additional duty) still unpaid at the end of each succeeding period of 1 month.

(3)

The chief executive may, at his or her discretion, remit or refund the whole or any part of any additional duty imposed under subsection (2).

(4)

If, for any reason, the amount of duty in respect of which additional duty has been imposed is amended, the additional duty must be adjusted accordingly.

(5)

A person who is liable for the payment of additional duty and is dissatisfied with a decision of the chief executive under subsection (3) may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 ss 87, 90(2)

126 Importer, etc, leaving New Zealand

(1)

If the chief executive has reasonable cause to believe that a person is about to leave New Zealand before the time by which duty owing by the person must be paid under this Act,—

(a)

the chief executive may, by notice in writing, require the person to pay the duty within an earlier time specified in the notice; and

(b)

the person must pay the duty within that earlier time.

(2)

If the person is dissatisfied with a decision of the chief executive under this section, the person may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

(3)

Section 109 210 of the District Courts Act 1947 Court Act 2016 or section 55 40 of the Judicature Act 1908 Senior Courts Act 2016 (as the case may be) extends and applies in relation to a notice under this section as if it were a proceeding for the recovery of duty made in the ordinary course.

Compare: 1996 No 27 s 110

Appeals, etc

127 Chief executive may allow release of goods where appeal, etc, lodged

(1)

Despite anything to the contrary in this Act, if an appeal or a an administrative review has been lodged under this subpart, subpart 5 or 8 of this Part, or subpart 3 of Part 5, the chief executive may, subject to receiving any security that he or she considers sufficient to cover the full amount of duty, release the goods so that they cease to be subject to the control of Customs.

(2)

In subsection (1), review means an administrative review or a review under section 164.

Compare: 1996 No 27 s 91(2)

128 Obligation to pay duty not suspended by appeal, etc

(1)

The obligation to pay duty under this Act is not suspended by any appeal, administrative review, or legal proceedings.

(2)

The right to recover and receive duty under this Act is not suspended by any appeal, administrative review, or legal proceedings.

(3)

If an appellant or any other person is successful in any appeal, administrative review, or legal proceedings,—

(a)

the amount (if any) of the duty, or any security, received by the chief executive in excess of the amount that was properly payable must immediately be refunded to the appellant or other person by the chief executive; or

(b)

as the case may be, the appellant or other person must be released from the conditions of the security imposed under section 219.

(4)

The chief executive’s obligation under subsection (3) is suspended pending the outcome of any appeal lodged by the chief executive under this Act or any other enactment against a decision requiring the duty to be refunded.

Compare: 1996 No 27 s 92

129 Chief executive to pay interest on duty refunded on appeal, etc

(1)

If duty is required to be refunded in accordance with section 128(3), the chief executive must pay interest on the duty for the period (the interest period) that—

(a)

begins with the day on which the duty was paid; and

(b)

ends with the day on which the duty is refunded.

(2)

The amount of interest payable is calculated for each day of the interest period in accordance with the following formula:

d × r ÷ 365

where—

d

is the duty to be refunded

r

is the Commissioner’s paying prescribed rate (as that term is defined in section 120C(1) of the Tax Administration Act 1994) of interest applying on that day.

(3)

The total amount of interest payable is the sum of the amounts calculated under subsection (2) for each day in the interest period.

(4)

If the chief executive is satisfied that a person has been paid more interest than was payable, the chief executive may recover the amount of the excess in accordance with section 148 151A as if that amount were money an amount refunded by Customs in error.

(5)

The chief executive’s obligation under subsection (1) is suspended pending the outcome of any appeal lodged by the chief executive under this Act or any other enactment against a decision requiring the duty to be refunded.

Compare: 1996 No 27 s 93

Charges on goods

130 Duty is charge on goods

(1)

The duty on any goods is a charge on those goods until the duty is fully paid.

(2)

If duty charged on any goods is not paid at, or within, the time for payment given under this Act, the chief executive may (whether or not the property in the goods has passed to a third party)—

(a)

take possession of the goods; and

(b)

sell them or any part of them in satisfaction or part satisfaction of the charge.

(3)

Subsection (2) does not apply as against a purchaser of the goods for valuable consideration and without knowledge that the duty was owing and unpaid.

(4)

In this section and section 131, purchaser means—

(a)

a person (other than a person liable to pay the duty) who acquired the goods from a person liable to pay the duty; or

(b)

a subsequent purchaser of the goods.

Compare: 1996 No 27 s 97(1)–(4)

131 Possession of goods if person claims to be purchaser for value without knowledge

(1)

This section applies if—

(a)

a person notifies the chief executive that he or she the person is a purchaser to whom section 130(3) applies in respect of any goods; but

(b)

there is a dispute between that person and the chief executive as to whether section 130(3) applies.

(2)

If the chief executive has taken possession of the goods under section 130(2)(a) but the goods have not been sold, the chief executive must retain possession of the goods pending the resolution of the dispute.

(3)

If the chief executive has not yet taken possession of the goods under section 130(2)(a), the chief executive may,—

(a)

if the goods are in the possession, or under the control, of the importer, take possession of the goods and retain possession of them pending the resolution of the dispute:

(b)

if the goods are in the possession, or under the control, of the purchaser, direct the purchaser, by notice in writing, to retain the possession or control of the goods pending the resolution of the dispute.

(4)

The chief executive or the purchaser may apply to the court for a declaration as to whether the goods were acquired by the purchaser for valuable consideration and without knowledge that the duty was owing and unpaid.

(5)

In any proceeding under subsection (4), if the purchaser and a person liable to pay the duty are related (see section 132), the onus of proving that the goods were acquired for valuable consideration and without knowledge that the duty was owing and unpaid is on the purchaser.

(6)

If any goods that the chief executive has taken possession of, or has directed the purchaser to retain possession or control of under this section, consist wholly or partly of a living creature or any thing that, in the opinion of the chief executive, is perishable or that may otherwise lose its value if it is not sold as soon as possible,—

(a)

the chief executive, or the purchaser with the prior consent of the chief executive, may sell the goods; and

(b)

the net proceeds of the sale are substituted for the thing sold.

Compare: 1996 No 27 s 97(5)–(9)

132 Related persons for purposes of section 131(5)

(1)

For the purposes of section 131(5), a person (A) and another person (B) 2 persons are related if—

(a)

A and B they are connected in accordance with subsection (2); or

(b)

A one is a trustee for B the other; or

(c)

A one is a company and B the other

(i)

is a director or an officer of A the company; or

(ii)

is connected to a director or an officer of A the company in accordance with subsection (2); or

(iii)

is directly or indirectly able to exercise control over the affairs of A the company; or

(d)

A and B they are both companies and—

(i)

A one is a holding company or a subsidiary of B the other within the meaning of section 5 of the Companies Act 1993; or

(ii)

A one owns or controls shares that in aggregate carry the right to exercise, or control the exercise of, 20% or more of the voting power at meetings of B the other; or

(iii)

A and B they have the same holding company within the meaning of section 5 of the Companies Act 1993, or a third person owns or controls shares in each of them that carry the right to exercise, or control the exercise of, 20% or more of the voting power at meetings of each of them.

(2)

For the purposes of subsection (1)(a) and (c)(ii), A and B 2 persons are connected if—

(a)

A and B they are connected by blood relationship within the fourth degree of relationship (through a common ancestor); or

(b)

A one is married to, or in a civil union or a de facto relationship with,—

(i)

Bthe other; or

(ii)

a person who is connected by blood relationship within the fourth degree of relationship (through a common ancestor) with B the other; or

(c)

A one has been adopted as the child of—

(i)

Bthe other; or

(ii)

a person who is connected by blood relationship within the fourth degree of relationship (through a common ancestor) with B the other.

Compare: 1996 No 27 s 96

133 Offence in relation to direction of chief executive under section 131(3)(b)

(1)

A person to whom a direction is given under section 131(3)(b) commits an offence if the person, without the consent of the chief executive or reasonable excuse, fails to comply with the direction.

(2)

A person who commits an offence under subsection (1) is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

(3)

A person to whom a direction is given under section 131(3)(b) commits an offence if the person, knowingly and without the consent of the chief executive, fails to comply with the direction.

(4)

A person who commits an offence under subsection (3) is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding the greater of the following:

(i)

$15,000:

(ii)

an amount equal to 3 times the value of the goods to which the offence relates:

(b)

in the case of a body corporate, to a fine not exceeding the greater of the following:

(i)

$75,000:

(ii)

an amount equal to 3 times the value of the goods to which the offence relates.

Compare: 1996 No 27 s 202

Recovery of duty in cases of bankruptcy, liquidation, or receivership

134 Rights and duties of chief executive in relation to unpaid duty

(1)

This section applies to the recovery of unpaid duty—

(a)

that is due in relation to goods from—

(i)

an individual who is bankrupt; or

(ii)

a company that is in liquidation; or

(iii)

a company if a receiver has been appointed in respect of the company’s property in circumstances to which section 30 of the Receiverships Act 1993 applies; or

(iv)

an unincorporated body of persons (including a partnership, a joint venture, or the trustees of a trust) that is put into liquidation; or

(v)

an unincorporated body of persons (including a partnership, a joint venture, or the trustees of a trust) if a receiver has been appointed by the High Court in respect of the body’s property; and

(b)

that is a charge on the goods in accordance with section 130.

(2)

The chief executive must notify the Official Assignee, liquidator, or receiver (as the case may be) that the unpaid duty is a charge on the goods in accordance with section 130.

(3)

A notice under subsection (2) must be given within 60 days after,—

(a)

in the case of an individual, the date of the notice in the Gazette that the individual has been adjudicated bankrupt; or

(b)

in the case of a company, the date of the notice in the Gazette of the commencement of the liquidation or the appointment of a receiver; or

(c)

in the case of an unincorporated body (including a partnership, a joint venture, or the trustees of a trust), the date of the notice in the Gazette of the commencement of the liquidation or the appointment of a receiver.

(4)

If there is a dispute as to whether section 130(3) applies, a notice under subsection (2) may, despite subsection (3), be given within 30 days after the date on which the dispute is resolved.

(5)

If any duty to which this section applies is due and unpaid, the chief executive may—

(a)

realise the property subject to the charge; or

(b)

value the property subject to the charge and claim, in the bankruptcy, liquidation, or receivership in accordance with section 135, for the balance of the unpaid duty (if any); or

(c)

realise the property subject to the charge and claim, in the bankruptcy, liquidation, or receivership in accordance with section 135, for any balance of the unpaid duty, after deducting the amount realised; or

(d)

surrender the charge to the Official Assignee, liquidator, or receiver (as the case may be) for the general benefit of creditors and claim, in the bankruptcy, liquidation, or receivership in accordance with section 135, for the whole debt.

(6)

If the chief executive realises the property subject to the charge, any regulations made under for the purposes of section 387 apply.

