Contraband Issue 121 March 2012

8/13/2019 Contraband Issue 121 March 2012

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NEW ZEALAND CUSTOMS SERVICEMARCH 2012 ISSUE 121contraband

HISTORY OF DRUG ABUSE

IN NEW ZEALAND


2/24

MARCH 2012PAGE 6

NATIONAL DRUG INTELLIGENCE BUREAU 40TH ANNIVERSARY

This year, the National Drug Intelligence Bureau (NDIB)

will celebrate 40 years of providing tactical, operational, and

strategic intelligence support against drugs.

PAGE 10

HISTORY OF DRUG ABUSE IN NEW ZEALAND

For as long as there has been European settlement in

New Zealand, there has been drug-use to the point of

dependence and abuse.

PAGE 14

SMARTGATE NOW AVAILABLE FOR 16- AND17-YEAR-OLDS

Building on the phenomenal success of SmartGate, New Zealand

and Australian ePassport holders aged 16-years and over are now

able to use SmartGates in both countries.

3 Message from the Comptroller

4 Government steps up border management work

5 Preparing to introduce the Trade Single Window

8 The importance of inter-agency collaboration

16 Things to consider when buying goods online

17 Cocaine smuggler stopped at the border

18 Advance notice of arrrival small craft

20 Customs cracks down on money laundering

22 Customs in Court

PUBLISHERNew Zealand Customs Service,The Customhouse,1 Hinemoa St, Wellington 6011,PO Box 2218, Wellington 6140

Ph: 04 901 4500, Fax: 04 901 4555ISSN 0113-3292

EDITORSara Stavropoulos

CONTRIBUTORSSara Stavropoulos, Nicky Elliott, Aaron Hailwood,Angus Senior, Andy Cameron, John Houghton,Stuart Mills, Geoff Wilson, John Ladd, ShanePanettiere, Mark Day.

DISCLAIMERWhile every effort has been made to ensurethat the information in Contrabandis correct,readers must refer to the relevant statutorypublications for confirmation. Opinions

expressed in this magazine are those ofthe contributors and are not necessarilythe official views of the New ZealandCustoms Service.

COPYRIGHTAll material published in Contrabandiscopyright and may only be reproduced withthe permission of the Editor.

ENQUIRIESEmail: [email protected]

SUBSCRIBETo request your free electronic copy of this magazine,email: [email protected] and list your

name, organisation, and email address.IMAGESNew Zealand Customs Service, National DrugIntelligence Bureau, Alexander Turnbull Library.Names of individual artists are available on requestby contacting the Editor.

New Zealand Customs Service is the governmentorganisation that protects the community frompotential risks arising from international trade andtravel, while facilitating the legitimate movement ofpeople and goods across the border.

As New Zealands gatekeeper, our role includes:intercepting contraband (such as illegal drugs);checking travellers and their baggage, cargo and

mail; protecting businesses against illegal trade;and assessing and collecting Customs duties,excise taxes, and goods and services tax onimports. We use intelligence and risk assessment totarget physical checks of containers, vessels, andtravellers. As a law enforcement agency we conductinvestigations and audits and prosecute offenders.

Customs works closely with the other borderagencies, the Ministry of Agriculture and Forestryand the Department of Labours ImmigrationNew Zealand.

2 Contraband March 2012


3/24Protecting New Zealands Border 3

MESSAGE FROMTHE COMPTROLLER

A key priority for us in the coming

year will be the development of

the Joint Border Management

System (JBMS) with the Ministry of

Agriculture and Forestry (MAF).

We know that the number of people,

goods, and craft that are coming to

New Zealand is increasing every year.

We also know that those involved

in international trade and travel are

looking for seamless, effective, and

efficient border systems.

Our current border system relies

on Customs and MAFs computer

systems (CusMod and Quantum).

These systems are almost 15 years

old, and lack the flexibility to respond

to changing needs.

So together with MAF, we are

developing the JBMS to provide a

modern border management system

that will help keep New Zealand

secure, while facilitating trade and

travel well into the future.

The JBMS will be made up of a

number of elements. Most important

for industry will be the Trade Single

Window, which will allow single

submissions of border-related

information. However, this will

require richer and more detailed data

and information than is presently

the case (as you can read about in

the article on page 5 of this issue of

Contraband).

Once we have that richer

information, Customs and MAF will

be using a number of new analytical

tools and systems. By using these

tools, we will have greater visibility of

the risks that are present, and be able

to make better-informed decisions

on what we do and who we interact

with. It will also allow us to manage

effectively the risks at the border in a

seamless manner.

The benefits of this will be two-fold.

Firstly, Customs and MAF will be

better able to identify people, goods,

and craft that we need to take a closer

look at (or that pose the highest

risk). Secondly, this will mean we can

tell importers and exporters at an

earlier stage, and with more certainty,

whether or not we are going to

interact with their goods.

With the Government objective of providing better public services, 2012is going to be a challenging year for the New Zealand Customs Service,but it is one I am excited to be leading.

