Explanatory note
This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, except new regulations 28H, 28I, 28M, 28N and 28O (as inserted by regulation 18), come into force on 21 June 2019. New regulations 28H, 28I, 28M, 28N, and 28O, which relate to the issue of compensation schedules and the information that those schedules must contain, come into force on 20 June 2019.
Applications for permits to possess
The principal regulations are amended to provide for the issue of a permit to possess a pistol, prohibited firearm, prohibited magazine, or restricted weapon in any case where the applicant—
has a firearms licence already bearing an endorsement, but a different endorsement from that required for possessing a pistol, prohibited firearm, prohibited magazine, or restricted weapon; or
lawfully possessed the item before 12 April 2019 and during the amnesty period delivered or surrendered the item to a member of the Police; or
lawfully possesses the item after 12 April 2019 in reliance on the temporary amnesty in clause 5 of Schedule 1 of the Arms Act 1983.
General provisions relating to compensation
New regulation 28H is inserted. It is an interpretation provision that defines key terms, including approved licensed dealer, approved gunsmith, and prohibited part.
New regulation 28I provides that no compensation is payable for any economic loss, consequential loss, loss for business interruption, or loss attributable to intrinsic or sentimental value.
Compensation for prohibited items delivered or surrendered to Police or forfeited to Crown
New regulations 28J to 28P establish a scheme for the payment of compensation in respect of prohibited firearms, prohibited magazines, and prohibited parts that during the amnesty period are delivered or otherwise surrendered to the Police, or are forfeited to the Crown. The amnesty period is the period beginning at 3 pm on 21 March 2019 and ending on the close of 20 December 2019 (or any later date prescribed by Order in Council). Compensation is payable to persons (other than an exempt person) who—
before 3 pm on 21 March 2019 lawfully possessed a firearm that at that time was declared a military style semi-automatic firearm and became a prohibited firearm on 12 April 2019:
before 12 April 2019 lawfully possessed an item that on that date became a prohibited firearm, prohibited magazine, or prohibited part that cannot be used on a firearm other than a prohibited firearm:
before 12 April 2019 arranged to lawfully import a firearm, magazine, or part that on that date became a prohibited item, and—
the item is being treated as prohibited goods under section 98 of the Customs and Excise Act 2018:
the item is delivered to the Police by the New Zealand Customs Service:
the item is forfeited to the Crown:
the person does not obtain a permit to possess the item.
New regulation 28J provides for prohibited items to be delivered to an approved licensed dealer for surrender to the Police, and imposes certain recording requirements on a dealer when accepting delivery of such items. Possession of those items by an approved licensed dealer is not unlawful on the condition that the approved licensed dealer notifies a member of the Police as soon as is reasonably practicable of the delivery of the item and the dealer complies with any direction from the member of the Police relating to the surrender of the item and disclosure of the dealer’s records.
New regulation 28K provides that an administration fee of $50 (excluding goods and services tax) is payable to an approved licensed dealer in respect of each person who delivers to the dealer 1 or more prohibited items and who is subsequently paid compensation for any item.
New regulation 28L sets out the eligibility criteria for applying for compensation from the Crown in respect of a prohibited item that is delivered or surrendered to the Police during the amnesty period or forfeited to the Crown. An application must be made before the end of the amnesty period. The amount of compensation payable in respect of a prohibited item is—
the amount set out in respect of that item in a compensation schedule issued by the Commissioner of Police (the Commissioner) under new regulation 28M; or
the amount for the item determined by the Commissioner under new regulation 28P.
New regulation 28M requires the Commissioner to issue, as soon as is reasonably practicable, 1 or more compensation schedules setting out the amounts of compensation payable in respect of prohibited items delivered or surrendered to the Police or forfeited to the Crown. During the amnesty period, the schedules may be amended or replaced by the Commissioner, and the Commissioner may issue supplementary schedules. All schedules and any amendment to a schedule must be notified in the Gazette and available on the Police Internet site.
New regulation 28N prescribes the information required to be set out in a compensation schedule. A schedule must set out for each prohibited item—
a base price, being the price that the Commissioner considers reflects the value of the item immediately before 10 March 2019, after taking into account certain matters; and
the compensation payable in respect of the item according to its condition, as determined by the Police, calculated as a percentage of the base price.
New regulation 28O requires the Commissioner to publish on the Police Internet site the indicators used by the Police to determine the condition of a prohibited item.
New regulation 28P provides a procedure for a person to apply to the Police to have the compensation payable in respect of a prohibited item determined by the Commissioner in any case where the item—
is not listed in a compensation schedule and is rare or has other distinguishing characteristics that significantly affect its value, or is otherwise unique and is substantially different from any prohibited item listed in a compensation schedule; or
is listed in a compensation schedule, but has been modified in such a manner and to such an extent that its value is believed to be at least 30% above the base price for that item in the compensation schedule.
An application is made by submitting a completed application form and other specified information to the Commissioner. On receiving an application, the Commissioner may require the applicant to obtain a valuation of the item.