(7)

If the chief executive values the property subject to the charge and claims for the balance of unpaid duty (if any) in accordance with subsection (5)(b), the valuation and claim must—

(a)

contain full particulars of the valuation, the claim, and the charge; and

(b)

identify any documents that substantiate the claim and the charge.

(8)

The Official Assignee, liquidator, or receiver may require production of any document referred to in subsection (7).

(9)

If a claim is made by the chief executive under subsection (7), the Official Assignee, liquidator, or receiver (as the case may be) must—

(a)

accept the valuation and claim; or

(b)

subject to subsections (10) and (11), reject the valuation and claim in whole or in part.

(10)

If the Official Assignee, liquidator, or receiver rejects a valuation and claim under subsection (9)(b), the chief executive may make a revised valuation and claim within 20 days of receiving notice of the rejection.

(11)

The Official Assignee, liquidator, or receiver may revoke or amend a decision under subsection (9)(b) to reject a valuation and claim if he or she subsequently considers that a valuation and claim were wrongly rejected.

(12)

The Official Assignee, liquidator, or receiver may, at any time, unless the chief executive has realised the property, redeem the charge on payment of the assessed value where the Official Assignee, liquidator, or receiver—

(a)

has accepted a valuation and claim under subsection (9)(a); or

(b)

has accepted a revised valuation and claim; or

(c)

has accepted a valuation and claim on revoking or amending a decision to reject a claim under subsection (11).

(13)

The Official Assignee, liquidator, or receiver may at any time, by notice in writing, require the chief executive, within 30 days after receipt of the notice,—

(a)

to elect which of the powers referred to in subsection (5) the chief executive wishes to exercise; and

(b)

if the chief executive elects to exercise the power referred to in subsection (5)(b), (c), or (d), to exercise the power within that period.

(14)

The chief executive—

(a)

is treated as having surrendered the charge to the Official Assignee, liquidator, or receiver for the general benefit of creditors if—

(i)

the chief executive fails to give notice to the Official Assignee, liquidator, or receiver (as the case may be) in accordance with subsection (2) within the time specified in subsection (3) or (4); or

(ii)

having been required to make an election in accordance with subsection (13), the chief executive fails to do so within the time specified in that subsection; but

(b)

may claim in the bankruptcy, liquidation, or receivership in accordance with section 135.

(15)

If the chief executive has surrendered the charge under subsection (5)(d) or is treated as having surrendered a the charge under subsection (14), he or she may, with the leave of the court or the Official Assignee, liquidator, or receiver, at any time before the Official Assignee, liquidator, or receiver has realised the property charged,—

(a)

withdraw the surrender and rely on the charge; or

(b)

submit a new claim under this section.

(16)

Leave under subsection (15) may be subject to any terms and conditions that the court or the Official Assignee, liquidator, or receiver considers appropriate.

(17)

In any case to which this section applies, the provisions of section 305 of the Companies Act 1993 and sections 243, 244, and 246 to 250 of the Insolvency Act 2006 do not apply.

Compare: 1996 No 27 ss 98, 99

135 Ranking of duty

(1)

This section applies to—

(a)

the recovery of unpaid duty that does not constitute a charge on goods, if it is owed by—

(i)

an individual who is bankrupt; or

(ii)

a company that is in liquidation; or

(iii)

a company if a receiver has been appointed in respect of the company’s property in circumstances to which section 30 of the Receiverships Act 1993 applies; or

(iv)

an unincorporated body of persons (including a partnership, a joint venture, or the trustees of a trust) that is put into liquidation; or

(v)

an unincorporated body of persons (including a partnership, a joint venture, or the trustees of a trust) if a receiver has been appointed by the High Court in respect of the body’s property; and

(b)

the recovery of unpaid duty that the chief executive may claim in accordance with this section under section 134(5)(b) to (d) or (14)(b).

(2)

In the case of an individual who is bankrupt, the unpaid duty must be paid in accordance with the requirements of section 274(5) of the Insolvency Act 2006.

(3)

In the case of a company that is in liquidation, the unpaid duty must be paid in accordance with the requirements of section 312 and Schedule 7 of the Companies Act 1993.

(4)

In the case of a company where a receiver has been appointed in respect of the company’s property in circumstances to which section 30 of the Receiverships Act 1993 applies, the unpaid duty must be paid in accordance with the requirements of section 30(2) of the Receiverships Act 1993.

(5)

In the case of an unincorporated body (including a partnership, a joint venture, or the trustees of a trust) that is put into liquidation, the unpaid duty must be paid in accordance with section 17B of the Judicature Act 1908 the requirements of section 312 of the Companies Act 1993 (as applied by section 240B of that Act).

(6)

In the case of an unincorporated body (including a partnership, a joint venture, or the trustees of a trust) where a receiver has been appointed by the High Court in respect of the body’s property, the unpaid duty must be paid in accordance with the directions of the court.

(7)

This section applies despite anything to the contrary in any other Act.

Compare: 1996 No 27 ss 100, 101(1)–(7)

Release of goods subject to duty

136 Release of goods subject to duty

(1)

Except as otherwise provided in this Act, a person may not obtain the release of goods so that they are no longer subject to the control of Customs until the sum payable by way of duty on the goods is paid in full.

(2)

No action or other proceeding may be brought against the Crown, the chief executive, or any Customs officer in respect of the detention of any goods for which the full duty has not been paid.

(3)

The chief executive may, subject to any conditions (including conditions as to security) that he or she considers appropriate,—

(a)

allow the release of goods so that they are no longer subject to the control of Customs in circumstances approved by the chief executive:

(b)

allow the release of goods so that they are no longer subject to the control of Customs and accept payment of duty by instalment over a specified period if he or she considers that undue hardship would result from the payment of duty as required by this section.

(4)

Subsection (3)(b) does not apply to duties imposed under the Dumping and Countervailing Duties Act 1988 or under the Trade (Safeguard Measures) Act 2014.

(5)

Nothing in section 130, 131, 134, or 135 affects this section.

Compare: 1996 No 27 ss 101(8), 102

137 Goods temporarily imported

(1)

The chief executive may, if he or she is satisfied that goods have been temporarily imported, allow goods to be released, so that they are no longer subject to the control of Customs, without payment of duty and on receipt of security that is equal to the amount of the duty payable on the goods.

(2)

Subject to any prescribed conditions, the person who gave the security must be released from the conditions of the security, and any deposit of money must be returned, if, within 12 months from the date of importation of the goods or any longer period that the chief executive allows, the chief executive is satisfied that the goods have been—

(a)

exported; or

(b)

shipped for export; or

(c)

packed for export into a bulk cargo container in a Customs-controlled area and the container secured to the satisfaction of the chief executive; or

(d)

destroyed; or

(e)

dealt with in any manner that the chief executive may allow.

(3)

Duty is payable in respect of the goods if—

(a)

the goods are used for industrial or commercial purposes or any other purpose the chief executive considers applicable; and

(b)

their value for duty, as determined by the chief executive at the time that he or she is satisfied in accordance with subsection (2) that the goods have been dealt with in any of the ways described in subsection (2)(a) to (e), is less than their value for duty, as ascertained in accordance with this Act, at the time of their importation.

(4)

The duty is payable on the difference between the 2 values referred to in subsection (3)(b).

(5)

For the purposes of subsection (3)(b), the chief executive must determine the value for duty of goods that have been dealt with by using—

(a)

the straight-line method of calculating an amount of depreciation loss described in section EE 12(2)(b) of the Income Tax Act 2007; and

(b)

the depreciation rate for that method determined by the Commissioner of Inland Revenue under section 91AAF or 91AAG of the Tax Administration Act 1994 or the rate specified in the table appended to the General depreciation rates published by the Commissioner of Inland Revenue; and

(c)

for duty calculation purposes, the depreciation rate applicable on the date the goods are imported.

(6)

Any amount of duty that is payable under this section may be deducted from any deposit of money given as security under subsection (1).

(7)

If, at the expiry of the period referred to in subsection (2), the goods have not been dealt with in any of the ways described in subsection (2)(a) to (e),—

(a)

any sum secured by way of deposit of money must be retained by the Crown; or

(b)

any sum secured must be paid to the Crown by the importer within 10 working days (or any longer period that the chief executive may allow) after the expiry of the period.

(8)

Subject to any conditions that the chief executive imposes, duty is not payable on goods temporarily imported in accordance with any treaty, agreement, or arrangement concluded by the Government of New Zealand.

(9)

This section does not apply to duties imposed under the Dumping and Countervailing Duties Act 1988 or under the Trade (Safeguard Measures) Act 2014 except to the extent allowed by the chief executive of the Ministry of Business, Innovation, and Employment department of State that, with the authority of the Prime Minister, is responsible for the administration of the Act in question.

(10)

This section does not apply to goods that are declared by regulations made under the Tariff Act 1988 to be goods to which this section does not apply.

Compare: 1996 No 27 s 116

138 Goods temporarily imported for manufacturing, etc

(1)

The cases in which the chief executive may allow goods to be released under section 137(1) include (without limitation) cases where the chief executive is satisfied that the goods—

(a)

have been temporarily imported for manufacturing, processing, or repair; and

(b)

will remain identifiable when they are exported.

(2)

Section 137(2)(e) and (3) to (6) does not apply in relation to goods that are released in a case referred to in subsection (1).

Liability for duty in certain cases

139 Liability for duty on goods wrongfully removed or missing

(1)

The licensee of a Customs-controlled area is liable for duty payable on goods that the chief executive is satisfied have been wrongfully removed, or are missing, from that Customs-controlled area as if the goods had been, as the case may be,—

(a)

imported by the licensee and entered under section 75:

(b)

manufactured by the licensee and entered under section 81.

(2)

A licensee may not be released from liability under this section by virtue of any other provision of this Act or any other enactment.

(3)

Duty becomes due and payable on dutiable goods as if the goods were removed for home consumption, or entry has been made and passed for home consumption, if the goods—

(a)

are removed from a Customs-controlled area without the authority of Customs (if that authority was required for the removal); or

(b)

are not produced to Customs by the licensee and not accounted for as having been lawfully delivered from the Customs-controlled area.

(4)

The chief executive may, by notice in writing, demand payment, of any sum that the chief executive reasonably suspects is owing under this section, from—

(a)

the owner or importer of the goods; or

(b)

the licensee of a Customs-controlled area.

(5)

Duty payable under this section constitutes a debt due to the Crown by—

(a)

the licensee of a Customs-controlled area:

(b)

the importer of the goods:

(c)

the owner of the goods.

(6)

The liability under subsection (5) is joint and several.

(7)

A person who is liable for the payment of the duty and who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

Compare: 1996 No 27 s 103

140 Liability of owners of craft for duty on goods unlawfully landed

(1)

This section applies if cargo, stores, or other goods are unlawfully landed in New Zealand in or from a craft that is within New Zealand.