This wil l provide industry with

more information and enable

companies to plan their work with

more certainty. From talking with a

number of organisations and people

involved in importing in recent

months, I know this is something

that will be of real benefit.

While the JBMS is a challenging

programme of work, ultimately it will

enable Customs, MAF, and industry

to work more effectively together

to manage the risks at our border.

I am looking forward to working

closely with our partners in the

coming months as we prepare for

the introduction of the JBMS.

Carolyn Tremain

Comptroller of Customs


4/244 Contraband March 2012

On 16 February, Primary Industries

Minister David Carter, Customs

Minister Maurice Williamson, and

Immigration Minister Nathan Guy

announced Future Directions for the

Border Sector, a work programme

to look at how the three agencies can

operate together more effectively.

A wide range of collaborative work

is already underway across the three

agencies. This new programme

will build on the progress made in

improving trade and travel services,

while keeping a firm focus on border

security, said Mr Carter.

It is about taking a fresh look at the

functions of each agency and how

coordination of the overall border

management system can be improved.

Protecting the integrity of

New Zealands biosecurity system

is a top priority. With $80 billion of

exports and imports and 10 million

travellers across our border each year,

this must not be compromised,

Mr Carter said.

The Ministers say travel and trade

patterns are changing rapidly as

New Zealand interacts with more

international partners, tourism is

increasing, and pressure is building

for more streamlined travel.

GOVERNMENT STEPS UP

BORDER MANAGEMENT WORKThis work programme will build

on a number of joint initiatives

already overseen by the Border Sector

Governance Group to improve

information sharing and the targeting

of risk at the border, said Mr

Williamson.

An example is the Joint Border

Management System, a new

information system developed

by Customs and MAF, which is

leading to reduced duplication and

fragmentation of border services

and lower costs for industry and

government.

The Ministers say the work is

consistent with the Governments goal

of delivering better public services

across the board.

New technologies are giving us access

to information faster and we should be

using this to improve our effectiveness

at the border, said Mr Guy.

We must ensure that our border is

fit for the future. An efficient border

management system is critical to

New Zealands economic growth and

prosperity.

The work programme will provide

recommendations to the Government

by mid-year.

The Governments three border agencies New Zealand Customs Service, Ministry of Agriculture and Forestry(MAF), and Immigration New Zealand are stepping up work to make trade and travel more efficient throughbetter coordination of border services.

Protecting the integrity of New Zealands biosecuritysystem is a top priority. With $80 billion of exports andimports and 10 million travellers across our border eachyear, this must not be compromised.



One of the key elements of the

JBMS wil l be the Trade Single

Window (TSW). The intent is

for TSW to provide a single

electronic channel for ports, air

cargo terminals, carriers, freight

forwarders, importers, and exporters

to comply with New Zealands

border requirements. TSW will

also make it easier for these supply

chain parties to share information

with each other to better manage

the flow of cargo in and out of

New Zealand.

To ensure that all the information

agencies and industry require can

be submitted via TSW, Customs

and MAF are developing new cargo

reporting and clearance messages.

These are based on the World

Customs Organizations new WCO

Data Model version 3.2.

Pete Rosewarne, Customs JBMS

Programme owner, says that these

messages will be more detailed and

contain more information than the

current messages that are submitted

for customs and biosecurity clearance.

It is therefore important that

carriers, freight forwarders, customs

brokers, and others involved in

international trade are aware of the

upcoming changes, he says.

PREPARING TO INTRODUCE THE

TRADE SINGLE WINDOWCustoms and MAF are currently developing the Joint Border Management System (JBMS). The JBMS willultimately replace Customs and MAFs current border systems (CusMod and Quantum) and allow us to jointlymanage customs and biosecurity risks at our border.

INWARD CARGO REPORT

An example of the changes can be

seen with the Inward Cargo Report.

The current Inward Cargo Report

contains details of cargo intended for

discharge in New Zealand as

well as all cargo to be transhipped

in New Zealand.

The new Inward Cargo Report

message includes information to

enable MAF to carry out biosecurity

risk assessment. If carriers and freight

forwarders are able to complete this

information at this early stage, it can

do away with the current need for

a separate message or application

form to MAF to request biosecurity

clearance.

Additionally, the new Inward Cargo

Report message enables carriers

and freight forwarders to initiate

International Transhipment Requests

and Domestic Transhipment Requests.

This cuts down the need for separate

messages to make these requests, and

means the likes of port companies,

shipping companies, airlines, and

freight forwarders can get earlier

confirmation of Customs and MAF

approval or requirements, which helps

advance logistics planning, says Pete.

DATA QUALITY

A key part of Customs and MAFs

ability to provide early advice of

clearance or requirements is the

quality and completeness of the

information provided in the messages.

Pete says it will be over to carriers,

freight forwarders, customs agents,

and traders how much information

they want to provide in order to

ensure an early and complete response

from the agencies, and when.

