WORLD TRADE
ORGANIZATIONG/C/W/449
10 March 2003
(03-1364)
Council for Trade in Goods Original:  English
TRADE FACILITATION:
National Experience Paper from New Zealand
The following communication, dated 10 March 2003, has been received from the Permanent
Mission of New Zealand.
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Introduction
1. During the course of 2002 a number of WTO Members put forward proposals for the review,
clarification and improvement of GATT Articles V, VIII and X under the Council for Trade in Goods’
programme of work on trade facilitation. The Secretariat Compilation paper G/C/W/434 provides anexcellent summary of the proposals made to date.
2. New Zealand supports many of those proposals.  The objective of this paper is to provide
examples of how New Zealand has implemented and operationalised many of the principles contained
in the proposals made under Article VIII of the GATT concerning fees and formalities connected with
importation and exportation and Article X concerning publication and administration of trade
regulations
1. New Zealand considers that the following examples illustrate the feasibility and benefits
of implementing proposals in the Secretariat Compilation paper.
3. Our particular perspective is one of a small Customs Service operating in a cost conscious
environment where trade plays a crucial role to the country’s economic well being.  In addition, the
importance of agricultural trade to New Zealand brin gs a heightened sense of risk from cross-border
introduction of pests and diseases.  Accordingly New Zealand has based the modernisation of its
customs procedures around the principle of least trade restrictiveness without compromising the
pursuit of legitimate regulatory objectives such as sanitary and phytosanitary protection or national
security.
4. We hope that this, and any similar contributions, will encourage the Council for Trade in
Goods to further Members’ common understanding on proposals for the review, clarification and
improvement of GATT Articles V, VIII and X and on the importance of future negotiations on trade
facilitation in the WTO. We also hope that our paper contributes to the development of a clearer
picture of the trade facilitation needs and priorities along with technical assistance and capacitybuilding needs in accordance with paragraph 27 of the Doha declaration. New Zealand has already
submitted a national experience paper, which is contained in document G/C/W/380.
                                                     
1 Article V, pertaining to goods in transit, is not considered in this paper as it does not feature
significantly in New Zealand’s national experience. Nevertheless issues surrounding goods in transit are animportant aspect of trade facilitation.G/C/W/449
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Proposals Concerning Article X of the GATT concerning publication and administration of
trade regulations.
5. A number of proposals have been made with respect to Article X concerning such issues as
the publication and availability of information, consultative and feedback mechanisms for interacting
with stakeholders and the review and appeal procedures and due process.
– Publication and Availability of Information
6. Consultation and information dissemination be tween border control agencies, business and
the community has been an important means to increase transparency of customs procedures and toreduce the likelihood of problems, for all parties, in the trade transaction.
7. All regulations and laws pertaining to Article X of the GATT are notified, inter alia, in the
New Zealand Gazette, which is published weekly on both paper and on the Internet by the New
Zealand Department of Internal Affairs. The New Zealand Gazette also has a specific weekly editionfor Customs related issues including judicial decisions.
8. The development and implementation of an effective overall communication strategy has
been made a priority by the New Zealand’s Customs Service for the period 2001 through 2004.  This
strategy is building on a pre-existing commitment to timely and accurate dissemination ofinformation.
9. The New Zealand Customs Service provides information to all interested parties
2 via a
number of different media including: an official website3; a fortnightly newsletter, the “Customs
Release”; and notification through commercial media.
10. These publication activities have promoted closer co-operation between traders and
government agencies, including through promoting more predictable and open working relationships.
Following initial set-up costs, the low marginal costs of regularly updating material in standard
publication formats has resulted in cost efficiencies  for the Customs Service in dealing with customer
enquiries.
– Consultative/Feedback Mechanisms
11. A broad and inclusive consultative process supplements the publication of information by
New Zealand Government agencies, includ ing the Customs Service.  A number of consultative
mechanisms4 have been set up in New Zealand to encourage greater dialogue between users and
border control agencies.  An example is “Tomorro w’s Cargo Logistics” which consists of major
government and business organisations involved in freight handling.  The group provides a forum for
discussion and resolution of customs related problems and aims to work together in achieving
seamless cargo processing with the least regulatory impact.  The current focus is on reducing the costs
involved in the export process by identifying the da ta each participation in the export chain requires
and agreeing, wherever possible, to transfer the data to each other.  Ultimately, the goal is to be ableto share this information with freight and agency interests at the point of destination.
                                                     
2 See the Canadian and European Communities proposals; G/C/W379 and G/C/W/363 respectively,
and G/C/W/434 p.3.
3 http://www.customs.govt.nz
4 EC, p7.,G/C/W/434G/C/W/449
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12. The New Zealand Customs Service is involved in a business partnership programme
“Frontline”, which links Customs with business a nd the community.  Under this programme Customs
Officers visit manufacturers, exporters, importers and community and industry groups interested in
encouraging regional development and business growth to explain customs requirements and also to
provide assistance in addressing any customs related problems.