(2)

The owner and the person in charge of the craft are jointly and severally liable for the payment of the duty on the cargo, stores, or other goods as if—

(a)

the cargo, stores, or other goods had been imported by them; and

(b)

the cargo, stores, or other goods had been entered in accordance with section 75 and the entry had been passed for home consumption.

(3)

Liability under subsection (2) does not affect the liability of any other person.

(4)

The chief executive may, by notice in writing, demand from the owner or the person in charge of any craft payment of any sum that the chief executive reasonably suspects is owing under this section.

(5)

In any proceedings for the recovery of duty, or for a refund of duty paid, under this section, the sum demanded by the chief executive under subsection (4) is presumed to be payable unless the contrary is proved.

(6)

A person who is liable for the payment of the duty and is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

Compare: 1996 No 27 s 104

Joint liability for duty

141 Effect of payment of duty by one person on liability of other persons

The liability of a person under this Act for the payment of duty on goods is extinguished by the payment of that duty by any other person liable for the payment of it, unless that duty is subsequently refunded or remitted.

Compare: 1996 No 27 s 105

Liability for duty or rate of duty altered

142 Incidence of altered duties

(1)

In the case of an alteration in the law relating to the liability of goods to duty or the rate of duty to which goods are liable, the liability or rate must, except where otherwise expressly provided, be determined,—

(a)

in the case of goods held in an export warehouse, or manufactured in a manufacturing area, by the law in force at the time the goods are removed from the export warehouse or manufacturing area:

(a)

in the case of Part A goods that are manufactured in a manufacturing area, by the law in force at the time the goods are removed for home consumption:

(ab)

in the case of imported goods that are held in an export warehouse or a duty-free store, by the law in force at the time the goods are removed from the export warehouse or duty-free store:

(b)

in the case of other imported goods that are not covered by paragraph (ab), by the law in force at the time the goods are imported into New Zealand.

(2)

In this section, alteration includes a variation that takes place at any time or takes place periodically.

Compare: 1996 No 27 s 106

Refunds, remissions, and drawbacks of duty

143 Chief executive may refund duty paid in error

(1)

If the chief executive is satisfied that duty has been paid in error, either of law or of fact, the chief executive must, unless there is good reason not to, refund the duty—

(a)

at any time within 4 years after the duty has been paid; or

(b)

at any later time if an application is made within 4 years after the duty has been paid.

(2)

To avoid doubt, an obvious error in the legal instrument that establishes a duty payable could constitute good reason under subsection (1) for the chief executive not to refund the duty.

(3)

A person who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 111

144 Refunds of duty related to provisional Customs value

(1)

This section applies if—

(a)

an importer includes a provisional Customs value in an entry for imported goods under section 102(1); and

(b)

the importer pays duty on the goods based on the provisional Customs value; and

(c)

the importer subsequently amends the assessment for the goods to include the final Customs value under section 112; and

(d)

the final Customs value results in a lower amount of duty being payable than the importer has already paid.

(2)

The chief executive must refund the difference between the duty payable on the final Customs value and the duty paid.

(3)

This section does not affect the chief executive’s powers under section 117 in relation to the final Customs value.

145 Refunds of duty on goods under Part 2 of Tariff

(1)

If duty has been paid on imported goods and a lower rate of duty, or an exemption in respect of the goods, is subsequently approved under section 8 of the Tariff Act 1988, the chief executive must refund the whole or part of any duty paid so that the total duty paid on the goods is in accordance with the terms (including the effective date) of the approval.

(2)

A person who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 112

146 Other refunds and remissions of duty

(1)

The chief executive may refund or remit any duty if the chief executive is satisfied that imported goods, or goods manufactured in New Zealand,—

(a)

have been damaged, destroyed, pillaged, or lost, or have diminished in value or deteriorated in condition, prior to their ceasing to be subject to the control of Customs; or

(b)

are of faulty manufacture; or

(c)

have been abandoned to the Crown for destruction or any other form of disposal prior to their ceasing to be subject to the control of Customs.

(2)

Regulations may prescribe any of the following:

(a)

exceptions, restrictions, or conditions on the chief executive’s power to refund or remit duty under subsection (1):

(b)

the nature and value of sample goods that may be delivered free of duty:

(c)

the conditions under which samples of the bulk of sample goods may be delivered free of duty.

(3)

The chief executive may refund or remit any excise-equivalent duty levied—

(a)

on goods of a class or kind that have been exempted from duty under section 8 of the Tariff Act 1988; or

(b)

on alcoholic beverages (except ethyl alcohol of Tariff items 2207.10.19, 2207.10.29, 2207.20.01, and 2207.20.49)—

(i)

for use in the manufacture of any products that the chief executive approves by the persons or in the places that the chief executive approves; and

(ii)

in the quantities that the chief executive approves; and

(iii)

subject to any conditions that the chief executive considers appropriate.

(4)

A person who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

(5)

This section does not apply to duties imposed under the Dumping and Countervailing Duties Act 1988 or the Trade (Safeguard Measures) Act 2014 except to the extent allowed by the chief executive of the department of State that, with the authority of the Prime Minister, is responsible for the administration of the Act in question.

Compare: 1996 No 27 s 113

147 Power to apply refunds towards payment of other duties

If any duty is or becomes refundable under this Act to any person, the chief executive may, at his or her discretion,—

(a)

apply the whole or any part of the sum refundable towards the payment of any other duty that is payable by that person; or

(b)

refundpay the whole sum to that person.

Compare: 1996 No 27 s 114

148 Recovery of duty refunded in error

Money refunded by Customs in error of fact or law may be recovered by the chief executive on behalf of the Crown in any court of competent jurisdiction

(a)

at any time, if the refund has been obtained by fraud; or

(b)

in any other case, within 4 years after the date of its payment.

Compare: 1996 No 27 s 115

149 Drawbacks of duty on certain goods

(1)

Subject to this section, drawbacks of duty may be allowed, at the prescribed amounts and subject to any prescribed conditions, on—

(a)

imported goods that are later exported:

(b)

Part A goods that are manufactured in a manufacturing area and then exported:

(c)

imported parts and materials used in, worked into, or attached to goods that are manufactured in New Zealand and then exported:

(d)

imported materials, except fuel or plant equipment, used in the manufacture of goods that are manufactured in New Zealand and then exported.

(2)

A claim for drawback may be made with the entry of the goods under section 89 or at any other prescribed time.

(3)

The chief executive may, at his or her discretion, for the purposes of this section, treat the goods as having been exported if—

(a)

he or she is satisfied that the goods have been shipped for export; or

(b)

the goods have been packed for export into a bulk cargo container in a Customs place or Customs-controlled area and the container has been secured to the satisfaction of the chief executive; or

(c)

the goods have been entered into an export warehouse and the chief executive is satisfied that they will be exported.

(4)

If drawback is allowed to any person under this section, the chief executive may, at his or her discretion, apply the whole or any part of the sum allowed towards the payment of any other duty that is payable by that person.

(5)

This section does not apply to duties imposed under the Dumping and Countervailing Duties Act 1988 or the Trade (Safeguard Measures) Act 2014 except to the extent allowed by the chief executive of the department of State that, with the authority of the Prime Minister, is responsible for the administration of the Act in question.

(6)

This section does not apply to goods declared by regulations made under the Tariff Act 1988 to be goods to which this section does not apply.

Compare: 1996 No 27 ss 49(3), 117(1), (2), (7)–(9)

150 Where drawback has been allowed

(1)

This section applies if drawback has been allowed under section 149 on—

(a)

goods that are treated as exported under section 149(3); or

(b)

goods used, as referred to in section 149(1)(c) or (d), in the manufacture of goods that are treated as exported under section 149(3).

(2)

The goods that are treated as exported must not be unshipped, relanded, or unpacked before export without the permission of the chief executive.

(3)

If the goods are unshipped, relanded, or unpacked before export,—

(a)

any drawback paid or applied under section 149(4) constitutes a debt due to the Crown immediately on the unshipment, relanding, or unpacking; and

(b)

the debt—

(i)

must be paid by the owner of the goods immediately on the unshipment, relanding, or unpacking; and

(ii)

is recoverable by the chief executive (on behalf of the Crown) in any court of competent jurisdiction.

(4)

The right to recover drawback as a debt due to the Crown under this section is not affected by the fact that a bond or any other security was given in respect of the unshipment, relanding, or unpacking of the goods before export.

Compare: 1996 No 27 s 117(3)–(6)

151 Minimum amounts of refunds and drawback

Regulations may prescribe any of the following:

(a)

the minimum amount of duty refundable on goods, and the circumstances in which duty below the prescribed amount is not to be refunded:

(b)

the minimum amount of drawback of duty allowable on goods, and the circumstances in which drawback below the prescribed amount is not allowed.

Compare: 1996 No 27 s 118(1)(b), (c)

151A Recovery of refunds, etc made in error

(1)

This section applies to the following:

(a)

any duty, interest, penalty, or other amount refunded by Customs in error of fact or law:

(b)

any drawback allowed under section 149 in error of fact or law.

(2)

The chief executive (on behalf of the Crown) may recover the refund or drawback in any court of competent jurisdiction by commencing proceedings

(a)

at any time, if the refund or drawback was obtained by fraud; or

(b)

in any other case, within 4 years after the date on which the refund or drawback was

(i)

paid; or

(ii)

applied towards the payment of any duty or other amount under section 147(a), 149(4), or 154S.

Compare: 1996 No 27 s 115

Exceptions

152 Reimportation of goods exported

(1)

This section applies to goods if the goods—

(a)

have been exported; and

(b)

will be, or are, reimported; and

(c)

when reimported, will be, or are, in substantially the same condition as they were when exported.

(2)

The goods may, subject to any conditions that the chief executive considers appropriate, be readmitted—

(a)

free of duty; or

(b)

at a rate or an amount of duty that the chief executive determines and that does not exceed the greater of the following:

(i)

the rate or amount of duty that would be payable on the goods if imported for the first time:

(ii)

the rate or amount of drawback of duty allowed under section 149 when the goods were (last) exported.

Compare: 1996 No 27 s 109

153 Outward processing

(1)

This section applies to goods if the goods—

(a)

have been exported for the purposes of repair or refurbishment; and

(b)

will be, or are, reimported; and

(c)

when reimported, will be, or are, in substantially the same condition, except for the repair or refurbishment, as they were when exported.

(2)

The goods may, subject to any conditions that the chief executive approves considers appropriate, be readmitted at the rate or amount of duty the chief executive determines would be payable on the goods if the goods—

(a)

were imported for the first time; and

(b)

had a Customs value equal to the cost of the repair or refurbishment.