High-quality data, such as a

recognised product code instead of

a free text description of goods,

means the agencies can assess risk

more easily, so we are less likely to

hold up consignments because were

not sure exactly what the goods are.

WHERE TO FIND OUT MORE

To learn more about the new

messages, a draft set of message

implementation guidelines is

available on the Customs website

www.customs.govt.nz

Regular information and updates

on TSW are also published in Customs

Release, our weekly e-newsletter.

To subscribe to Customs Releasego to

our website www.customs.govt.nz

KEY TSW DATES

Customs and MAF will be trialling

some elements of TSW from the

middle of 2012, while the phased

roll-out of TSW for use by industry

will start in early 2013. It is intended

that the use of TSW and the new

messages will be made mandatory

18 months after this.

Protecting New Zealands Border 5



THE NATIONAL DRUGINTELLIGENCE BUREAU

The NDIB was established following a regional Heads of Narcotics Law

Enforcement Agencies conference on illicit drug trafficking, in Canberra,

Australia in November 1971. The conference identified the need to establish

a national agency to record and disseminate information and direct drug

intelligence-related work.

In early 1972, a joint paper was placed before the Ministers of Police, Customs,

and Health recommending the establishment of the NDIB. From 1 May 1972

the NDIB was established with staff from Customs and Police, and has had a

permanent Ministry of Health representative since April 2004.

The Coordinator of the NDIB, Detective Inspector Stuart Mills, says inter-

agency communication is vital in dismantling illicit drug networks, and

apprehending offenders in New Zealand.

The need to share information and improve communications between

enforcement agencies was one of the main factors in establishing the NDIB.

Having a bureau that could liaise with relevant agencies has led to overall

efficiency in New Zealands drug enforcement effort, says Stuart.

The mission of the NDIB is to provide authoritative intelligence and advice on

illicit drugs, potentially illicit drugs, and precursors in order for drug-related harm

to be reduced through supply-control and demand-reduction measures. This

utilises various sources and relationships within New Zealand and overseas.

The Board of Control, composed of the CEOs from Customs, Ministry of

Health, and Police, is responsible for high-level governance of the NDIB.

The day-to-day operations of the NDIB are managed by the Coordinator, who

is responsible to a management committee of senior representatives from each

contributing agency.

The excellent work of Customs, Health, and Police staff has contributed to the

NDIBs success in the past 40 years, and the NDIB continues to provide quality

strategic reporting and high-level service to its stakeholders.

A reunion of former and current NDIB staff is planned to be held in

Wellington to commemorate the NDIBs 40th anniversary.

This year, the National Drug Intelligence Bureau(NDIB) will celebrate 40 years of providing tactical,operational, and strategic intelligence supportagainst drugs.

40th ANNIVERSARY



THE FUNCTIONSOF THE NDIB Provide authoritative intelligence and advice

on illicit drugs, potentially illicit drugs, andprecursors that support strategic decision makingby participating agencies.

Actively contribute to, and participate in,regional and international intelligence efforts to

combat the illicit drug trade. Fulfil New Zealands international reporting

obligations for illicit drugs, potentially illicitdrugs, and precursors that require multi-agencycollation of information.

Provide collated data that requires de-conflictionof information from more than one agency.

Progressively enhance its efficiency andeffectiveness.

February 1988, Customs seize 20 kilograms of cocaine from the Ecuadorian trader Provincia del Guayas, at Auckland wharf.



Clarks enterprises prospered and

he was soon selling considerable

amounts of cannabis through his

dealers. Soon he decided to enter the

importing side of the business, and

in 1975, made several trips to South

East Asia bringing back Thai sticks,

also known as cannabis sticks. He

began using couriers, particularly

women, to carry drugs and also

turned his attention to heroin, which

was more valuable than cannabis.

In October 1975, Clark was arrested

and charged with importing heroin

into New Zealand. Having being

bailed on this charge he absconded to

Australia, where he based his activities

for the next couple of years.

Clark arranged for consignments of

heroin to be sent to New Zealand

from the heroin he imported into

Australia between 1976 and 1979.

Clark was arrested in London,

United Kingdom in October 1979

and charged with the murder of

Johnstone. He was also charged with

two conspiracies, one to import illegal

drugs into the United Kingdom and

one to supply illegal drugs in the

United Kingdom.

After a trial lasting six months,

Clark was convicted on all counts.

In July 1981, he was sentenced to

life imprisonment on the murder

charge, 14 years imprisonment on

the first conspiracy, and three years

imprisonment on the second. Clark

died in prison in 1983.

Between 1975 and 1979, Australian

law enforcement agencies collected a

lot of information about Clark and

his associates, with a considerable

proportion of this information

coming from New Zealand,

particularly the NDIB.

