Customs and Excise Act 2018

If you need more information about this Act, please contact the administering agency: New Zealand Customs Service

Version as at 30 November 2022

Coat of Arms of New Zealand

Customs and Excise Act 2018

Public Act
 
2018 No 4
Date of assent
 
29 March 2018
Commencement
 
see section 2
Note

The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.

Note 4 at the end of this version provides a list of the amendments included in it.

This Act is administered by the New Zealand Customs Service.

Contents

1Title
2Commencement
3Purposes of Act
4Overview of Act
5Definitions for Act
6Definition: subject to the control of Customs
7Application of Act to postal articles
8Application of Act to foreign Government ships
9Transitional, savings, and related provisions
10Act binds the Crown
11Excise duty and excise-equivalent duty levied
12Advance notice of arrival, etc
13Offences in relation to advance notice of arrival, etc
14Inward cargo report
15Offences in relation to inward cargo report
16Application of sections 17 to 25
17Craft must arrive at Customs place
18Offences in relation to craft that arrive at place other than Customs place, etc
19Persons leaving or boarding arriving craft before inward report made
20Offence in relation to leaving or boarding arriving craft before inward report made
21Authorisation for craft to arrive at place other than Customs place
22Craft that have arrived at place other than Customs place
23Offences in relation to craft that have arrived at place other than Customs place
24Inward report, etc
25Offences in relation to inward report, etc
26Requirement to answer questions and produce documents
27Offences in relation to failure to answer questions or produce documents
28Persons arriving in New Zealand to report to Customs officer or Police station
29Disembarkation
30Baggage to be presented on disembarkation, etc
31Persons departing from New Zealand to depart from Customs place
32Embarkation
33Outgoing baggage to be presented, etc
34Offence in relation to wilful failure to comply with requirements when arriving in, or departing from, New Zealand
35Craft may not depart without certificate of clearance, etc
36Offence in relation to craft departing without certificate of clearance, etc
37Certificates of clearance
38Offences in relation to granting of certificate of clearance
39Production of certificate of clearance, etc
40Offences in relation to production of certificate of clearance, etc
41Departure only from Customs place
42Offences in relation to departure only from Customs place
43Authorisation for craft to depart from place other than Customs place
44Craft departing from place other than Customs place
45Outward cargo report
46Offences in relation to outward cargo report
47Purposes for which powers under sections 48 and 49 may be exercised
48Chief executive may require commercial transportation operator to provide craft information
49Chief executive may require commercial transportation operator to provide PNR information
50Supplementary provision relating to requirement to provide craft or PNR information
51Disposal of craft or PNR information
52Offence in relation to failure to provide Customs with PNR information
53Other provision about arrival and departure information
54Defences for offences under subpart
55Designation of Customs places
56Areas required to be licensed as Customs-controlled areas
57Application for licence
58Chief executive may request further information
59Chief executive must determine application
60Fit and proper person test
61Grant of licence
62Exemption from requirement to be licensed directed by chief executive
63Variation of terms, conditions, or restrictions
64Revocation or suspension of licence
65Surrender of licence
66Closing of Customs-controlled area
67Exemptions in relation to Customs-controlled areas
68Offences in relation to Customs-controlled areas
69Offence in relation to failure to comply with term, condition, or restriction of licence
70Customs facilities in Customs-controlled areas, etc
71Offence in relation to Customs facilities in Customs-controlled areas, etc
72Storage charges
73Liabilities not affected by ceasing to act as licensee
74Goods specified in inward report to be treated as imported
75Entry of imported goods
76Entry of imported goods in multiple or split shipments
77Imported goods to be dealt with according to entry
78Unloading goods
79Offence in relation to unloading goods
80Samples or illustrations
81Entry of Part A goods
82Nil returns
83Transportation of imported goods
84Offences in relation to transportation of imported goods
85Removal of goods from Customs-controlled areas
86Offences in relation to removal of goods from Customs-controlled areas
87Transhipment requests
88Offences in relation to transhipment requests
89Entry of goods for export
90Goods entered for export to be exported immediately, etc
91Goods sold in duty-free store
92Goods for export not to be landed
93Time of exportation
94Customs-approved export seal may not be interfered with
95Prohibition on importation and exportation of objectionable publications, other indecent or obscene articles, and goods for dishonest purpose
95AProhibition on importation of tobacco and certain tobacco products
96Prohibition on other imports or exports by Order in Council
97Prohibition on exports by notice: nuclear, biological, and chemical weapons, etc
98Production of licence, permit, or consent for goods
99Duty applies even if importation prohibited
100Duty on imported goods is debt owed to the Crown
101Importer must specify Customs value on entry
102Provisional Customs value
103Chief executive may revise Customs value
104Crown’s right of compulsory acquisition
105Entry of goods at preferential rates of duty
106Unsubstantiated preference claims
107Duty credits in respect of used goods
108Duty credits in respect of repurchased goods
109Responsibility to protect integrity of system for assessing and collecting duty
110Chief executive’s general obligation in relation to collection of duty
111Entry is assessment of duty by importer or licensee or owner
112Importer to amend assessment that includes provisional Customs value
113Chief executive may assess duty where no entry made
114Assessment of excise duty and excise-equivalent duty where approval not complied with
115Assessment of excise duty on beer or wine otherwise exempt
116Assessment of excise-equivalent duty on goods imported for further manufacture
117Amendment of assessments
118Limitation of time for amendment of assessments
119Assessment to be taken to be correct
120Duty to be proportionate
121Duty on alcoholic beverages
122Time for payment of duty on imported goods: general rule
123Persons may be authorised to defer payment of duty on imported goods
124Other times for payment of duty
125Importer, etc, leaving New Zealand
126Chief executive may allow release of goods where appeal, etc, lodged
127Obligation to pay duty not suspended by appeal, etc
128Chief executive to pay interest on duty refunded on appeal, etc
129Duty is charge on goods
130Possession of goods if person claims to be purchaser for value without knowledge
131Related persons for purposes of section 130(5)
132Offence in relation to direction of chief executive under section 130(3)(b)
133Rights and duties of chief executive in relation to unpaid duty
134Ranking of duty
135Release of goods subject to duty
136Goods temporarily imported
137Goods temporarily imported for manufacturing, etc
138Liability for duty on goods wrongfully removed or missing
139Liability of owners of craft for duty on goods unlawfully landed
140Effect of payment of duty by one person on liability of other persons
141Incidence of altered duties
142Chief executive may refund duty paid in error
143Refunds of duty related to provisional Customs value
144Refunds of duty on goods under Part 2 of Tariff
145Other refunds and remissions of duty
146Power to apply refunds towards payment of other duties
147Drawbacks of duty on certain goods
148Where drawback has been allowed
149Minimum amounts of refunds and drawback
150Recovery of refunds, etc made in error
151Reimportation of goods exported
152Outward processing
153Goods from Cook Islands and Niue
154Interest payable for late or incorrect payments of duty in certain cases
155Cases involving late payment of duty
156Cases involving correction of self-assessed duty
157Cases where no entry or amendment under section 112 made
158Other cases involving assessments or demands by chief executive
159Penalties payable for late payments of duty in certain cases
160Cases in which penalties may be payable
161Interest payable for incorrect refunds of duty or drawback incorrectly allowed in certain cases
162Refunds of duty made because of error attributable to recipient, etc
163Drawback allowed because of error attributable to recipient, etc
164Statements of liability for interest and penalties
165Interest: remissions and refunds for emergency events
166Interest: remissions and refunds where inadvertent error by duty payer
167Penalties: remissions and refunds where reasonable excuse for late payment of duty
168Penalties: remissions and refunds for good payment record
169Interest and penalties: remissions and refunds if duty determined not to be payable, etc
170Interest and penalties: remissions and refunds if consistent with collection of highest net revenue over time
171Interest and penalties: remissions and refunds in prescribed circumstances
172Power to apply refunds towards payment of other amounts payable
173Administrative reviews and appeals in respect of decisions not to remit or refund
174Interest and penalties are debt due to Crown, etc
175Application of subpart
176Goods forfeited
177Forfeiture to relate back
178Seizure of forfeited goods or goods suspected to be forfeited goods
179Securing seized goods
180Offence in relation to securing seized goods
181Notice of seizure
182Delivery of goods seized on deposit of value
183Sale of certain seized goods
184Application for review of seizure
185Condemnation of seized goods
185ACondemnation of seized goods that are tobacco or tobacco products
185BNotice of seizure and condemnation of goods that are tobacco or tobacco products
186Condemnation of goods that are subject of appeal
187Condemnation of goods where relief granted but condition of relief not met within time limit
188Goods forfeit on commission of offence
189Disposal of forfeited and condemned goods
189AApplication for compensation for incorrect disposal of tobacco and certain tobacco products
190Exercise of powers in contiguous zone
191Boarding and searching craft
192Facilitation of boarding
193Offences in relation to facilitation of boarding
194Stationing Customs officers on board craft
195Securing goods on craft
196Firing on ship
197Power to order ship to leave New Zealand
198Offence in relation to power to order ship to leave New Zealand
199Detention of craft suspected to be involved in offences or smuggling migrants
200Offences in relation to detained craft
201Evidence of identity, entitlement to travel, etc
202Offence in relation to failure to produce evidence of identity, entitlement to travel, etc
203Verification of identity using biometric information
204Detention of persons failing to comply with direction under section 203(3)
205Questioning persons about goods and debt
206Detention of persons questioned about goods or debt and suspected to be involved in offences
207Completion of processing under Immigration Act 2009 and Biosecurity Act 1993
208Cases requiring investigation for public health or law enforcement purposes
209Offence in relation to requirements imposed under section 207 or 208
210Search of persons
211Search of persons suspected of having goods hidden on or about their person
212Detention of persons committing or about to commit certain offences
213Detention of persons who do not report to or remain at certain places
214Seizure of items found
215Powers in relation to unauthorised persons remaining in certain Customs-controlled areas
216Use of electronic communication devices prohibited in certain places
217Offence in relation to use of electronic communication device
218Questioning specified persons about arrival or departure
219Offence in relation to failure to produce evidence of identity, entitlement to travel, or other matters
220Detention of person to whom section 218 relates
221Detention for public health or law enforcement purposes
222Entry to Customs-controlled areas and CASEs
223Entry to examine goods subject to control of Customs
224Patrols, etc to detect offences
225Issue of search warrant
226Use of dogs and other aids
227Examination of goods subject to control of Customs
228Data in electronic devices that are subject to control of Customs
229Questioning employees of airlines and shipping companies about international cargo or domestic cargo
230Questioning certain persons about cargo to be exported
231Powers if vehicles suspected to be transporting certain goods involved in offences, etc
232Accounting for goods
233Production of goods
234Failure to produce or account for goods
235Temporary removal of goods from Customs-controlled area
236Offences in relation to temporary removal of goods from Customs-controlled area
237Powers if goods no longer under control of Customs suspected to be involved in offences or to be forfeited goods
238Verification of entries
239Cancellation and amendment of entries
240Security for payment of duty
241New security may be required
242Power to seize and detain risk goods or goods involved in certain offences, etc
243Power to seize, copy, and detain certain drugs and objectionable publications
244Detention of goods suspected to be instrument of crime or tainted property
245Custody of certain goods detained under section 244
246Offences in relation to custody of detained goods
247Return of goods detained under section 244
248Extension of investigation period
249Return of cash necessary to satisfy basic needs
250Seizure and detention of dangerous civil aviation goods
251Requirement to produce documents
252Further powers in relation to documents
253Offence in relation to failure to comply with requirement under section 251 or 252
254Legally privileged communications
255Audit or examination of records
256Chief executive may take possession of and retain records and other documents
257Copying of documents obtained during inspection
258Retention of documents and goods obtained during inspection
259Unlawful travel documents
260Documents in foreign language
261Landing or mooring of Customs craft
262Written authority of agents
263Arrest of suspected offenders
264Protection of persons acting under authority of Act
265Definition for sections 266 and 267
266Controlled delivery
267International controlled delivery
267APowers for dealing with drugs smuggling outside New Zealand, etc [Repealed]
268New Zealand Customs Service
269Comptroller of Customs
270Customs officers
271Authorised persons: individual authorisations
272Authorised persons: class authorisations
273Identity cards
274Customs flag
275Power of chief executive to determine seals, etc
276Areas that may be licensed as CASEs
277Application for CASE licence
278CASE licence
279Customs facilities in CASEs, etc
280Offence in relation to Customs facilities in CASEs, etc
281Customs-approved secure exports schemes
282Customs-approved export seals
283Amendment or revocation of notice of appointment under section 282
284Definitions for subpart
285Imposition of penalty
286When penalty must be paid
287Calculation of amount of penalty
288No penalty in certain cases
289Late payment of penalty: further penalties payable
290Further penalty may be remitted or refunded
291Administrative review of, or appeal against, decision to issue penalty notice
292Administrative review of, or appeal against, decision to refuse to remit or refund further penalty
293General rules about penalties
294Obligation to pay penalty not suspended by review or appeal
295Definitions for subpart
296Use of automated electronic systems by Customs to make decisions, exercise powers, comply with obligations, and take related actions
297Publication of details of arrangements for use of automated electronic systems
298Variation and substitution of decisions made by automated electronic systems
299Appeals and reviews unaffected
300Definitions for subpart
301Customs’ general powers for using information
302Joint border management
303Relationship between this Act and other law relating to information use and disclosure
304Definitions for subpart
305Relationship between subpart and other provisions of Act
306Information matching for purposes of Student Loan Scheme Act 2011
307Information matching for purposes of Child Support Act 1991
308Information matching for purposes of benefit and benefit debt recovery
309Information matching for purposes of mutual assistance provision contained in social security agreement
310Information matching for purpose of fines enforcement
311No Crown liability to third parties for fines enforcement action
312Direct access to information for purposes of Student Loan Scheme Act 2011
313Direct access to information for purposes of Child Support Act 1991
314Direct access to information for purposes of benefit and benefit debt recovery
315Direct access to information for other purposes
316Disclosure of information other than under information matching agreement or direct access agreement
317Disclosure of information to private sector organisations
318Disclosure of information to overseas authority
319Chief executive of Customs may issue directions for disclosure of information under section 318(6)
320Relationship between section 318 and treaties, etc
321Publication of agreements entered into under section 315, 316, 317, or 318
322Registered user systems for electronic provision of documents
323Registration of users of registered user systems
324Access generally restricted to registered users
325Documents provided using registered user system must be provided in prescribed way
326Assignment, use, and security of unique user identifier
327Use of unique user identifier presumed secure
328Regulations in relation to access
329Offences in relation to unauthorised access to or improper use of registered user system
330Offence in relation to interference with registered user system
331Offences in relation to security of, or unauthorised use of, unique user identifiers
332Customs must keep records of transmissions to or from registered user systems
333Application for Customs ruling
334Time when application may be made
335Making application
336Making of Customs ruling
337When chief executive may decline to make ruling
338Notice of Customs ruling
339Effect of Customs ruling
340Confirmation of basis of Customs ruling
341Amendment of Customs ruling
342Effect of amendment to Customs ruling
343Cessation of Customs ruling, etc
344Appeal from decisions of chief executive
345No liability where Customs ruling relied on
346Publication of Customs rulings
347Process for administrative reviews
348Establishment of Customs Appeal Authorities
349Function of Customs Appeal Authority
350Customs Appeal Authorities generally
351Offence in relation to false or misleading statement intending to deceive
352Offence in relation to failure to attend, give evidence, supply certain things, etc
353Other offences in relation to Customs Appeal Authorities
354Keeping of records
355Application to keep records outside New Zealand
356Offences in relation to records
357Giving Customs access to records
358Offences in relation to failure to give Customs access to records
359Interference with goods
360Interference with cargo
361Interference with seals, etc
362Unauthorised use of seals, interference with sealed Customs packages, etc
363Offences for failure to make entry, etc
364Offences in relation to erroneous or defective entries, etc
365Provisions relating to offences in relation to entries
366Offences in relation to declarations and documents that are erroneous
367Offence in relation to documents that are not genuine
368Offences in relation to declarations and documents that are known to be faulty
369Offences in relation to failure to update information supplied in advance
370Further offences in relation to records and information
371Defrauding Customs revenue
372Possession or custody of uncustomed goods or prohibited imports
373Purchase, sale, exchange, etc, of uncustomed goods or prohibited imports
374Possession or control of concealed goods
375Offence in relation to seized goods
376Threatening or resisting Customs officer
377Obstructing Customs officer or interfering with Customs property
378False allegation or report to Customs officer with intention of diverting deployment of Customs personnel, etc
379Killing or injuring Customs dog
380Personation of Customs officer
381Counterfeit seals, stamps, markings, substances, or devices
382Unauthorised presence in certain Customs-controlled areas
383Failure to answer questions
384False allegation or report to Customs officer alleging that offence committed
385Adapting craft for smuggling
386Possession of incomplete documents
387Offences in relation to use of goods
388Offences in relation to importation or exportation of prohibited goods
389Offences in relation to knowingly importing or exporting prohibited goods
390Offences in relation to knowingly importing or exporting objectionable publications
391Offence in relation to knowingly importing or exporting goods for dishonest purpose
392Publications imported or exported in course of official duties
393Offences in relation to exportation of goods
394Corporate liability
395Liability of principal and agent
396Attempts
397Court may order payment of money in respect of duty
398Filing of charging document
399Infringement offences and fees
400Infringement notices
401Procedural requirements for infringement notices, etc
402Infringement fees to be paid into Crown Bank Account
403Regulations generally
404Regulations in relation to stores
405Regulations in relation to entries
406Regulations in relation to collection of duty
407Regulations for determining country of produce or manufacture
408Regulations for recovering costs for attendance of Customs officers, etc
409Regulations for recovering costs of granting certificates of clearance, etc
410Regulations in relation to sale of goods by chief executive
411Regulations in relation to activities of Customs officers outside New Zealand
412Incorporation of provisions of international agreements by reference in regulations
413Levies for recovering border processing costs
414Contents of border processing levy order
415Trust accounts for levy money payable to chief executive
416Effect of levy order
417Compliance audits
418Auditors
419Offences in relation to levy orders
420Defences for offences in relation to levy orders
421Chief executive’s rules
422Interaction with subpart 1 of Part 3 of Legislation Act 2012 [Repealed]
423Giving notice to companies
424Giving notice to bodies corporate other than companies
425Giving notice to individuals
426Receipt of notices
427Chief executive to give written reasons for decisions open to appeal to Customs Appeal Authority
428Declarations under Act
429Burden of proof
430Documents made overseas
431Proof of rules made by chief executive [Repealed]
432No limitation on claims by Crown to recover duties or in forfeiture proceedings
433Payments by chief executive out of public money
434Foreign currency
435Certificates of origin
436Fish, etc
437Use of force must be reported
438Annual report must state total of electronic devices searched
439Annual report must report on initiatives to reduce compliance costs for businesses with strong record of compliance
440Working hours of Customs
441Entry required for human remains
442Repeal of Customs and Excise Act 1996
443Other consequential repeals, revocations, and amendments
[Repealed]
Notes

The Parliament of New Zealand enacts as follows:

 
1 Title

This Act is the Customs and Excise Act 2018.

2 Commencement

(1)

The following provisions of Schedule 3 come into force on the day after the date of Royal assent:

(b)

(2)

Sections 113(3)(a), 114(6)(a), 115(5)(a), 116(6)(a), 117(3)(a), 138(6)(a), and 139(6)(a) come into force on—

(a)

the date that immediately follows the specified 6-month period; or

(b)

an earlier date specified by the Governor-General by Order in Council.

(3)

Subpart 3 of Part 5 comes into force as follows:

(a)

in relation to entries under section 89, on—

(i)

the date that immediately follows the specified 6-month period; or

(ii)

an earlier date specified by the Governor-General by Order in Council:

(b)

in relation to all other entries, on the specified date.

(4)

The rest of this Act comes into force on the specified date.

(5)

In this section,—

entries is to be read in accordance with the definition of entry in section 284

specified 6-month period means the 6-month period that starts with the specified date

specified date means—

(a)

the date that immediately follows the 12-month period that starts with the date of Royal assent; or

(b)

an earlier date specified by the Governor-General by Order in Council.

(6)

An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Legislation Act 2019 requirements for secondary legislation made under this section
PublicationPCO must publish it on the legislation website and notify it in the GazetteLA19 s 69(1)(c)
PresentationThe Minister must present it to the House of RepresentativesLA19 s 114, Sch 1 cl 32(1)(a)
DisallowanceIt may be disallowed by the House of Representatives LA19 ss 115, 116
This note is not part of the Act.

Section 2(2): sections 113(3)(a), 114(6)(a), 115(5)(a), 116(6)(a), 117(3)(a), 138(6)(a), and 139(6)(a) brought into force, on 1 October 2018, by clause 2(1) of the Customs and Excise Act 2018 Commencement Order 2018 (LI 2018/148).

Section 2(3): subpart 3 of Part 5 brought into force, on 1 October 2018, by clause 2 of the Customs and Excise Act 2018 Commencement Order 2018 (LI 2018/148).

Section 2(4): the rest of this Act brought into force, on 1 October 2018, by clause 2(2) of the Customs and Excise Act 2018 Commencement Order 2018 (LI 2018/148).

Section 2(6): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Part 1 Preliminary provisions

Purposes and overview

3 Purposes of Act

The purposes of this Act are as follows:

(a)

to levy excise duty and excise-equivalent duty:

(b)

to enable the collection of—

(i)

duty imposed under the Tariff Act 1988; and

(ii)

excise duty and excise-equivalent duty; and

(iii)

other types of duties, taxes, and levies:

(c)

to provide for the administration and enforcement of customs controls at the border and to facilitate border control through risk management:

(d)

to set out obligations of—

(i)

persons who cross the border; and

(ii)

persons who cause or allow goods, persons, or craft to cross the border:

(e)

to set out the powers of Customs in relation to goods, persons, and craft:

(f)

to restate, with some modifications, the law relating to customs:

(g)

Compare: 1996 No 27 Long Title

4 Overview of Act

(1)

This Act is divided into 6 Parts.

Part 1

(2)

This Part (Part 1) deals with preliminary matters, including the following:

(a)

definitions of terms used in this Act (sections 5 and 6):

(b)

the application of this Act (sections 7 and 8):

(c)

transitional, savings, and related provisions (section 9 and Schedule 1):

(d)

how this Act binds the Crown (section 10 and Schedule 2).

Part 2

(3)

Part 2 levies excise duty and excise-equivalent duty (section 11 and Schedule 3).

Part 3

(4)

Part 3 is about the entry and exit of goods, persons, and craft into and out of New Zealand, including the following:

(a)

what is to happen when a craft transporting goods or persons—

(i)

is en route to New Zealand; or

(ii)

has arrived in New Zealand; or

(iii)

is departing from New Zealand (subpart 1):

(b)

the designation of ports and airports as Customs places and the licensing of Customs-controlled areas, including a requirement that certain activities relating to goods, persons, or craft must be carried out only in Customs-controlled areas that are licensed for those activities (subpart 2):

(c)

the entry of, and accounting for, imported goods, goods on which excise duty is levied, and goods that are being exported (subpart 3):

(d)

prohibitions on the importation and exportation of—

(i)

objectionable publications; and

(ii)

goods that are designed, manufactured, or adapted for a dishonest purpose; and

(iia)

tobacco; and

(iii)

other goods prohibited by Order in Council or by the Secretary of Foreign Affairs and Trade (subpart 4 and Schedules 3A and 3B):

(e)

matters relating to duty on imported goods, including the valuation of imported goods for the purposes of duty (subpart 5 (including Schedule 4)):

(f)

excise duty and excise-equivalent duty credits (subpart 6):

(g)

the assessment, payment, and recovery of duty (subpart 7):

(h)

interest and penalties for late or incorrect payments of duty, incorrect refunds of duty, and drawback incorrectly allowed (subpart 8):

(i)

the forfeiture, seizure, and condemnation of goods (subpart 9 (including Schedule 5)).