(3)

In this section, cost of the repair or refurbishment means—

(a)

the value of any materials, component parts, and other goods incorporated in the reimported goods for the purposes of their repair or refurbishment; and

(b)

the price paid for the service of the repair or refurbishment; and

(c)

the packing costs and charges incurred in respect of the goods for their shipment back to New Zealand, including the cost of cartons, cases, and other containers and coverings that are treated for customs purposes as being part of the goods when they are reimported; and

(d)

all expenses of packing incidental to placing the goods in the condition in which they are shipped back to New Zealand; and

(e)

the costs of the following until the goods have left the country of export:

(i)

transportation and insurance of the goods:

(ii)

the loading, unloading, and handling charges associated with the transportation of the goods:

(iii)

any other charges and expenses associated with the transportation of the goods.

154 Goods from Cook Islands and Niue

(1)

Goods imported from the Cook Islands or Niue (whether the produce or manufacture of the Cook Islands or Niue or not) are to be admitted into New Zealand free of duty.

(2)

Subsection (1) does not apply to—

(a)

goods in respect of which, on their exportation from the Cook Islands or Niue, a claim for drawback of duty has been made and allowed:

(b)

goods that, by reason of warehousing or for any other reason, have been exported from the Cook Islands or Niue without payment of duty on their importation into the Cook Islands or Niue:

(c)

goods produced in a manufacturing warehouse in the Cook Islands or Niue, unless they have been entered in the Cook Islands or Niue for home consumption and the duty (if any) has been paid on them:

(d)

goods on which a rate of duty had been paid in the Cook Islands or Niue lower than that to which the goods would be subject in New Zealand at the time of their importation into New Zealand if imported directly from their country of origin or where the valuation of the goods for duty has been assessed in the Cook Islands or Niue on a different basis from that applying in New Zealand as at the date of the importation of the goods into New Zealand:

(e)

goods subject to excise duty in the Cook Islands or Niue, unless such duty has been paid on them as if they had not been exported.

Compare: 1996 No 27 s 108

Subpart 7AInterest and penalties for late or incorrect payments of duty, incorrect refunds of duty, and drawback incorrectly allowed

Interest: late or incorrect payments of duty

154A Interest payable for late or incorrect payments of duty in certain cases

(1)

Interest is payable in respect of any duty if

(a)

any of sections 154B to 154E provides for this section to apply to the duty; and

(b)

the duty is not fully paid to Customs before the close of the payment date (see subsection (5)).

(2)

The interest is payable for the period (the interest period) that

(a)

begins with the day after the payment date; and

(b)

ends with the day on which the duty is fully paid.

(3)

The amount of interest payable is calculated for each day of the interest period in accordance with the following formula:

d × r ÷ 365

where

d

is the amount of the duty still to be paid to Customs as at the start of the day

r

is the prescribed rate of interest applying on that day.

(4)

The total amount of interest payable is the sum of the amounts calculated under subsection (3) for each day of the interest period.

(5)

In this section, payment date has the meaning given to that term in section 154B(2) or (4), 154C(2), (4), or (6), 154D(2), (4), or (6), or 154E(2) (as applicable).

(6)

See sections 154L to 154T for remissions and refunds of interest payable under this section.

154B Cases involving late payment of duty
Excise duty

(1)

Section 154A applies to any excise duty if clause 5(a) of Schedule 3 applies to the payment of the excise duty.

(2)

For the purpose of applying section 154A to the excise duty, payment date means the date on which the time prescribed for the purposes of clause 5(a) of Schedule 3 expires.

Duty in respect of imported goods

(3)

Section 154A applies to any duty in respect of imported goods if section 123(1) applies to the payment of the duty.

(4)

For the purpose of applying section 154A to the duty, payment date means the date on which the deferred time for payment of the duty under section 123(1) expires.

154C Cases involving correction of self-assessed duty
Excise duty

(1)

Section 154A applies to any excise duty if

(a)

the excise duty results from an amendment of an assessment under section 117; and

(b)

the amendment is correcting an assessment by a licensee under section 111.

(2)

For the purpose of applying section 154A to the excise duty, payment date means, despite section 124, the date on which the time prescribed for the purposes of clause 5(a) of Schedule 3 expires in relation to the Part A goods in respect of which the excise duty is levied.

Duty in respect of imported goods

(3)

Section 154A applies to any duty in respect of imported goods if

(a)

the duty results from an amendment of an assessment under section 117; and

(b)

the amendment is correcting an assessment by an importer under section 111.

(4)

For the purpose of applying section 154A to the duty, payment date means, despite section 124,

(a)

the date given by section 122 that is applicable to the imported goods; or

(b)

if section 123(1) would have applied to the payment of the duty had it been covered by the importer’s assessment, the date on which the deferred time for payment of the duty under section 123(1) would have expired.

(5)

Section 154A applies to any duty in respect of imported goods if

(a)

the duty results from an amendment of an assessment under section 117; and

(b)

the amendment is correcting an importer’s amendment of an assessment under section 112.

(6)

For the purpose of applying section 154A to the duty, payment date means, despite section 124, the 20th working day after the date on which the importer made the amendment under section 112.

154D Cases where no entry or amendment under section 112 made
Excise duty

(1)

Section 154A applies to any excise duty if the excise duty results from an assessment under section 113 or from an amendment of such an assessment under section 117.

(2)

For the purpose of applying section 154A to the excise duty, payment date means, despite section 124,

(a)

if the excise duty is levied under clause 1(1) of Schedule 3, the date on which the time prescribed for the purposes of clause 5(a) of that schedule expires in relation to the Part A goods in respect of which the excise duty is levied; or

(b)

if the excise duty is levied under clause 1(3) of Schedule 3, the date on which the Part A goods in respect of which the excise duty is levied were manufactured.

Duty in respect of imported goods

(3)

Section 154A applies to any duty in respect of imported goods if the duty results from an assessment under section 113 or from an amendment of such an assessment under section 117.

(4)

For the purpose of applying section 154A to the duty, payment date means, despite section 124, the date given by section 122 that is applicable to the imported goods.

(5)

Section 154A applies to any duty in respect of imported goods if

(a)

the duty results from an amendment of an assessment under section 117; and

(b)

the amendment is an amendment of the kind referred to in section 117(4)(b).

(6)

For the purpose of applying section 154A to the duty, payment date means, despite section 124, the 20th working day after the expiry of the time prescribed for the purposes of section 112(2)(a).

154E Other cases involving assessments or demands by chief executive

(1)

Section 154A applies to any duty if

(a)

the duty is required to be paid to Customs within a period given by section 124(2) to (7); and

(b)

none of sections 154B to 154D provides for section 154A to apply to the duty.

(2)

For the purpose of applying section 154A to the duty, payment date means the date on which the relevant period given by section 124(2) to (7) expires.

Penalties: late payments of duty

154F Penalties payable for late payments of duty in certain cases

(1)

A penalty is payable in respect of any duty if

(a)

section 154G provides for this section to apply to the duty; and

(b)

the duty is not fully paid to Customs before the close of the payment date (see subsection (5)).

(2)

The penalty is equal to 1% of the amount of the duty still to be paid to Customs as at the close of the payment date.

(3)

A further penalty is payable in respect of the duty if the duty is not fully paid to Customs before the close of the seventh day after the payment date.

(4)

The further penalty is equal to 4% of the amount of the duty still to be paid to Customs as at the close of that seventh day.

(5)

In this section, payment date has the meaning given to that term in section 154G(2), (4), or (6) (as applicable).

(6)

See sections 154L to 154T for remissions and refunds of penalties payable under this section.

154G Cases in which penalties may be payable
Excise duty: clause 5(a) of Schedule 3 applies

(1)

Section 154F applies to any excise duty if clause 5(a) of Schedule 3 applies to the payment of the excise duty.

(2)

For the purpose of applying section 154F to the excise duty, payment date means the date on which the time prescribed for the purposes of clause 5(a) of Schedule 3 expires.

Duty in respect of imported goods: section 123(1) applies

(3)

Section 154F applies to any duty in respect of imported goods if section 123(1) applies to the payment of the duty.

(4)

For the purpose of applying section 154F to the duty, payment date means the date on which the deferred time for payment of the duty under section 123(1) expires.

Any duty: section 124(2) to (7) applies

(5)

Section 154F applies to any duty if the duty is required to be paid within a period given by section 124(2) to (7).

(6)

For the purpose of applying section 154F to the duty, payment date means the date on which the relevant period given by section 124(2) to (7) expires.

Interest: incorrect refunds of duty or drawback incorrectly allowed

154H Interest payable for incorrect refunds of duty or drawback incorrectly allowed in certain cases

(1)

Interest is payable in respect of any refund or drawback of duty if section 154I or 154J provides for this section to apply to the refund or drawback.

(2)

The interest is payable for the period (the interest period) that

(a)

begins with the day after the payment date (see subsection (5)); and

(b)

ends with the repayment date (see subsection (5)).

(3)

The amount of interest payable is calculated for each day of the interest period in accordance with the following formula:

a × r ÷ 365

where

a

is the amount of the refund or drawback to the extent that it has not been repaid to Customs as at the start of the day

r

is the prescribed rate of interest applying on that day.

(4)

The total amount of interest payable is the sum of the amounts calculated under subsection (3) for each day of the interest period.

(5)

In this section, payment date and repayment date have the meanings given to those terms in section 154I(2) or 154J(2) or (4) (as applicable).

(6)

See sections 154L to 154T for remissions and refunds of interest payable under this section.

154I Refunds of duty made because of error attributable to recipient, etc

(1)

Section 154H applies to any refund of duty if the refund is made by Customs

(a)

in error of fact or law; and

(b)

on the basis of incorrect information provided to Customs by

(i)

the recipient of the refund; or

(ii)

any other person by whom the duty was payable.

(2)

For the purpose of applying section 154H to the refund,

payment date means the date on which the refund was

(a)

paid; or

(b)

applied towards the payment of any other duty under section 147(a)

repayment date means the date on which the refund is fully repaid to Customs.

154J Drawback allowed because of error attributable to recipient, etc

(1)

Section 154H applies to any drawback of duty allowed under section 149

(a)

in error of fact or law; and

(b)

on the basis of incorrect information provided to Customs by the recipient of the drawback.

(2)

For the purpose of applying section 154H to the drawback,

payment date means the date on which the drawback was

(a)

paid; or

(b)

applied towards the payment of any other duty under section 149(4)

repayment date means the date on which the drawback is fully repaid to Customs.

(3)

Section 154H applies to any drawback of duty allowed under section 149 if the drawback becomes a debt due to the Crown under section 150(3).

(4)

For the purpose of applying section 154H to the drawback,

payment date means the date on which the drawback becomes a debt due to the Crown under section 150(3)

repayment date means the date on which the drawback is fully repaid to Customs.

Statements of liability

154K Statements of liability for interest and penalties

(1)

This section applies if the chief executive is satisfied that interest or penalties are payable by a person (the duty payer) under this subpart in respect of any duty or refund or drawback of duty (the unpaid duty).