The 1983 Australian Royal

Commission of Inquiry into Drug

Trafficking found that Australian

law enforcement agencies failed to

collaborate on Clark, his activities,

and his associates. Not only were

the agencies not communicating

information they held, but different

branches of the Narcotics Bureau

were unaware of what other branches

were doing, or what material they

held. This lack of communication and

coordination allowed Clark and his

associates to evade the authorities and

to commit serious crimes in Australia,

New Zealand, and elsewhere. In short,

IMPORTANCE OF

INTER-AGENCYCOLLABORATIONThe Mr Asia syndicate, (featured in the TV series Underbelly) was active in New Zealand and Australiaduring the 1970s. Terrance John Clark, who was one of the main players in the syndicate, began distributingcannabis imported into New Zealand. The importations were arranged by Christopher Martin Johnstone (MrAsia) and associates who generally used seaman employed by the Straat line of ships to bring the cannabisinto New Zealand.

Australian law enforcement agencies

had failed to grasp the significance of

this major drug network.

The various agencies held both

different and similar pieces of

information. Unfortunately this

information was rarely distributed

effectively between law enforcement

agencies and, even more importantly,

within those agencies themselves.

8 Contraband March 2012


9/24Protecting New Zealands Border 9Protecting New Zealands Border 9



HISTORY OF DRUG ABUSEIN NEW ZEALANDFor as long as there has been European settlement inNew Zealand, there has been drug use to the pointof dependence and abuse. Until the discovery of gold

in the mid-19th century, this was confined mainlyto opium preparations, but miners from Californiacreated a market for American set remediescontaining morphine and cocaine, the use of whichspread widely in the gold fields. Chinese minersbrought the opium-smoking habit and, althoughgenerally confined to them, there are accounts ofothers indulging in the habit.

Haining Street The Chinese quarters of the City of Wellington, which had a notorious reputation due to the rumours of opium and gamblingdens, published in The New Zealand Mail, 17 August 1904. Courtesy: Alexander Turnbull Library, Wellington, New Zealand.



LSD was first seen as a problem

in 1970. By 1991, several hundred

varieties of LSD had been seen in

New Zealand, the majority imported

from the United States, the United

Kingdom, and the Netherlands.

In 1970, a Board of Health report

on drug dependency and abuse in

New Zealand said that:

the drug scene was one of rapidchange, a scene where drug abusers

were involved in multi-drug abuse

there appeared to be comparativelylittle trafficking or pushing drugs

for profit

trafficking or pushing was mostlyunorganised and it was being

conducted on an individual basis.

The 1970s saw the most marked and

alarming trends in illicit drug abuse.

The main focus centred on LSD,

together with an upsurge in the abuse

of synthetic opiates and cannabis.

Also at this time the emergence

of organised drug-trafficking was

identified in the form of small

syndicates.

The greatest impact on the illicit drug

scene was, however, caused by the

involvement of more experienced

and sophisticated criminal enterprises.

Right: Drugs being destroyed by Customsofficers.

Far left: An example of marketed medicinalheroin from early last century.

Morphine, heroin, cocaine, and

barbiturates dependence was seen

early in the 1900s, particularly amongst

those associated with medicine and the

entertainment industry.

Following the introduction of free

medicine under the Social Security

Regulations 1941, the prescribing of

some drugs increased significantly

and it seems some patients became

dependent on drugs as a result of

therapeutic prescribing. During this

time New Zealand was named, with

Finland and Italy, as one of the

highest per capita users of heroin.

In 1949, efforts began to eliminate

the prescription of heroin and by

1955 this had been virtually achieved.

Cannabis was first noted as being

used in New Zealand in the 1940s,

although it was commercially grown

earlier for fibre. Use at this time had

been fairly isolated, but by the 1950s

it had extended to certain areas of the

community the most commonly

reported group being musicians.

In the 1960s the hippie movement

was associated with an increased

use of cannabis and it was generally

regarded as being a cult phenomenon.

By this time the practice of

deceiving doctors to obtain drugs on

prescription was documented.

Until this time, drugs being abused

were usually imported, but by 1968,

when it seems the supply did not satisfy

the demand, there was a dramatic

increase in pharmaceutical burglaries.

These burglaries were curtailed to

some extent by the introduction of

regulations requiring chemists to place

susceptible drugs in safes.



Criminals formerly engaged in

relatively unsophisticated crimes,

such as safe blowing, brought their

experience and connections to drug

importation and distribution.

The Police found that the penetration

of a well-established criminal

subculture was far more hazardous

than dealing with youthful drug

abuse. Criminals began to travel more

extensively and the international

aspect of the drug problem became

more relevant to New Zealand.

By 1974, the popularity of LSD

was waning and little of it was seen

in New Zealand for some years.

However, heroin was being seen

on a scale never previously

encountered and was beginning to

cause problems. Twenty-four heroin-

related charges were placed before the

courts that year and this heralded a

rapid increase.

By 1979, on average, one heroin

charge was being laid every day.

Late in 1979, because of a number

of factors, the availability of heroin

declined rapidly.

