Performance reporting on the levy
The Interim Cost Recovery Report and future reports on the Border Clearance Levy, are one way MPI and Customs will ensure transparency and accountability for the performance of the levy. The report provides information on cost recovery arrangements and an initial framework for reporting on the levy’s financial and non-financial performance in the future.
Consultation update
Decision released
Minister for Primary Industries Nathan Guy and Minister for Customs Nicky Wagner have announced the Government's decisions on the Border Clearance Levy. The levy will be introduced on 1 January 2016.
Key facts
- The levy covers border clearance costs for arriving and departing passengers.
- $18.76 (plus GST) for air travellers and those arriving on private craft.
- $22.80 (plus GST) for cruise ship passengers
- The levy is higher for cruise ship passengers because of the additional time and resources needed for biosecurity risk assessments at ports.
- Some exemptions to paying the levy have been made. They include: children under 2 years, crew, passengers in transit, mercantile crew and passengers, the military, diplomatic staff, Government crisis workers, and anyone who bought their ticket before 1 January 2016 for travel in 2016.
The introduction of the levy allows the Ministry for Primary Industries (MPI) and the New Zealand Customs Service to manage resourcing of border clearance activities as passenger numbers go up or down. This will mean the right resources are in place to keep New Zealand safe from harmful pests, people and dangerous substances and maintain current levels of service.
Decision documents
- Minister for Primary Industries' press release - Beehive website
- Redacted Cabinet Paper
- Redacted Regulatory Impact Statement
- Sapere Report (research)
- Fact sheet
- Questions and answers
Consultation update
Decision released
Minister for Primary Industries Nathan Guy and Minister for Customs Nicky Wagner have announced the Government's decisions on the Border Clearance Levy. The levy will be introduced on 1 January 2016.
Key facts
The levy covers border clearance costs for arriving and departing passengers.$18.76 (plus GST) for air travellers and those arriving on private craft.$22.80 (plus GST) for cruise ship passengersThe levy is higher for cruise ship passengers because of the additional time and resources needed for biosecurity risk assessments at ports.Some exemptions to paying the levy have been made. They include: children under 2 years, crew, passengers in transit, mercantile crew and passengers, the military, diplomatic staff, Government crisis workers, and anyone who bought their ticket before 1 January 2016 for travel in 2016.
The introduction of the levy allows the Ministry for Primary Industries (MPI) and the New Zealand Customs Service to manage resourcing of border clearance activities as passenger numbers go up or down. This will mean the right resources are in place to keep New Zealand safe from harmful pests, people and dangerous substances and maintain current levels of service.
Decision documents
Background to consultation
The Ministry for Primary Industries (MPI) and the New Zealand Customs Service invited comment from interested parties on the new border clearance levy which comes into effect on 1 January 2016. Comment was sought on the design and implementation of the levy including:
- how it's collected
- if the rates should be different for different transport types
- possible exemptions to the levy.
Meetings held
Public consultation meetings on the new border clearance levy were held in:
- Auckland: 15 July 2015 2:00-4:00pm – Custom House, 50 Anzac Avenue, CBD
- Christchurch: 16 July 2015 2:00-4:00pm – MPI, 14 Sir William Pickering Drive, Burnside
- Wellington: 17 July 2015 2:00-4:00pm – Pastoral House, 25 The Terrace, Wellington.
Consultation and other documents
- Consultation document
Consultation document - Consultation Regulatory Impact Statement
Consultation Regulatory Impact Statement - Cabinet Business Committee CBC (15) 8: Introducing a Biosecurity and Customs Passenger Levy
Cabinet Business Committee CBC (15) 8: Introducing a Biosecurity and Customs Passenger Levy - Cabinet Business Committee Amended Minute: CBC Min (15) 1/2 Introducing an Biosecurity and Customs Passenger Levy
Cabinet Business Committee Amended Minute: CBC Min (15) 1/2 Introducing an Biosecurity and Customs Passenger Levy - Cabinet Economic Growth and Infrastructure Committee EGI (15) 113: Border Clearance Levy: Release of Consultation Document
Cabinet Economic Growth and Infrastructure Committee EGI (15) 113: Border Clearance Levy: Release of Consultation Document - Cabinet Economic Growth and Infrastructure Committee EGI Min (15) 11/4: Border Clearance Levy: Release of Consultation Document
Cabinet Economic Growth and Infrastructure Committee EGI Min (15) 11/4: Border Clearance Levy: Release of Consultation Document - Frequently asked questions
Frequently asked questions
How to make a submission
Email your submission by 5pm Monday 28 July to levyconsultation@mpi.govt.nz .
You can also post your submission to:
Ministry for Primary Industries
P O Box 2526
Wellington 6140
Include the term 'Submission on the border clearance levy' in the email subject line or on the front of the envelope.
Your submission should include:
- Your name and address for correspondence.
- The date of your submission.
- The specific aspects of the proposal that you support or oppose.
- The reasons for your support or opposition.
- The recommendations you wish to be considered.
All received submissions will be acknowledged.
Consultation description
The Government announced in the 2015 Budget the introduction of a border clearance levy to recover the cost of border clearance activities for international travellers (passengers and crew).
The Ministry for Primary Industries (MPI) and the New Zealand Customs Service (Customs) are seeking comment on the design and implementation of the new border clearance levy, including how it's collected, if the rates should be different for different transport types, and possible exemptions.
Both agencies assess risk and process travellers that arrive New Zealand, and Customs also processes those that depart. Traveller numbers have been steadily increasing with around 11 million traveller movements across New Zealand's borders every year. This is growing conservatively at 3.5% a year.
The risk profile of travellers is also changing as trade and tourism links with new countries and markets expand. Higher risk travellers require higher levels of intervention, such as x-ray screening, detector dog screening, and physical inspections, and increases the costs.
The principle behind the levy is that as 'travellers create the risk' it is fairer that they should pay rather than the taxpayer.
The levy will take effect from 1 January 2016 and is expected to fully meet the costs of passenger and crew border clearance by 2017-18.
The introduction of the border clearance levy allows MPI and Customs to plan for increasing border volumes while maintaining their current levels of service and to create a more sustainable platform for border risk management services in the future.
Timetable
- Consultation will close at 5.00 pm 28 July 2015.
- Government decisions will be made by October 2015.
- The levy will come into force on 1 January 2016.
Who to contact
If you have questions about this consultation, email levyconsultation@mpi.govt.nz .
Submissions are public information
Note, that your submission is public information. Submissions may be the subject of requests for information under the Official Information Act 1982 (OIA). The OIA specifies that information is to be made available to requesters unless there are sufficient grounds for withholding it, as set out in the OIA. Submitters may wish to indicate grounds for withholding specific information contained in their submission, such as the information is commercially sensitive or they wish personal information to be withheld. Any decision to withhold information requested under the OIA is reviewable by the Ombudsman.