(2)

The chief executive may by notice issue a statement to the duty payer setting out

(a)

the chief executive’s calculation of the interest or penalties payable by the duty payer in respect of the unpaid duty as at the date of the statement:

(b)

if applicable, the method for calculating the interest or penalties that will become payable by the duty payer in respect of the unpaid duty so long as the unpaid duty remains to be fully paid or repaid after the date of the statement.

(3)

The chief executive may by notice issue updated or amended statements to the duty payer.

(4)

A statement issued by the chief executive is treated as a correct statement of the interest or penalties that are payable, or prospectively payable, by the duty payer in respect of the unpaid duty,

(a)

unless and until it is superseded by an updated or amended statement (in which event the updated or amended statement is treated as correct); and

(b)

subject to subsection (5).

(5)

If the duty payer is dissatisfied with a decision of the chief executive under this section, the duty payer may, within 20 working days after the date on which the duty payer receives the statement concerned, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

(6)

In relation to an updated or amended statement, subsection (5) applies only to matters that relate to the update or amendment.

Remissions and refunds of interest and penalties

154L Interest: remissions and refunds for emergency events

(1)

Subsections (2) and (3) apply if

(a)

an emergency event (see subsection (4)(a)) physically prevents a person (the duty payer) from fully paying any duty to Customs before the close of the payment date (see subsection (6)); and

(b)

as a result, interest is payable in respect of that duty under section 154A in a case covered by section 154B or 154E; and

(c)

the duty payer falls within the class, or any of the classes, of persons prescribed by the relevant regulations for the purposes of subsection (4)(b), if those regulations prescribe a class or classes of persons for those purposes.

(2)

The duty payer may apply to the chief executive to remit or refund the interest.

(3)

The chief executive may remit or refund the interest if the chief executive is satisfied that

(a)

it is equitable that the interest be remitted or refunded; and

(b)

the duty payer applied for the remission or refund as soon as practicable; and

(c)

the duty payer fully paid the duty to Customs as soon as practicable.

(4)

Regulations

(a)

may declare an event that meets the requirements of paragraphs (a) and (b) of the definition of emergency in section 4 of the Civil Defence Emergency Management Act 2002 to be an emergency event for the purposes of this section:

(b)

may, but need not, prescribe a class or classes of persons who may apply for the remission or refunding of interest under this section in relation to the emergency event.

(5)

Regulations made for the purposes of subsection (4)

(a)

may relate to an event that occurs before the regulations come into force; and

(b)

are revoked at the close of the 6-month period that starts with the date on which the regulations come into force (unless the regulations are revoked earlier); but

(c)

may be replaced by further regulations that are made for the purposes of subsection (4) before or after the time at which the regulations are revoked.

(6)

In this section, payment date has the meaning given to that term in section 154B(2) or (4) or 154E(2) (as applicable).

Compare: 1994 No 166 s 183ABA

154M Interest: remissions and refunds where inadvertent error by duty payer

(1)

Regulations may, for cases covered by section 154C, require the chief executive to remit or refund a proportion of any interest payable under section 154A if the chief executive is satisfied that

(a)

the licensee’s or importer’s assessment under section 111, or the importer’s amendment of an assessment under section 112, was incorrect because of an inadvertent error; and

(b)

the prescribed conditions (if any) are met.

(2)

The proportion to be remitted or refunded must be calculated in the prescribed way.

154N Penalties: remissions and refunds where reasonable excuse for late payment of duty

(1)

The chief executive may remit or refund a penalty payable under section 154F in respect of any duty payable by a person (the duty payer) if satisfied that,

(a)

as a result of a relevant event, the duty payer has a reasonable excuse for not fully paying the duty to Customs before the close of, as the case may be,

(i)

the payment date; or

(ii)

the seventh day after the payment date; and

(b)

the duty payer fully paid the duty to Customs as soon as practicable.

(2)

In this section,

payment date has the meaning given to that term in section 154G(2), (4), or (6) (as applicable)

relevant event

(a)

means an event or circumstances that

(i)

are or were beyond the control of the duty payer; and

(ii)

could not reasonably have been anticipated or avoided by the duty payer; but

(b)

does not include the duty payer’s financial position.

(3)

Without limiting paragraph (a) of its definition in subsection (2), a relevant event could be

(a)

an accident or a natural disaster; or

(b)

illness or emotional or mental distress.

Compare: 1994 No 166 s 183A

154O Penalties: remissions and refunds for good payment record

(1)

The chief executive must remit or refund a penalty payable under section 154F in respect of any duty (the late duty) if

(a)

the late duty has been fully paid to Customs; and

(b)

every amount of relevant duty that was payable by the duty payer in the previous 2-year period (if any) was paid on time.

(2)

For the purposes of subsection (1)(b), an amount of relevant duty

(a)

was payable in the previous 2-year period if the payment date of the relevant duty fell within the 2-year period that ended with the day before the payment date of the late duty; and

(b)

was paid on time if the relevant duty was fully paid to Customs before the close of the payment date of the relevant duty.

(3)

In this section,

duty payer means the person, or any of the persons, by whom the late duty was payable

payment date has the meaning given to that term in section 154G(2), (4), or (6) (as applicable)

relevant duty means any duty covered by section 154G(1), (3), or (5).

154P Interest and penalties: remissions and refunds if duty determined not to be payable, etc

(1)

This section applies if any interest or penalty is payable under section 154A or 154F in respect of any duty (the relevant duty) and

(a)

it is determined in any administrative review, appeal, or legal proceedings that the relevant duty is not payable in whole or in part; or

(b)

the relevant duty is otherwise remitted or refunded in whole or in part.

(2)

This section also applies if

(a)

any interest is payable under section 154H in respect of any refund or drawback; and

(b)

it is determined in any administrative review, appeal, or legal proceedings that the refund or drawback was correctly made or allowed in whole or in part.

(3)

The chief executive must remit or refund, as the case requires,

(a)

the whole of the interest or penalty; or

(b)

a proportion of the interest or penalty that the chief executive determines to be appropriate in the circumstances.

(4)

The chief executive’s obligation under subsection (3) is suspended pending the outcome of any relevant appeal lodged by the chief executive under this Act or any other enactment.

154Q Interest and penalties: remissions and refunds if consistent with collection of highest net revenue over time

(1)

The chief executive may remit or refund any interest or penalty payable under this subpart if the chief executive is satisfied that the remission or refund is consistent with the chief executive’s obligation under section 110 to secure the collection, over time, of the highest net revenue from duty that is practicable within the law.

(2)

In deciding whether to remit or refund any interest or penalty under this section, the chief executive

(a)

must have regard to the importance of this subpart in promoting compliance, especially voluntary compliance, by all duty payers with this Act and any other enactment relating to any duty:

(b)

must not have regard to the financial position of the person by whom the interest or penalty is payable.

Compare: 1994 No 166 s 183D

154R Interest and penalties: remissions and refunds in prescribed circumstances

(1)

Regulations, made on the recommendation of the Minister, may prescribe circumstances in which the chief executive must remit or refund 1 or both of the following:

(a)

any interest payable under this subpart:

(b)

any penalty payable under this subpart.

(2)

The Minister may make a recommendation for the purposes of subsection (1) only if the Minister is satisfied that the proposed regulations will not undermine this subpart in promoting compliance, especially voluntary compliance, by all duty payers with this Act and any other enactment relating to any duty.

154S Power to apply refunds towards payment of other amounts payable

If any interest or penalty is refundable to any person under any of sections 154L to 154R, the chief executive may, at his or her discretion, apply the whole or any part of the refund towards the payment of

(a)

any duty payable by that person; or

(b)

any other amount payable by that person under this Act.

154T Administrative reviews and appeals in respect of decisions not to remit or refund

A person who is dissatisfied with a decision of the chief executive not to remit or refund the whole or any part of any interest or penalty under any of sections 154L to 154R may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

Final provisions

154U Interest and penalties are debt due to Crown, etc

(1)

Any interest or penalty payable under this subpart is a debt that is

(a)

due to the Crown; and

(b)

owed by the person or persons referred to in subsection (2) and, if owed by more than 1 person, jointly and severally; and

(c)

payable immediately; and

(d)

recoverable by the chief executive (on behalf of the Crown) in any court of competent jurisdiction.

(2)

Any interest or penalty payable under this subpart is owed by the following persons:

(a)

in the case of any interest or penalty payable under section 154A or 154F in respect of any duty, the person or persons by whom the duty is payable:

(b)

in the case of any interest payable under section 154H in respect of any refund of duty,

(i)

the recipient of the refund; and

(ii)

any other person or persons by whom the duty was payable:

(c)

in the case of any interest payable under section 154H in respect of any drawback of duty,

(i)

the recipient of the drawback in a case covered by section 154J(1):

(ii)

the owner of the goods in a case covered by section 154J(3).

(3)

The recovery by the chief executive of any interest payable under section 154H in respect of any refund or drawback recoverable by the chief executive under section 151A is subject to section 151A(2)(b) as well.

(4)

Any payment to Customs by a person who owes any amount under this subpart may be applied by the chief executive towards the payment of that amount before it is applied towards the payment of

(a)

any duty payable by that person; or

(b)

any other amount payable by that person under this Act apart from this subpart.

(5)

A person’s obligation to pay any interest or penalty under this subpart is not suspended by any administrative review, appeal, or legal proceedings.

(6)

Regulations may prescribe an amount of interest or penalty below which interest or penalties under this subpart need not be collected, and the circumstances in which interest or penalties below the prescribed amount need not be collected.

(7)

To avoid doubt, sections 154A and 154F apply to any duty even if the duty results from an assessment, or an amendment of an assessment, that is made after the payment date (as that term is defined in section 154A(5) or 154F(5)).

Subpart 8—Forfeiture, seizure, and condemnation

155 Application of subpart

This subpart applies to all forfeitures that arise under this Act.