Part 4

(5)

Part 4 sets out powers that are given to Customs, including the following:

(a)

powers in relation to craft:

(b)

powers in relation to persons:

(c)

powers to enter certain places:

(d)

powers to examine goods, search for goods, ask questions about goods, and do other things in relation to goods:

(e)

powers to require documents to be produced, to examine, copy, and retain documents, and to do other things in relation to documents.

Part 5

(6)

Part 5 deals with administrative matters, including the following:

(a)

the organisation of Customs (subpart 1):

(b)

the licensing of Customs-approved areas for storing exports, the approval of Customs-approved secure export schemes, and the use of Customs-approved export seals (subpart 2 (including Schedule 6)):

(c)

the imposing of administrative penalties for incorrect entries relating to goods (subpart 3):

(d)

the use of automated electronic systems for the making of decisions (subpart 4):

(e)

the use of information by Customs and joint border management systems (subpart 5):

(f)

the disclosure of information by Customs to other government agencies, private sector organisations, and overseas authorities (subpart 6):

(g)

the regulation of electronic systems established by Customs to enable documents to be provided to Customs by persons registered to use the systems or by Customs to those persons (subpart 7):

(h)

the making of binding rulings by Customs (subpart 8):

(i)

administrative reviews of certain decisions made by Customs under this Act (subpart 9 (including Schedule 7)):

(j)

the establishment of Customs Appeal Authorities to determine appeals against certain decisions made by Customs under this Act (subpart 10 (including Schedule 8)).

Part 6

(7)

Part 6 deals with final and miscellaneous matters, including the following:

(a)

the keeping of records (subpart 1):

(b)

offences (subpart 2):

(c)

regulations, orders, and rules (subpart 3):

(d)

the giving of notices and other miscellaneous matters (subpart 4):

(e)

the repeal of the Customs and Excise Act 1996 and other consequential repeals, revocations, and amendments (subpart 5 (including Schedule 9)).

(8)

This section is only a guide to the provisions of this Act.

Section 4(4)(d)(iia): inserted, on 1 July 2020, by section 4(1) of the Customs and Excise (Tobacco) Amendment Act 2020 (2020 No 16).

Section 4(4)(d)(iii): amended, on 1 July 2020, by section 4(2) of the Customs and Excise (Tobacco) Amendment Act 2020 (2020 No 16).

Section 4(5): amended, on 21 May 2022, by section 50 of the Maritime Powers Act 2022 (2022 No 23).

Section 4(5): amended, on 1 October 2018, by section 9 of the Maritime Powers Extension Act 2018 (2018 No 38).

Definitions, application, and transitional provision

5 Definitions for Act

(1)

In this Act, unless the context otherwise requires,—

administrative review means a review under section 347 and Schedule 7

aircraft means any machine that can derive support in the atmosphere from the reactions of the air otherwise than by the reactions of the air against the surface of the earth

Armed Forces has the meaning given to that term in section 2(1) of the Defence Act 1990

arrive, as in arrive in New Zealand,—

(a)

in relation to a person, means to enter into New Zealand from a point outside New Zealand by any means, whether lawfully or unlawfully; and

(b)

in relation to a craft, means to arrive in New Zealand from a point outside New Zealand,—

(i)

whether lawfully or unlawfully; and

(ii)

whether or not the craft does any of the following:

(A)

lands, berths, moors, anchors, or stops at any place within New Zealand:

(B)

hovers above any place within New Zealand:

(C)

otherwise arrives at any place within New Zealand

authorised certification body means a body designated as an authorised certification body under section 435

authorised person means—

(a)

a person authorised under section 271 to carry out a function of a Customs officer under this Act; or

(b)

a person within a class of persons authorised under section 272 to carry out a function of a Customs officer under this Act

beer means an alcoholic drink made from yeast-fermented malt, water, and hops

biofuel means any gaseous or liquid fuel produced from biomass that can be used as a fuel for engines

biofuel blend means any product that results from blending biofuel with petrol, diesel, or other substances

biometric information, in relation to a person, means information that comprises—

(a)

1 or more of the following kinds of information:

(i)

a photograph of all or any part of the person’s head and shoulders:

(ii)

impressions of the person’s fingerprints:

(iii)

a scan of the person’s irises; and

(b)

an electronic record of the information that is capable of being used for biometric matching

cargo aggregator means a person who, for reward, aggregates cargo to be transported for different persons for transportation together on a craft—

(a)

in bulk cargo containers or otherwise; and

(b)

under a shared space, or other negotiated volume of cargo, arrangement with the craft’s owner or operator

cargo device means—

(a)

an intermodal container; or

(b)

a unit load device; or

(c)

a pallet; or

(d)

anything that is similar to anything referred to in paragraphs (a) to (c)

certified copy, in relation to a document, means a document certified as a true copy of the document by or on behalf of the chief executive under the seal of Customs

chief executive means the chief executive of the New Zealand Customs Service

chief executive’s rules means rules made by the chief executive under section 421(1)

commercial transportation operator means any of the following:

(a)

an owner or operator of a craft that transports goods or persons for commercial purposes—

(i)

from New Zealand to a point outside New Zealand; or

(ii)

from a point outside New Zealand to a point within New Zealand:

(b)

an agent of an owner or operator referred to in paragraph (a):

(c)

a person who organises the handling or transportation of goods or persons for commercial purposes—

(i)

from New Zealand to a point outside New Zealand; or

(ii)

from a point outside New Zealand to a point within New Zealand:

(d)

an agent of a person who organises the handling or transportation of goods or persons as referred to in paragraph (c):

(e)

an owner, occupier, or operator of a Customs-controlled area that is licensed to be used for—

(i)

the disembarkation, embarkation, or processing of persons arriving in, or departing from, New Zealand; or

(ii)

the processing of craft arriving in, or departing from, New Zealand; or

(iii)

the loading or unloading of goods onto or from craft arriving in, or departing from, New Zealand:

(f)

any prescribed persons, or prescribed classes of persons, involved in any other way in the handling or transportation of goods or persons for commercial purposes—

(i)

from New Zealand to a point outside New Zealand; or

(ii)

from a point outside New Zealand to a point within New Zealand

contiguous zone is to be read in accordance with section 8A of the Territorial Sea, Contiguous Zone, and Exclusive Economic Zone Act 1977

contractor means a person who does work for valuable consideration on or in respect of any goods at the request of any other person (otherwise than as an employee of that other person) in circumstances where that other person supplies, but retains ownership of, some or all of the material used in the work

country includes a territory or a part of a country or territory

craft includes any aircraft, ship, or other machine or vessel, used or capable of being used for the transportation of goods or persons by air or by water

crime involving dishonesty has the meaning given to that term in section 2(1) of the Crimes Act 1961

Customs means the New Zealand Customs Service

Customs airport means an airport designated as a Customs airport under section 55

Customs Appeal Authority means an Authority established under section 348

Customs-approved area for storing exports or CASE means an area that—

(a)

is used for the purpose described in section 276(1) (whether or not it is used for any other purpose); and

(b)

is licensed as a CASE under section 276(1)

Customs-approved export seal has the meaning given to that term in section 282(2)

Customs-approved secure exports scheme means a scheme approved by the chief executive as a Customs-approved secure exports scheme under section 281

Customs-approved secure package means a package of a kind approved by the chief executive under Schedule 6 for the purposes of a Customs-approved secure exports scheme (see clause 2(a) of that schedule)

Customs-controlled area means an area that—

(a)

is required to be licensed under section 56; and

(b)

is so licensed

Customs craft means any craft employed (wholly or partly) in the service of Customs

Customs direction

(a)

means any request, direction, order, command, or instruction given by a Customs officer to any person—

(i)

to do, or to refrain from doing, any act; or

(ii)

to submit to a procedure for the purposes of this Act; and

(b)

includes—

(i)

any notice, poster, or sign publicly displayed by Customs in a Customs place or Customs-controlled area; and

(ii)

any direction contained in a form prescribed by regulations or the chief executive’s rules; and

(iii)

in relation to embarkation onto, or disembarkation from, a craft, any direction given by the person in charge of the craft, or by a crew member, at the direction of a Customs officer

Customs dog means a dog that is being used, or is intended for use, by Customs

Customs officer

(a)

means a person appointed as a Customs officer under section 270; and

(b)

includes, except in section 273, an authorised person in relation to the carrying out by that person of a function in accordance with—

(i)

that person’s authorisation under section 271; or

Customs place means a Customs port or Customs airport

Customs port means a port designated as a Customs port under section 55

Customs revenue means revenue managed by Customs on behalf of the Crown

Customs value, in relation to goods, means the Customs value of the goods determined in accordance with Schedule 4

dangerous item means any of the following:

(a)

a firearm (as that term is defined in section 11(2) of the Aviation Crimes Act 1972):

(b)

any dangerous or offensive weapon or instrument of any kind:

(c)

any ammunition:

(d)

any explosive substance or device:

(e)

any injurious substance or device of any kind that could be used to endanger a person’s safety

defence area has the meaning given to that term in section 2(1) of the Defence Act 1990

Defence Force has the meaning given to that term in section 2(1) of the Defence Act 1990

designated place means—

(a)

a Customs-controlled area; or

(b)

a Customs place; or

(c)

a Police station to which a person reports under section 28; or

(d)

a place the chief executive authorises a craft to arrive at, or depart from, under section 21 or 43

Director-General of Biosecurity means the chief executive of the department of State that, with the authority of the Prime Minister, is responsible for the administration of the Biosecurity Act 1993

dishonest purpose, in relation to goods, is to be read in accordance with subsection (2)

document includes any of the following:

(a)

any form of writing on material:

(b)

information recorded, transmitted, or stored digitally or electronically, and any material subsequently derived from that information:

(c)

any label or mark:

(d)

any book, map, plan, graph, or drawing:

(e)

any photograph, film, negative, or device in, on, or from which 1 or more visual images are capable of being stored or reproduced

domestic cargo means goods that—

(a)

are brought into a Customs-controlled area at a Customs place for transportation by air or sea to another Customs place on a craft that—

(i)

begins its journey outside New Zealand and, in the course of that journey, enters New Zealand and travels between at least 2 Customs places; or

(ii)

begins its journey at a Customs place and, in the course of that journey, travels to at least 1 other Customs place before departing from New Zealand; and

(b)

are—

(i)

within the Customs-controlled area referred to in paragraph (a); or

(ii)

on the craft referred to in paragraph (a)(i) or (ii) being transported from one Customs place to another Customs place; or

(iii)

having been transported from one Customs place to another Customs place, awaiting removal from a Customs-controlled area at the latter Customs place

domestic passenger means a passenger, not being an internationally ticketed passenger, who has an entitlement to air or sea travel for a domestic sector on—

(a)

a craft that—

(i)

begins its journey outside New Zealand; and

(ii)

in the course of that journey, enters New Zealand and travels between at least 2 Customs places; or

(b)

a craft that—

(i)

begins its journey at a Customs place; and

(ii)

in the course of that journey, travels to at least 1 other Customs place before departing from New Zealand

domestic sector means a journey within New Zealand from one Customs place to another Customs place

dutiable goods means goods of a kind subject to duty

duty means any of the following:

(a)

any duty, tax, fee, charge, or levy imposed on goods under this Act:

(b)

a duty imposed under the Tariff Act 1988:

(c)

provisional safeguard duty, safeguard duty, and extended safeguard duty imposed under the Trade (Safeguard Measures) Act 2014:

(e)

a duty or tax imposed by section 12 of the Goods and Services Tax Act 1985:

(f)

levies imposed by section 213(2)(c) of the Accident Compensation Act 2001:

duty-free store means a Customs-controlled area that is licensed to be used for the storing of dutiable goods on which the duty has not been paid, pending their sale to persons arriving in, or departing from, New Zealand

eligible person, in relation to an area, means a person who—

(a)

is the owner or occupier of the area; or

(b)

is operating in the area

Excise and Excise-equivalent Duties Order has the meaning given to that term in clause 16(7) of Schedule 3

Excise and Excise-equivalent Duties Table has the meaning given to that term in clause 16(7) of Schedule 3

export warehouse means a Customs-controlled area that is licensed to be used for the deposit, keeping, or securing of imported goods, or of Part A goods, without payment of duty, pending their export

exportation,—

(a)

in relation to goods, means the shipment of the goods in any craft for transportation to a point outside New Zealand, except where otherwise expressly provided; and

(b)

in relation to prohibited exports that are objectionable publications or other documents, includes their transmission by any means (other than by broadcasting) from New Zealand to a point outside New Zealand

exporter

(a)

means any person by or for whom goods are exported; and

(b)

includes any person who, on or at any time after entry of the goods for export but before the goods are exported, is or becomes—

(i)

the owner of the goods; or

(ii)

entitled to the possession of the goods; or

(iii)

beneficially interested in the goods

fail to comply includes contravene

forfeited goods means goods that are forfeited to the Crown under section 176

function, as in a function of a person or body, includes the following:

(a)

a power of the person or body:

(b)

an obligation of the person or body:

(c)

a service that the person or body provides

goods means all kinds of movable personal property (including animals), subject to sections 95(3) to (6), 96(11) and (12), 97(10) and (11), and 243(5)

importation,—

(a)

in relation to goods, means the arrival of the goods in New Zealand in any manner, whether lawful or unlawful, from a point outside New Zealand; and

(b)

in relation to prohibited imports that are objectionable publications or other indecent or obscene articles or other documents, includes their transmission by any means (other than by broadcasting) into New Zealand from a point outside New Zealand

importer

(a)

means any person by or for whom goods are imported; and

(b)

includes—

(i)

the consignee of the goods; and

(ii)

any person who, on or at any time after the importation of the goods but before the goods cease to be subject to the control of Customs, is or becomes—

(A)

the owner of the goods; or

(B)

entitled to the possession of the goods; or

(C)

beneficially interested in the goods

international cargo means any cargo that—

(a)

has arrived in New Zealand from a point outside New Zealand; or

(b)

is to be exported from New Zealand

internationally ticketed passenger means a person who has an entitlement to air or sea travel for a domestic sector that is a domestic sector included in tickets for an international journey that—

(a)

began outside New Zealand; or

(b)

began in New Zealand and is to continue outside New Zealand

liquefied petroleum gas

(a)

means propane, propylene, butane, butylene, or isobutane; and

(b)

includes a mixture consisting wholly or principally of any substance or substances referred to in paragraph (a), whether or not the mixture also contains any other hydrocarbon

manufacture, in relation to goods specified in the Excise and Excise-equivalent Duties Table,—

(a)

in relation to goods that are tobacco, means any of the following processes:

(i)

curing, cutting, pressing, grinding, crushing, or rubbing raw or leaf tobacco, or otherwise preparing raw or leaf tobacco or manufactured or partially manufactured tobacco:

(ii)

making cigarettes from tobacco:

(iii)

putting up for use or consumption scraps, waste, chippings, stems, or deposits of tobacco resulting from processing tobacco; and

(b)

in relation to goods that are a fuel, means any operation or process that is involved in the production of the goods; and

(c)

in relation to goods that are neither tobacco nor a fuel, means any of the following:

(i)

any operation or process that is involved in the production of the goods:

(ii)

any of the following processes that takes place on premises that are not licensed, or required to be licensed, under the Sale and Supply of Alcohol Act 2012:

(A)

filtering the goods, diluting the goods, or blending the goods with other goods (whether the other goods are the same as, similar to, or different from the goods):

(B)

putting the goods for the first time into a container (for example, a bag, barrel, bottle, can, cask, drum, or keg) in which they might be presented, or from which they might be dispensed, for sale to the public or any member of the public:

(C)

labelling or marking, for the first time, containers filled with the goods

manufactured tobacco means tobacco that has been manufactured or prepared for smoking or any other purpose

manufacturing area means a Customs-controlled area that is licensed to be used for the manufacture of Part A goods

marae includes the area of land on which all buildings, such as the wharenui (meeting house), the wharekai (dining room), ablution blocks, and any other associated buildings, are situated

Minister means the Minister of Customs

New Zealand, subject to section 190(1), means the land and waters enclosed by the outer limits of the territorial sea of New Zealand (as described in section 3 of the Territorial Sea, Contiguous Zone, and Exclusive Economic Zone Act 1977)

Normal Tariff has the meaning given to that term in section 2(1) of the Tariff Act 1988

objectionable publication means a publication (as that term is defined in section 2 of the Films, Videos, and Publications Classification Act 1993) that is objectionable within the meaning of that Act in the hands of all persons and for all purposes

occupier, in relation to land,—

(a)

means the owner of the land; and

(b)

includes a lessee or tenant, a licensee, or a person who has the right to occupy the land under other authority

operator,—

(a)

in relation to a business, means any person actively engaged (whether alone or with others) in the carrying on of the business; and

(b)

in the case of a body corporate, includes—

(i)

every director, manager, secretary, or other similar officer engaged in the direct control or management of the body corporate’s business; and

(ii)

a person who purports to act in any of the capacities referred to in subparagraph (i)

owner,—

(a)

in relation to a craft, includes—

(i)

the charterer of the craft; and

(ii)

any person acting as agent for the owner or charterer; and

(b)

in relation to goods, includes—

(i)

the importer; and

(ii)

any person having possession of the goods; and

(iii)

any person who is beneficially interested in the goods; and

(c)

in relation to land, means—

(i)

the person who is entitled to receive the rack rent in respect of the land; or

(ii)

the person who would be entitled to receive the rack rent in respect of the land if the land were let to a tenant at the rack rent

package includes—

(a)

any means used or capable of being used to pack, cover, enclose, contain, or encase goods for transportation; and

(b)

any cargo device

Part A goods has the meaning given to that term in section 11(8)

passenger name record or PNR, in relation to any person, means the electronic record created by a commercial transportation operator for a journey booked by or for the person, which typically includes the following information:

(a)

the person’s name:

(b)

the person’s contact details:

(c)

the place where the person, or another person, booked the intended travel:

(d)

the date on which the person, or another person, booked the intended travel:

(e)

the name of any other person with whom the person intends to travel:

(f)

whether the person paid for his or her own intended travel, and the manner of payment:

(g)

the person’s travel movements before the intended travel:

(h)

any change in the person’s travel from the travel originally booked:

(i)

whether the person has checked baggage

personal information means information about an identifiable person (including (without limitation) biometric information)

postal article means any article or thing of any kind (including a letter, parcel, or package) received by or transmitted through—

(a)

a registered postal operator; or

(b)

an air courier company

prescribed means prescribed by regulations, except—

(a)

where it is stated that a matter is to be prescribed by the chief executive’s rules; and

(b)

prohibited exports means goods whose exportation is prohibited under section 95, 96, or 97 (whether conditionally or unconditionally)

prohibited goods means prohibited exports or prohibited imports

prohibited imports

(a)

means goods whose importation is prohibited under section 95, 95A, or 96 (whether conditionally or unconditionally); and

(b)

includes goods whose importation is absolutely prohibited by a notice issued under section 22(1A) of the Misuse of Drugs Act 1975

public service has the meaning in section 10 of the Public Service Act 2020

reasonable period means a period that is not longer than necessary in the circumstances

registered postal operator means a person who is registered as a postal operator under the Postal Services Act 1998

registered user has the meaning given to that term in section 322(3)

registered user system has the meaning given to that term in section 322(3)

regulations means regulations made by Order in Council under section 403(1)

removed for home consumption, in relation to Part A goods that are manufactured in a manufacturing area, is to be read in accordance with clause 3 of Schedule 3 (except where clause 3(6) applies)

sealed Customs package means—

(a)

a Customs-approved secure package; or

(b)

a package in relation to which a Customs-approved export seal has been used

ship

(a)

means a ship, boat, or other vessel used in navigation, whether or not it has any means of propulsion; and

(b)

includes—

(i)

a hovercraft or any other thing deriving full or partial support in the atmosphere from the reaction of air against the surface of the water over which it operates; and

(ii)

a submarine or other submersible

shipment, in relation to goods, includes loading the goods into or onto a craft

spirits

(a)

means ethyl alcohol, whether denatured or not; and

(b)

includes—

(i)

spirituous beverages, including brandy, gin, rum, vodka, and whisky; and

(ii)

every description of spirituous liquor derived from ethyl alcohol

subject to the control of Customs, in relation to goods, is to be read in accordance with section 6

Tariff has the meaning given to that term in section 2(1) of the Tariff Act 1988

Tariff classification, in relation to goods, means the classification of those goods under Part 1 of the Tariff

Tariff heading has the meaning given to that term in section 2(1) of the Tariff Act 1988

Tariff item has the meaning given to that term in section 2(1) of the Tariff Act 1988

tobacco includes cigars, cigarettes, and snuff

tobacco refuse means any scraps, waste, chippings, stems, or deposits of tobacco resulting from the processing of tobacco

transport includes carry or convey

uncustomed goods means goods on which duty has become due and payable but is unpaid

unlawfully exported means exported in contravention of this Act or any other enactment

unlawfully imported means imported in contravention of this Act or any other enactment

vehicle means a conveyance for use on land, whether or not it is also capable of being used on or over water.

(2)

For the purposes of this Act, goods are for a dishonest purpose if—

(a)

the goods have been designed, manufactured, or adapted with intent to facilitate the commission of a crime involving dishonesty; or

(b)

the goods, having regard to all relevant circumstances, can reasonably be considered to be—

(i)

part of, or involved in, an attempt to commit a crime involving dishonesty to which section 72 of the Crimes Act 1961 applies; or

(ii)

related to a conspiracy to commit a crime involving dishonesty to which section 310 of the Crimes Act 1961 applies.

(3)

For the purposes of this Act, a contractor who does work on or in respect of any goods is treated as having manufactured them.

(4)

In this Act, a reference to an item in the Excise and Excise-equivalent Duties Table includes any item that is subsequently included in the table and that, with or without modification, replaces or corresponds to the earlier item.

Compare: 1996 No 27 ss 2(1), (3), 28(2), 32B(5), 38A, 54(1)(aa), (ab), (ac), (9), 56(1)(a), (ab), (ac), (2A), 59, 64A(1), 69(1)(b), 79A(2), 138, 209(1)(cab), (7), 225(1)(l), (la), 276(2)

Section 5(1) prohibited imports paragraph (a): amended, on 1 July 2020, by section 5(2) of the Customs and Excise (Tobacco) Amendment Act 2020 (2020 No 16).

Section 5(1) public service: replaced, on 7 August 2020, by section 135 of the Public Service Act 2020 (2020 No 40).

Section 5(1) tobacco refuse: inserted, on 1 July 2020, by section 5(1) of the Customs and Excise (Tobacco) Amendment Act 2020 (2020 No 16).