The Commissioner must consider the application and all information available to or obtained by the Commissioner relating to the value of the item and, after determining the compensation payable in respect of the item, notify the applicant of that determination.
Compensation payable to licensed dealers
New regulations 28Q to 28T establish a scheme for the payment of compensation to licensed dealers in respect of prohibited items.
New regulation 28Q requires a licensed dealer to take all reasonable steps to mitigate their losses sustained in respect of prohibited items and to provide evidence of the steps they have taken when applying for compensation.
New regulation 28R establishes a compensation scheme for the payment of compensation to licensed dealers who—
before 3 pm on 21 March 2019 lawfully purchased or ordered a firearm that at that time was declared a military style semi-automatic firearm and became a prohibited firearm on 12 April 2019:
before 12 April 2019 lawfully purchased or ordered an item that on that date became a prohibited firearm, prohibited magazine, or prohibited part that cannot be used on a firearm other than a prohibited firearm.
A licensed dealer may apply for compensation in respect of the item before the end of the amnesty period if, at the date of the dealer’s application, the item is held by the dealer but is subject to arrangements made for its delivery to the Police, is subject to the control of the New Zealand Customs Service, has been forfeited to the Crown, or has been delivered by the New Zealand Customs Service to the Police.
New regulation 28S sets out the amount of compensation that the Commissioner may determine is payable to a licensed dealer in respect of a prohibited item according to whether the item was purchased new, purchased second-hand, or purchased as a trade-in.
New regulation 28T provides that a licensed dealer is entitled to receive compensation in respect of prohibited items only as provided under the principal regulations.
Other payments
New regulation 28U provides that if, before 12 April 2019, a person lawfully possessed a prohibited firearm, or a firearm with a prohibited magazine, that is capable of being modified to convert it to a non-prohibited firearm or a firearm with a non-prohibited magazine, the person may—
arrange for the modification to be undertaken by an approved gunsmith; and
seek payment from the Crown, not exceeding $300 (including goods and services tax), for the cost of the modification to the firearm and its non-detachable magazine or magazines.
If satisfied that the modification has been done in the required manner and to the required standard, and that the firearm and its non-detachable magazine or magazines have been safely and permanently modified, the Commissioner may make a payment for the modification to the applicant or directly to the approved gunsmith who made the modification.
New regulation 28V provides that if a licensed dealer who lawfully purchased or ordered a prohibited item before 21 March 2019 has returned the item to the supplier and received a refund, the dealer may apply to the Crown for a payment in respect of—
the difference between the amount the dealer paid for the item and the amount of refund received; and
any external costs incurred that are directly attributable to, or that may be apportioned to, the purchase of the item, including international and domestic freight costs; and
any international and domestic freight costs incurred that are directly attributable to, or that may be apportioned to, the return of the prohibited item.
Certain provisions not to apply to approved licensed dealers, valuers, and approved gunsmiths
New regulation 28W provides that, until the end of the amnesty period,—
sections 50A to 50C of the Arms Act 1983 do not apply to a licensed dealer in respect of a prohibited item that is delivered to the dealer for assessment of its capability for modification:
sections 44A, 44B, and 50A to 50C of that Act do not apply to valuers in respect of a prohibited item that is delivered to the valuer for valuation:
sections 44A and 50A to 50C of that Act do not apply to an approved gunsmith in respect of a prohibited item that is delivered to the gunsmith for modification, or for assessment as to its capability for modification.
New regulation 28X applies section 63 of the Arms Act 1983 (appeal to District Court Judge in respect of compensation) to payments made under new regulations 28U and 28V.
Prohibited ammunition
New regulations 28Y and 28Z provide for the implementation of the Arms (Prohibited Ammunition) Order 2019. That order comes into force on the same date as these regulations and declares certain ammunition to be prohibited ammunition for the purposes of the Arms Act 1983. New regulation 28Y exempts certain persons from the application of section 43AA(a) of the Arms Act 1983 (inserted by the Arms (Prohibited Firearms, Magazines, and Parts) Amendment Act 2019), which prohibits possession of prohibited ammunition. New regulation 28Z provides a temporary amnesty period, to 30 September 2019, for any person in possession of prohibited ammunition. The amnesty is subject to certain specified conditions.
Other amendments
These regulations also—
insert new regulation 28AAA to provide that—
a member of the Police may approve the storage in a commercial storage facility of a vital part of a prohibited firearm removed in accordance with section 33A(1)(c)(ii)(A) of the Arms Act 1983:
the Commissioner may require that the endorsement on an exempt person’s firearms licence be subject to the condition that the vital part be accessed only with the written permission of a member of the Police:
insert new regulation 28G to provide that, although a person who continues to possess a prohibited item during the amnesty period does not commit an offence, the person must not use the prohibited item and must at all times keep it in secure storage (except when transporting the item to a member of the Police, or an approved licensed dealer, or to or from an approved gunsmith, or an approved valuer). New regulation 28G is made under section 74C(1)(b)(iii) of the Arms Act 1983 and is revoked on the close of 31 December 2020 (see section 74C(3) of that Act):