As a result of this decline, the Police

noted an increase in the abuse of

medicines largely of a psychotropic

category by people known to

be heroin users. In many cases, this

abuse was combined with alcohol,

accentuating the problem. During

1979, an increase in LSD availability

was noted again, following trends seen

in other countries. This availability

continued through the 1980s.

A major factor in the illicit drug

scene, particularly through the 1970s

and 1980s, was the increase in the use

and availability of cannabis. The small

participation in the 1960s had grown

to widespread community use.

HISTORY OF DRUG USE IN NZ

The ease of internationaltravel has createdgateways and growthopportunities into countriesfor the illicit drug trade,meaning organised crimegroups are setting upnetworks to transport drugsand cause harm to globalcommunities.

Left to right: A sheet of LSD (Imagecourtesy USDEA), Cannabis plants,powdered Cocaine, Opium poppies,Methamphetamine crystals, and Ecstasytablets (Image courtesy USDEA).



The 1980s also saw the emergence of

clandestine laboratories throughout

New Zealand, used to manufacture

morphine and heroin from codeine-

based products. The homebake

process was brought about by the

irregular supply of imported heroin.

In the late 1990s, the methamphetamine

epidemic took hold in New Zealand.

As demonstrated previously within

the New Zealand drug environment,

manufacturers are very resourceful and

this was shown in the large number

of clandestine methamphetamine

laboratories operating throughout the

country. The epidemic led to significant

importations of pseudoephedrine

into New Zealand, which resulted

in significant crimes occurring as a

result of methamphetamine or P

distribution and use.

Throughout the past five years the

New Zealand illicit drug scene has

been punctuated by the impact of

BZP, synthetic cannabinoids, and the

ever-changing ecstasy market due to

a worldwide shortage of MDMA.

However, cannabis has continued

to be widely used, with an ever-

increasing THC level.

Internationally there has been a

significant increase in organised

crime and illicit drug markets, and

New Zealand is seen as part of those

markets. The ease of international

travel has created gateways and

growth opportunities into countries

for the illicit drug trade, meaning

organised crime groups are setting

up networks to transport drugs and

cause harm to global communities.

Drug concealment methods seen in

New Zealand are also the same ones

that are being seen overseas, and the

rise of internal concealments shows

that people are taking bigger risks for

bigger rewards; however, they can

often pay with their lives.

In 2009, a Methamphetamine Action

Plan between several government

agencies was agreed which resulted

in coordinated action across a

range of areas, including harm

reduction, against the impact of

methamphetamine in New Zealand.

Customs continues to contribute

and support the whole-of-government

effort to reduce the supply of

illicit drugs into our communities.

While Customs is focused on

initiatives to reduce the supply

of methamphetamine, progress

is also being made to reduce

methamphetamine use, which will lead

to a reduction in the harm it causes.



SMARTGATENOW AVAILABLE FOR16- AND 17-YEAR-OLDS

The age change from 18 years of age

to 16 years came into effect in both

New Zealand and Australia on

18 January 2012.

Manager Passenger Facilitation, Geoff

Wilson says the age change has given

16- and 17-year-old ePassport holders

the opportunity to use SmartGate.

Sixteen and seventeen year-olds with

ePassports can now take advantage

of the benefits of using SmartGate.

The change in age has made

SmartGate more flexible and we

encourage passengers to use this

technology, says Geoff.

Lowering the age for eligible

SmartGate users will enable an

estimated 120,000 additional travellers

to use the kiosks every year. An

immediate benefit to families with

teenagers, and high school sports

teams is that they can all self-process

together.

Building on the phenomenal success of SmartGate, New Zealand andAustralian ePassport holders aged 16 years and over are now able touse SmartGates in both countries.

Twenty-two gates are now operating

throughout the three New Zealand

SmartGate enabled airports for both

departures and arrivals. SmartGate

is also operating at eight Australian

international airports for arriving

passengers.

Over 2.3 million passengers have

already been processed through

SmartGate and by 2015 all Australian

and New Zealand passports will be

electronic, meaning everyone over the

age of 16 will be able to take advantage

of this fantastic technology.

For more information on SmartGate,

please visit www.customs.govt.nz

More than 2.3 million passengers have already beenprocessed through SmartGate and by 2015 all Australianand New Zealand passports will be electronic, meaningeveryone over the age of 16 will be able to takeadvantage of this fantastic technology.

During the 2011 Christmas holiday

season SmartGate use reached a

new milestone, exceeding 40,000

passengers per week.

SmartGate is a stress-free way

for New Zealand and Australian

ePassport holders to enter both

countries, or leave New Zealand.

By using SmartGate a passenger can

self-process through passport control.

All they need is their ePassport the

two-step SmartGate does the rest.

SmartGate uses face recognition

biometric technology along with

information stored in the microchips

inside ePassports to perform identity

checks and document validations that

are usually conducted by Customs

officers.

There is still the option of manually

processing through Customs but

now 16- and 17-year-olds also have

the choice.



You should also be aware of what

goods cannot be brought in to the

country or if they require approval

before bringing in.