6 Definition: subject to the control of Customs

For the purposes of this Act, goods are subject to the control of Customs,—

(a)

if the goods are imported goods,—

(i)

from the time of importation:

(ii)

until the time when the goods are lawfully removed for home consumption or exportation from a Customs-controlled area:

(b)

if the goods are lawfully removed from a Customs-controlled area under a conditional permit or other authorisation granted under section 85(1)(b),—

(i)

from the time of their removal:

(ii)

until the time when the chief executive is satisfied that the conditions of the permit or other authorisation have been met:

(c)

if the goods are to be exported (whether or not under drawback) and are in a package in relation to which a Customs-approved export seal has been used,—

(i)

from the time when the seal is first used:

(ii)

until the goods depart from New Zealand:

(d)

if the goods are to be exported (whether or not under drawback) under a Customs-approved secure exports scheme,—

(i)

from the time when the goods are first secured in a Customs-approved secure package:

(ii)

until the goods depart from New Zealand:

(e)

if the goods are to be exported under drawback,—

(i)

from the earlier of the following:

(A)

the time of the claim for drawback:

(B)

the time when the goods are brought into a Customs-controlled area or a CASE (whether or not the goods are later transported from that area to another area of any kind, and, if the goods are so transported, during the transportation):

(ii)

until the goods depart from New Zealand:

(f)

if the goods are to be exported otherwise than under drawback,—

(i)

from the time when the goods are brought into a Customs-controlled area or a CASE (whether or not the goods are later transported from that area to another area of any kind, and, if the goods are so transported, during the transportation):

(ii)

until the goods depart from New Zealand:

(g)

if the goods are on board any craft to which section 191 applies, at all times that the craft is within New Zealand:

(h)

if the goods are Part A goods that are manufactured in a manufacturing area,—

(i)

from the time of manufacture:

(ii)

until—

(A)

the goods are removed for home consumption; or

(B)

the goods depart from New Zealand, if that occurs without the goods having been removed for home consumption:

(i)

if the goods are owned by, or in the possession of, an internationally ticketed passenger who is using air or sea travel for a domestic sector,—

(i)

from the time, at the commencement of the domestic sector, when the goods are—

(A)

brought into a Customs-controlled area that is licensed to be used for the disembarkation, embarkation, or processing of persons arriving in, or departing from, New Zealand; or

(B)

accepted for transportation by an airline or a shipping company:

(ii)

until the time, at the end of the domestic sector, when the goods are lawfully removed from a Customs-controlled area that is licensed to be used for the disembarkation, embarkation, or processing of persons arriving in, or departing from, New Zealand:

(j)

if the goods are owned by, or in the possession of, a domestic passenger who is using air or sea travel for a domestic sector,—

(i)

from the time, at the commencement of the domestic sector, when the goods are—

(A)

brought into a Customs-controlled area that is licensed to be used for the disembarkation, embarkation, or processing of persons arriving in, or departing from, New Zealand; or

(B)

accepted for transportation by an airline or a shipping company:

(ii)

until the time, at the end of the domestic sector, when the goods are lawfully removed from a Customs-controlled area that is licensed to be used for the disembarkation, embarkation, or processing of persons arriving in, or departing from, New Zealand:

(k)

if the goods are domestic cargo to which neither paragraph (i) nor paragraph (j) applies,—

(i)

from the time when the goods are brought into a Customs-controlled area at a Customs place:

(ii)

until the time when the goods are lawfully removed from that or any other Customs-controlled area.

Compare: 1996 No 27 s 20(1)

7 Application of Act to postal articles

(1)

This Act applies to postal articles, and goods contained in postal articles, in the same way that it applies to other goods, subject to regulations made for the purposes of subsection (3).

(2)

For the purposes of this Act, a postal article is treated as being produced or delivered to a Customs officer when it is brought into a Customs-controlled area.

(3)

Regulations may do any of the following:

(a)

provide that any separate postal articles (and the goods contained in them) may be treated as a single postal article consigned to a single person (whether the postal articles are addressed to the same person or different persons):

(b)

prescribe the persons who are treated as the importers or exporters of those postal articles or goods.

Compare: 1996 No 27 s 276(1), (3), (4)

8 Application of Act to foreign Government ships

Nothing in this Act or in any enactment made under this Act limits the immunities of the following:

(a)

any foreign warship:

(b)

any other foreign governmental ship operated for non-commercial purposes:

(c)

any foreign military aircraft:

(d)

members of the crew of any ship or aircraft to which paragraphs (a) to (c) apply.

Compare: 1996 No 27 s 4(8)

9 Transitional, savings, and related provisions

The transitional, savings, and related provisions set out in Schedule 1 have effect according to their terms.

10 Act binds the Crown

This Act binds the Crown except as provided in Schedule 2.

Compare: 1996 No 27 s 3

Part 2 Excise duty and excise-equivalent duty

11 Excise duty and excise-equivalent duty levied

(1)

Excise duty and excise-equivalent duty are levied when goods are manufactured or imported in accordance with Schedule 3.

(2)

Excise duty is a duty levied in respect of alcohol, tobacco, and fuel that are manufactured in New Zealand (Part 1 of Schedule 3).

(3)

Excise-equivalent duty is a duty levied in respect of imported alcohol, tobacco, and fuel where excise duty would have been levied in respect of the alcohol, tobacco, or fuel had it been manufactured in New Zealand (Part 2 of Schedule 3).

(4)

Details of the alcohol, tobacco, and fuel in respect of which excise duty and excise-equivalent duty are levied, and the rates at which those duties are levied, are set out in the Excise and Excise-equivalent Duties Table (Part 3 of Schedule 3).

(5)

For excise duty, see Part A of the Excise and Excise-equivalent Duties Table.

(6)

For excise-equivalent duty, see Part B of the Excise and Excise-equivalent Duties Table.

(7)

Subsections (2) to (6) are only a guide to Schedule 3.

(8)

In this Act, Part A goods means goods specified in Part A of the Excise and Excise-equivalent Duties Table.

Part 3 Entry and exit of goods, persons, and craft

Subpart 1—Arrival and departure of goods, persons, and craft

Pre-arrival of craft in New Zealand

12 Advance notice of arrival, etc

(1)

The person in charge of a craft that is en route to New Zealand (from a point outside New Zealand) must, within the prescribed time, provide Customs with an advance notice of arrival, unless otherwise approved by the chief executive.

(2)

The advance notice of arrival must—

(a)

be provided in the way prescribed by the chief executive’s rules; and

(b)

be accompanied by any supporting documents that the chief executive considers appropriate.

(3)

The person in charge of the craft must ensure that the craft, on its arrival in New Zealand, proceeds directly to the Customs place notified in the advance notice of arrival (see subsection (5)(e)), unless otherwise directed by a Customs officer.

(4)

The advance notice of arrival, and any supporting documents, may be provided to Customs on behalf of the person in charge of the craft by—

(a)

the owner or operator of the craft; or

(b)

an agent of the owner or operator.

(5)

Rules made for the purposes of subsection (2)(a) must, at a minimum, require an advance notice of arrival to include details of the following:

(a)

the impending arrival of the craft:

(b)

its journey:

(c)

its crew:

(d)

its passengers:

(e)

the Customs place at which the craft will arrive.

Compare: 1996 No 27 s 21

13 Offences in relation to advance notice of arrival, etc

(1)

The person in charge of a craft commits an offence if the person fails to comply with—

(b)

a direction given by a Customs officer under section 12(3).

(2)

A person who commits an offence under subsection (1) is liable on conviction to—

(a)

imprisonment for a term not exceeding 12 months; or

(b)

a fine not exceeding $15,000.

(3)

A person commits an offence if the person provides Customs with—

(a)

an advance notice of arrival under section 12(1) that is erroneous in a material particular, misleading, or not genuine; or

(b)

a supporting document under section 12(2)(b) that is erroneous in a material particular, misleading, or not genuine.

(4)

A person who commits an offence under subsection (3) is liable on conviction—

(a)

in the case of an individual, to—

(i)

imprisonment for a term not exceeding 12 months; or

(ii)

a fine not exceeding $15,000:

(b)

in the case of a body corporate, to a fine not exceeding $75,000.

Compare: 1996 No 27 s 191(1)(a), (2)

14 Inward cargo report

(1)

This section applies to cargo on a craft if the craft—

(a)

is en route to New Zealand (from a point outside New Zealand) or has arrived in New Zealand; or

(b)

is transporting goods that—

(i)

are subject to the control of Customs; and

(ii)

were brought into New Zealand (from a point outside New Zealand) by that craft or any other craft.

(2)

The persons referred to in subsections (3) and (4) must, within the prescribed time, provide Customs with an inward cargo report in respect of cargo on the craft in accordance with those subsections (whether or not the person owns, or has any proprietary interest of any kind in, all or any part of the cargo).

(3)

Any person who is, or who is the agent of, the owner or operator of the craft must provide an inward cargo report in respect of all the cargo on the craft.

(4)

Any cargo aggregator who, in the course of that cargo aggregator’s business, has arranged with the owner or operator of the craft for the transportation of cargo on the craft under a shared space, or other negotiated volume of cargo, arrangement must provide an inward cargo report in respect of the cargo that is the subject of the arrangement.

(5)

An inward cargo report must—

(a)

be provided in the way prescribed by the chief executive’s rules; and

(b)

be accompanied by any supporting documents that the chief executive considers appropriate.

(6)

The chief executive may allow a person not to provide an inward cargo report in respect of all or any part of any cargo—

(a)

if 1 or more other persons have already provided an inward cargo report in respect of the cargo or the part of it; or

(b)

for any other reason that the chief executive considers appropriate.

Compare: 1996 No 27 s 21A

15 Offences in relation to inward cargo report

(1)

A person referred to in section 14(3) or (4) commits an offence if the person—

(a)

fails to comply with section 14(2) and (5); or

(b)

provides Customs with an inward cargo report under section 14(2) that is erroneous in a material particular, misleading, or not genuine; or

(c)

provides Customs with a supporting document under section 14(5)(b) that is erroneous, misleading, or not genuine.

(2)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $20,000:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 s 192A

Arrival of craft in New Zealand

16 Application of sections 17 to 25

(1)

Sections 17 to 25 apply to any craft that—

(a)

arrives in New Zealand; or

(b)

is transporting persons, or goods subject to the control of Customs, brought into New Zealand (from a point outside New Zealand) by that craft or any other craft.

(2)

In those sections, references to a craft arriving at a place include references to a craft landing, berthing, mooring, anchoring, or stopping at a place or hovering above a place.

Compare: 1996 No 27 s 24(1)

17 Craft must arrive at Customs place

(1)

If section 12(3) applies to a craft, the person in charge of the craft must ensure that the craft arrives only at the Customs place notified in the advance notice of arrival, unless otherwise directed by a Customs officer under section 12(3).

(2)

The person in charge of any other craft must ensure that the craft arrives only at a Customs place.

(3)

If a craft is directed by a Customs officer under section 12(3) to arrive at a place other than the Customs place notified in the advance notice of arrival, no person may leave or board the craft unless authorised to do so by a Customs officer.

(4)

This section does not apply to a craft that—

(a)

is compelled by accident, stress of weather, or other necessity to arrive at a place otherwise than in accordance with subsection (1) or (2); or

(b)

is required by any statutory or other requirement relating to navigation to arrive at a place otherwise than in accordance with subsection (1) or (2); or

(c)

is authorised under section 21 to arrive at a place other than a Customs place, but only if—

(i)

the craft arrives only at that place; and

(ii)

any conditions of the authorisation are met.

Compare: 1996 No 27 ss 21(1)(b), 24(1), 25(1), (4)

18 Offences in relation to craft that arrive at place other than Customs place, etc

(1)

The person in charge of a craft commits an offence if the person fails to comply with section 17(1) or (2).

(2)

A person who commits an offence under subsection (1) is liable on conviction to—

(a)

imprisonment for a term not exceeding 12 months; or

(b)

a fine not exceeding $15,000.

(3)

A person (other than a Customs officer) commits an offence if the person fails to comply with section 17(3).

(4)

A person who commits an offence under subsection (3) is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 191(1)(a)(v), (d), (g), (2), (4)

19 Persons leaving or boarding arriving craft before inward report made

No person may leave or board a craft unless authorised to do so by a Customs officer—

(a)

from the time of the craft’s arrival at a Customs place:

(b)

until an inward report has been provided to Customs under section 24(1)(a).

Compare: 1996 No 27 s 24(2)

20 Offence in relation to leaving or boarding arriving craft before inward report made

(1)

A person (other than a Customs officer) commits an offence if the person fails to comply with section 19.

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 191(1)(e), (4)

21 Authorisation for craft to arrive at place other than Customs place

(1)

The chief executive may authorise a craft to arrive at a place other than a Customs place.

(2)

Before giving an authorisation under subsection (1), the chief executive must consult the following persons:

(a)

the Director-General of Biosecurity:

(b)

the chief executive of the Ministry of Health:

(c)

the Commissioner of Police:

(d)

if the proposed authorisation relates to an aircraft, the Director of Civil Aviation:

(e)

if the proposed authorisation relates to a ship, the Director of Maritime New Zealand:

(f)

every other department of State whose operations may, in the opinion of the chief executive, be affected by the giving of the authorisation.

(3)

An authorisation under subsection (1) may be given subject to any conditions that the chief executive considers appropriate (for example, conditions about the goods or persons that may be transported on the craft).

Compare: 1996 No 27 s 25(1)(b), (1A), (1B)

22 Craft that have arrived at place other than Customs place

(1)

This section applies if a craft arrives at a place other than a Customs place.

(2)

The same powers may be exercised, and the same obligations apply, under this Act in relation to—

(a)

the craft as if it arrived at a Customs place; and

(b)

the goods and persons on the craft as if those goods and persons were in a Customs-controlled area following the arrival of the craft.

(3)

The person in charge of the craft—

(a)

must immediately report to a Customs officer or to a constable; and

(b)

must not, without the consent of a Customs officer, allow—

(i)

any goods to be unloaded from the craft; or

(ii)

any of the crew or passengers to leave the vicinity of the craft; and

(c)

must comply with any directions given by a Customs officer in respect of any goods or persons transported on the craft.

(4)

No person may unload goods from the craft without the consent of a Customs officer, except where section 78(a) or (b) applies.

(5)

No member of the crew and no passenger may leave the vicinity of the craft without the consent of a Customs officer.

(6)

Every member of the crew and every passenger must comply with any directions given by a Customs officer.

Compare: 1996 No 27 s 25(1C)–(3)

23 Offences in relation to craft that have arrived at place other than Customs place

(1)

The person in charge of a craft commits an offence if the person fails to comply with section 22(3).

(2)

A person commits an offence if the person fails to comply with—

(b)

a direction given by a Customs officer under section 22(6).

(3)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 191(1)(f), (g), (4)

24 Inward report, etc

(1)

On the arrival of a craft at a Customs place,—

(a)

the owner of the craft and the person in charge of the craft must ensure that an inward report is provided to Customs within the prescribed time, unless otherwise approved by the chief executive; and

(b)

the person in charge of the craft must comply with any Customs direction as to—

(i)

the movement of the craft within the Customs place; or

(ii)

the unloading of goods, or the disembarkation of persons, from the craft.

(2)

The inward report must—

(a)

be provided in the way prescribed by the chief executive’s rules; and

(b)

be accompanied by any supporting documents that the chief executive considers appropriate.

(3)

The inward report and supporting documents need not include information that has already been provided to Customs under section 12(1) or (2)(b) or 14(2) or (5)(b).

Compare: 1996 No 27 s 26

25 Offences in relation to inward report, etc

(1)

The owner of a craft and the person in charge of the craft each commit an offence if—

(a)

they fail to comply with section 24(1)(a); or

(b)

an inward report that is provided is not provided in accordance with section 24(2).

(2)

The person in charge of a craft commits an offence if the person fails to comply with a Customs direction given to the person under section 24(1)(b).

(3)

A person who commits an offence under subsection (1) or (2) is liable on conviction to a fine not exceeding $5,000.

(4)

The owner of a craft and the person in charge of the craft each commit an offence if—

(a)

an inward report that is provided under section 24(1)(a) is erroneous, misleading, or defective in any material particular; or

(b)

any supporting document that is provided under section 24(2)(b) is erroneous, misleading, or not genuine.

(5)

A person who commits an offence under subsection (4) is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $20,000:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 ss 191(1)(h), (4), 192

26 Requirement to answer questions and produce documents

(1)

This section applies to the following:

(a)

a craft that has arrived in New Zealand:

(b)

a craft that is departing from New Zealand:

(c)

a craft that is within New Zealand or the contiguous zone and that is transporting international cargo or international crew or any international passenger, whether or not the craft is also transporting domestic cargo or any other persons:

(d)

a craft that is within New Zealand or the contiguous zone and that a Customs officer has reasonable cause to suspect has been, or is about to be, involved in—

(i)

the commission of an offence under this Act; or

(ii)

the importation or exportation of any dutiable, uncustomed, prohibited, or forfeited goods.

(2)

A Customs officer may question any person referred to in subsection (4) about any of the matters referred to in subsection (5), and the person must answer the Customs officer’s questions.

(3)

A Customs officer may request a person referred to in subsection (4) to produce to the officer any document relating to any of the matters referred to in subsection (5) that is in the person’s possession or under the person’s control.

(4)

The persons are as follows:

(a)

the owner of the craft:

(b)

the person in charge of the craft:

(c)

a member of the crew of the craft:

(d)

a passenger on the craft.

(5)

The matters are as follows:

(a)

the craft:

(b)

the craft’s journey:

(c)

any goods or persons that are on, or have been on, the craft.

(6)

A power under this section that may be exercised in the contiguous zone as a result of subsection (1)(c) or (d) may be exercised in the contiguous zone only in accordance with article 33 of the United Nations Convention on the Law of the Sea.

(7)

In this section,—

international crew means the crew, or any member of the crew, of a craft that is on a journey that—

(a)

began outside New Zealand; or

(b)

began in New Zealand and is to continue outside New Zealand

international passenger means a person who has an entitlement to travel on a craft within New Zealand where that travel is part of an international journey that—

(a)

began outside New Zealand; or

(b)

began in New Zealand and is to continue outside New Zealand.

Compare: 1996 No 27 s 22(1), (2)

27 Offences in relation to failure to answer questions or produce documents

(1)

A person referred to in section 26(4) commits an offence if the person—

(a)

refuses to answer any question put to that person by a Customs officer under section 26(2); or

(b)

knowingly gives a false answer to any question put to that person by a Customs officer under section 26(2); or

(c)

fails to comply immediately with any request made to that person by a Customs officer under section 26(3).

(2)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

Compare: 1996 No 27 s 191(1)(b), (3)

Arrival and departure of persons

28 Persons arriving in New Zealand to report to Customs officer or Police station

Except as otherwise provided in this Act, every person arriving in New Zealand must, on his or her arrival,—

(a)

immediately report to—

(i)

a Customs officer; or

(ii)

a Police station; and

(b)

remain at the place where he or she reported to the Customs officer, or at the Police station, for any reasonable time that Customs requires to enable a Customs officer to carry out any function under this Act in relation to that person.

Compare: 1996 No 27 s 27

29 Disembarkation

(1)

This section applies to every person who is on board a craft that arrives in New Zealand.

(2)

The person must comply with every Customs direction concerning disembarkation.

(3)

Every person who has disembarked must, unless otherwise directed by Customs,—

(a)

proceed to a Customs-controlled area; and

(b)

remain there for any reasonable time that Customs requires to enable a Customs officer to carry out any function under this Act in relation to that person.

(4)

Regulations may prescribe exemptions from subsection (2) or (3).

Compare: 1996 No 27 s 28

30 Baggage to be presented on disembarkation, etc

(1)

This section applies to—

(a)

every person who—

(i)

disembarks from a craft that has arrived in New Zealand; or

(ii)

disembarks from a craft that is at the end of a domestic sector, if the domestic sector is part of a journey of the kind referred to in paragraph (a) or (b) of the definition of domestic passenger in section 5(1); and

(b)

the person’s accompanying baggage and any other goods in the person’s possession or under the person’s control.

(2)

The person must—

(a)

make the baggage and other goods available for an examination under this Act by a Customs officer; and

(b)

comply with any Customs direction relating to the movement of the baggage or other goods—

(i)

within a Customs place or Customs-controlled area; or

(ii)

from any craft to a Customs-controlled area; and

(c)

comply with any other Customs direction given to facilitate an examination as referred to in paragraph (a).

(3)

Regulations may prescribe exemptions from subsection (2).

(4)

Any person who is moving or handling any baggage or other goods to which this section applies must comply with any Customs direction relating to the movement of the baggage or other goods—

(a)

within a Customs place or Customs-controlled area; or

(b)

from any craft to a Customs-controlled area.

Compare: 1996 No 27 s 29

31 Persons departing from New Zealand to depart from Customs place

(1)

Every person who departs from New Zealand must depart from a Customs place unless otherwise authorised by a Customs officer.

(2)

Regulations may prescribe exemptions from subsection (1).

(3)

This section does not apply to a person who departs from New Zealand on a craft that is not required to depart from a Customs place in accordance with section 41(3) and (4).

Compare: 1996 No 27 s 30

32 Embarkation

A person preparing to board a craft for departure from New Zealand must comply with any Customs direction concerning embarkation.

Compare: 1996 No 27 s 31

33 Outgoing baggage to be presented, etc

(1)

This section applies to—

(a)

every person who arrives at a Customs place or a Customs-controlled area for embarkation onto a craft that has, as its destination, a point outside New Zealand; and

(b)

the person’s accompanying baggage and any other goods in the person’s possession or under the person’s control.

(2)

The person must—

(a)

make the baggage and other goods available for an examination under this Act by a Customs officer; and

(b)

comply with any Customs direction relating to the movement of the baggage or other goods—

(i)

within the Customs place or Customs-controlled area; or

(ii)

from a Customs-controlled area to any craft; and

(c)

comply with any other Customs direction given to facilitate an examination as referred to in paragraph (a).

(3)

Regulations may prescribe exemptions from subsection (2).

(4)

Any person who is moving or handling any baggage or other goods to which this section applies must comply with any Customs direction relating to the movement of the baggage or other goods—

(a)

within the Customs place or Customs-controlled area; or

(b)

from a Customs-controlled area to any craft.

Compare: 1996 No 27 s 32

34 Offence in relation to wilful failure to comply with requirements when arriving in, or departing from, New Zealand

(1)

A person commits an offence if the person wilfully fails to comply with any requirement imposed on the person by or under any of sections 28 to 33.

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 180

Departure of craft

35 Craft may not depart without certificate of clearance, etc

(1)

The person in charge of a craft must not cause or allow the craft to depart from a Customs place for a point outside New Zealand without a certificate of clearance granted under section 37, unless otherwise approved by the chief executive.

(2)

The person in charge of a craft that has arrived in New Zealand must not cause or allow the craft to depart from any place in New Zealand (whether or not its destination is a point outside New Zealand) without the permission of Customs.

(3)

A permission under subsection (2) may be given subject to—

(a)

the production of any documents required by the chief executive; or

(b)

any other conditions that the chief executive considers appropriate.

(4)

Regulations may prescribe exemptions from subsection (2).

Compare: 1996 No 27 s 33

36 Offence in relation to craft departing without certificate of clearance, etc

(1)

The person in charge of a craft commits an offence if the person fails to comply with section 35(1) or (2).

(2)

A person who commits an offence under this section is liable on conviction to—

(a)

imprisonment for a term not exceeding 12 months; or

(b)

a fine not exceeding $15,000.