13. New Zealand Customs has also established and chairs a Joint Industry Consultative Group
(JICG) whose membership includes the Board of Airline Representatives NZ, the Ministry of
Agriculture & Forestry, Importers Institute, Employers & Manufacturers Association, Airport & Port
companies, Customs Brokers Association and the Shipping Agents Association.  The JICG meets
quarterly and is aimed at providing a vehicle for strategic level dialogue with broad stakeholder
interests in the way the border is managed.  This is seen as a “progressive partnership” seekingconstant evolution in the way Customs manages its business and which adds to more cost
effectiveness for taxpayers, private sector companies and their stakeholders.
14. The benefits of these programmes are seen as improved compliance with Customs
requirements and better information available to both business and government authorities fordecision-making. Anecdotal evidence suggests that these programmes have been particularly
successful in assisting small to medium enterprise s (SMEs) to reduce compliance costs. Benefits for
the Customs Service have included the avoidance of decisions and new measures that cannot feasibly
be implemented  by business.
15. New Zealand supports the principle of trade facilitation rules aimed to encourage such
cooperative and consultative mechanisms, although we acknowledge that the exact structure of such
mechanisms is probably not something that is best prescribed by multilateral rules.
– Minimum Time Periods before Entry into Force
16. Regarding proposals for standard [ised]  and adequate time periods between adoption and
entry into force of regulations,5all regulations in New Zealand are subject to domestic political
processes that provide for reasonable periods of notification prior to the entry into force of a measure
of any kind. The New Zealand executive requires a minimum of 28 days notification to be given
before regulations may come into force. Regulato ry initiatives that fall under the scope of the
Agreement on Technical Barriers to Trade  (TBT Agreement) are normally subject to a minimum
sixty-day notification period before they come into force.
17. Minimum time periods before entry into force of new regulations allow businesses to respond
effectively to new regulations and to implement th em in such a way as to minimise the potentially
distortive impacts of transitioning. Minimum time periods may also be used to identify and remedy
prospective problems before costly implementation mistakes are made.
– Advance Rulings
18. New Zealand operates a system that can provide rulings in advance of importation, which are
binding on the importing authorities6. Customs legislation provides a facility for both tariff and
preference status to be determined prior to importa tion, providing certainty in duty liability at the time
of importation. What is more this process is easy to administer, with procedural requirements being no
greater than that which is required to make rulings ex post.
– Establishment of enquiry points
                                                     
5 EC, p7., G/C/W/434.
6 Canada, p.5., G/C/W/434.G/C/W/449
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19. New Zealand has established inquiry points to ease accessibility to trade related information7.
New Zealand Customs is client focused in providing inquiry points, for example – dedicated Client
Service officers at public counters; a National Call Centre operating a 24-hour, free-dial facility; an
informative website providing a broad range of Customs information with linkages to other relevantsites; and a targeted inquiry facility for EDI inquiries.
20. Clear points for handling enquiries reduces the time taken to submit and to process enquiries,
reducing the cost to business of accessing specific advice or information. For the Customs Service the
standardisation of procedures within these dedicated points of enquiry mean that enquiries are more
likely to be directed to the correct location thereby saving time and reducing costs.
– Review and Appeal Procedures and Due Process
 21. In addition to the right to appeal decisions within the Customs administration, n on-
discriminatory legal right(s) of appeal
8 are in place in New Zealand. For example, the Customs and
Excise Act 1996 provides, in a number of areas, for persons dissatisfied with a decision made by theNew Zealand Customs Service to appeal to the Cu stoms Appeal Authority (an independent, judicial
appeal authority set-up under the Tribunals Division of the Department for Courts).  Examples
include, amongst others, Customs decisions to grant, or refusal to grant, a Customs Control Area
licence and the cancellation or amendments of entries.
22. Amongst other benefits, due process procedures protect both authorities and traders against
decisions taken by the other party not in accordance with their obligations. In support of the
development of rules in this area there may be  need for assistance in capacity building at an
institutional level to assist in building the necessary frameworks to implement due process measures.
Proposals Concerning Article VIII of the GATT 1994 on fees and formalities connected with
importation and exportation
– Specific Provisions Regarding Data and Documentation Requirements and Procedures
23. The New Zealand Customs Service applies existing international standards9 in its electronic
entry processing systems (UN/EDIFACT). Customs is also actively involved in the developing WorldCustoms Organisation (WCO) data modelling work and applies international best-practice models on
paperless-trading.
24. Our experience has shown that the adoption of such standards can assist in cooperation with
other customs authorities, especially on issues of enforcement. Standardised, or equivalence,approaches to data can also lower processing costs for both traders and government authorities.
– Use of International Standards
25. Import and export procedures are heavily influenced by agreed international standards and
instruments.
10 New Zealand widely applies the original Kyoto Convention and has signed the revised
Kyoto Convention. New Zealand also applies the WCO's HS Convention (as its combined
import/export tariff nomenclature) and other WCO instruments/guidelines aimed at facilitating
legitimate trade.