Compare: 1996 No 27 s 224

156 Goods forfeited

(1)

The following goods are forfeited to the Crown:

(a)

all goods that are unlawfully imported:

(b)

all goods that are unlawfully exported:

(c)

all goods that any person or persons have attempted unlawfully to export:

(d)

goods in respect of which an offence has been committed under—

(i)

sections 340 and 341 (which relate to entries and related returns):

(ii)

sections 343 to 345 (which relate to declarations and documents):

(iii)

section 348 (which relates to defrauding the Customs revenue of Customs):

(iv)

section 349 (which relates to possession or custody of uncustomed goods or prohibited imports):

(v)

section 350 (which relates to purchase, sale, exchange, etc, of uncustomed goods or prohibited imports):

(vi)

section 351 (which relates to possession or control of concealed goods):

(vii)

section 358 (which relates to counterfeit seals, stamps, markings, substances, or devices):

(viii)

section 363 (which relates to possession of incomplete documents):

(ix)

sections 365 to 368 (which relate to importation or exportation of prohibited goods):

(x)

section 370 (which relates to exportation of goods):

(e)

goods dealt with in contravention of section 77, 78, 83, or 85:

(f)

dutiable or prohibited goods that are found in the possession of any person who, when questioned under section 184 or 208, denied or failed to disclose possession of those goods:

(g)

dutiable or prohibited goods that are—

(i)

found in the course of a search under section 210; or

(ii)

seized under section 193(1)(b) to (d):

(h)

dangerous items seized under section 193(1)(a):

(i)

electronic devices treated as forfeited under section 207(10):

(j)

goods treated as forfeited in accordance with section 222(2)(c):

(k)

goods in respect of which an erroneous statement, declaration, certificate, or claim as to the country of which the goods are the produce or manufacture has been made or produced to any Customs officer:

(l)

dutiable or prohibited goods that are found on or in any craft or cargo device that is unlawfully in any place:

(m)

dutiable or prohibited goods that are found on or in any craft or cargo device after arrival in any Customs place from a point outside New Zealand other than—

(i)

goods that are specified in the inward report under section 24(1)(a); or

(ii)

goods that are not required to be specified in the inward report under section 24(1)(a) because of section 24(3); or

(iii)

baggage belonging to the crew or passengers; or

(iv)

goods otherwise accounted for to the satisfaction of a Customs officer:

(n)

dutiable or prohibited goods that are found concealed in or on—

(i)

any craft, vehicle, or cargo device; or

(ii)

any other thing:

(o)

goods in any package if those goods are not fully accounted for in the entry or declaration relating to that package:

(p)

dutiable or prohibited goods that are packed so as to be likely to deceive Customs officers:

(q)

uncustomed goods that are found in any place:

(r)

imported goods that have been acquired (whether by the importer or some other person)—

(i)

in a country outside New Zealand; and

(ii)

by an act that, if done in New Zealand, would have amounted to a crime involving dishonesty:

(s)

goods exported, or in respect of which an attempt to export has been made, that have been acquired (whether by the exporter or some other person)—

(i)

in New Zealand; and

(ii)

by an act that amounts to a crime involving dishonesty:

(t)

any goods, equipment, or apparatus used, or intended for use, in the manufacture of Part A goods in contravention of section 56(1)(a):

(u)

any goods manufactured wholly or partly using any goods, equipment, or apparatus referred to in paragraph (t).

(2)

For the purposes of subsection (1)(b) and (c), prohibited goods are treated as exported when they are placed in or on any craft for exportation.

(3)

If goods are forfeited, the following are also forfeited:

(a)

any case, covering, or other enclosure in or on which the goods are contained at the time of seizure, importation, or exportation (other than a cargo device):

(b)

any cargo device in or on which the goods are contained at the time of seizure, importation, or exportation if the cargo device has been adapted for the purpose of concealing goods:

(c)

every any animal, craft, vehicle, or other thing (including any machinery or equipment on or in the craft, vehicle, or thing) that is used for the transportation, handling, deposit, or concealment of the goods (whether at the time, or after the time, of any alleged offence in relation to those goods).

(4)

Every A craft is forfeited to the Crown if—

(a)

the craft is one in respect of which an offence under section 13 or 20 18 is committed; and

(b)

that offence was committed to facilitate non-compliance with any requirement in sections 28 to 30 by a person or persons who arrived in New Zealand (in that craft or in any other craft).

Compare: 1996 No 27 s 225

157 Forfeiture to relate back

Goods are forfeited immediately at the time the act or event that gives rise to the forfeiture takes place.

Compare: 1996 No 27 s 228

Seizure

158 Seizure of forfeited goods or goods suspected to be forfeited goods

(1)

A Customs officer or constable may seize—

(a)

any forfeited goods; or

(b)

any goods that he or she has reasonable cause to suspect are forfeited.

(2)

Forfeited goods (other than goods forfeited because they are prohibited goods) may be seized at any time within 2 years after their forfeiture.

(3)

Goods that are forfeited because they are prohibited goods may be seized at any time after their forfeiture.

(4)

A Customs officer or constable may use all reasonable force to effect the seizure of goods under subsection (1).

(5)

This section applies in the contiguous zone as it applies in New Zealand.

(6)

The power under this section may be exercised in the contiguous zone only in accordance with article 33 of the United Nations Convention on the Law of the Sea.

Compare: 1996 No 27 s 226(1)–(5)

159 Securing seized goods

(1)

All goods seized under section 158 must be taken to a place of security and detained.

(2)

Despite subsection (1), a Customs officer may leave goods that have been seized as forfeit under section 158 in the custody of—

(a)

the person from whom the goods have been seized; or

(b)

any other person who—

(i)

is authorised by the Customs officer; and

(ii)

consents to having custody of the goods.

(3)

Every A person who has the custody of goods under subsection (2) must—

(a)

hold them for safe keeping—

(i)

until a final decision is made as to whether they are to remain forfeit; and

(ii)

without charge to the Crown; and

(iii)

in accordance with any reasonable conditions imposed by Customs; and

(b)

make the goods available to any Customs officer on demand; and

(c)

not alter, dispose of, or remove the goods from New Zealand unless the person is authorised to do so by a Customs officer; and

(d)

return the goods on demand to the custody of Customs.

Compare: 1996 No 27 s 226(6)–(8)

160 Offence in relation to securing seized goods

(1)

A person who has custody of goods under section 159(2) commits an offence if the person, without reasonable excuse, fails to comply with section 159(3).

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 215(1), (2)

161 Notice of seizure

(1)

If goods have been seized under section 158, Customs must, as soon as is reasonably practicable, notify—

(a)

any person who is known or believed to have an interest in the goods; or

(b)

if any such person is overseas, his or her agent in New Zealand.

(2)

The notice referred to in subsection (1) must—

(a)

be in writing and in the prescribed form; and

(b)

contain the reasons for the seizure.

(3)

A seizure is not invalidated or illegal by reason of a failure to provide a notice under this section if reasonable steps were taken to give the notice.

Compare: 1996 No 27 s 227

162 Delivery of goods seized on deposit of value

(1)

This section applies to goods that—

(a)

have been seized under section 158; and

(b)

have not yet been condemned.

(2)

The chief executive may deliver the goods to the owner (or any other person from whom they were seized) on the deposit with Customs of a cash sum equal to—

(a)

the value of the goods, being—

(i)

the Customs value of the goods, if the goods are imported goods; or

(ii)

the excise value of the goods, if the goods were are Part A goods that were manufactured in a manufacturing area; and

(b)

any duty that the chief executive determines is payable on the goods.

(3)

The money deposited is treated as substituted for the goods seized, and this subpart applies to the money accordingly.

(4)

For the purposes of subsection (2)(a)(ii), the excise value of goods must be determined in accordance with subpart 2 of Part 1 of Schedule 3.

Compare: 1996 No 27 s 229

163 Sale of certain seized goods

(1)

This section applies to goods that—

(a)

have been seized under section 158; and

(b)

have not yet been condemned.

(2)

The chief executive may sell—

(a)

a living creature; or

(b)

any thing that, in the opinion of the chief executive,—

(i)

is of a perishable nature; or

(ii)

is likely to deteriorate or diminish in value by keeping; or

(iii)

it is desirable to sell.

(3)

The net proceeds of sale are substituted for the goods sold, and this subpart applies to the proceeds accordingly.

Compare: 1996 No 27 s 230

Review of seizure

164 Application for review of seizure

(1)

Any person who has an interest in goods that have been seized under section 158 may apply to the chief executive in accordance with clause 1 of Schedule 5 for a review of the seizure.

(2)

Schedule 5 applies to reviews of seizures of goods.

Compare: 1996 No 27 s 231(1)

Condemnation

165 Condemnation of seized goods

(1)

This section applies to goods that have been seized under section 158.

(2)

If no application is made for a review of the seizure of the goods within the time given by clause 1(2)(b) of Schedule 5, the goods are condemned to the Crown.

(3)

If an application for a review is made within that time, the goods are condemned to the Crown—

(a)

if and when the application is discontinued:

(b)

if the application is dismissed by the chief executive, at the close of the period of 20 working days referred to in clause 9 of Schedule 5 unless an appeal is lodged against the dismissal within that time in accordance with that clause.

Compare: 1996 No 27 s 235A

166 Condemnation of goods that are subject of appeal

Goods that are the subject of an appeal under clause 9 of Schedule 5, as referred to in section 165(3)(b), are condemned to the Crown if—

(a)

the appeal is discontinued; or

(b)

the decision of the Customs Appeal Authority on the appeal neither—

(i)

disallows the seizure of the goods under clause 4(2)(a) of Schedule 5 (as applied by clause 13 of Schedule 8); nor

(ii)

grants relief under clause 4(2)(b) of Schedule 5 (as applied by clause 13 of Schedule 8).

Compare: 1996 No 27 s 235C

167 Goods forfeit on commission of offence

(1)

This section applies if—

(a)

goods are forfeit on the commission of any offence, being—

(i)

goods in respect of which the offence was committed; or

(ii)

goods that are forfeited under section 156(3) or (4); and

(b)

the goods have not been—

(i)

restored to the person from whom they were seized; or

(ii)

sold or otherwise disposed of by the chief executive under this Act.

(2)

If any person is convicted of the offence, the court may on sentencing, if it thinks fit (and subject to any conditions as it thinks fit), order the forfeited goods be restored to the person from whom the goods were seized.

(3)

If the court does not make an order under subsection (2), the goods are condemned to the Crown on the conviction of the person for the offence.

Compare: 1996 No 27 s 236

168 Disposal of forfeited and condemned goods

(1)

To avoid doubt, the Crown has the property in—

(a)

any forfeited goods:

(b)

any deposit made under section 162:

(c)

any proceeds of sale under section 163.

(2)

Condemned goods may be sold, used, destroyed, or otherwise disposed of in any manner that the chief executive considers appropriate.

Compare: 1996 No 27 s 237

Part 4 Customs powers

169 Exercise of powers in contiguous zone

(1)

In the following provisions, New Zealand includes the contiguous zone:

(a)

section 170:

(b)

section 173:

(c)

section 174:

(d)

section 175:

(e)

section 178 (except subsection (1)(c)(ii)):

(f)

section 184:

(g)

section 189.

(2)

The following provisions also apply in the contiguous zone as they apply in New Zealand:

(a)

section 171:

(b)

section 185:

(c)

section 193:

(d)

section 205:

(e)

section 206:

(f)

section 207:

(g)

section 221:

(h)

section 236:

(i)

section 237:

(j)

section 238:

(k)

section 242.

(3)

A power under this Act that may be exercised in the contiguous zone as a result of subsection (1) or (2) may be exercised in the contiguous zone only in accordance with article 33 of the United Nations Convention on the Law of the Sea.