Compare: 1996 No 27 s 193(1)(a), (2)

37 Certificates of clearance

(1)

A Customs officer may grant a certificate of clearance in respect of a craft.

(2)

Before a certificate of clearance is granted in respect of a craft, the person in charge of the craft must—

(a)

within the prescribed time, provide Customs with an advance notice of departure; and

(b)

produce any other documents required by a Customs officer in relation to any of the following:

(i)

the craft:

(ii)

the craft’s passengers, crew, cargo, or stores:

(iii)

the craft’s intended journey; and

(c)

comply with all requirements under this Act or any other enactment in relation to the following:

(i)

the craft:

(ii)

the craft’s passengers, crew, cargo, or stores:

(iii)

the craft’s intended journey.

(3)

Before a certificate of clearance is granted in respect of a craft, a Customs officer may ask the person in charge of the craft any question in relation to any of the following, and the person must answer the question:

(a)

the craft:

(b)

the craft’s passengers, crew, cargo, or stores:

(c)

the craft’s intended journey.

(4)

A Customs officer must not grant a certificate of clearance in respect of a craft if the person in charge of the craft refuses or fails to answer any question asked under subsection (3).

(5)

A certificate of clearance may be granted subject to any conditions that the chief executive considers appropriate.

(6)

A certificate of clearance must be granted in the form prescribed by the chief executive’s rules.

(7)

The advance notice of departure referred to in subsection (2)(a) must—

(a)

be provided in the way prescribed by the chief executive’s rules; and

(b)

be accompanied by any supporting documents that the chief executive considers appropriate.

(8)

The advance notice of departure and any supporting documents may be provided, on behalf of the person in charge of the craft, by—

(a)

the owner or operator of the craft; or

(b)

an agent of the owner or operator.

Compare: 1996 No 27 ss 33(1), 34, 34AA

38 Offences in relation to granting of certificate of clearance

(1)

The person in charge of a craft commits an offence if the person—

(a)

fails to comply with section 37(2)(a) and (7); or

(b)

fails to produce any documents required by a Customs officer under section 37(2)(b); or

(c)

refuses to answer any question put to that person by a Customs officer under section 37(3); or

(d)

knowingly gives a false answer to a question put to that person by a Customs officer under section 37(3).

(2)

A person who commits an offence under subsection (1) is liable on conviction to a fine not exceeding $5,000.

(3)

The owner of a craft and the person in charge of the craft each commit an offence if—

(a)

an advance notice of departure that is provided under section 37(2)(a) is erroneous, misleading, or defective in any material particular; or

(b)

any supporting document that is provided under section 37(7)(b) is erroneous, misleading, or not genuine.

(4)

A person who commits an offence under subsection (3) is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $20,000:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 ss 193(1)(b), (3), 194

39 Production of certificate of clearance, etc

(1)

This section applies to the person in charge of a craft in respect of which a certificate of clearance has been granted under section 37.

(2)

A Customs officer may require the person to produce the certificate of clearance for examination by a Customs officer.

(3)

A Customs officer may ask the person any question in relation to any of the following matters, and the person must answer the question:

(a)

the craft:

(b)

the craft’s passengers, crew, cargo, or stores:

(c)

the craft’s intended journey.

Compare: 1996 No 27 s 36

40 Offences in relation to production of certificate of clearance, etc

(1)

The person in charge of a craft commits an offence if the person—

(a)

fails to produce a certificate of clearance when required by a Customs officer under section 39(2); or

(b)

refuses to answer any question put to that person by a Customs officer under section 39(3); or

(c)

knowingly gives a false answer to a question put to that person by a Customs officer under section 39(3).

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 193(1)(d), (3)

41 Departure only from Customs place

(1)

The person in charge of a craft must not cause or allow the craft to depart for a point outside New Zealand other than from a Customs place.

(2)

The person in charge of a craft, in respect of which a certificate of clearance to depart from a Customs place for any point outside New Zealand has been granted under section 37, must ensure the following, unless otherwise approved by the chief executive:

(a)

that the craft departs immediately from that Customs place:

(b)

that the craft does not go to any other place in New Zealand.

(3)

Regulations may prescribe exemptions from subsection (1) or (2).

(4)

This section does not apply to—

(a)

a craft that is authorised to depart from a place other than a Customs place under section 43, but only if—

(i)

the craft departs from that place; and

(ii)

any conditions of the authorisation are met; or

(b)

a craft that departed from a Customs place in accordance with subsection (1) or (2), or from a place authorised under section 43, but was required or compelled to berth, land, anchor, or return to a place that is not a Customs place by—

(i)

any statutory or other requirement relating to navigation; or

(ii)

accident, stress of weather, or other necessity.

Compare: 1996 No 27 s 37

42 Offences in relation to departure only from Customs place

(1)

The person in charge of a craft commits an offence if the person fails to comply with section 41(1) or (2).

(2)

A person who commits an offence under this section is liable on conviction to—

(a)

imprisonment for a term not exceeding 12 months; or

(b)

a fine not exceeding $15,000.

Compare: 1996 No 27 s 193(1)(e), (2)

43 Authorisation for craft to depart from place other than Customs place

(1)

The chief executive may authorise a craft to depart from New Zealand from a place other than a Customs place.

(2)

Before giving an authorisation under subsection (1), the chief executive must consult the following persons:

(a)

the Director-General of Biosecurity:

(b)

the chief executive of the Ministry of Health:

(c)

the Commissioner of Police:

(d)

if the proposed authorisation relates to an aircraft, the Director of Civil Aviation:

(e)

if the proposed authorisation relates to a ship, the Director of Maritime New Zealand:

(f)

every other department of State whose operations may, in the opinion of the chief executive, be affected by the granting of the authorisation.

(3)

An authorisation under subsection (1) may be given subject to any conditions that the chief executive considers appropriate (for example, conditions about the goods or persons that may be transported on the craft).

Compare: 1996 No 27 ss 25(1A), (1B), 37(3)

44 Craft departing from place other than Customs place

If any craft is to depart, or has departed, for a point outside New Zealand from a place other than a Customs place, the same powers may be exercised, and the same obligations apply, under this Act in relation to—

(a)

the craft as if it were to depart, or had departed, from a Customs place; and

(b)

the goods and persons that are to be on, or are on, the craft as if those goods and persons are or were in a Customs-controlled area preceding the departure of the craft.

Compare: 1996 No 27 ss 25(1C), 37(3)

45 Outward cargo report

(1)

This section applies to cargo on a craft if—

(a)

the craft is to depart, or has departed, for a point outside New Zealand from a place in New Zealand; and

(b)

the cargo is for discharge outside New Zealand.

(2)

The persons referred to in subsections (3) and (4) must, within the prescribed time (which may be a time before or after the craft’s departure from New Zealand), provide Customs with an outward cargo report in respect of cargo on the craft in accordance with those subsections (whether or not the person owns, or has any proprietary interest of any kind in, all or any part of the cargo).

(3)

Any person who is, or who is the agent of, the owner or operator of the craft must provide an outward cargo report in respect of all the cargo on the craft.

(4)

Any cargo aggregator who, in the course of that cargo aggregator’s business, has arranged with the owner or operator of the craft for the transportation of cargo on the craft under a shared space, or other negotiated volume of cargo, arrangement must provide an outward cargo report in respect of the cargo that is the subject of the arrangement.

(5)

An outward cargo report must—

(a)

be provided in the way prescribed by the chief executive’s rules; and

(b)

be accompanied by any supporting documents that the chief executive considers appropriate.

(6)

The chief executive may allow a person not to provide an outward cargo report in respect of all or any part of any cargo—

(a)

if 1 or more other persons have already provided an outward cargo report in respect of the cargo or the part of it; or

(b)

for any other reason that the chief executive considers appropriate.

Compare: 1996 No 27 s 37A

46 Offences in relation to outward cargo report

(1)

A person referred to in section 45(3) or (4) commits an offence if the person—

(a)

fails to comply with section 45(2) and (5); or

(b)

provides Customs with an outward cargo report under section 45(2) that is erroneous in a material particular, misleading, or not genuine; or

(c)

provides Customs with a supporting document under section 45(5)(b) that is erroneous, misleading, or not genuine.

(2)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $20,000:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 s 194B

Further powers in relation to arrival and departure information

47 Purposes for which powers under sections 48 and 49 may be exercised

The chief executive’s powers under sections 48 and 49 may be exercised for any of the following purposes:

(a)

the carrying out of any function of the chief executive, Customs, or a Customs officer under this Act (other than subpart 6 of Part 5):

(b)

the prevention, detection, investigation, prosecution, and punishment of offences that are, or that if committed in New Zealand would be,—

(i)

customs offences of any kind; or

(ii)

other offences punishable by imprisonment:

(c)

the processing of international passengers at the border by public authorities:

(d)

the protection of border security:

(e)

the protection of the health and safety of members of the public.

Compare: 1996 No 27 ss 38B(1), 282A(1), (2)

48 Chief executive may require commercial transportation operator to provide craft information

(1)

The chief executive may, by notice in writing, require a commercial transportation operator to comply with this section on and after the specified date.

(2)

The commercial transportation operator must provide Customs with all specified information—

(a)

that relates to any craft referred to in subsection (3); and

(b)

that the operator holds (whether in New Zealand or elsewhere) or has access to.

(3)

The craft are craft that—

(a)

have arrived in, or departed from, New Zealand on or after the specified date; or

(b)

are arriving in, or departing from, New Zealand on or after the specified date; or

(c)

are scheduled to arrive in, or depart from, New Zealand on or after the specified date.

(4)

The specified information in relation to any craft must be provided—

(a)

within the specified time or, if there is no specified time, as and when required by Customs; and

(b)

in the specified way.

(5)

In this section, specified means specified in the chief executive’s notice under subsection (1).

(6)

The information that may be specified for the purposes of subsection (2) includes (without limitation) the following:

(a)

what the craft is transporting:

(b)

the date and time of the craft’s arrival in, or departure from, New Zealand:

(c)

whether the craft’s arrival or departure has occurred, is occurring, or will occur:

(d)

if the craft is transporting goods,—

(i)

loading and discharge particulars:

(ii)

storage details of the goods:

(iii)

other records relating to the goods:

(e)

if the craft is transporting persons,—

(i)

the number of persons on the craft:

(ii)

the seating arrangements or on-board accommodation arrangements:

(iii)

baggage storage details.

Compare: 1996 No 27 ss 38D, 38F(1)

49 Chief executive may require commercial transportation operator to provide PNR information

(1)

The chief executive may, by notice in writing, require a commercial transportation operator to comply with this section on and after the specified date.

(2)

The commercial transportation operator must provide Customs with all specified information—

(a)

that is included in the passenger name record of any person referred to in subsection (3); and

(b)

that the operator holds (whether in New Zealand or elsewhere) or has access to.

(3)

The persons are persons who—

(a)

have arrived in, or departed from, New Zealand on or after the specified date; or

(b)

are arriving in, or departing from, New Zealand on or after the specified date; or

(c)

are intending to arrive in, or depart from, New Zealand on or after the specified date.

(4)

The specified information in relation to any person must be provided—

(a)

not earlier than 72 hours before the scheduled departure of the craft on which the person is travelling to or from New Zealand; and

(b)

not later than 24 hours after the scheduled departure of that craft; and

(c)

in the specified way.

(5)

In this section, specified means specified in the chief executive’s notice under subsection (1).

(6)

The chief executive must have regard to the standards and recommended practices for the conduct of the international civil aviation system established by the International Civil Aviation Organization under the Convention on International Civil Aviation when specifying—

(a)

the information required to be provided by the commercial transportation operator; and

(b)

the way in which that information is to be provided.

Compare: 1996 No 27 ss 38E, 38F(1)

50 Supplementary provision relating to requirement to provide craft or PNR information

(1)

The chief executive’s powers under sections 48 and 49 to specify the way in which any information is to be provided to Customs include (without limitation) the power to specify any of the following:

(a)

the form in which the information is to be provided:

(b)

any declaration that must be provided with the information.

(2)

The chief executive may, by notice in writing, in any circumstances specified in the notice, exempt a commercial transportation operator from complying with some or all of the operator’s obligations under section 48 or 49.

(3)

However, an exemption under subsection (2) from providing information in the way specified in the chief executive’s notice under section 48(1) or 49(1) must be conditional on the provision of that information in some other way that is acceptable to the chief executive.

(4)

To avoid doubt, a commercial transportation operator is not required to provide information under section 48 or 49 that the operator holds, or has access to, about an employee unless the information is information of a kind that is also generally held by the operator, or to which the operator generally has access, in relation to passengers.

Compare: 1996 No 27 s 38F(2), (3)

51 Disposal of craft or PNR information

Customs must not keep information provided under section 48 or 49 for longer than 3 years, unless—

(a)

all identifying particulars are deleted from the information; or

(b)

the retention of the information is required for the purpose of—

(i)

investigating and prosecuting an offence under this Act or any other enactment; or

(ii)

protecting border security.

Compare: 1996 No 27 s 38O

52 Offence in relation to failure to provide Customs with PNR information

(1)

A commercial transportation operator commits an offence if the operator fails, without reasonable excuse, to provide Customs with—

(a)

any specified information required under section 48(2) in accordance with section 48(4); or

(b)

any specified information required under section 49(2) in accordance with section 49(4).

(2)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $20,000:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 s 205A

53 Other provision about arrival and departure information

Customs may, for the purposes of passenger and crew processing, monitoring the movement of craft and persons, and border security, collect any of the following information about craft and persons arriving in, or departing from, New Zealand:

(a)

details of craft movements, including the craft name and registration number or identifier, estimated date and time of arrival or departure, and place of origin and destination:

(b)

personal information, including the person’s name, date of birth, sex, biometric information, passport number, nationality, and travel movements.

Compare: 1996 No 27 s 279

Defences

54 Defences for offences under subpart

(1)

It is a defence to a prosecution for an offence under this subpart if the defendant proves—

(a)

that, in any case where it is alleged that anything required to be done was not done, the defendant took all reasonable steps to ensure that it was done; or

(b)

that, in any case where it is alleged that anything unlawful was done, the defendant took all reasonable steps to ensure that it was not done.

(2)

Subsection (1) does not apply to an offence under section 34 or 52.

Compare: 1996 No 27 s 195

Subpart 2—Customs places and Customs-controlled areas

Customs places

55 Designation of Customs places

(1)

The chief executive may, by notice in the Gazette, designate any port or airport as a Customs port or Customs airport.

(2)

A designation under subsection (1) may be subject to any conditions or restrictions that the chief executive considers appropriate.

Compare: 1996 No 27 s 9

Customs-controlled areas

56 Areas required to be licensed as Customs-controlled areas

(1)

An area may not be used for any of the following purposes unless it is licensed by the chief executive as a Customs-controlled area:

(a)

the manufacture of Part A goods:

(b)

the deposit, keeping, or securing of imported goods, or of Part A goods, without payment of duty, pending their export:

(c)

the temporary holding of imported goods for the purpose of examining those goods under section 227:

(d)

the disembarkation, embarkation, or processing of persons arriving in, or departing from, New Zealand:

(e)

the processing of craft arriving in, or departing from, New Zealand:

(f)

the loading or unloading of goods onto or from craft arriving in, or departing from, New Zealand:

(g)

any other prescribed purpose.

(2)

Subsection (1) is subject to sections 62 and 67.

Compare: 1996 No 27 ss 10, 68

57 Application for licence

(1)

An eligible person may apply to the chief executive for an area to be licensed as a Customs-controlled area.

(2)

An application must be made in the way prescribed by the chief executive’s rules.

Compare: 1996 No 27 s 11(1)

58 Chief executive may request further information

The chief executive may, at any time, require an applicant to provide any further information the chief executive considers relevant for the purposes of the application.

Compare: 1996 No 27 s 11(2)

59 Chief executive must determine application

(1)

The chief executive must determine an application by—

(a)

granting a licence for the area; or

(b)

refusing the application; or

(c)

giving a direction under section 62.

(2)

The chief executive must not grant a licence for the area unless the chief executive is satisfied that the applicant is a fit and proper person to be granted a licence for the area.

(3)

Subsection (2) does not limit the chief executive’s discretion to decide on other grounds not to grant a licence.

(4)

The chief executive must notify an applicant in writing of any decision made by the chief executive under this section.

(5)

An applicant who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 12(1), (6), (7)

60 Fit and proper person test

(1)

In determining whether an applicant is a fit and proper person to be granted a licence for an area, the chief executive may consider any of the following:

(a)

any serious or repeated failure by the applicant to comply with this Act or the Biosecurity Act 1993:

(b)
(c)

any current or previous bankruptcy of the applicant under the Insolvency Act 1967 or the Insolvency Act 2006:

(d)

any conviction of the applicant, in New Zealand or in another country, for an offence involving dishonesty or drugs:

(e)

whether the applicant is or has been prohibited, under section 382, 383, 385, or 386A of the Companies Act 1993, from being a director or a promoter of, or from taking part in the management of, a company:

(f)

any prescribed matters:

(g)

any other matters that the chief executive considers relevant.

(2)

In subsection (1)(a) to (e), references to the applicant include references to any of the applicant’s directors or senior managers.

61 Grant of licence

A licence for a Customs-controlled area—

(a)

must specify—

(i)

the applicant as the licensee; and

(ii)

the area for which it is granted; and

(iii)

the purpose or purposes referred to in section 56(1) for which the area is licensed; and

(b)

may be granted subject to the payment by the licensee of the prescribed annual licence fee (if any); and

(c)

may be granted subject to any other terms, conditions, or restrictions that the chief executive considers appropriate.

Compare: 1996 No 27 s 12(2), (3)

62 Exemption from requirement to be licensed directed by chief executive

(1)

Subsection (2) applies if—

(a)

an eligible person applies for an area to be licensed as a Customs-controlled area; and

(b)

the chief executive considers that it is not in the public interest, or that it is impracticable or unnecessary, for the area to be licensed as a Customs-controlled area.

(2)

The chief executive may direct that the area—

(a)

need not be licensed as a Customs-controlled area; and

(b)

is exempt from the provisions of this Act specified in the direction.

(3)

A direction under subsection (2) may be given—

(a)

in respect of the whole or any specified part of the business carried on in the area; and

(b)

subject to any terms, conditions, or restrictions that the chief executive considers appropriate.

Compare: 1996 No 27 s 12(4), (5)

63 Variation of terms, conditions, or restrictions

(1)

The chief executive may, by notice in writing to the licensee of a Customs-controlled area,—

(a)

vary or revoke a term, condition, or restriction imposed under section 61(c); or

(b)

impose a new term, condition, or restriction under section 61(c).

(2)

A licensee who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 13

64 Revocation or suspension of licence

(1)

The chief executive may revoke or suspend a licence for a Customs-controlled area if—

(a)

the licensee has not paid the annual licence fee prescribed for the purposes of section 61(b) (if any) at or within the time the licensee is required to pay it; or

(b)

there has been a failure to comply with a term, condition, or restriction imposed under section 61(c); or

(c)

the area in respect of which the licence was granted is being used solely for purposes other than the purpose or purposes for which the area is licensed or is not being used for any purpose at all; or

(d)

the licensee is no longer an eligible person in relation to the area; or

(e)

the chief executive is not satisfied, in accordance with section 60, that the licensee is a fit and proper person to hold the licence.

(2)

The chief executive must notify the licensee in writing if the chief executive intends to revoke or suspend a licence.

(3)

Subsection (2) does not apply if the chief executive considers that there is good reason not to give notice of the revocation or suspension.

(4)

If the chief executive revokes or suspends a licence, the chief executive must notify the licensee in writing of the revocation or suspension.

(5)

A person who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 14

65 Surrender of licence

A licence for a Customs-controlled area may be surrendered at any time by the licensee giving 1 month’s notice in writing to the chief executive.

Compare: 1996 No 27 s 15

66 Closing of Customs-controlled area

Duty is immediately due and payable on all goods within a Customs-controlled area that are or were subject to the control of Customs if—

(a)

the licence for that Customs-controlled area is revoked, suspended, or surrendered; and

(b)

the chief executive does not allow the goods to be—

(i)

removed to another Customs-controlled area; or

(ii)

exported.

Compare: 1996 No 27 s 16

67 Exemptions in relation to Customs-controlled areas

(1)

Regulations may prescribe exemptions from section 56(1).

(2)

Subsection (1) does not apply in relation to the manufacture of tobacco.

(3)

Regulations exempting an area used for the manufacture of Part A goods from section 56(1)(a) may (without limitation) prescribe any of the following conditions in accordance with section 403(3):

(a)

conditions as to the nature of the goods being manufactured:

(b)

conditions as to the source of any product used in the manufacture of the goods:

(c)

conditions limiting the use that may be made of the goods (for example, permitting personal use only):

(d)

conditions limiting the age of any person involved in the manufacture or use of the goods:

(e)

conditions limiting the quantity of goods that may be manufactured by any measure or other form of description.

(4)

Section 56(1)(a) does not apply to—

(a)

the manufacture of tobacco by an individual in the individual’s private dwelling if—

(i)

the individual is 18 years or over; and

(ii)

the individual manufactures the tobacco exclusively for his or her personal use and not for sale or other disposition to any other person; and

(iii)

the leaves or plants used in the manufacture of the tobacco are grown—

(A)

on the land on which the individual’s private dwelling is located; and

(B)

exclusively for the individual’s personal use and not for sale or other disposition to any other person; or

(b)

the manufacture by an individual of beer, wine, or spirits in his or her private dwelling if the individual manufactures the beer, wine, or spirits exclusively for the individual’s personal use and not for sale or other disposition to any other person; or

(c)

the manufacture of biofuel or a biofuel blend by an individual on the land where his or her private dwelling is located if the individual manufactures the biofuel or biofuel blend exclusively for the individual’s personal use and not for sale or other disposition to any other person.

(5)

The maximum amount of tobacco that an individual may manufacture under subsection (4)(a) in any period of 12 months beginning with 1 July and ending with 30 June is 5 kilograms.

Compare: 1996 No 27 ss 10, 68(2), 68A, 68B, 68C, 286(1)(a)(i), (1A)

68 Offences in relation to Customs-controlled areas

(1)

A person commits an offence if the person, without reasonable excuse, fails to comply with section 56(1)(a).

(2)

A person who commits an offence under subsection (1), other than an offence involving goods that are tobacco, is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding the greater of the following:

(i)

$5,000:

(ii)

an amount equal to 3 times the value of the goods to which the offence relates:

(b)

in the case of a body corporate, to a fine not exceeding the greater of the following:

(i)

$25,000:

(ii)

an amount equal to 3 times the value of the goods to which the offence relates.

(3)

A person who commits an offence under subsection (1) involving goods that are tobacco is liable on conviction,—

(a)

in the case of an individual, to—

(i)

imprisonment for a term not exceeding 6 months; or

(ii)

a fine not exceeding $20,000; or

(iii)

both:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

(4)

A person commits an offence if the person, without reasonable excuse, fails to comply with section 56(1)(b) to (g).

(5)

A person who commits an offence under subsection (4) is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

Compare: 1996 No 27 ss 189, 200(1)(e), (3), (4)

69 Offence in relation to failure to comply with term, condition, or restriction of licence

(1)

A person commits an offence if the person, without reasonable excuse, fails to comply with a term, condition, or restriction imposed under section 61(c) in relation to a licence for a Customs-controlled area.