Before ordering, familiarise yourself

with the import regulations as they

apply to you, and what charges may be

due on the goods you wish to bring in.

Make sure the supplier you are

purchasing from completes an

accurate customs declaration.

Goods arriving in New Zealand by

post or courier must have a customs

declaration completed by the sender

and attached to the package. The

declaration should include:

an accurate description of thegoods

their value (normally the actualprice you have paid if, not a gift)

whether they are gifts, orcommercial or personal items.

THINGS TO CONSIDER WHEN

BUYING GOODS ONLINEIf you are purchasing goods onlinefor personal use, its important totake into consideration any dutiesor tax payable when the goods arereceived in New Zealand.

FALSE DECLARATIONSSome websites will offer to show a different description of the goods youhave ordered and/or a value on the customs declaration much lower thanthe actual price paid; this is generally to avoid paying duty and/or GSTwhen the goods come in to New Zealand.

However, as the importer you are legally obliged to make sure you havean accurate declaration. If the information is inaccurate, or no declarationis made, the package may be delayed while Customs makes furtherenquiries. Sometimes the goods may be seized and you will be liable forany charges the normal duty and GST are still payable in respect ofseized goods, and there may be additional charges, as well such as fortesting and storage.

PROHIBITED AND RESTRICTED GOODSThere are certain goods that you are not allowed to bring in toNew Zealand under any circumstances, and a number of other goodsare restricted.

Further information on the following can be found on our website:

prohibited and restricted imports excise and duties

tips for buying goods online.

Always read options offered to you by the supplier, and if you are unsure

about something check our website www.customs.govt.nz or contactus on 0800 4 CUSTOMS (0800 428 786).



COCAINE SMUGGLERSTOPPED AT THE BORDER

Twenty-nine year old Peter Rhee

arrived in New Zealand on a flight

from Los Angeles, United States.

Mr Rhee was questioned by officers

about his reason for coming to

New Zealand, and he could not

provide a legitimate reason for

his travel.

Officers carried out a search on

Mr Rhees luggage and found

inconsistencies in two bottles of

alcohol he had brought with him.

Testing of the substance in the bottles

showed a positive match for cocaine.

Mr Rhee was arrested and charged

with the importation of cocaine.

Customs officers came across aninteresting discovery at AucklandInternational Airport last month,when they found two bottles filledwith cocaine suspended in liquidinside a passengers luggage.

Customs Manager Drug

Investigations, Mark Day says this

interception was another great

example of Customs officers

vigilance and effort to prevent illicit

drugs making their way across our

border and into our communities.

Our officers are protecting

New Zealands border 24 hours a day,

seven days a week. Their commitment

shows that people who attempt to

bring illicit drugs across our border are

not beyond our detection, says Mark.

The cocaines value was estimated to

be between $800,000 and $1 million.

There has been an increasing

prevalence of cocaine in illicit

drug markets internationally, and

New Zealand is seen as part of

those markets. The methods of

concealment are also the same ones

that are being seen overseas.

The high-level training our officers

receive gives them the skills and

knowledge to profile passengers

that may pose a risk to our border,

says Mark.

Mr Rhee has been charged with

importation of a Class A controlled

drug, and his case is currently before

the courts.

The maximum penalty for the

importation and possession for

supply of a Class A drug is life

imprisonment.

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Many of the craft skippers are regular

visitors and fully aware of the border

requirements of the New Zealand

Customs Service and the Ministry

of Agriculture and Forestry. These

requirements have been put in place

primarily to prevent the importation

of illegal goods, protect the

biodiversity of New Zealand, and

facilitate the arrival and departure of

legitimate visitors. The vast majority

of arriving and departing small

craft crew are legitimate and fully

compliant. However, the influx of

small craft from overseas poses a

potential risk and Customs monitors

arrivals and departures to ensure these

vessels comply.

ADVANCE NOTICEOF ARRIVAL

SMALL CRAFTNew Zealand is a popular destination forinternationally cruising small craft, with about 650making the journey each year. Most of these departfrom the South Pacific islands of Tonga and Fiji, andarrive in New Zealand from November to January.They usually depart New Zealand in April throughto June, taking advantage of favourable weatherpatterns. The northern ports of Opua, Whangarei,and Auckland are the most popular arrival ports.


19/24Protecting New Zealands Border 19Protecting New Zealands Border 19

Customs officers boarding a yacht in Auckland Harbour.

Customs requires advance notice of a

small craft arriving. The skipper must

submit anAdvance Notice of Arrival

at least 48 hours prior to the vessel

entering New Zealand. This gives

Customs the information needed

to clear the craft and its passengers,

and this information is also provided

to the Ministry of Agriculture and

Forestry. If the skipper does not

submit this form, there can be

penalties.

Details on the arrival and departure

documentation and formalities, and

the downloadable forms are available

on the Customs website (www.

customs.govt.nz). You can find this

information in the Yachts and small

craft section. Alternatively, a yacht

pack containing the required forms

and information is available from any

NZ Customs office and some South

Pacific ports.

