GARTH WYLLIE charts a course through the stricter customs requirements of a more security-conscious world.
Heightened security in international trade is putting new demands on exporting and importing companies.
From March 1 all export and import entries have had to be lodged electronically - just one of the new rules introduced to assist with the security of goods exported from or moving through New Zealand.
To meet the requirements of our trading partners, the Customs Department must be able to electronically screen the information provided to identify shipments at risk that may require further action.
From the start of this month no goods were to be loaded for export without a customs delivery order, meaning exports became subject to the same sort of controls as imports. No imported goods are released from a Customs-controlled area without a customs delivery order.
The department has been advising businesses of these upcoming changes since early last year.
Goods worth less than $1000, and some exempt goods, do not require an export entry, though information on consignments must still be provided electronically, usually by a broker, freight forwarder or consolidator (or by NZ Post for postal articles) via an electronic cargo information (ECI) report. This provides summary details of single or multiple consignments. Tariff classifications are not required.
Exporters of consignments worth less than $1000 should confirm with their freight company which details they need to provide to Customs. Goods exempt from export entries generally include gifts, some trade samples, passengers' baggage and effects, and commercial documents.
For goods valued under $1000 or exempt goods, ECI reports will be electronically processed and Customs will respond with either a clearance advice or advice those goods must be presented for examination. An ECI clearance must be provided to the freight forwarder, consolidator, port, or air cargo terminal operator either electronically or in hard copy, depending on what they are set up to receive. Businesses need to check the right codes are entered in the delivery authority field on the export entry.
Most goods valued over $1000 require an electronic export entry to be lodged, and a delivery order received by Customs before loading.
The export entry provides full details of the export consignment including its tariff classification.
From this month export entries had to be lodged and cleared before goods are loaded for export. Under the former system goods could be shipped before lodging the relevant documentation. This is no longer possible. But Customs can process an export entry electronically and return a delivery order within 60 minutes if there are no errors, and a goods examination is not required.
If exporters lodge an entry less than 48 hours before loading for sea freight, or nine hours before airfreight, the goods may not be cleared in time, if an examination is required.
Some types of goods are prohibited or restricted from export, requiring in the latter case an export licence or permit. For export and duty drawback, Customs needs the name or client code of the person or company in New Zealand who the overseas importer bought or obtained the goods from; instead, some carriers, freight forwarders or agents are entering their own entry codes. If this type of detail is entered incorrectly, the processing of entries will be delayed and may be rejected.
Customs issues a declarant code and a unique user identifier (UUI or PIN) to individuals approved to lodge electronic entries.
If Customs believes a declarant code or UUI has been disclosed or shared, the code will be cancelled.
Customs requires that goods be cleared before loading. Ports and airports make their own decisions about whether they require goods to be cleared before they receive them into secure areas. From March 1, Customs began preventing non-compliant cargo being loaded.
Customs examines cargo it considers a risk as identified by its screening processes in the same way that at-risk import cargo is examined using non-invasive technology including x-ray, detector dogs or physical inspections.
Effective security can benefit strongly from partnerships; that's why many participants have partnered with Customs under the Secure Export Partnership scheme. This reduces the chance an exporter's goods will need examining.
ROLE OF CUSTOMS IS KEEPING TRADE SECURE
* Customs is giving priority to developing Secure Export Partnerships with major exporters, but they are open to all exporters.
* Customs is also interested in partnership relationships with brokers, freight forwarders, consolidators and other supply chain players.
* Customs export audit officers went to some lengths to contact selected exporters, brokers and freight forwarders to assess their preparedness for complying with the new rules before they were introduced, and to make sure brokers, freight consolidators and freight forwarders understood them.
* Customs client services officers are located around the country and in the Customs National Call Centre (0800 428 786).
* More information is on the Customs website.
* Garth Wyllie is an Employers & Manufacturers Association specialist on customs clearance and related requirements.
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