Powers in relation to craft

170 Boarding and searching craft

(1)

This section applies to the following craft:

(a)

a craft that has arrived in New Zealand:

(b)

a craft that is departing from New Zealand:

(c)

a craft in New Zealand that is en route to a point outside New Zealand:

(d)

a craft to which section 35(2) applies that is en route to a point within New Zealand:

(e)

any other craft in New Zealand that is transporting any domestic cargo or international cargo:

(f)

a craft that is in New Zealand and that a Customs officer has reasonable cause to suspect—

(i)

is transporting any dutiable, uncustomed, prohibited, or forfeited goods; or

(ii)

has been, is, or is about to be involved in the commission of an offence under this Act.

(2)

A Customs officer may—

(a)

board the craft; and

(b)

search the craft for the purpose of carrying out any function under this Act.

(3)

Part 4 of the Search and Surveillance Act 2012, except subpart 3, applies in respect of a power under this section where it is being exercised solely in reliance on subsection (1)(f).

(4)

Despite subsection (3), sections 125(4), 131(5)(f), and 133, and subparts 6 and 8 of Part 4, of the Search and Surveillance Act 2012 do not apply to forfeited goods.

(5)

In exercising the power to search under this section, a Customs officer may—

(a)

use reasonable force to—

(i)

enter any part of a craft; or

(ii)

open any package, locker, or other place:

(b)

examine all goods found on a craft.

Compare: 1996 No 27 ss 139(1), (5), (6), 140

171 Facilitation of boarding

(1)

A Customs officer may direct the person in charge of a ship to which section 170 applies—

(a)

to stop the ship and bring it to for boarding; and

(b)

to ensure that the ship remains stopped until a Customs officer directs that the ship may proceed.

(2)

A Customs officer may direct the person in charge of a craft to which section 170 applies to facilitate the boarding of the craft by all reasonable means.

Compare: 1996 No 27 ss 23(1), (3), 35

172 Offences in relation to facilitation of boarding

(1)

The person in charge of a ship commits an offence if the person fails to comply with any direction of a Customs officer under section 171(1).

(2)

The person in charge of a craft commits an offence if the person fails to comply with any direction of a Customs officer under section 171(2).

(3)

Section 54 (defences for offences) applies to an offence under this section as if this section were in subpart 1 of Part 3.

(4)

A person who commits an offence under this section is liable on conviction to—

(a)

imprisonment for a term not exceeding 12 months; or

(b)

a fine not exceeding $15,000.

Compare: 1996 No 27 ss 191(1)(c), (2), 193(1)(c), (2), 195

173 Stationing Customs officers on board craft

(1)

The chief executive may, for the purpose of enabling any Customs officer to carry out a function under this Act, station the officer on board a craft that has arrived in New Zealand.

(2)

The person in charge of the craft must ensure that the Customs officer is provided,—

(a)

free of charge, with—

(i)

carriage; and

(ii)

suitable accommodation and board in accordance with the officer’s reasonable requirements; and

(b)

with safe access to any part of the craft; and

(c)

with safe means of leaving the craft.

Compare: 1996 No 27 s 139(2)–(4)

174 Securing goods on craft

A Customs officer boarding or searching any craft in New Zealand under section 170 may, for the purpose of carrying out a function under this Act,—

(a)

secure goods on board that craft by appropriate means; or

(b)

remove goods on board that craft to a secure place.

Compare: 1996 No 27 s 141

175 Firing on ship

(1)

The person in charge of any craft in the service of the Crown—

(a)

must, at the request of the chief executive, give chase to any ship in New Zealand if—

(i)

the ship does not immediately bring to when signalled or required to bring to; or

(ii)

the person in charge of the ship refuses to permit the ship to be boarded; and

(b)

may, as a last resort (after having fired a warning shot), fire at or onto the ship to compel it to bring to.

(2)

In the case of a ship in the service of the Crown, the person in charge of the ship must ensure that the proper ensign of the ship or the Customs flag is hoisted or prominently displayed on the ship at all times when acting under this section.

Compare: 1996 No 27 s 142

176 Power to order ship to leave New Zealand

(1)

This section applies to a ship that has arrived in, or is departing from, New Zealand.

(2)

A Customs officer may, with the approval of the chief executive, order the person in charge of the ship to cause the ship to leave New Zealand.

(3)

If a Customs officer does so, the person in charge of the ship must cause the ship to leave New Zealand immediately.

(4)

The chief executive may approve the giving of an order under subsection (2) only if the chief executive is satisfied that it is in the public interest for the order to be given.

Compare: 1996 No 27 s 23(4), (5)

177 Offence in relation to power to order ship to leave New Zealand

(1)

The person in charge of a ship commits an offence if the person fails to comply with section 176(3).

(2)

Section 54 (defences for offences) applies to an offence under this section as if this section were in subpart 1 of Part 3.

(3)

A person who commits an offence under this section is liable on conviction to—

(a)

imprisonment for a term not exceeding 12 months; or

(b)

a fine not exceeding $15,000.

Compare: 1996 No 27 ss 191(1)(c), (2), 195

178 Detention of craft suspected to be involved in offences or smuggling migrants

(1)

This section applies if a Customs officer has reasonable cause to believe—

(a)

that an offence under this Act has been committed on, or in respect of, a craft that is in New Zealand; or

(b)

that an offence under this Act is being, or is about to be, committed on, or in respect of, a craft that is in New Zealand; or

(c)

that—

(i)

there is a person on a craft in New Zealand; and

(ii)

the craft has transported that person into New Zealand; and

(iii)

that transportation constituted an offence under section 98C(1) of the Crimes Act 1961.

(2)

A Customs officer—

(a)

may—

(i)

direct that the craft proceed to the nearest Customs place or to any other place that the officer considers appropriate; or

(ii)

direct that the craft remain where it is; and

(b)

may detain the craft for any time and for any purposes reasonably necessary to carry out an investigation into the commission of the offence concerned.

(3)

Subsection (4) applies if the person in charge of the craft attempts, or threatens, to cause the craft to depart, without a certificate of clearance, from the place—

(a)

to which the craft is directed to proceed under subsection (2)(a)(i); or

(b)

at which the craft is directed to remain under subsection (2)(a)(ii).

(4)

A Customs officer may detain the craft until a certificate of clearance is issued.

Compare: 1996 No 27 s 143

179 Offences in relation to detained craft

(1)

A person commits an offence if the person, without the permission of the chief executive, takes, carries away, or otherwise converts to the person’s own use a craft detained under section 178(4).

(2)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to—

(i)

imprisonment for a term not exceeding 12 months; or

(ii)

a fine not exceeding an amount equal to 3 times the value of the goods craft to which the offence relates:

(b)

in the case of a body corporate, to a fine not exceeding an amount equal to 3 times the value of the goods craft to which the offence relates.

Compare: 1996 No 27 ss 143(2), 215(3), (4)

Powers in relation to persons

180 Evidence of identity, entitlement to travel, etc

(1)

This section applies to the following persons:

(a)

an internationally ticketed passenger using air or sea travel for a domestic sector:

(b)

a domestic passenger using air or sea travel for a domestic sector:

(c)

a person in a designated place who—

(i)

has arrived in New Zealand; or

(ii)

is departing from New Zealand:

(d)

any other person who is within a Customs-controlled area that is licensed to be used for the disembarkation, embarkation, or processing of persons arriving in, or departing from, New Zealand.

(2)

The person must, on demand by a Customs officer,—

(a)

state the person’s—

(i)

full name; and

(ii)

residential address; and

(iii)

date of birth; and

(b)

produce any prescribed document for inspection or, if the person is unable to produce the prescribed document, complete a declaration in the prescribed form.

(3)

A Customs officer may make a demand under subsection (2)(b) only for the purpose of establishing 1 or more of the following:

(a)

the person’s identity:

(b)

the person’s travel movements:

(c)

the person’s entitlement to air or sea travel for a domestic sector.

(4)

A Customs officer must immediately inspect and return a document produced by a person under subsection (2)(b).

(5)

Despite subsection (4), a Customs officer may retain a document produced under subsection (2)(b) for as long as is necessary to determine whether the chief executive wishes to exercise his or her power to retain the document under section 235.

(6)

If a document referred to in subsection (4) or (5) is produced in electronic form on a device,—

(a)

a Customs officer must also immediately return the device under subsection (4); and

(b)

subsection (5) is subject to the relevant threshold under section 207(2) being met.

(a)

before the device can be retained under subsection (5) or a power under section 207 can be exercised in relation to the device, the relevant threshold in section 207 must be met; and

(b)

a Customs officer must immediately return the device under subsection (4) if paragraph (a) does not apply.

(7)

This section is subject to section 238 (which relates to unlawful travel documents).

Compare: 1996 No 27 s 147

181 Offence in relation to failure to produce evidence of identity, entitlement to travel, etc

(1)

A person commits an offence if the person, without reasonable excuse, fails to comply with a demand made under section 180(2).

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 186

182 Verification of identity using biometric information

(1)

This section applies to a person in a designated place who—

(a)

has arrived in New Zealand; or

(b)

is departing from New Zealand.

(2)

A Customs officer may, during the processing of a person’s arrival in, or departure from, New Zealand, request the person to provide biometric information for the purpose of verifying the person’s identity using biometric matching.

(3)

A Customs officer may direct a person who fails to comply with a request under subsection (2) to remain in the designated place for any of the following purposes:

(a)

to enable a Customs officer to make any inquiries necessary to establish the identity of the person:

(b)

to enable a Customs officer to obtain the attendance of, or make inquiries of, a constable, a bailiff, or an employee or agent of a department of State who is authorised, in respect of a matter specified in section 187(1)(b), to do any of the following:

(i)

question the person:

(ii)

ascertain or determine the status of the person:

(iii)

detain the person:

(iv)

arrest the person.

(4)

A person must comply with a direction given under subsection (3).

(5)

A direction under subsection (3) ceases to have effect 4 hours after it is given.

183 Detention of persons failing to comply with direction under section 182(3)

(1)

A Customs officer may detain a person who fails to comply with a direction given under section 182(3) for any of the purposes referred to in that subsection.

(2)

The person may be detained for a reasonable period not exceeding 4 hours.

(3)

A Customs officer may use reasonable force, if necessary, when exercising the power of detention under this section.

(4)

This section does not prevent a person—

(a)

being detained or further detained under any other provision of this Act or under any other enactment (if there are lawful grounds for that detention); or

(b)

being arrested under section 242.