(2)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

Compare: 1996 No 27 s 190

70 Customs facilities in Customs-controlled areas, etc

(1)

The chief executive may, by notice in writing, require the licensee of a Customs-controlled area to do any of the following:

(a)

provide and maintain any operating areas, accommodation, facilities, buildings, equipment, or storage that the chief executive considers reasonably necessary and suitable for Customs to carry out any of its functions under this Act:

(b)

store goods subject to the control of Customs in any manner and location that the chief executive considers appropriate.

(2)

A licensee who is dissatisfied with a requirement imposed by the chief executive under subsection (1) may, within 20 working days after the date on which notice of the requirement is given, appeal to a Customs Appeal Authority against the requirement.

(3)

The licensee of a Customs-controlled area may, subject to subsection (4), levy Customs a reasonable charge for any operating areas, accommodation, facilities, buildings, equipment, or storage provided in accordance with subsection (1)(a).

(4)

A licensee may not levy any charge on Customs for any operating area in a Customs-controlled area where that operating area is used for processing persons, craft, or postal articles arriving in, or departing from, New Zealand.

(5)

Subsection (4) applies despite anything to the contrary in the Airport Authorities Act 1966.

Compare: 1996 No 27 s 18

71 Offence in relation to Customs facilities in Customs-controlled areas, etc

(1)

The licensee of a Customs-controlled area commits an offence if the licensee, without reasonable excuse, fails to comply with a requirement imposed on the licensee by the chief executive under section 70(1).

(2)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

Compare: 1996 No 27 s 200(1)(a), (2)

72 Storage charges

Regulations may prescribe any of the following:

(a)

circumstances in which the licensee of a Customs-controlled area must not make charges for the reception or storage of imported goods in that area:

(b)

periods in respect of which the licensee of a Customs-controlled area must not make charges for the reception or storage of imported goods in that area.

Compare: 1996 No 27 s 19

73 Liabilities not affected by ceasing to act as licensee

The obligations and liabilities under this Act for anything done or omitted to be done by the licensee of a Customs-controlled area while licensed are not affected by the fact—

(a)

that the licensee ceases to act as a licensee; or

(b)

that the licence is revoked, suspended, or surrendered.

Compare: 1996 No 27 s 17

Subpart 3—Entry and accounting for goods

Imported goods

74 Goods specified in inward report to be treated as imported

The following goods are treated as having been imported unless the contrary is proved:

(a)

all goods specified in the inward report for any craft under section 24(1)(a):

(b)

all goods that are not required to be specified in the inward report for any craft under section 24(1)(a) because of section 24(3).

Compare: 1996 No 27 s 86(8)

75 Entry of imported goods

(1)

Goods that are imported, or are to be imported, must be entered by the importer—

(a)

in the way prescribed by the chief executive’s rules; and

(b)

within the prescribed time or any additional time that the chief executive allows.

(2)

Without limiting subsection (1)(a), an entry that relates to goods that are dutiable due to the volume of alcohol present in the goods must specify, in the way prescribed by the chief executive’s rules, the volume of alcohol present in the goods.

(3)

If an entry relates to a craft that is imported under its own power, the craft must, for the purposes of the entry, be treated as having been imported as cargo and unloaded on its arrival.

(4)

A Customs officer may ask a person entering goods under this section any question about the goods, and the person must answer the question.

(5)

A person entering goods under this section must, on the request of a Customs officer,—

(a)

present the goods to the officer:

(b)

remove any covering from the goods:

(c)

unload or open any thing on, or in which, the goods are transported:

(d)

open and unpack any package that the officer wishes to examine.

(6)

A person entering goods under this section may, while the goods are subject to the control of Customs and subject to any conditions that a Customs officer considers appropriate,—

(a)

inspect the goods; or

(b)

draw samples from the goods.

(7)

If imported goods are not entered in accordance with this section, or claimed within the prescribed period,—

(a)

duty becomes due and payable on the goods; and

(b)

the goods may be sold or otherwise disposed of by the chief executive.

Compare: 1996 No 27 ss 39, 44

76 Entry of imported goods in multiple or split shipments

(1)

An importer may apply to the chief executive to allow goods to be—

(a)

imported in multiple or split shipments; and

(b)

entered by the importer under the same Tariff classification that they would have been entered under if they had been imported in 1 shipment.

(2)

The chief executive may allow the goods to be dealt with as referred to in subsection (1)(a) and (b) if, after considering any prescribed criteria, he or she considers that the goods could not reasonably be imported in 1 shipment.

(3)

A decision under subsection (2) may be subject to any conditions that the chief executive considers reasonably necessary.

Compare: 1996 No 27 s 39A

77 Imported goods to be dealt with according to entry

Imported goods, in respect of which entry has been made and passed, must be immediately dealt with in accordance with—

(a)

the entry; and

(b)

the provisions of this Act in respect of the goods so entered.

Compare: 1996 No 27 s 41

78 Unloading goods

No person may unload goods that are subject to the control of Customs from a craft except—

(a)

in accordance with a permit or other authorisation granted by the chief executive (which may be subject to any conditions that the chief executive considers appropriate); or

(b)

where the safety of the craft, or the goods or persons on the craft, is threatened by—

(i)

collision, fire, the stress of weather, or similar circumstances; or

(ii)

any other prescribed circumstances.

Compare: 1996 No 27 s 43

79 Offence in relation to unloading goods

(1)

A person commits an offence if the person, without reasonable excuse, fails to comply with section 78.

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 199

80 Samples or illustrations

(1)

The importer of goods must provide (free of charge) any samples, illustrations, drawings, documents, or plans relating to the goods that may be required by a Customs officer for the purposes of this Act.

(2)

A Customs officer must not require more than the smallest sample possible for the required purpose.

Compare: 1996 No 27 s 45

Part A goods

81 Entry of Part A goods

(1)

Part A goods that are manufactured in a manufacturing area must be entered on the goods being removed for home consumption.

(2)

The entry must be made—

(a)

in the way prescribed by the chief executive’s rules; and

(b)

within the prescribed time.

(3)

If excise duty is levied in respect of the goods by reference to the volume of alcohol present in the goods, without limiting subsection (2)(a), the entry must specify the volume of alcohol in the way prescribed by the chief executive’s rules.

(4)

The goods must be entered—

(a)

by the licensee of the Customs-controlled area from which the goods are removed; or

(b)

in the prescribed circumstances, by the owner of the goods.

(5)

In subsection (4)(a), the reference to the Customs-controlled area from which the goods are removed is, in relation to goods that are removed for home consumption under clause 3(3) or (4) of Schedule 3, a reference to the Customs-controlled area in which the goods are, as the case requires,—

(a)

treated as being manufactured; or

(b)

used or destroyed, lost, or otherwise physically disposed of.

(6)

Part A goods, in respect of which entry has been made and passed, must be immediately dealt with in accordance with—

(a)

the entry; and

(b)

the provisions of this Act in respect of the goods so entered.

Compare: 1996 No 27 s 70

82 Nil returns

(1)

This section applies only in prescribed circumstances.

(2)

The licensee of a Customs-controlled area must make a return to Customs in respect of any prescribed period if,—

(a)

during the prescribed period, specified goods are held in the Customs-controlled area; and

(b)

none of those goods are removed from the Customs-controlled area during the prescribed period or, if any are removed, their removal does not constitute being removed for home consumption.

(3)

The return must be made—

(a)

in the way prescribed by the chief executive’s rules; and

(b)

within the prescribed time.

(4)

In this section, specified goods means Part A goods that—

(a)

are manufactured in a manufacturing area; and

(b)

have not been removed for home consumption.

Transportation within New Zealand

83 Transportation of imported goods

Except as otherwise allowed by the chief executive, no person may place any imported goods that are subject to the control of Customs in any craft, vehicle, or other conveyance for transportation within New Zealand until entry has been made in respect of the goods in accordance with section 75(1).

Compare: 1996 No 27 s 46

84 Offences in relation to transportation of imported goods

(1)

A person commits an offence if the person, without reasonable excuse, fails to comply with section 83.

(2)

A person who commits an offence under this section, other than an offence involving goods that are tobacco (whether manufactured or not), is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

(3)

A person who commits an offence under this section involving goods that are tobacco (whether manufactured or not) is liable on conviction,—

(a)

in the case of an individual, to—

(i)

imprisonment for a term not exceeding 6 months; or

(ii)

a fine not exceeding $20,000; or

(iii)

both:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 s 200(1)(b), (2), (2A)

85 Removal of goods from Customs-controlled areas

(1)

Goods that are subject to the control of Customs must not be delivered or removed from a Customs-controlled area except—

(a)

with the permission of Customs after entry has been made in accordance with section 75 or 89 and passed; or

(b)

under a permit or other authorisation granted by the chief executive in respect of those goods, which may be subject to any conditions that the chief executive considers appropriate; or

(c)

by a Customs officer in the carrying out of his or her functions under this Act; or

(d)

as otherwise provided by subsection (2) or any other provision of this Act.

(2)

Part A goods that are manufactured in a manufacturing area may be removed from a Customs-controlled area if—

(a)

their removal constitutes being removed for home consumption; or

(b)

they are removed for export or to an export warehouse.

(3)

The chief executive may, while goods remain subject to the control of Customs, revoke any permission given in respect of the goods under subsection (1)(a).

(4)

The chief executive may, by notice in writing, vary or revoke the conditions to which a permit or other authorisation granted under subsection (1)(b) is subject.

(5)

A person who is dissatisfied with a decision of the chief executive under subsection (1)(b) or (4) may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 47

86 Offences in relation to removal of goods from Customs-controlled areas

(1)

A person commits an offence if the person, without reasonable excuse, delivers or removes goods that are subject to the control of Customs from a Customs-controlled area in contravention of—

(a)
(b)

any condition of a permit or other authorisation granted under section 85(1)(b).

(2)

A person who commits an offence under this section, other than an offence involving goods that are tobacco (whether manufactured or not), is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

(3)

A person who commits an offence under this section involving goods that are tobacco (whether manufactured or not) is liable on conviction,—

(a)

in the case of an individual, to—

(i)

imprisonment for a term not exceeding 6 months; or

(ii)

a fine not exceeding $20,000; or

(iii)

both:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 s 200(1)(c), (2), (2A)

Transhipments: international and domestic

87 Transhipment requests

(1)

This section applies to cargo that—

(a)

is imported on a craft; and

(b)

has not been entered for home consumption; and

(c)

has been, at all times since it was imported, subject to the control of Customs.

(2)

Any person may make a transhipment request to the chief executive to allow the cargo to be—

(a)

transhipped domestically to a place within New Zealand at which it is intended that the cargo will be entered for home consumption; or

(b)

transhipped internationally to a place outside New Zealand while remaining subject to the control of Customs at all times before the cargo’s departure from New Zealand.

(3)

A transhipment request must—

(a)

be made within the prescribed time; and

(b)

be made in the way prescribed by the chief executive’s rules; and

(c)

be accompanied by any supporting documents that the chief executive considers appropriate.

(4)

The chief executive must, as soon as is reasonably practicable after a transhipment request is made, grant or decline the transhipment request.

(5)

A transhipment request granted by the chief executive authorises the removal of the cargo from a Customs-controlled area for the transhipment purposes, and on the conditions (if any), specified by the chief executive when granting the request.

(6)

A transhipment request granted by the chief executive does not affect the application of any other enactment to the cargo (for example, the Biosecurity Act 1993).

(7)

A person who is dissatisfied with a decision of the chief executive under subsection (4) may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 48A

88 Offences in relation to transhipment requests

(1)

A person who makes, or purports to make, a transhipment request under section 87 commits an offence if—

(a)

the person fails to make the request to the chief executive within the time prescribed for the purposes of section 87(3)(a); or

(b)

the request does not contain all the information relating to the cargo that is required to be contained in it by rules made for the purposes of section 87(3)(b); or

(c)

any information that is included in the request is erroneous in a material particular, misleading, or not genuine; or

(d)

any supporting document that accompanies the request under section 87(3)(c) is erroneous, misleading, or not genuine.

(2)

Section 54 (defences for offences) applies to an offence under this section as if this section were in subpart 1 of this Part.

(3)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $20,000:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 ss 194C, 195

Exportation of goods

89 Entry of goods for export

(1)

Goods that are exported, or are to be exported, must be entered by the exporter—

(a)

in the way prescribed by the chief executive’s rules; and

(b)

within the prescribed time or any additional time that the chief executive allows.

(2)

If an entry relates to a craft that is exported under its own power, the craft is treated as exported when it departs from New Zealand.

(3)

A Customs officer may ask a person entering goods under this section any question about the goods, and the person must answer the question.

(4)

A person entering goods under this section must, on the request of a Customs officer,—

(a)

present the goods to the officer:

(b)

remove any covering from the goods:

(c)

unload or open any thing on, or in which, the goods are transported:

(d)

open and unpack any package that the officer wishes to examine.

(5)

Except as otherwise allowed by the chief executive, goods must not be loaded for export until entry has been made in accordance with subsection (1) and passed.

(6)

The chief executive may revoke permission to export the goods in respect of which an entry has been passed if the chief executive has reasonable cause to suspect that the goods endanger, or threaten to endanger,—

(a)

border security; or

(b)

New Zealand’s trade interests or international obligations; or

(c)

the life, health, or safety of a person or group of persons; or

(d)

the safety of the craft that will transport the goods, or of other goods to be transported on that craft.

Compare: 1996 No 27 s 49(1), (2), (5), (6)

90 Goods entered for export to be exported immediately, etc

(1)

Goods that have been entered for export must be exported immediately—

(a)

by the person making the entry or the owner of the goods; and

(b)

in accordance with—

(i)

the entry; and

(ii)

the provisions of this Act relating to the exportation of goods.

(2)

If goods entered for export are not exported according to the entry, the person making the entry must immediately give Customs notice of the failure (including the reasons for it).

(3)

If notice has been given in accordance with subsection (2), the chief executive—

(a)

must cancel or amend the entry; and

(b)

may, where applicable, allow the goods to cease to be subject to the control of Customs.

Compare: 1996 No 27 s 51(1), (2)

91 Goods sold in duty-free store

Despite section 90(1), an export entry may be made in respect of goods that are stored in a duty-free store when they are sold to a person who has arrived in New Zealand, but only if the terms or conditions to which the licence for the duty-free store is subject allow the entry to be made at that time.

Compare: 1996 No 27 s 51(3)

92 Goods for export not to be landed

(1)

Goods loaded for export may be landed only at a place outside New Zealand.

(2)

Despite subsection (1), a Customs officer may allow the unloading and reloading of goods for export.

Compare: 1996 No 27 s 52

93 Time of exportation

(1)

For the purposes of this Act, the time at which goods are treated as exported is the time when the exporting craft departs from the last Customs place at which the craft calls before proceeding to a point outside New Zealand.

(2)

Subsection (1) is subject to sections 89(2) and 176(2).

Compare: 1996 No 27 ss 53, 225(2)

94 Customs-approved export seal may not be interfered with

No person may interfere with a Customs-approved export seal that has been applied to a package of goods, except as provided in section 282(3)(c).

Compare: 1996 No 27 s 53A(4)

Subpart 4—Prohibited imports and prohibited exports

95 Prohibition on importation and exportation of objectionable publications, other indecent or obscene articles, and goods for dishonest purpose

(1)

The importation of the following is prohibited:

(a)

objectionable publications:

(b)

all other indecent or obscene articles:

(c)

goods that are for a dishonest purpose.

(2)

The exportation of the following is prohibited:

(a)

objectionable publications:

(b)

goods that are for a dishonest purpose.

(3)

Subsection (4) applies to an objectionable publication if, apart from that subsection, the objectionable publication would not be goods.

(4)

The objectionable publication—

(a)

is goods for the purposes of this Act; but

(b)

is not goods for the purposes of section 12 of the Goods and Services Tax Act 1985.

(5)

Subsection (6) applies to any article referred to in subsection (1)(b) if, apart from subsection (6), the article would not be goods.

(6)

The article—

(a)

is goods for the purposes of this Act as it applies in relation to imported goods or the importation of goods (including (without limitation) for the purposes of the definition of prohibited imports in section 5(1)); but

(b)

is not goods for the purposes of section 12 of the Goods and Services Tax Act 1985.

Compare: 1996 No 27 ss 54(1)(aa)–(ac), (1A), 56(1)(a)–(ac), (1A)

95A Prohibition on importation of tobacco and certain tobacco products

(1)

The importation of the following goods is prohibited:

(a)

tobacco leaf:

(b)

manufactured tobacco, excluding the goods specified in subsection (2):

(c)

tobacco refuse.

(2)

The prohibition in subsection (1) does not apply to the following goods:

(a)

cigars:

(b)

cigarillos:

(c)
[Repealed]

(d)

chewing tobacco:

(e)

snuff:

(f)

snus.

(3)

The prohibition in subsection (1) does not apply if—

(a)

the person importing the goods—

(i)

has a permit granted by the chief executive under Schedule 3A, allowing the goods to be imported; and

(ii)

complies with any conditions of the permit; or

(b)

the goods are in the possession or under the control of a person specified in section 30(1)(a); or

(c)

the goods—

(i)

are not unloaded in New Zealand and are destined for a point outside New Zealand; or

(ii)

are to be, or are being, transhipped internationally, and are covered by a transhipment request made under section 87(2) and granted by the chief executive.

Section 95A: inserted, on 1 July 2020, by section 6 of the Customs and Excise (Tobacco) Amendment Act 2020 (2020 No 16).

Section 95A(2)(c): repealed, on 25 May 2022, by section 4 of the Customs and Excise (Tobacco Products) Amendment Act 2022 (2022 No 28).

96 Prohibition on other imports or exports by Order in Council

(1)

The Governor-General may, by Order in Council, on the recommendation of the Minister, prohibit the importation or exportation of—

(a)

any specified goods; or

(b)

any specified class of goods.

(2)

A prohibition under this section may—

(a)

be general or be limited to—

(i)

the importation of goods—

(A)

from a specified place:

(B)

by or from a specified person or class of persons:

(ii)

the exportation of goods—

(A)

to a specified place:

(B)

by or to a specified person or class of persons:

(b)

be subject to conditions.

(3)

A conditional prohibition may allow the importation or exportation of goods under the terms of a licence, permit, or consent granted by—

(a)

the chief executive; or

(b)

any other person named in the order.

(4)

A licence, permit, or consent under subsection (3) may be granted before or after the importation or exportation of the goods.

(5)

The Minister must not make a recommendation for the purposes of subsection (1) unless he or she considers that the proposed prohibition is necessary in the public interest.

(6)

The Secretary must maintain an up-to-date list of all goods and classes of goods whose exportation is prohibited under this section because they have or may have a strategic use.

(7)

The Secretary must make the list maintained under subsection (6) available by—

(a)

notifying the chief executive of it; and

(b)

publishing it on an Internet site maintained by, or on behalf of, the Secretary.

(8)

To avoid doubt, any failure to publish a list under subsection (7) does not invalidate the prohibition of the exportation of any goods or classes of goods mentioned in the list.

(9)

An Order in Council that prohibits the exportation of goods extends and applies to the shipment of the goods for use as stores by a craft, except as otherwise specified in the order.

(10)

An order under this section—

(a)

is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements); and

(b)

must be confirmed by an Act (see subpart 3 of Part 5 of the Legislation Act 2019).

(11)

In this section,—

goods includes documents that are not otherwise goods

Secretary means the Secretary of Foreign Affairs and Trade

strategic use, in relation to goods, means use for 1 or more of the purposes listed in section 97(2)(a) to (f).

(12)

Documents that are not otherwise goods and whose importation or exportation is prohibited under this section—

(a)

are goods for the purposes of the rest of this Act (apart from section 97) as it applies in relation to, as the case may be,—

(i)

imported goods or the importation of goods (including (without limitation) for the purposes of the definition of prohibited imports in section 5(1)); or

(ii)

exported goods or the exportation of goods (including (without limitation) for the purposes of the definition of prohibited exports in section 5(1)); but

(b)

are not goods for the purposes of section 12 of the Goods and Services Tax Act 1985.

Compare: 1996 No 27 ss 54(2)–(4), 54A, 56(2)(a), (b), (2A), (2G)–(4), (8), 56A

Legislation Act 2019 requirements for secondary legislation made under this section
PublicationPCO must publish it on the legislation website and notify it in the GazetteLA19 s 69(1)(c)
PresentationThe Minister must present it to the House of RepresentativesLA19 s 114, Sch 1 cl 32(1)(a)
DisallowanceIt may be disallowed by the House of Representatives LA19 ss 115, 116
This note is not part of the Act.

Section 96(10): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

97 Prohibition on exports by notice: nuclear, biological, and chemical weapons, etc

(1)

The Secretary may, by notice after consultation with the Minister, prohibit the exportation of goods described by any use to which they may be put, if the Secretary considers that the prohibition is necessary in the public interest.

(2)

A notice under subsection (1) must describe goods by reference only to uses that relate (directly or indirectly) to 1 or more of the following purposes:

(a)

the development, production, or deployment of nuclear explosive devices and their means of delivery:

(b)

the development, production, or deployment of biological weapons and their means of delivery:

(c)

the development, production, or deployment of chemical weapons and their means of delivery:

(d)

military use or applications:

(e)

the development, production, or deployment of military goods or other goods that have a civilian use but that are intended for military use or that may have military applications:

(f)

terrorist acts.

(3)

A prohibition in a notice under subsection (1) may—

(a)

be general or be limited to the exportation of goods—

(i)

to a specified place:

(ii)

by or to a specified person or class of persons:

(b)

be subject to conditions.

(4)

A conditional prohibition may allow the exportation of goods under the terms of a licence, permit, or consent granted by—

(a)

the chief executive; or

(b)

any other person named in the notice.

(5)

A licence, permit, or consent under subsection (4) may be granted before or after the exportation of the goods.

(6)

A prohibition in a notice under subsection (1) applies to any goods only if the Secretary has determined that the goods are covered by the prohibition.

(7)

If the Secretary makes a determination under subsection (6) in respect of any goods, the Secretary must notify the chief executive and each relevant exporter as soon as practicable.

(8)

If a person (the exporter) is aware, or should reasonably be aware, that any goods that the exporter wishes to export are intended for, or may be put to, any of the uses set out in a notice under subsection (1),—

(a)

the exporter must inform the Secretary; and

(b)

the Secretary must, as soon as practicable,—

(i)

decide whether to make a determination under subsection (6) in respect of the goods; and

(ii)

either—

(A)

make a determination and notify the chief executive and the exporter in accordance with subsection (7); or

(B)

notify the exporter that the Secretary is not going to make a determination; and

(c)

the exportation of the goods is prohibited until the exporter receives the Secretary’s notification under paragraph (b)(ii).

(9)

A notice under subsection (1) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

(10)

In this section,—

biological weapon has the meaning given to that term in section 2 of the New Zealand Nuclear Free Zone, Disarmament, and Arms Control Act 1987

chemical weapons has the meaning given to that term in Article II of the Schedule of the Chemical Weapons (Prohibition) Act 1996

goods includes documents that are not otherwise goods

military includes any armed force, paramilitary force, Police force, or militia

nuclear explosive device has the meaning given to that term in section 2 of the New Zealand Nuclear Free Zone, Disarmament, and Arms Control Act 1987

Secretary means the Secretary of Foreign Affairs and Trade

terrorist act has the meaning given to that term in section 5 of the Terrorism Suppression Act 2002.