                                                     
7 Japan, p.6. G/C/W/434
8 Canada and EC, p.8. G/C/W/434
9 Canada, p.13. G/C/W/434
10 EC, p.6. G/C/W/434G/C/W/449
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26. Use of international standards, where available has proven and obvious benefits. The WTO
does not need to replicate international standards that are developed in other international
organisations. However, the WTO can play an important role in facilitating the adoption of these
international standards where appropriate.
– Special Procedures for Authorised Traders
27. The New Zealand approach in this area is to provide universal benefit to trade facilitating
programmes. The New Zealand Customs Service does not operate “special procedures for authorised
traders”.  Rather, with the exception of access to a scheme for deferring the immediate payment of
Customs’ duty (available to financially sound and reliable traders), our facilitation-orientedprogrammes are available to all traders unless they show themselves to be unreliable. Along with
many of the measures outlined above such an approach has helped to engender stable and cooperative
relationships between the authorities and traders.
– Risk Assessment and/or Advanced Control Techniques
28. New Zealand Customs utilises risk assessme nt methodologies in its management of the
border.  With most auditing conducted post-entry, either via an audit programme or based on
intelligence gathered from previous transactions, few goods are delayed at the border thereby
facilitating the entry of legitimate goods into the marketplace. Customs legislation provides adequateauthority to safeguard this compliance role in a post-entry audit environment.
29. New Zealand has recently been involved in developing and implementing enhanced border
security processes. This includes work that is being done in APEC, under the Secure Trade in the
APEC Region (STAR) initiative; in the WCO; in the International Maritime Organisation (IMO); andin conjunction with security initiatives being introduced by the United States, such as the Container
Security Initiative (CSI). In order to maintain an en vironment that facilitates trade, attention has been
given to the application of effective risk management techniques and to enhancing security using
existing procedures. This experience is a good example whereby both facilitation and protection (in
this case security) concerns can be balanced and greater attention paid to important public policy
priorities while minimising impediments to the efficient clearance of low risk transactions.
– Automation
30. New Zealand Customs Service’s implementation of its electronic programme illustrates how a
small Customs Service, working in a cost sensit ive environment, can effectively implement the
proposals relating to GATT Article VIII that advocate the need for greater automation of customsprocedures. The Government’s Customs computer sy stem (CusMod) has enhanced the efficiency of
customs clearance and made clearance procedures less resource intensive for both Customs and
traders. For example, the institution of a multimedia electronic paperless clearance system has, over a
four-year period, reduced processing times from ten days to an average of 12 minutes.
31. Technical assistance and capacity building are complementary processes. Effective technical
assistance must reflect the existing capacity of a nation or seek to build capacity at the same time. In
recognition of this interrelationship New Zealand Customs has sought to assist in the creation of
effective Customs procedures that befit the environment in which they are used. In some instances
this approach to technical assistance has required the sharing of experiences in automated procedures.
In other instances the most effective technical assistance has been the institution of more traditional
practices, such as classification and valuation training skills.G/C/W/449
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– Co-operation and Co-ordination among Different Authorities
32. New Zealand Customs has an open dialogue with neighbouring Customs administrations and
jointly considers developing trade facilitation processes.  Dialogue on Customs’ matters is conducted
under co-operative arrangements with eight other Customs administrations (Australia, Canada, Chile,China, Hong Kong China, Korea, the UK and the USA) and under forums such as the APEC Sub-
Committee on Customs Procedures and the World Customs Organisation.  Customs co-operation,
with a particular focus on trade facilitation, is also a component in various bilateral trade agreements
New Zealand has entered into.
Concluding Remarks
33. The development of a robust trade facilitation framework, originating in GATT Articles X,
VIII, and V, has the ability to reduce unnecessary transaction costs and to benefit all Members’
economies. The simplification of clearance procedures and communication with traders as evidenced
above, have provided considerable benefits to both traders and our border control agencies. Such as:
• Immediate clearance on arrival (via Electronic Cargo Information) or pre-arrival clearance;
• Reduced stock control costs  through use of “just-in-time” deliveries;
• Elimination of paper handling;
• No requirement to physically attend the Customhouse to lodge documents or receive
clearance;
• Minimal wharf storage charges;
• Improved cash flows;
• Up to six weeks deferred payments;
• Certainty of duty and GST(domestic value added tax) liability
These tangible benefits have created a trading environment that effects confidence in customs
procedures, which in turn improve compliance with rules and procedures.
34. The complete set of potential benefits from trade facilitation may only be realizable with a
strong focus on technical assistance and capacity building aimed at providing practical workable
solutions for all Member states. For that reason the New Zealand view is that technical assistance and
capacity building form fundamental aspects of the trade facilitation work programme.
35. It is hoped that this paper demonstrated how Members’ proposals could be translated into
actual mechanisms at the border. We would like to emphasize that we have provided examples in this
paper of where our national experience has been relevant to some of the proposals that have been put
forward in the CTG process.  There are some other proposals that have been made where New
Zealand is not necessarily currently operating relevant measures.  None the less, the clear experienceof both our authorities and our traders has been that in those areas where we are currently operating
such measures, the benefits of Trade Facilitation outweigh the costs.
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