It is essential that all international craft

arrive or depart from a Customs port

of entry. These ports are also listed on

Customs website. The only exceptions

are in a severe emergency or with the

prior approval of the Comptroller

The influx of small craftfrom overseas poses apotential risk and Customsmonitors arrivals anddepartures to ensure thesevessels comply.

of Customs. Leaving New Zealand

without obtaining Customs

clearance of your vessel may result

in prosecution.

It is highly recommended that

anyone arriving or departing on a

small craft visit the Customs website

(www.customs.govt.nz) which

provides full information on this

topic. Alternatively, general advice

and information is available by calling

the Customs Contact Centre on

0800 4 CUSTOMS (0800 428 786),

+64 9 927 8036 if calling from

overseas, or by emailing

[email protected]



The Anti-Money Laundering and

Countering Financing of Terrorism

Act 2009 strengthened Customs

powers and responsibilities around

cash and other bearer negotiable

instruments (BNI) such as cheques,

money orders, and bearer bonds

moved across our border by making

such non-declared items prohibited

goods pursuant to the Customs and

Excise Act 1996.

The international movement of

large sums of cash and BNI is often

associated with money laundering

the conversion of dirty money

to legitimate money or goods. This

type of movement in funds may

represent the proceeds of importing,

manufacturing, or dealing in drugs;

of people smuggling; or of fraud and

related criminal activities, including

tax evasion.

Manager Investigations, Shane

Panettiere says that Customs has made

some significant seizures of cash in a

short period of time.

To date Customs has seized in excess

of $1.29 million in eight separate

instances involving serious breaches

of the legislation and related criminal

offending. This legislation has given

us the authority to crack down on

those who choose to break the

law, and attempt to launder money

through New Zealand, says Shane.

Customs continues to work with law enforcementpartners, within New Zealand and overseas, toidentify and intercept the movement of illegalcash proceeds as part of an international focus ondisrupting criminal networks.

CUSTOMS CRACKS DOWN

ON MONEY LAUNDERINGIn the past couple of years Customs has made some significant cash seizures under recently introduced legislation.



NOTICE TO TRAVELLERSCASH REPORTING

Cash means physical currency, bearer-negotiableinstruments, or both.

a. bill of exchange

b. bearer bond

c. promissory note

d. cheque

e. travellers cheque

f . money order, postal order, or similar order.

You must advise a Customs officer if you are required tocomplete a Border Cash Report. This must be done at thesame time as passport control formalities are undertaken.

Where you are responsible for other passengers youmust make a separate Border Cash Report for them.

New Zealand law requires a Border Cash Report to be completed byevery person who moves cash into or out of New Zealand, and the total valueof cash involved is NZ$10,000 or more (or foreign denominations equivalentto a total of NZ$10,000 or more).

If cash is moved in breach of this requirement,it is a prohibited import or export underthe Customs and Excise Act 1996.

False or misleading reporting, or non-reporting,of cash may result in its seizure.

You may also face criminal prosecution.

A bearer-negotiable instrument means a:

Other instances have attracted fines

under the Act provisions instead of

prosecution and seizure.

Customs recently intercepted an

Australian man arriving from Sydney

who had made a declaration for

AUD$8,000 (NZ$10,526 equivalent).

He was referred for further

examination and it was discovered

that he was carrying AUD$15,000.

A further inspection of his luggage

revealed another AUS$90,000

concealed within the baggage lining.

The man admitted to Customs

officers that the cash had been

concealed to avoid tax obligations

in Australia, and he was intending

to purchase a rare vehicle in New

Zealand. A subsequent investigation

disproved this explanation and

revealed suspected criminal links in

Australia. Customs seized the cash

and on appeal the decision was upheld

by the Customs Appeal Authority.

The judge ultimately concluded that

the offender could not show the funds

had been obtained legitimately.

In another recent interception,

a Cameroonian male arrived at

Auckland from Fiji in possession of

NZ$113,000 equivalent in Fijian,

American, New Zealand, and Iraqi

currencies. The male passenger had

not declared the cash, which Customs

found in numerous white envelopes

in his luggage.

Customs officers identified the

passenger as travelling on a false

passport and being engaged in a

black money scam in which he had

defrauded the cash from an investor

in Fiji. The man was refused entry

to New Zealand and was arrested,

convicted, and charged with currency

export control violations upon his

return to Fiji. The cash was seized by

Customs and the man has since been

deported from Fiji.

The excellent work of our frontline

officers and financial targeting team

shows that these people are not

beyond our detection. A key priority

for the Government and Customs

is to disrupt the contributors in

organised crime, and our officers are

successfully delivering this priority.

Customs continues to work with

law enforcement partners, within

New Zealand and overseas, to

identify and intercept the movement

of illegal cash proceeds as part of

an international focus on disrupting

criminal networks.



OBJECTIONABLE MATERIAL

On 22 November 2011, a man

was sentenced at the Manukau

District Court after having previously

pleaded guilty to charges of importing

objectionable material.