184 Questioning people persons about goods and debt

(1)

This section applies to the following persons who are in New Zealand:

(a)

any person who has arrived in New Zealand within the preceding 72 hours:

(b)

any other person who is on board, or is in the process of disembarking from, a craft that has arrived in New Zealand:

(c)

any person who is departing from New Zealand:

(d)

any other person who is on board, or is in the process of embarking onto, a craft that is to depart from New Zealand:

(e)

any other person who is within a Customs-controlled area that is licensed for any of the purposes referred to in section 56(1)(c) to (f):

(f)

any other person who is within a duty-free store.

(2)

A Customs officer may question the person as to any of the following:

(a)

whether the person has or has had in his or her possession any dutiable, prohibited, uncustomed, or forfeited goods:

(b)

the nature, origin, value, ownership, or intended destination of any dutiable, prohibited, uncustomed, or forfeited goods:

(c)

whether any debt—

(i)

is due to the Crown under this Act; and

(ii)

is payable by the person or a company, trust, partnership, or other enterprise of which the person is or was a director, manager, trustee, secretary, officer, or agent:

(d)

the nature and extent of the debt (if any).

Compare: 1996 No 27 s 145

185 Detention of people persons questioned about goods or debt and suspected to be involved in offences

(1)

A Customs officer may detain a person if—

(a)

a Customs officer—

(i)

is not satisfied that an answer to a question put to the person under section 184(2) is correct; or

(ii)

has not been given an answer to a question put to the person under section 184(2); or

(iii)

is not satisfied as to a reason or explanation given by the person in response to a question put to the person under section 184(2) about goods that are or have been, or that the officer suspects are or have been, in that person’s possession or under that person’s control; and

(b)

a Customs officer has reasonable cause to suspect that an offence under this Act has been, is being, or is about to be committed by the person or any other person associated with that person.

(2)

The power of detention under this section may be used only for 1 or both of the following purposes:

(a)

to enable the Customs officer to make any inquiries necessary to establish whether an answer to a question or a reason or an explanation given is correct:

(b)

to obtain the attendance, or make inquiries, of another Customs officer or any other person who is entitled to exercise any power to question, detain, or arrest a person under this Act.

(3)

A person may be detained under this section for a reasonable period not exceeding 4 hours.

Compare: 1996 No 27 s 148

186 Completion of processing under Immigration Act 2009 and Biosecurity Act 1993

(1)

This section applies to a person in a designated place who—

(a)

has arrived in New Zealand; or

(b)

is departing from New Zealand.

(2)

The person must remain in the designated place until processing is completed in respect of the person’s arrival in, or departure from, New Zealand under—

(a)

the Immigration Act 2009; and

(b)

if applicable, the Biosecurity Act 1993.

(3)

A Customs officer may direct the person to comply with the person’s obligations under subsection (2).

(4)

The processing referred to in subsection (2) is completed when—

(a)

the person has complied with all obligations imposed on the person, in respect of the person’s arrival in, or departure from, New Zealand, under—

(i)

the Immigration Act 2009; and

(ii)

if applicable, the Biosecurity Act 1993; and

(b)

the functions that are required to be carried out under those Acts in relation to the person in the designated place have been, so far as practicable, carried out in that place.

(5)

In this section, processing includes consideration by an officer authorised under the Biosecurity Act 1993 or the Immigration Act 2009 of—

(a)

the applicability of the Biosecurity Act 1993 or the Immigration Act 2009 to a person; or

(b)

whether to carry out any function under the Biosecurity Act 1993 or the Immigration Act 2009 in relation to a person.

Compare: 1996 No 27 s 32B

187 Cases requiring investigation for public health or law enforcement purposes

(1)

This section applies to a person in a designated place if—

(a)

the person—

(i)

has arrived in New Zealand; or

(ii)

is departing from New Zealand; and

(b)

a Customs officer has reasonable cause to suspect that the person—

(i)

is liable to be detained under any enactment because of an infectious disease; or

(ii)

is liable to arrest under warrant; or

(iii)

is, in attempting to depart from New Zealand or in attempting to remove any other person from New Zealand, contravening, or about to contravene, any enactment or an order of a court; or

(iv)

is liable to be prosecuted for an offence punishable by imprisonment; or

(v)

has contravened any of the following enactments:

(A)

the Biosecurity Act 1993:

(B)

the Human Assisted Reproductive Technology Act 2004:

(C)

the Misuse of Drugs Act 1975:

(D)

the Passports Act 1992:

(E)

the Terrorism Suppression Act 2002:

(F)

the Trade in Endangered Species Act 1989:

(G)

regulations under the United Nations Act 1946:; or

(H)

a specified enactment by committing an offence that involves the unlawful entry into New Zealand, or the unlawful removal from New Zealand, of a person, matter, or thing; or

(vi)

is endangering, or threatening to endanger, the life, health, or safety of a person or group of persons.

(2)

The Customs officer may direct the person to remain in the designated place for the purpose of obtaining the attendance of, or making inquiries of, a constable, a bailiff, or an employee or agent of a department of State who is authorised, in respect of a matter specified in subsection (1)(b), to do any of the following:

(a)

question the person:

(b)

ascertain or determine the status of the person:

(c)

detain the person:

(d)

arrest the person.

(3)

A person to whom this section applies must comply with a direction of a Customs officer given under this section.

(4)

A direction under this section ceases to have effect 4 hours after it is given.

(5)

In this section, specified enactment means an enactment specified by the Governor-General by Order in Council for the purposes of this section.

Compare: 1996 No 27 s 32C

188 Offence in relation to requirements imposed under section 186 or 187

(1)

A person commits an offence if the person wilfully fails to comply with any requirement imposed on that person by or under section 186 or 187.

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 180

189 Search of persons

(1)

This section applies to the following persons who are in New Zealand:

(a)

any person who is on board, or is in the process of disembarking from, a craft that has arrived in New Zealand:

(b)

any person in a designated place—

(i)

who has arrived in New Zealand; or

(ii)

who is departing from New Zealand:

(c)

any person who is on board, or is in the process of embarking onto, a craft that is departing from New Zealand.

(2)

A Customs officer or constable may—

(a)

conduct a preliminary search of the person; and

(b)

for the purpose of conducting the preliminary search, detain the person for a reasonable period.

(3)

A Customs officer or constable may search the person (whether or not a preliminary search of the person has been conducted) if a Customs officer or constable has reasonable cause to suspect—

(a)

that the person has hidden on or about his or her person—

(i)

any dutiable, uncustomed, prohibited, or forfeited goods; or

(ii)

evidence relating to any such goods; or

(iii)

any thing that is, or might be, evidence of a contravention of this Act; or

(b)

that—

(i)

the person has a dangerous item on or about his or her person; and

(ii)

the item poses a threat to the safety of the officer or constable, or any other person; and

(iii)

there is a need to act immediately in order to address that threat; and

(iv)

a preliminary search would expose the Customs officer or constable, or any other person, to greater risk from the threat.

(4)

Part 4 of the Search and Surveillance Act 2012, except subpart 3, applies in respect of the powers under subsection (3).

(5)

Despite subsection (4), sections 125(4), 131(5)(f), and 133, and subparts 6 and 8 of Part 4, of the Search and Surveillance Act 2012 do not apply to forfeited goods.

(6)

In this section, preliminary search means a search that—

(a)

involves little or no physical contact between the person conducting the search and the person being searched; and

(b)

is conducted—

(i)

by using an aid or aids such as a Customs dog, a chemical substance, or X-ray or imaging equipment, or some other mechanical, electrical, or electronic device, or other similar aid; but

(ii)

not by any more invasive means.

Compare: 1996 No 27 ss 149, 149A, 149B(1), (7)–(9), 149BA

190 Search of persons suspected of having goods hidden on or about their person

(1)

This section applies to—

(a)

any person who has arrived in New Zealand at a place other than a Customs place within the preceding 24 hours; or

(b)

any person who is about to depart from New Zealand from any place other than a Customs place; or

(c)

any person who is in a Customs place.

(2)

A Customs officer or constable may search the person if a Customs officer or constable has reasonable cause to believe that the person has hidden on or about his or her person—

(a)

any dutiable, uncustomed, prohibited, or forfeited goods; or

(b)

evidence relating to any such goods; or

(c)

any thing that is, or might be, evidence of the a contravention of this Act.

(3)

Part 4 of the Search and Surveillance Act 2012, except subpart 3, applies in respect of the powers under this section.

(4)

Despite subsection (3), sections 125(4), 131(5)(f), and 133, and subparts 6 and 8 of Part 4, of the Search and Surveillance Act 2012 do not apply to forfeited goods.

Compare: 1996 No 27 s 149B(2), (3), (7)–(9)

191 Detention of persons committing or about to commit certain offences

(1)

A Customs officer may detain a person who the Customs officer on reasonable grounds believes is committing, or is about to commit, an offence under section 20, 34, or 188 by—

(a)

leaving or boarding a craft in contravention of section 19; or

(b)

not complying with a Customs direction, in contravention of section 29(2); or

(c)

not proceeding to a Customs-controlled area, in contravention of section 29(3)(a); or

(d)

not remaining in a Customs-controlled area, in contravention of section 29(3)(b); or

(e)

failing to comply with a direction given to the person under section 186(3).

(2)

A Customs officer—

(a)

may detain a person under this section only for the purpose of—

(i)

ensuring the person’s compliance with 1 or more of the provisions referred to in subsection (1)(a) to (e); or

(ii)

delivering the person to a Police station or to the custody of a constable; and

(b)

may detain a person under this section only for a reasonable period; and

(c)

must release a person detained under this section immediately after the person has complied with the requirements of—

(i)

the provision in relation to which he or she was detained; and

(ii)

any other applicable provision referred to in subsection (1)(a) to (e).

(3)

A Customs officer may use reasonable force, if necessary, to detain a person under this section.

(4)

A Customs officer must not detain a person under this section if the officer believes that the person has already committed an offence to which subsection (1) relates.

(5)

However, subsection (4) does not prevent a person—

(a)

being detained or further detained under any other provision of this Act or under any other enactment (if there are lawful grounds for that detention); or

(b)

being arrested under section 242.

Compare: 1996 No 27 s 148B(1)(a), (d)–(f), (2), (4)–(78)

192 Detention of persons who do not report to or remain at certain places

(1)

A Customs officer or constable may detain a person who the Customs officer or constable has reasonable grounds to believe is committing, or is about to commit, an offence under section 34 by—

(a)

not reporting immediately to a Customs officer or a Police station on arrival in New Zealand in contravention of section 28(a); or

(b)

not remaining at the place where he or she reported to a Customs officer, or at the Police station, in contravention of section 28(b).

(2)

A Customs officer or constable—

(a)

may detain a person under this section only for the purpose of—

(i)

ensuring that the person complies with section 28; or

(ii)

removing or delivering the person to a Police station; or

(iii)

in the case of a Customs officer, delivering the person into the custody of a constable; and

(b)

may detain a person under this section only for a reasonable period; and

(c)

must release a person detained under this section immediately after the person has complied with section 28(a) or (b) (as the case may be).