(11)

Documents that are not otherwise goods and whose exportation is prohibited under this section—

(a)

are goods for the purposes of the rest of this Act as it applies in relation to exported goods or the exportation of goods (including (without limitation) for the purposes of the definition of prohibited exports in section 5(1)); but

(b)

are not goods for the purposes of section 12 of the Goods and Services Tax Act 1985.

Compare: 1996 No 27 s 56(1)(c), (2)(c), (2A)–(2F), (3), (4)

Legislation Act 2019 requirements for secondary legislation made under this section
PublicationThe maker must publish it in the GazetteLA19 ss 73, 74(1)(a), Sch 1 cl 14
PresentationThe Minister must present it to the House of RepresentativesLA19 s 114, Sch 1 cl 32(1)(a)
DisallowanceIt may be disallowed by the House of Representatives LA19 ss 115, 116
This note is not part of the Act.

Section 97 heading: amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section 97(1): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section 97(9): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

98 Production of licence, permit, or consent for goods

(1)

This section applies to—

(a)

prohibited goods that may be imported or exported under a licence, permit, or consent; and

(b)

goods whose importation or exportation is prohibited under any other enactment, except under a licence, permit, or consent.

(2)

The chief executive may do any of the following until satisfied that the importation or exportation of the goods is permitted under a licence, permit, or consent:

(a)

refuse to pass an entry for the goods:

(b)

not allow the goods to be exported:

(c)

not allow the goods to be removed from a Customs-controlled area.

Compare: 1996 No 27 s 58

99 Duty applies even if importation prohibited

Goods are not exempt from duty just because their importation is prohibited under an enactment.

Compare: 1996 No 27 s 54(7)

Subpart 5—Import duties

Debt owed to the Crown

100 Duty on imported goods is debt owed to the Crown

(1)

The duty on all imported goods is a debt—

(a)

due to the Crown immediately on importation of the goods; and

(b)

owed by the importer or importers of the goods; and

(c)

recoverable by the chief executive (on behalf of the Crown) in any court of competent jurisdiction.

(2)

To avoid doubt, the right to recover duty as a debt due to the Crown is not affected by the fact that—

(a)

the goods have ceased to be subject to the control of Customs; or

(b)

a bond or any other security has been given for the payment of duty; or

(c)

no proper assessment of duty has been made under this Act; or

(d)

a deficient assessment of duty has been made under this Act; or

(e)

a provisional Customs value has been included in the entry for the goods under section 102.

(3)

If there is more than 1 importer, the debt is owed by all of them jointly and severally.

Compare: 1996 No 27 s 86(1), (2), (4), (5)

Valuation of goods

101 Importer must specify Customs value on entry

(1)

Every entry for imported goods must include the Customs value of the goods determined in accordance with Schedule 4.

(2)

Subsection (1) is subject to section 102.

Compare: 1996 No 27 s 60(1)

102 Provisional Customs value

(1)

An importer may include a provisional Customs value in an entry for imported goods—

(a)

if—

(i)

the importer is a party to a transfer pricing arrangement that involves the supply and acquisition of the imported goods; and

(ii)

a binding ruling applies to the importer in relation to the transfer pricing arrangement; and

(iii)

because of the transfer pricing arrangement, it is not reasonably practicable to finalise the Customs value of the imported goods at the time the entry is being made; or

(b)

if the Customs value of the imported goods would be determined under Part 1 of Schedule 4 (transaction value method) except that, at the time the entry is being made, any adjustments that are required to be made under clause 7(b)(iv) or (v) of Schedule 4 cannot be made because of a lack of sufficient information (as that term is defined in clause 2(1) of Schedule 4); or

(c)

under an approval given by the chief executive under subsection (4).

(2)

A provisional Customs value must be a reasonable estimate of the Customs value of the goods based on the information that is available to the importer at the time the entry is being made.

(3)

Until the final Customs value is provided (see sections 112 and 117(4)), the provisional Customs value must be treated as the Customs value for the purposes of this Act.

(4)

The chief executive may, for the purposes of subsection (1)(c), give approvals for the inclusion of provisional Customs values in entries.

(5)

An approval may be given—

(a)

to a particular importer in relation to particular goods or a class of goods; or

(b)

so as to apply generally to a class of importer or a class of goods (or both).

(6)

An approval may be given subject to any terms, conditions, and restrictions that the chief executive considers appropriate.

(7)

The chief executive may—

(a)

vary any terms, conditions, or restrictions that an approval is subject to; or

(b)

withdraw an approval.

(8)

Before giving an approval of the type referred to in subsection (5)(a) that relates wholly or partly to the application of a transfer pricing arrangement, the chief executive must consult the Commissioner of Inland Revenue in relation to the appropriateness of the transfer pricing arrangement.

(9)

An approval of the type referred to in subsection (5)(b) must be published on an Internet site that—

(a)

is maintained by, or on behalf of, the chief executive; and

(b)

is publicly available free of charge.

(10)

Subsection (11) applies if the chief executive has reasonable grounds to believe that a person has failed to comply with subsection (2) or section 112 in relation to a provisional Customs value that the person included in an entry.

(11)

The chief executive may, by notice to the person, suspend the person’s right to include provisional Customs values in entries.

(12)

The suspension may be for—

(a)

a definite period; or

(b)

an indefinite period, which may be brought to an end by the chief executive on an application by the person.

(13)

A person who is dissatisfied with any of the following decisions may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision:

(a)

a refusal to give an approval of a type referred to in subsection (5)(a):

(b)

a decision under subsection (6) or (7) in relation to an approval of a type referred to in subsection (5)(a):

(c)

a decision under subsections (10) to (12).

(14)

In this section,—

binding ruling

(a)

has the meaning given to that term in section 3(1) of the Tax Administration Act 1994; and

(b)

includes a mutual agreement procedure under a double tax agreement that is in force under section BH 1 of the Income Tax Act 2007

transfer pricing arrangement has the meaning given to that term in section GC 6(2) of the Income Tax Act 2007.

103 Chief executive may revise Customs value

(1)

If the chief executive is satisfied that the Customs value of imported goods in an entry is incorrect,—

(a)

the chief executive may revise the Customs value; and

(b)

the revised value must be treated as the Customs value for the purposes of this Act; and

(c)

Customs must notify the importer of the revised value and the basis for the calculation (including, if applicable, the relevant provisions of Schedule 4).

(2)

Subsection (1) applies regardless of whether—

(a)

goods are still subject to the control of Customs; and

(b)

any duty has been paid.

(3)

An importer who is dissatisfied with a decision of the chief executive under subsection (1)(a) may, within 20 working days after the date on which notice is given under subsection (1)(c), appeal to a Customs Appeal Authority against that decision.

(4)

Without limiting section 102(3), the chief executive’s power under subsection (1) may be exercised in relation to a provisional Customs value if the chief executive is satisfied that the provisional Customs value does not comply with section 102(2).

Compare: 1996 No 27 s 61

104 Crown’s right of compulsory acquisition

(1)

For the purpose of protecting the public revenue against undervaluation of goods subject to ad valorem duty, goods for which entry is made may be acquired by the Crown at any time while they remain subject to the control of Customs.

(2)

The right under subsection (1) may be exercised by the chief executive.

(3)

The goods are acquired when the chief executive signs a warrant for their acquisition in the prescribed form.

(4)

The goods become the property of the Crown immediately the warrant is signed.

(5)

Customs must notify the importer in writing, as soon as is reasonably practicable, if the chief executive has signed a warrant under this section.

(6)

If goods are acquired by the Crown under this section and no appeal is made under subsection (10),—

(a)

the chief executive must sell the goods; and

(b)

the proceeds of sale must be accounted for as Customs revenue.

(7)

Customs must pay the importer of the goods for the goods within 10 working days of their acquisition.

(8)

The price payable by the Crown for the goods is the sum of the following:

(a)

the Customs value of the goods included in the entry for the goods:

(b)

any charges for freight, insurance, and other matters incidental to the importation of the goods that the chief executive considers reasonable:

(c)

any duties already paid on the goods.

(9)

Nothing in this section affects—

(a)

any other powers of Customs in respect of the goods; or

(b)

any liability of the importer or any other person in respect of an offence committed in respect of the goods.

(10)

An importer who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 63

Origin and preferential Tariff provisions

105 Entry of goods at preferential rates of duty

(1)

This section applies if a person claims, under this Act or any other enactment or authority, a rate of duty for goods that is lower than the rate set out in the Normal Tariff in respect of those goods.

(2)

The chief executive may require the claim to be verified—

(a)

at the time of entry of the goods; or

(b)

at any subsequent time (including any time after the goods have ceased to be subject to the control of Customs).

(3)

If the chief executive requires a claim to be verified at the time of entry of the goods and the claim is not verified to the chief executive’s satisfaction, the goods may not be entered at the lower rate of duty.

Compare: 1996 No 27 s 66

106 Unsubstantiated preference claims

(1)

If the chief executive is satisfied that the country of production or manufacture of goods cannot be properly ascertained, the goods are treated (for the purposes of this Act or any other enactment or authority) as the produce or manufacture of a country that is subject to the rates of duty set out in the Normal Tariff.

(2)

Customs must advise an importer by notice in writing of any decision of the chief executive under this section.

(3)

An importer who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

(4)

This section applies whether or not the goods are subject to the control of Customs.

Compare: 1996 No 27 s 67

Subpart 6—Excise duty and excise-equivalent duty credits

107 Duty credits in respect of used goods

(1)

This section applies if—

(a)

goods (the used goods) are used in a manufacturing area in the manufacture, by the licensee of the area, of any Part A goods (the manufactured goods); and

(b)

the manufactured goods are removed for home consumption; and

(c)

the licensee is liable to pay excise duty levied in respect of the manufactured goods.

(2)

The licensee may claim a credit when entering the manufactured goods under section 81(1).

(3)

The credit that may be claimed is any excise duty or excise-equivalent duty that has been paid in respect of the used goods.

(4)

If the credit exceeds the excise duty referred to in subsection (1)(c), the excess may, at the discretion of the chief executive, be—

(a)

applied against any other excise duty that the licensee is liable to pay; or

(b)

paid to the licensee.

Compare: 1996 No 27 s 85(1), (3)(a), (4)

108 Duty credits in respect of repurchased goods

(1)

This section applies if—

(a)

Part A goods that are manufactured in a manufacturing area (the manufactured goods) are sold by the licensee of that area; and

(b)

the licensee repurchases the manufactured goods at the same price at which they were sold.

(2)

In the prescribed circumstances, the licensee may claim a credit when making an entry under section 81(1).

(3)

The credit that may be claimed is any excise duty levied in respect of the manufactured goods that has been paid by the licensee.

(4)

If the credit exceeds the excise duty that the licensee is liable to pay under the entry, the excess may, at the discretion of the chief executive, be—

(a)

applied against any other excise duty that the licensee is liable to pay; or

(b)

paid to the licensee.

Compare: 1996 No 27 s 85(2), (3)(b), (4)

Subpart 7—Assessment, payment, and recovery of duty

General responsibilities of chief executive, etc

109 Responsibility to protect integrity of system for assessing and collecting duty

(1)

The chief executive, Customs, and every Customs officer must, in carrying out their functions under this Act or any other enactment, at all times use their best endeavours to protect the integrity of the system for assessing and collecting duty.

(2)

Without limiting its meaning, the integrity of the system for assessing and collecting duty includes—

(a)

duty payers’ perceptions of that integrity; and

(b)

duty payers’ rights to have their liabilities for duty determined fairly, impartially, and according to law; and

(c)

duty payers’ rights to have their individual affairs kept confidential and treated with no greater or lesser favour than the affairs of other duty payers; and

(d)

duty payers’ responsibilities to comply with the law; and

(e)

the responsibilities of those administering the law to maintain the confidentiality of the affairs of duty payers; and

(f)

the responsibilities of those administering the law to do so fairly, impartially, and according to law.

110 Chief executive’s general obligation in relation to collection of duty

(1)

The chief executive must secure the collection, over time, of the highest net revenue from duty that is practicable within the law, having regard to—

(a)

the resources available to the chief executive; and

(b)

the importance of promoting compliance, especially voluntary compliance, by all duty payers with this Act and any other enactment relating to any duty; and

(c)

the compliance costs incurred by duty payers; and

(d)

the objectives of imposing any duty; and

(e)

Customs’ other responsibilities and the resources needed to fulfil those other responsibilities.

(2)

Subsection (1) applies despite any other provision of this Act or any other enactment.

Assessment of duty by importer or licensee or owner

111 Entry is assessment of duty by importer or licensee or owner

An entry for goods made under this Act is an assessment by the importer or licensee or owner (as the case may be) of the duty payable in respect of those goods.

Compare: 1996 No 27 s 88(1)

112 Importer to amend assessment that includes provisional Customs value

(1)

This section applies if an importer includes a provisional Customs value in an entry for imported goods under section 102(1).

(2)

The importer must amend the assessment for the goods to include the final Customs value—

(a)

within the prescribed time; and

(b)

in the way prescribed by the chief executive’s rules.

Assessment of duty by chief executive

113 Chief executive may assess duty where no entry made

(1)

If the chief executive has reasonable cause to suspect that duty is owed on goods by a person who has not made an entry for the goods, the chief executive may assess the duty at the amount he or she considers appropriate.

(2)

Customs must, by notice in writing, advise the person of the assessment.

(3)

If the person is dissatisfied with a decision of the chief executive under this section, the person may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

(4)

For the purposes of subsection (1), it does not matter if—

(a)

the person was not required to make an entry for the goods; or

(b)

no entry was required to be made for the goods by any person.

Compare: 1996 No 27 s 88(2)–(4)

114 Assessment of excise duty and excise-equivalent duty where approval not complied with

(1)

This section applies if the chief executive—

(a)

has, in respect of any goods, granted an approval under—

(i)

item 99.35.10L, 99.35.30E, 99.44.10K, 99.44.30D, or 99.55.00D in Part A of the Excise and Excise-equivalent Duties Table; or

(ii)

item 22.07 or 22.08 in Part B of the Excise and Excise-equivalent Duties Table; and

(b)

has reasonable cause to suspect that—

(i)

any conditions of the approval have not been complied with; and

(ii)

the non-compliance was intentional or negligent.

(2)

The chief executive may make an assessment of excise duty or excise-equivalent duty (as the case may be) in respect of the goods.

(3)

If an assessment is made, the rate of duty to be applied is the rate that would be applicable if the chief executive had not granted the approval.

(4)

The duty is payable by the person to whom the approval was granted.

(5)

Customs must, by notice in writing, advise that person of the assessment.

(6)

If that person is dissatisfied with a decision of the chief executive under this section, that person may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

Compare: 1996 No 27 s 83(1)–(4), (6), (7)

115 Assessment of excise duty on beer or wine otherwise exempt

(1)

If the chief executive has reasonable cause to suspect that any quantity of beer or wine that has been entered as exempt from excise duty under clause 6 of Schedule 3 has later been dealt with otherwise than in accordance with clause 6(1)(a) or (2)(a) of that schedule, the chief executive may make an assessment of excise duty.

(2)

The duty is payable by the following persons:

(a)

the licensee of the manufacturing area in which the beer or wine was manufactured:

(b)

the individual who manufactured the beer or wine.

(3)

The liability of those persons is joint and several.

(4)

Customs must, by notice in writing, advise those persons of the assessment.

(5)

If any of those persons is dissatisfied with a decision of the chief executive under this section, the person may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

Compare: 1996 No 27 s 84(1)–(3)

116 Assessment of excise-equivalent duty on goods imported for further manufacture

(1)

This section applies if—

(a)

excise-equivalent duty is not levied on any imported goods on the basis that the goods are imported for further manufacture; and

(b)

the chief executive has reasonable cause to suspect that the goods have been dealt with otherwise than on that basis.

(2)

The chief executive may make an assessment of excise-equivalent duty on the goods as if they had been imported otherwise than on that basis.

(3)

The duty is payable by the importer.

(4)

If there is more than 1 importer, their liability is joint and several.

(5)

Customs must, by notice in writing, advise the importer of the assessment.

(6)

If the importer is dissatisfied with a decision of the chief executive under this section, the importer may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

117 Amendment of assessments

(1)

Subject to section 118, the chief executive may amend (or further amend) an assessment of duty even if—

(a)

the goods to which the duty relates are no longer subject to the control of Customs; or

(b)

the duty originally assessed has been paid.

(2)

Customs must, by notice in writing, advise the person who is liable for the duty if the amendment has the effect of—

(a)

imposing a fresh liability; or

(b)

altering an existing liability.

(3)

If that person is dissatisfied with a decision of the chief executive under this section, that person may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

(4)

Without limiting subsection (1), the chief executive’s power under that subsection may be exercised—

(a)

to amend a provisional Customs value included in an assessment that does not comply with section 102(2):

(b)

to include the final Customs value in an assessment if the importer fails to do so within the time prescribed for the purposes of section 112(2)(a):

(c)

to amend the final Customs value included in an assessment by an importer under section 112.

Compare: 1996 No 27 s 89

118 Limitation of time for amendment of assessments

(1)

If an assessment of duty has been made under this Act, the chief executive may not amend the assessment so as to increase the amount of the assessment any later than 4 years after the date on which the original assessment was made.

(2)

Despite subsection (1), in a case where, in the opinion of the chief executive, an entry for the goods was fraudulent or wilfully misleading, the chief executive may amend the assessment at any time so as to increase the amount of the assessment.

(3)

In subsection (2), entry has the meaning given to that term in section 284.

Compare: 1996 No 27 s 94

119 Assessment to be taken to be correct

(1)

Every assessment made by the chief executive under this Act, including an assessment made by way of amendment, must be taken to be correct.

(2)

Duty is payable on the goods accordingly unless, on an administrative review or an appeal,—

(a)

a different amount is determined to be the duty payable on the goods; or

(b)

it is determined that no duty is payable.

Compare: 1996 No 27 s 91(1)

Particular rules relating to assessment of duty

120 Duty to be proportionate

When duties are imposed according to a specified quantity, weight, size, or value, the duties must be charged proportionately on a greater or smaller quantity, weight, size, or value.

Compare: 1996 No 27 s 107(1)

121 Duty on alcoholic beverages

(1)

The chief executive’s rules must prescribe, for the purposes of this Act, the means of ascertaining the volume of alcohol present in an alcoholic beverage.

(2)

If duty is to be calculated relative to the alcohol content of a beverage and the volume of alcohol increases or diminishes by a natural process while the beverage is subject to the control of Customs, duty is payable in accordance with the volume of alcohol as so increased or diminished.

Compare: 1996 No 27 s 107(2)

Times for payment of duty

122 Time for payment of duty on imported goods: general rule

Except as otherwise provided in this Act, the duty on imported goods must be paid to Customs when—

(a)

the goods have been entered in accordance with section 75 and the entry has been passed for home consumption; or

(b)

the goods have been entered in accordance with section 75 for removal to a manufacturing area; or

(c)

the goods have been wrongfully landed, or otherwise wrongfully dealt with, without having been entered in accordance with section 75; or

(d)

an offence under this Act has been committed in respect of the goods.

Compare: 1996 No 27 ss 75(3), 86(3)

123 Persons may be authorised to defer payment of duty on imported goods

(1)

The chief executive may,—

(a)

subject to any terms and conditions that he or she considers appropriate, authorise a person or a class of persons to defer the payment of duty on imported goods to a time after the time given by section 122; and

(b)

for that purpose, determine a duty accounting period.

(2)

The chief executive may—

(a)

suspend or withdraw an authorisation given under subsection (1)(a); or

(b)

vary any term or condition under which the authorisation is given; or

(c)

vary any duty accounting period determined under subsection (1)(b).

(3)

The chief executive must, by notice in writing, advise the persons affected of a decision of the chief executive under this section.

(4)

A person who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 86(6), (7), (9)

124 Other times for payment of duty

(1)

See clause 5 of Schedule 3 in relation to the payment of excise duty.

(2)

Duty that results from an amendment of an assessment under section 112 must be paid to Customs within 20 working days after the date on which the assessment is amended.

(3)

Duty that results from an assessment under section 113 must be paid to Customs within 20 working days after the date on which written notice of the assessment is given by Customs.

(4)

Excise duty or excise-equivalent duty that is assessed under any of sections 114 to 116 must be paid to Customs within 20 working days after the date on which written notice of the assessment is given by Customs.

(5)

Duty that results from an amendment of an assessment under section 117 must be paid to Customs within 20 working days after the date on which written notice of the amendment is given by Customs.

(6)

Duty that is demanded under section 138(3) or 139(4) must be paid to Customs within 20 working days after the date on which the demand is given.

(7)

If the chief executive has reasonable cause to believe that a person will be unable to pay any duty within the time given by subsection (2), (3), (5), or (6),—

(a)

the chief executive may, by notice in writing, require the person to pay the duty within an earlier time specified in the notice; and

(b)

the person must pay the duty within that earlier time.

(8)

If a person who is liable for duty is dissatisfied with a decision of the chief executive under subsection (7), the person may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 ss 83(5), 84(4), 90(1)–(1C)

125 Importer, etc, leaving New Zealand

(1)

If the chief executive has reasonable cause to believe that a person is about to leave New Zealand before the time by which duty owing by the person must be paid under this Act,—

(a)

the chief executive may, by notice in writing, require the person to pay the duty within an earlier time specified in the notice; and

(b)

the person must pay the duty within that earlier time.

(2)

If the person is dissatisfied with a decision of the chief executive under this section, the person may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

(3)

Section 210 of the District Court Act 2016 or section 40 of the Senior Courts Act 2016 (as the case may be) extends and applies in relation to a notice under this section as if it were a proceeding for the recovery of duty made in the ordinary course.

Compare: 1996 No 27 s 110

Appeals, etc

126 Chief executive may allow release of goods where appeal, etc, lodged

Despite anything to the contrary in this Act, if an appeal or an administrative review has been lodged under this subpart, subpart 5 of this Part, or subpart 3 of Part 5, the chief executive may, subject to receiving any security that he or she considers sufficient to cover the full amount of duty, release the goods so that they cease to be subject to the control of Customs.

Compare: 1996 No 27 s 91(2)

127 Obligation to pay duty not suspended by appeal, etc

(1)

The obligation to pay duty under this Act is not suspended by any appeal, administrative review, or legal proceedings.

(2)

The right to recover and receive duty under this Act is not suspended by any appeal, administrative review, or legal proceedings.

(3)

If an appellant or any other person is successful in any appeal, administrative review, or legal proceedings,—

(a)

the amount (if any) of the duty, or any security, received by the chief executive in excess of the amount that was properly payable must immediately be refunded to the appellant or other person by the chief executive; or

(b)

as the case may be, the appellant or other person must be released from the conditions of the security imposed under section 240.

(4)

The chief executive’s obligation under subsection (3) is suspended pending the outcome of any appeal lodged by the chief executive under this Act or any other enactment against a decision requiring the duty to be refunded.

Compare: 1996 No 27 s 92

128 Chief executive to pay interest on duty refunded on appeal, etc

(1)

If duty is required to be refunded in accordance with section 127(3), the chief executive must pay interest on the duty for the period (the interest period) that—

(a)

begins with the day on which the duty was paid; and

(b)

ends with the day on which the duty is refunded.