In March 2009, the mans luggage

had been searched at Auckland

International Airport. A number of

suspect files were found on a hard

drive in his possession and many of

the files were encrypted so that they

could only be opened using a specific

computer. The computer used to view

the encrypted files was found during a

search warrant executed by Customs.

The computer held numerous movie

files which the man had downloaded.

The files depicted rape and other

degrading and dehumanising sexual

conduct.

The man was sentenced to two years

intensive supervision (with conditions

to complete an internet offending

course) and 180 hours of community

work.

On 29 November 2011, at the

Lower Hutt District Court, a

man was sentenced on 10 charges

of importing objectionable material

and seven charges of possessing

objectionable material. Both sets of

charges carry maximum penalties of

five years imprisonment.

When a search warrant was executed

at his property, approximately 23,000

objectionable images were located,

the majority of these involving child

sexual exploitation.

The man was sentenced to five

months community detention and 18

months supervision with a condition

that he completes a programme for

internet sex offenders.

He was also granted permanent name

suppression on the basis of a medical

certificate and affidavit from his wife

that indicated adverse consequences

on her already poor mental health.

DRUGS

On 9 December 2011, a man

was sentenced in the Wellington

District Court after pleading guilty

to importing the class B controlled

drug GBL.

A psychological report stated that the

man suffered from megarexia

the overwhelming desire to be very

muscular. The man said he used the

GBL for building muscle mass.

At the time of the offence the man

was on parole for similar offending.

The judge considered home detention

was appropriate and sentenced the

man to six months home detention,

followed by a further 12 months

post-release conditions including

attendance at psychological, alcohol

and drug treatment, and random

drug testing.

UNAUTHORISED DELIVERIES

In December 2011, two

companies were charged under

section 200(1)(c) of the Customs and

Excise Act 1996, for releasing goods

from a Customs controlled

area without Customs authority.

Customs continues to prosecute offenders for a variety of border-related offences. Here are some recent matters:

CUSTOMS IN COURT

The judge said that human error

was not an acceptable excuse and was

unimpressed that both companies

were offering the same excuses, saying

it was up to the companies to ensure

human error was avoided.

Both companies were fined $2,500.

FRAUD

On 15 December 2011, a man

was sentenced at the Auckland

District Court on four charges of

providing false invoices and incorrect

documents to Customs officers.

On 2 May 2011, the man had arranged

the importation of a consignment of

wooden furniture into New Zealand.

He had provided documents to

Customs on a number of occasions

with false values for the furniture.

After Customs refused to accept the

initial invoices, the man had finally

provided correct invoices with the

true value of the goods. He admitted

he had known the value all along and

that he had sent incorrect documents

to Customs.

The judge ordered the man to pay

a fine of $2,000 and court costs of

$133. No order for compensation

under section 236(2) of the Customs

and Excise Act 1996 was made by

the Court.

COURT REPORT



SmartGateSmartGate is now available for eligible ePassport holders aged 16 and over.

ePassport symbol

For more information, visit www.customs.govt.nz

Using SmartGate to depart from New Zealand

Holders of New Zealand and Australian

ePassportshave the option of using

SmartGatewhen arriving at or departing

from Auckland, Christchurch, and Wellington

International Airports.

SmartGateoffers you a simple and effi cient

way to self-process through passport controlwith an easy two-step process.

While the New Zealand Customs Service is

pleased to offer you this option, you can still have

your ePassportmanually checked if you prefer.

Passports with the international ePassport

symbol* are called ePassports. If you have this

symbol on your passport you will be able to use

SmartGate.

Look for the SmartGatekiosk

signs will help guide you.

Place your ePassportinto the

reader by simply following

the instructions on the screen.

Answer the standard declaration

questions using the touch screen.

The kiosk will issue you with a

SmartGateticket, which you

will need for step two.

Proceed to the gate and insert

your SmartGateticket. Look at the camera ahead of

you while your face is compared

with your ePassportphoto.

Proceed through the gate.

Hand in your departure card,

and proceed through the

Aviation Security Service

screening point.

STEP ONE STEP TWO1 2

*All New Zealand passports issued after November 2005 and all Australian passports issued after October 2005 are ePassports.


24/24

BORDERSECURITYIS EVERYONES

BUSINESSIt was local knowledge and vigilancethat helpedidentify and capture the Rainbow Warrior bombers.The community has an even greater role in protectingour border today.

You know your area best, so let Customs know if youspot anything unusual or suspicious, including peopleand craft that seem out of place.

You can play a vital role in protecting New Zealandcommunities from international crime, illicit drugs,terrorism, smuggling, and other illegitimate activitiesby reporting any suspicious border activityto Customs.

CONTACT COASTWATCH0800 4 CUSTOMS (0800 428 786)free 24-hour, anonymous hotline

WWW.CUSTOMS.GOVT.NZ

Documents

Contraband Issue 121 March 2012