(2)

The amount of interest payable is calculated for each day of the interest period in accordance with the following formula:

d × r ÷ 365

where—

d

is the duty to be refunded

r

is the prescribed rate of interest applying on that day.

(3)

The total amount of interest payable is the sum of the amounts calculated under subsection (2) for each day in the interest period.

(4)

If the chief executive is satisfied that a person has been paid more interest than was payable, the chief executive may recover the amount of the excess in accordance with section 150 as if that amount were an amount refunded by Customs in error.

(5)

The chief executive’s obligation under subsection (1) is suspended pending the outcome of any appeal lodged by the chief executive under this Act or any other enactment against a decision requiring the duty to be refunded.

Compare: 1996 No 27 s 93

Charges on goods

129 Duty is charge on goods

(1)

The duty on any goods is a charge on those goods until the duty is fully paid.

(2)

If duty charged on any goods is not paid at, or within, the time for payment given under this Act, the chief executive may (whether or not the property in the goods has passed to a third party)—

(a)

take possession of the goods; and

(b)

sell them or any part of them in satisfaction or part satisfaction of the charge.

(3)

Subsection (2) does not apply as against a purchaser of the goods for valuable consideration and without knowledge that the duty was owing and unpaid.

(4)

In this section and section 130, purchaser means—

(a)

a person (other than a person liable to pay the duty) who acquired the goods from a person liable to pay the duty; or

(b)

a subsequent purchaser of the goods.

Compare: 1996 No 27 s 97(1)–(4)

130 Possession of goods if person claims to be purchaser for value without knowledge

(1)

This section applies if—

(a)

a person notifies the chief executive that the person is a purchaser to whom section 129(3) applies in respect of any goods; but

(b)

there is a dispute between that person and the chief executive as to whether section 129(3) applies.

(2)

If the chief executive has taken possession of the goods under section 129(2)(a) but the goods have not been sold, the chief executive must retain possession of the goods pending the resolution of the dispute.

(3)

If the chief executive has not yet taken possession of the goods under section 129(2)(a), the chief executive may,—

(a)

if the goods are in the possession, or under the control, of the importer, take possession of the goods and retain possession of them pending the resolution of the dispute:

(b)

if the goods are in the possession, or under the control, of the purchaser, direct the purchaser, by notice in writing, to retain the possession or control of the goods pending the resolution of the dispute.

(4)

The chief executive or the purchaser may apply to the court for a declaration as to whether the goods were acquired by the purchaser for valuable consideration and without knowledge that the duty was owing and unpaid.

(5)

In any proceeding under subsection (4), if the purchaser and a person liable to pay the duty are related (see section 131), the onus of proving that the goods were acquired for valuable consideration and without knowledge that the duty was owing and unpaid is on the purchaser.

(6)

If any goods that the chief executive has taken possession of, or has directed the purchaser to retain possession or control of under this section, consist wholly or partly of a living creature or any thing that, in the opinion of the chief executive, is perishable or that may otherwise lose its value if it is not sold as soon as possible,—

(a)

the chief executive, or the purchaser with the prior consent of the chief executive, may sell the goods; and

(b)

the net proceeds of the sale are substituted for the thing sold.

Compare: 1996 No 27 s 97(5)–(9)

131 Related persons for purposes of section 130(5)

(1)

For the purposes of section 130(5), 2 persons are related if—

(a)

they are connected in accordance with subsection (2); or

(b)

one is a trustee for the other; or

(c)

one is a company and the other—

(i)

is a director or an officer of the company; or

(ii)

is connected to a director or an officer of the company in accordance with subsection (2); or

(iii)

is directly or indirectly able to exercise control over the affairs of the company; or

(d)

they are both companies and—

(i)

one is a holding company or a subsidiary of the other within the meaning of section 5 of the Companies Act 1993; or

(ii)

one owns or controls shares that in aggregate carry the right to exercise, or control the exercise of, 20% or more of the voting power at meetings of the other; or

(iii)

they have the same holding company within the meaning of section 5 of the Companies Act 1993, or a third person owns or controls shares in each of them that carry the right to exercise, or control the exercise of, 20% or more of the voting power at meetings of each of them.

(2)

For the purposes of subsection (1)(a) and (c)(ii), 2 persons are connected if—

(a)

they are connected by blood relationship within the fourth degree of relationship (through a common ancestor); or

(b)

one is married to, or in a civil union or a de facto relationship with,—

(i)

the other; or

(ii)

a person who is connected by blood relationship within the fourth degree of relationship (through a common ancestor) with the other; or

(c)

one has been adopted as the child of—

(i)

the other; or

(ii)

a person who is connected by blood relationship within the fourth degree of relationship (through a common ancestor) with the other.

Compare: 1996 No 27 s 96

132 Offence in relation to direction of chief executive under section 130(3)(b)

(1)

A person to whom a direction is given under section 130(3)(b) commits an offence if the person, without the consent of the chief executive or reasonable excuse, fails to comply with the direction.

(2)

A person who commits an offence under subsection (1) is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

(3)

A person to whom a direction is given under section 130(3)(b) commits an offence if the person, knowingly and without the consent of the chief executive, fails to comply with the direction.

(4)

A person who commits an offence under subsection (3) is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding the greater of the following:

(i)

$15,000:

(ii)

an amount equal to 3 times the value of the goods to which the offence relates:

(b)

in the case of a body corporate, to a fine not exceeding the greater of the following:

(i)

$75,000:

(ii)

an amount equal to 3 times the value of the goods to which the offence relates.

Compare: 1996 No 27 s 202

Recovery of duty in cases of bankruptcy, liquidation, or receivership

133 Rights and duties of chief executive in relation to unpaid duty

(1)

This section applies to the recovery of unpaid duty—

(a)

that is due in relation to goods from—

(i)

an individual who is bankrupt; or

(ii)

a company that is in liquidation; or

(iii)

a company if a receiver has been appointed in respect of the company’s property in circumstances to which section 30 of the Receiverships Act 1993 applies; or

(iv)

an unincorporated body of persons (including a partnership, a joint venture, or the trustees of a trust) that is put into liquidation; or

(v)

an unincorporated body of persons (including a partnership, a joint venture, or the trustees of a trust) if a receiver has been appointed by the High Court in respect of the body’s property; and

(b)

that is a charge on the goods in accordance with section 129.

(2)

The chief executive must notify the Official Assignee, liquidator, or receiver (as the case may be) that the unpaid duty is a charge on the goods in accordance with section 129.

(3)

A notice under subsection (2) must be given within 60 days after,—

(a)

in the case of an individual, the date of the notice in the Gazette that the individual has been adjudicated bankrupt; or

(b)

in the case of a company, the date of the notice in the Gazette of the commencement of the liquidation or the appointment of a receiver; or

(c)

in the case of an unincorporated body (including a partnership, a joint venture, or the trustees of a trust), the date of the notice in the Gazette of the commencement of the liquidation or the appointment of a receiver.

(4)

If there is a dispute as to whether section 129(3) applies, a notice under subsection (2) may, despite subsection (3), be given within 30 days after the date on which the dispute is resolved.

(5)

If any duty to which this section applies is due and unpaid, the chief executive may—

(a)

realise the property subject to the charge; or

(b)

value the property subject to the charge and claim, in the bankruptcy, liquidation, or receivership in accordance with section 134, for the balance of the unpaid duty (if any); or

(c)

realise the property subject to the charge and claim, in the bankruptcy, liquidation, or receivership in accordance with section 134, for any balance of the unpaid duty, after deducting the amount realised; or

(d)

surrender the charge to the Official Assignee, liquidator, or receiver for the general benefit of creditors and claim, in the bankruptcy, liquidation, or receivership in accordance with section 134, for the whole debt.

(6)

If the chief executive realises the property subject to the charge, any regulations made for the purposes of section 410 apply.

(7)

If the chief executive values the property subject to the charge and claims for the balance of unpaid duty (if any) in accordance with subsection (5)(b), the valuation and claim must—

(a)

contain full particulars of the valuation, the claim, and the charge; and

(b)

identify any documents that substantiate the claim and the charge.

(8)

The Official Assignee, liquidator, or receiver may require production of any document referred to in subsection (7).

(9)

If a claim is made by the chief executive under subsection (7), the Official Assignee, liquidator, or receiver must—

(a)

accept the valuation and claim; or

(b)

subject to subsections (10) and (11), reject the valuation and claim in whole or in part.

(10)

If the Official Assignee, liquidator, or receiver rejects a valuation and claim under subsection (9)(b), the chief executive may make a revised valuation and claim within 20 days of receiving notice of the rejection.

(11)

The Official Assignee, liquidator, or receiver may revoke or amend a decision under subsection (9)(b) to reject a valuation and claim if he or she subsequently considers that a valuation and claim were wrongly rejected.

(12)

The Official Assignee, liquidator, or receiver may, at any time, unless the chief executive has realised the property, redeem the charge on payment of the assessed value where the Official Assignee, liquidator, or receiver—

(a)

has accepted a valuation and claim under subsection (9)(a); or

(b)

has accepted a revised valuation and claim; or

(c)

has accepted a valuation and claim on revoking or amending a decision to reject a claim under subsection (11).

(13)

The Official Assignee, liquidator, or receiver may at any time, by notice in writing, require the chief executive, within 30 days after receipt of the notice,—

(a)

to elect which of the powers referred to in subsection (5) the chief executive wishes to exercise; and

(b)

if the chief executive elects to exercise the power referred to in subsection (5)(b), (c), or (d), to exercise the power within that period.

(14)

The chief executive—

(a)

is treated as having surrendered the charge to the Official Assignee, liquidator, or receiver for the general benefit of creditors if—

(i)

the chief executive fails to give notice to the Official Assignee, liquidator, or receiver in accordance with subsection (2) within the time specified in subsection (3) or (4); or

(ii)

having been required to make an election in accordance with subsection (13), the chief executive fails to do so within the time specified in that subsection; but

(b)

may claim in the bankruptcy, liquidation, or receivership in accordance with section 134.

(15)

If the chief executive has surrendered the charge under subsection (5)(d) or is treated as having surrendered the charge under subsection (14), he or she may, with the leave of the court or the Official Assignee, liquidator, or receiver, at any time before the Official Assignee, liquidator, or receiver has realised the property charged,—

(a)

withdraw the surrender and rely on the charge; or

(b)

submit a new claim under this section.

(16)

Leave under subsection (15) may be subject to any terms and conditions that the court or the Official Assignee, liquidator, or receiver considers appropriate.

(17)

In any case to which this section applies, the provisions of section 305 of the Companies Act 1993 and sections 243, 244, and 246 to 250 of the Insolvency Act 2006 do not apply.

Compare: 1996 No 27 ss 98, 99

134 Ranking of duty

(1)

This section applies to—

(a)

the recovery of unpaid duty that does not constitute a charge on goods, if it is owed by—

(i)

an individual who is bankrupt; or

(ii)

a company that is in liquidation; or

(iii)

a company if a receiver has been appointed in respect of the company’s property in circumstances to which section 30 of the Receiverships Act 1993 applies; or

(iv)

an unincorporated body of persons (including a partnership, a joint venture, or the trustees of a trust) that is put into liquidation; or

(v)

an unincorporated body of persons (including a partnership, a joint venture, or the trustees of a trust) if a receiver has been appointed by the High Court in respect of the body’s property; and

(b)

the recovery of unpaid duty that the chief executive may claim in accordance with this section under section 133(5)(b) to (d) or (14)(b).

(2)

In the case of an individual who is bankrupt, the unpaid duty must be paid in accordance with the requirements of section 274(5) of the Insolvency Act 2006.

(3)

In the case of a company that is in liquidation, the unpaid duty must be paid in accordance with the requirements of section 312 of the Companies Act 1993.

(4)

In the case of a company where a receiver has been appointed in respect of the company’s property in circumstances to which section 30 of the Receiverships Act 1993 applies, the unpaid duty must be paid in accordance with the requirements of section 30(2) of the Receiverships Act 1993.

(5)

In the case of an unincorporated body (including a partnership, a joint venture, or the trustees of a trust) that is put into liquidation, the unpaid duty must be paid in accordance with the requirements of section 312 of the Companies Act 1993 (as applied by section 240B of that Act).

(6)

In the case of an unincorporated body (including a partnership, a joint venture, or the trustees of a trust) where a receiver has been appointed by the High Court in respect of the body’s property, the unpaid duty must be paid in accordance with the directions of the court.

(7)

This section applies despite anything to the contrary in any other Act.

Compare: 1996 No 27 ss 100, 101(1)–(7)

Release of goods subject to duty

135 Release of goods subject to duty

(1)

Except as otherwise provided in this Act, a person may not obtain the release of goods so that they are no longer subject to the control of Customs until the sum payable by way of duty on the goods is paid in full.

(2)

No action or other proceeding may be brought against the Crown, the chief executive, or any Customs officer in respect of the detention of any goods for which the full duty has not been paid.

(3)

The chief executive may, subject to any conditions (including conditions as to security) that he or she considers appropriate,—

(a)

allow the release of goods so that they are no longer subject to the control of Customs in circumstances approved by the chief executive:

(b)

allow the release of goods so that they are no longer subject to the control of Customs and accept payment of duty by instalment over a specified period if he or she considers that undue hardship would result from the payment of duty as required by this section.

(4)

Subsection (3)(b) does not apply to duties imposed under the Trade (Anti-dumping and Countervailing Duties) Act 1988 or under the Trade (Safeguard Measures) Act 2014.

(5)

Nothing in section 129, 130, 133, or 134 affects this section.

Compare: 1996 No 27 ss 101(8), 102

136 Goods temporarily imported

(1)

The chief executive may, if he or she is satisfied that goods have been temporarily imported, allow goods to be released, so that they are no longer subject to the control of Customs, without payment of duty and on receipt of security that is equal to the amount of the duty payable on the goods.

(2)

Subject to any prescribed conditions, the person who gave the security must be released from the conditions of the security, and any deposit of money must be returned, if, within 12 months from the date of importation of the goods or any longer period that the chief executive allows, the chief executive is satisfied that the goods have been—

(a)

exported; or

(b)

shipped for export; or

(c)

packed for export into a bulk cargo container in a Customs-controlled area and the container secured to the satisfaction of the chief executive; or

(d)

destroyed; or

(e)

dealt with in any manner that the chief executive may allow.

(3)

Duty is payable in respect of the goods if—

(a)

the goods are used for industrial or commercial purposes or any other purpose the chief executive considers applicable; and

(b)

their value for duty, as determined by the chief executive at the time that he or she is satisfied in accordance with subsection (2) that the goods have been dealt with in any of the ways described in subsection (2)(a) to (e), is less than their value for duty, as ascertained in accordance with this Act, at the time of their importation.

(4)

The duty is payable on the difference between the 2 values referred to in subsection (3)(b).

(5)

For the purposes of subsection (3)(b), the chief executive must determine the value for duty of goods that have been dealt with by using—

(a)

the straight-line method of calculating an amount of depreciation loss described in section EE 12(2)(b) of the Income Tax Act 2007; and

(b)

the depreciation rate for that method determined by the Commissioner of Inland Revenue under section 91AAF or 91AAG of the Tax Administration Act 1994 or the rate specified in the table appended to the General depreciation rates published by the Commissioner of Inland Revenue; and

(c)

for duty calculation purposes, the depreciation rate applicable on the date the goods are imported.

(6)

Any amount of duty that is payable under this section may be deducted from any deposit of money given as security under subsection (1).

(7)

If, at the expiry of the period referred to in subsection (2), the goods have not been dealt with in any of the ways described in subsection (2)(a) to (e),—

(a)

any sum secured by way of deposit of money must be retained by the Crown; or

(b)

any sum secured must be paid to the Crown by the importer within 10 working days (or any longer period that the chief executive may allow) after the expiry of the period.

(8)

Subject to any conditions that the chief executive imposes, duty is not payable on goods temporarily imported in accordance with any treaty, agreement, or arrangement concluded by the Government of New Zealand.

(9)

This section does not apply to duties imposed under the Trade (Anti-dumping and Countervailing Duties) Act 1988 or under the Trade (Safeguard Measures) Act 2014 except to the extent allowed by the chief executive of the department of State that, with the authority of the Prime Minister, is responsible for the administration of the Act in question.

(10)

This section does not apply to goods that are declared by regulations made under the Tariff Act 1988 to be goods to which this section does not apply.

Compare: 1996 No 27 s 116

137 Goods temporarily imported for manufacturing, etc

(1)

The cases in which the chief executive may allow goods to be released under section 136(1) include (without limitation) cases where the chief executive is satisfied that the goods—

(a)

have been temporarily imported for manufacturing, processing, or repair; and

(b)

will remain identifiable when they are exported.

(2)

Section 136(2)(e) and (3) to (6) does not apply in relation to goods that are released in a case referred to in subsection (1).

Liability for duty in certain cases

138 Liability for duty on goods wrongfully removed or missing

(1)

The licensee of a Customs-controlled area is liable for duty payable on goods that the chief executive is satisfied have been wrongfully removed, or are missing, from that Customs-controlled area as if the goods had been, as the case may be,—

(a)

imported by the licensee and entered under section 75:

(b)

manufactured by the licensee and entered under section 81.

(2)

Duty becomes due and payable on dutiable goods as if the goods were removed for home consumption, or entry has been made and passed for home consumption, if the goods—

(a)

are removed from a Customs-controlled area without the authority of Customs (if that authority was required for the removal); or

(b)

are not produced to Customs by the licensee and not accounted for as having been lawfully delivered from the Customs-controlled area.

(3)

The chief executive may, by notice in writing, demand payment, of any sum that the chief executive reasonably suspects is owing under this section, from—

(a)

the owner or importer of the goods; or

(b)

the licensee of a Customs-controlled area.

(4)

Duty payable under this section constitutes a debt due to the Crown by—

(a)

the licensee of a Customs-controlled area:

(b)

the importer of the goods:

(c)

the owner of the goods.

(5)

The liability under subsection (4) is joint and several.

(6)

A person who is liable for the payment of the duty and who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

Compare: 1996 No 27 s 103

139 Liability of owners of craft for duty on goods unlawfully landed

(1)

This section applies if cargo, stores, or other goods are unlawfully landed in New Zealand in or from a craft that is within New Zealand.

(2)

The owner and the person in charge of the craft are jointly and severally liable for the payment of the duty on the cargo, stores, or other goods as if—

(a)

the cargo, stores, or other goods had been imported by them; and

(b)

the cargo, stores, or other goods had been entered in accordance with section 75 and the entry had been passed for home consumption.

(3)

Liability under subsection (2) does not affect the liability of any other person.

(4)

The chief executive may, by notice in writing, demand from the owner or the person in charge of any craft payment of any sum that the chief executive reasonably suspects is owing under this section.

(5)

In any proceedings for the recovery of duty, or for a refund of duty paid, under this section, the sum demanded by the chief executive under subsection (4) is presumed to be payable unless the contrary is proved.

(6)

A person who is liable for the payment of the duty and is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

Compare: 1996 No 27 s 104

Joint liability for duty

140 Effect of payment of duty by one person on liability of other persons

The liability of a person under this Act for the payment of duty on goods is extinguished by the payment of that duty by any other person liable for the payment of it, unless that duty is subsequently refunded or remitted.

Compare: 1996 No 27 s 105

Liability for duty or rate of duty altered

141 Incidence of altered duties

(1)

In the case of an alteration in the law relating to the liability of goods to duty or the rate of duty to which goods are liable, the liability or rate must, except where otherwise expressly provided, be determined,—

(a)

in the case of Part A goods that are manufactured in a manufacturing area, by the law in force at the time the goods are removed for home consumption:

(b)

in the case of imported goods that are held in an export warehouse or a duty-free store, by the law in force at the time the goods are removed from the export warehouse or duty-free store:

(c)

in the case of imported goods that are not covered by paragraph (b), by the law in force at the time the goods are imported.

(2)

In this section, alteration includes a variation that takes place at any time or takes place periodically.

Compare: 1996 No 27 s 106

Refunds, remissions, and drawbacks of duty

142 Chief executive may refund duty paid in error

(1)

If the chief executive is satisfied that duty has been paid in error, either of law or of fact, the chief executive must, unless there is good reason not to, refund the duty—

(a)

at any time within 4 years after the duty has been paid; or

(b)

at any later time if an application is made within 4 years after the duty has been paid.

(2)

To avoid doubt, an obvious error in the legal instrument that establishes a duty payable could constitute good reason under subsection (1) for the chief executive not to refund the duty.

(3)

A person who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 111

143 Refunds of duty related to provisional Customs value

(1)

This section applies if—

(a)

an importer includes a provisional Customs value in an entry for imported goods under section 102(1); and

(b)

the importer pays duty on the goods based on the provisional Customs value; and

(c)

the importer subsequently amends the assessment for the goods to include the final Customs value under section 112; and

(d)

the final Customs value results in a lower amount of duty being payable than the importer has already paid.

(2)

The chief executive must refund the difference between the duty payable on the final Customs value and the duty paid.

(3)

This section does not affect the chief executive’s powers under section 117 in relation to the final Customs value.

144 Refunds of duty on goods under Part 2 of Tariff

(1)

If duty has been paid on imported goods and a lower rate of duty, or an exemption in respect of the goods, is subsequently approved under section 8 of the Tariff Act 1988, the chief executive must refund the whole or part of any duty paid so that the total duty paid on the goods is in accordance with the terms (including the effective date) of the approval.

(2)

A person who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 112

145 Other refunds and remissions of duty

(1)

The chief executive may refund or remit any duty if the chief executive is satisfied that imported goods, or goods manufactured in New Zealand,—

(a)

have been damaged, destroyed, pillaged, or lost, or have diminished in value or deteriorated in condition, prior to their ceasing to be subject to the control of Customs; or

(b)

are of faulty manufacture; or

(c)

have been abandoned to the Crown for destruction or any other form of disposal prior to their ceasing to be subject to the control of Customs.

(2)

Regulations may prescribe any of the following:

(a)

exceptions, restrictions, or conditions on the chief executive’s power to refund or remit duty under subsection (1):

(b)

the nature and value of sample goods that may be delivered free of duty:

(c)

the conditions under which sample goods may be delivered free of duty.

(3)

The chief executive may refund or remit any excise-equivalent duty levied—

(a)

on goods of a class or kind that have been exempted from duty under section 8 of the Tariff Act 1988; or

(b)

on alcoholic beverages (except ethyl alcohol of Tariff items 2207.10.19, 2207.10.29, 2207.20.01, and 2207.20.49)—

(i)

for use in the manufacture of any products that the chief executive approves by the persons or in the places that the chief executive approves; and

(ii)

in the quantities that the chief executive approves; and

(iii)

subject to any conditions that the chief executive considers appropriate.

(4)

A person who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

(5)

This section does not apply to duties imposed under the Trade (Anti-dumping and Countervailing Duties) Act 1988 or the Trade (Safeguard Measures) Act 2014 except to the extent allowed by the chief executive of the department of State that, with the authority of the Prime Minister, is responsible for the administration of the Act in question.

Compare: 1996 No 27 s 113

146 Power to apply refunds towards payment of other duties

If any duty is or becomes refundable under this Act to any person, the chief executive may, at his or her discretion,—

(a)

apply the whole or any part of the sum refundable towards the payment of any other duty that is payable by that person; or

(b)

pay the whole sum to that person.

Compare: 1996 No 27 s 114

147 Drawbacks of duty on certain goods

(1)

Subject to this section, drawbacks of duty may be allowed, at the prescribed amounts and subject to any prescribed conditions, on—

(a)

imported goods that are later exported:

(b)

Part A goods that are manufactured in a manufacturing area and then exported:

(c)

imported parts and materials used in, worked into, or attached to goods that are manufactured in New Zealand and then exported:

(d)

imported materials, except fuel or plant equipment, used in the manufacture of goods that are manufactured in New Zealand and then exported.

(2)

A claim for drawback may be made with the entry of the goods under section 89 or at any other prescribed time.

(3)

The chief executive may, at his or her discretion, for the purposes of this section, treat goods as having been exported if—

(a)

he or she is satisfied that the goods have been shipped for export; or

(b)

the goods have been packed for export into a bulk cargo container in a Customs place or Customs-controlled area and the container has been secured to the satisfaction of the chief executive; or

(c)

the goods have been entered into an export warehouse and the chief executive is satisfied that they will be exported.

(4)

If drawback is allowed to any person under this section, the chief executive may, at his or her discretion, apply the whole or any part of the sum allowed towards the payment of any other duty that is payable by that person.

(5)

This section does not apply to duties imposed under the Trade (Anti-dumping and Countervailing Duties) Act 1988 or the Trade (Safeguard Measures) Act 2014 except to the extent allowed by the chief executive of the department of State that, with the authority of the Prime Minister, is responsible for the administration of the Act in question.

(6)

This section does not apply to goods declared by regulations made under the Tariff Act 1988 to be goods to which this section does not apply.

Compare: 1996 No 27 ss 49(3), 117(1), (2), (7)–(9)

148 Where drawback has been allowed

(1)

This section applies if drawback has been allowed under section 147 on—

(a)

goods that are treated as exported under section 147(3); or

(b)

goods used, as referred to in section 147(1)(c) or (d), in the manufacture of goods that are treated as exported under section 147(3).

(2)

The goods that are treated as exported must not be unshipped, relanded, or unpacked before export without the permission of the chief executive.

(3)

If the goods are unshipped, relanded, or unpacked before export,—

(a)

any drawback paid or applied under section 147(4) constitutes a debt due to the Crown immediately on the unshipment, relanding, or unpacking; and

(b)

the debt—

(i)

must be paid by the owner of the goods immediately on the unshipment, relanding, or unpacking; and

(ii)

is recoverable by the chief executive (on behalf of the Crown) in any court of competent jurisdiction.

(4)

The right to recover drawback as a debt due to the Crown under this section is not affected by the fact that a bond or any other security was given in respect of the unshipment, relanding, or unpacking of the goods before export.

Compare: 1996 No 27 s 117(3)–(6)

149 Minimum amounts of refunds and drawback

Regulations may prescribe any of the following:

(a)

the minimum amount of duty refundable on goods, and the circumstances in which duty below the prescribed amount is not to be refunded:

(b)

the minimum amount of drawback of duty allowable on goods, and the circumstances in which drawback below the prescribed amount is not allowed.

Compare: 1996 No 27 s 118(1)(b), (c)

150 Recovery of refunds, etc made in error

(1)

This section applies to the following:

(a)

any duty, interest, penalty, or other amount refunded by Customs in error of fact or law:

(b)

any drawback allowed under section 147 in error of fact or law.

(2)

The chief executive (on behalf of the Crown) may recover the refund or drawback in any court of competent jurisdiction by commencing proceedings—

(a)

at any time, if the refund or drawback was obtained by fraud; or

(b)

in any other case, within 4 years after the date on which the refund or drawback was—

(i)

paid; or

(ii)

applied towards the payment of any duty or other amount under section 146(a), 147(4), or 172.

Compare: 1996 No 27 s 115

Exceptions

151 Reimportation of goods exported

(1)

This section applies to goods if the goods—

(a)

have been exported; and

(b)

will be, or are, reimported; and

(c)

when reimported, will be, or are, in substantially the same condition as they were when exported.

(2)

The goods may, subject to any conditions that the chief executive considers appropriate, be readmitted—

(a)

free of duty; or

(b)

at a rate or an amount of duty that the chief executive determines and that does not exceed the greater of the following:

(i)

the rate or amount of duty that would be payable on the goods if imported for the first time:

(ii)

the rate or amount of drawback of duty allowed under section 147 when the goods were (last) exported.

Compare: 1996 No 27 s 109

152 Outward processing

(1)

This section applies to goods if the goods—

(a)

have been exported for the purposes of repair or refurbishment; and

(b)

will be, or are, reimported; and

(c)

when reimported, will be, or are, in substantially the same condition, except for the repair or refurbishment, as they were when exported.

(2)

The goods may, subject to any conditions that the chief executive considers appropriate, be readmitted at the rate or amount of duty the chief executive determines would be payable on the goods if the goods—

(a)

were imported for the first time; and

(b)

had a Customs value equal to the cost of the repair or refurbishment.

(3)

In this section, cost of the repair or refurbishment means—

(a)

the value of any materials, component parts, and other goods incorporated in the reimported goods for the purposes of their repair or refurbishment; and

(b)

the price paid for the service of the repair or refurbishment; and

(c)

the packing costs and charges incurred in respect of the goods for their shipment back to New Zealand, including the cost of cartons, cases, and other containers and coverings that are treated for customs purposes as being part of the goods when they are reimported; and

(d)

all expenses of packing incidental to placing the goods in the condition in which they are shipped back to New Zealand; and

(e)

the costs of the following until the goods have left the country of export:

(i)

transportation and insurance of the goods:

(ii)

the loading, unloading, and handling charges associated with the transportation of the goods:

(iii)

any other charges and expenses associated with the transportation of the goods.

153 Goods from Cook Islands and Niue

(1)

Goods imported from the Cook Islands or Niue (whether the produce or manufacture of the Cook Islands or Niue or not) are to be admitted into New Zealand free of duty.

(2)

Subsection (1) does not apply to—

(a)

goods in respect of which, on their exportation from the Cook Islands or Niue, a claim for drawback of duty has been made and allowed:

(b)

goods that, by reason of warehousing or for any other reason, have been exported from the Cook Islands or Niue without payment of duty on their importation into the Cook Islands or Niue:

(c)

goods produced in a manufacturing warehouse in the Cook Islands or Niue, unless they have been entered in the Cook Islands or Niue for home consumption and the duty (if any) has been paid on them:

(d)

goods on which a rate of duty had been paid in the Cook Islands or Niue lower than that to which the goods would be subject in New Zealand at the time of their importation into New Zealand if imported directly from their country of origin or where the valuation of the goods for duty has been assessed in the Cook Islands or Niue on a different basis from that applying in New Zealand as at the date of the importation of the goods into New Zealand:

(e)

goods subject to excise duty in the Cook Islands or Niue, unless such duty has been paid on them as if they had not been exported.

Compare: 1996 No 27 s 108

Subpart 8—Interest and penalties for late or incorrect payments of duty, incorrect refunds of duty, and drawback incorrectly allowed

Interest: late or incorrect payments of duty

154 Interest payable for late or incorrect payments of duty in certain cases

(1)

Interest is payable in respect of any duty if—

(a)

any of sections 155 to 158 provides for this section to apply to the duty; and

(b)

the duty is not fully paid to Customs before the close of the payment date (see subsection (5)).

(2)

The interest is payable for the period (the interest period) that—

(a)

begins with the day after the payment date; and

(b)

ends with the day on which the duty is fully paid.

(3)

The amount of interest payable is calculated for each day of the interest period in accordance with the following formula:

d × r ÷ 365

where—

d

is the amount of the duty still to be paid to Customs as at the start of the day

r

is the prescribed rate of interest applying on that day.

(4)

The total amount of interest payable is the sum of the amounts calculated under subsection (3) for each day of the interest period.

(5)

In this section, payment date has the meaning given to that term in section 155(2) or (4), 156(2), (4), or (6), 157(2), (4), or (6), or 158(2) (as applicable).

(6)

The power to prescribe a rate of interest for the purposes of item r in subsection (3) may be exercised for the following purposes:

(a)

to compensate the Crown for the loss of use of money:

(b)

to encourage duty payers to pay to Customs the correct amount of duty on time.

(7)

See sections 165 to 173 for remissions and refunds of interest payable under this section.

155 Cases involving late payment of duty
Excise duty

(1)

Section 154 applies to any excise duty if clause 5(a) of Schedule 3 applies to the payment of the excise duty.

(2)

For the purpose of applying section 154 to the excise duty, payment date means the date on which the time prescribed for the purposes of clause 5(a) of Schedule 3 expires.

Duty in respect of imported goods

(3)

Section 154 applies to any duty in respect of imported goods if section 123(1) applies to the payment of the duty.

(4)

For the purpose of applying section 154 to the duty, payment date means the date on which the deferred time for payment of the duty under section 123(1) expires.

156 Cases involving correction of self-assessed duty
Excise duty

(1)

Section 154 applies to any excise duty if—

(a)

the excise duty results from an amendment of an assessment under section 117; and

(b)

the amendment is correcting an assessment by a licensee or an owner under section 111.

(2)

For the purpose of applying section 154 to the excise duty, payment date means, despite section 124, the date on which the time prescribed for the purposes of clause 5(a) of Schedule 3 expires in relation to the Part A goods in respect of which the excise duty is levied.

Duty in respect of imported goods

(3)

Section 154 applies to any duty in respect of imported goods if—

(a)

the duty results from an amendment of an assessment under section 117; and

(b)

the amendment is correcting an assessment by an importer under section 111.

(4)

For the purpose of applying section 154 to the duty, payment date means, despite section 124,—

(a)

the date given by section 122 that is applicable to the imported goods; or

(b)

if section 123(1) would have applied to the payment of the duty had it been covered by the importer’s assessment, the date on which the deferred time for payment of the duty under section 123(1) would have expired.

(5)

Section 154 applies to any duty in respect of imported goods if—

(a)

the duty results from an amendment of an assessment under section 117; and

(b)

the amendment is correcting an importer’s amendment of an assessment under section 112.

(6)

For the purpose of applying section 154 to the duty, payment date means, despite section 124, the 20th working day after the date on which the importer made the amendment under section 112.

157 Cases where no entry or amendment under section 112 made
Excise duty

(1)

Section 154 applies to any excise duty if the excise duty results from an assessment under section 113 or from an amendment of such an assessment under section 117.

(2)

For the purpose of applying section 154 to the excise duty, payment date means, despite section 124,—

(a)

if the excise duty is levied under clause 1(1) of Schedule 3, the date on which the time prescribed for the purposes of clause 5(a) of that schedule expires in relation to the Part A goods in respect of which the excise duty is levied; or

(b)

if the excise duty is levied under clause 1(3) of Schedule 3, the date on which the Part A goods in respect of which the excise duty is levied were manufactured.

Duty in respect of imported goods

(3)

Section 154 applies to any duty in respect of imported goods if the duty results from an assessment under section 113 or from an amendment of such an assessment under section 117.

(4)

For the purpose of applying section 154 to the duty, payment date means, despite section 124, the date given by section 122 that is applicable to the imported goods.

(5)

Section 154 applies to any duty in respect of imported goods if—

(a)

the duty results from an amendment of an assessment under section 117; and

(b)

the amendment is an amendment of the kind referred to in section 117(4)(b).

(6)

For the purpose of applying section 154 to the duty, payment date means, despite section 124, the 20th working day after the expiry of the time prescribed for the purposes of section 112(2)(a).

158 Other cases involving assessments or demands by chief executive

(1)

Section 154 applies to any duty if—

(a)

the duty is required to be paid to Customs within a period given by section 124(2) to (7); and

(b)

none of sections 155 to 157 provides for section 154 to apply to the duty.

(2)

For the purpose of applying section 154 to the duty, payment date means the date on which the relevant period given by section 124(2) to (7) expires.

Penalties: late payments of duty

159 Penalties payable for late payments of duty in certain cases

(1)

A penalty is payable in respect of any duty if—

(a)

section 160 provides for this section to apply to the duty; and

(b)

the duty is not fully paid to Customs before the close of the payment date (see subsection (5)).

(2)

The penalty is equal to 1% of the amount of the duty still to be paid to Customs as at the close of the payment date.

(3)

A further penalty is payable in respect of the duty if the duty is not fully paid to Customs before the close of the seventh day after the payment date.

(4)

The further penalty is equal to 4% of the amount of the duty still to be paid to Customs as at the close of that seventh day.

(5)

In this section, payment date has the meaning given to that term in section 160(2), (4), or (6) (as applicable).

(6)

See sections 165 to 173 for remissions and refunds of penalties payable under this section.

160 Cases in which penalties may be payable
Excise duty: clause 5(a) of Schedule 3 applies

(1)

Section 159 applies to any excise duty if clause 5(a) of Schedule 3 applies to the payment of the excise duty.

(2)

For the purpose of applying section 159 to the excise duty, payment date means the date on which the time prescribed for the purposes of clause 5(a) of Schedule 3 expires.

Duty in respect of imported goods: section 123(1) applies

(3)

Section 159 applies to any duty in respect of imported goods if section 123(1) applies to the payment of the duty.

(4)

For the purpose of applying section 159 to the duty, payment date means the date on which the deferred time for payment of the duty under section 123(1) expires.

Any duty: section 124(2) to (7) applies

(5)

Section 159 applies to any duty if the duty is required to be paid within a period given by section 124(2) to (7).

(6)

For the purpose of applying section 159 to the duty, payment date means the date on which the relevant period given by section 124(2) to (7) expires.

Interest: incorrect refunds of duty or drawback incorrectly allowed

161 Interest payable for incorrect refunds of duty or drawback incorrectly allowed in certain cases

(1)

Interest is payable in respect of any refund or drawback of duty if section 162 or 163 provides for this section to apply to the refund or drawback.

(2)

The interest is payable for the period (the interest period) that—

(a)

begins with the day after the payment date (see subsection (5)); and

(b)

ends with the repayment date (see subsection (5)).

(3)

The amount of interest payable is calculated for each day of the interest period in accordance with the following formula:

a × r ÷ 365

where—

a

is the amount of the refund or drawback to the extent that it has not been repaid to Customs as at the start of the day

r

is the prescribed rate of interest applying on that day.

(4)

The total amount of interest payable is the sum of the amounts calculated under subsection (3) for each day of the interest period.

(5)

In this section, payment date and repayment date have the meanings given to those terms in section 162(2) or 163(2) or (4) (as applicable).

(6)

The power to prescribe a rate of interest for the purposes of item r in subsection (3) may be exercised for the following purposes:

(a)

to compensate the Crown for the loss of use of money:

(b)

to encourage the repayment to Customs of refunds and drawback in the relevant circumstances.

(7)

See sections 165 to 173 for remissions and refunds of interest payable under this section.

162 Refunds of duty made because of error attributable to recipient, etc

(1)

Section 161 applies to any refund of duty if the refund is made by Customs—

(a)

in error of fact or law; and

(b)

on the basis of incorrect information provided to Customs by—

(i)

the recipient of the refund; or

(ii)

any other person by whom the duty was payable.

(2)

For the purpose of applying section 161 to the refund,—

payment date means the date on which the refund was—

(a)

paid; or

(b)

applied towards the payment of any other duty under section 146(a)

repayment date means the date on which the refund is fully repaid to Customs.

163 Drawback allowed because of error attributable to recipient, etc

(1)

Section 161 applies to any drawback of duty allowed under section 147

(a)

in error of fact or law; and

(b)

on the basis of incorrect information provided to Customs by the recipient of the drawback.

(2)

For the purpose of applying section 161 to the drawback,—

payment date means the date on which the drawback was—

(a)

paid; or

(b)

applied towards the payment of any other duty under section 147(4)

repayment date means the date on which the drawback is fully repaid to Customs.

(3)

Section 161 applies to any drawback of duty allowed under section 147 if the drawback becomes a debt due to the Crown under section 148(3).

(4)

For the purpose of applying section 161 to the drawback,—

payment date means the date on which the drawback becomes a debt due to the Crown under section 148(3)

repayment date means the date on which the drawback is fully repaid to Customs.

Statements of liability

164 Statements of liability for interest and penalties

(1)

This section applies if the chief executive is satisfied that interest or penalties are payable by a person (the duty payer) under this subpart in respect of any duty or refund or drawback of duty (the unpaid duty).

(2)

The chief executive may by notice issue a statement to the duty payer setting out—

(a)

the chief executive’s calculation of the interest or penalties payable by the duty payer in respect of the unpaid duty as at the date of the statement:

(b)

if applicable, the method for calculating the interest or penalties that will become payable by the duty payer in respect of the unpaid duty so long as the unpaid duty remains to be fully paid or repaid after the date of the statement.

(3)

The chief executive may by notice issue updated or amended statements to the duty payer.

(4)

A statement issued by the chief executive is treated as a correct statement of the interest or penalties that are payable, or prospectively payable, by the duty payer in respect of the unpaid duty,—

(a)

unless and until it is superseded by an updated or amended statement (in which event the updated or amended statement is treated as correct); and

(b)

subject to subsection (5).

(5)

If the duty payer is dissatisfied with a decision of the chief executive under this section, the duty payer may, within 20 working days after the date on which the duty payer receives the statement concerned, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

(6)

In relation to an updated or amended statement, subsection (5) applies only to matters that relate to the update or amendment.

Remissions and refunds of interest and penalties

165 Interest: remissions and refunds for emergency events

(1)

Subsections (2) and (3) apply if—

(a)

an emergency event (see subsection (4)(a)) physically prevents a person (the duty payer) from fully paying any duty to Customs before the close of the payment date (see subsection (6)); and

(b)

as a result, interest is payable in respect of that duty under section 154 in a case covered by section 155 or 158; and

(c)

the duty payer falls within the class, or any of the classes, of persons prescribed by the relevant regulations for the purposes of subsection (4)(b), if those regulations prescribe a class or classes of persons for those purposes.

(2)

The duty payer may apply to the chief executive to remit or refund the interest.

(3)

The chief executive may remit or refund the interest if the chief executive is satisfied that—

(a)

it is equitable that the interest be remitted or refunded; and

(b)

the duty payer applied for the remission or refund as soon as practicable; and

(c)

the duty payer fully paid the duty to Customs as soon as practicable.

(4)

Regulations—

(a)

may declare an event that meets the requirements of paragraphs (a) and (b) of the definition of emergency in section 4 of the Civil Defence Emergency Management Act 2002 to be an emergency event for the purposes of this section:

(b)

may, but need not, prescribe a class or classes of persons who may apply for the remission or refunding of interest under this section in relation to the emergency event.

(5)

Regulations made for the purposes of subsection (4)—

(a)

may relate to an event that occurs before the regulations come into force; and

(b)

are revoked at the close of the 6-month period that starts with the date on which the regulations come into force (unless the regulations are revoked earlier); but

(c)

may be replaced by further regulations that are made for the purposes of subsection (4) before or after the time at which the regulations are revoked.

(6)

In this section, payment date has the meaning given to that term in section 155(2) or (4) or 158(2) (as applicable).

Compare: 1994 No 166 s 183ABA

166 Interest: remissions and refunds where inadvertent error by duty payer

(1)

Regulations may, for cases covered by section 156, require the chief executive to remit or refund in part any interest payable under section 154 if the chief executive is satisfied that—

(a)

the licensee’s or owner’s or importer’s assessment under section 111, or the importer’s amendment of an assessment under section 112, was incorrect because of an inadvertent error; and

(b)

the prescribed conditions (if any) are met.

(2)

The amount to be remitted or refunded must be calculated in the prescribed way.

167 Penalties: remissions and refunds where reasonable excuse for late payment of duty

(1)

The chief executive may remit or refund a penalty payable under section 159 in respect of any duty payable by a person (the duty payer) if satisfied that,—

(a)

as a result of a relevant event, the duty payer has a reasonable excuse for not fully paying the duty to Customs before the close of, as the case may be,—

(i)

the payment date; or

(ii)

the seventh day after the payment date; and

(b)

the duty payer fully paid the duty to Customs as soon as practicable.

(2)

In this section,—

payment date has the meaning given to that term in section 160(2), (4), or (6) (as applicable)

relevant event

(a)

means an event or circumstances that—

(i)

are or were beyond the control of the duty payer; and

(ii)

could not reasonably have been anticipated or avoided by the duty payer; but

(b)

does not include the duty payer’s financial position.

(3)

Without limiting paragraph (a) of its definition in subsection (2), a relevant event could be—

(a)

an accident or a natural disaster; or

(b)

illness or emotional or mental distress.

Compare: 1994 No 166 s 183A

168 Penalties: remissions and refunds for good payment record

(1)

The chief executive must remit or refund a penalty payable under section 159 in respect of any duty (the late duty) if—

(a)

the late duty has been fully paid to Customs; and

(b)

every amount of relevant duty that was payable by the duty payer in the previous 2-year period (if any) was paid on time.

(2)

For the purposes of subsection (1)(b), an amount of relevant duty—

(a)

was payable in the previous 2-year period if the payment date of the relevant duty fell within the 2-year period that ended with the day before the payment date of the late duty; and

(b)

was paid on time if the relevant duty was fully paid to Customs before the close of the payment date of the relevant duty.

(3)

In this section,—

duty payer means the person, or any of the persons, by whom the late duty was payable

payment date has the meaning given to that term in section 160(2), (4), or (6) (as applicable)

relevant duty means any duty covered by section 160(1), (3), or (5).

169 Interest and penalties: remissions and refunds if duty determined not to be payable, etc

(1)

This section applies if any interest or penalty is payable under section 154 or 159 in respect of any duty (the relevant duty) and—

(a)

it is determined in any administrative review, appeal, or legal proceedings that the relevant duty is not payable in whole or in part; or

(b)

the relevant duty is otherwise remitted or refunded in whole or in part.

(2)

This section also applies if—

(a)

any interest is payable under section 161 in respect of any refund or drawback; and

(b)

it is determined in any administrative review, appeal, or legal proceedings that the refund or drawback was correctly made or allowed in whole or in part.

(3)

The chief executive must remit or refund, as the case requires,—

(a)

the whole of the interest or penalty; or

(b)

a proportion of the interest or penalty that the chief executive determines to be appropriate in the circumstances.

(4)

The chief executive’s obligation under subsection (3) is suspended pending the outcome of any relevant appeal lodged by the chief executive under this Act or any other enactment.

170 Interest and penalties: remissions and refunds if consistent with collection of highest net revenue over time

(1)

The chief executive may remit or refund any interest or penalty payable under this subpart if the chief executive is satisfied that the remission or refund is consistent with the chief executive’s obligation under section 110 to secure the collection, over time, of the highest net revenue from duty that is practicable within the law.

(2)

In deciding whether to remit or refund any interest or penalty under this section, the chief executive—

(a)

must have regard to the importance of this subpart in promoting compliance, especially voluntary compliance, by all duty payers with this Act and any other enactment relating to any duty:

(b)

must not have regard to the financial position of the person by whom the interest or penalty is payable.

Compare: 1994 No 166 s 183D

171 Interest and penalties: remissions and refunds in prescribed circumstances

(1)

Regulations, made on the recommendation of the Minister, may prescribe circumstances in which the chief executive must remit or refund 1 or both of the following:

(a)

any interest payable under this subpart:

(b)

any penalty payable under this subpart.

(2)

The Minister may make a recommendation for the purposes of subsection (1) only if the Minister is satisfied that the proposed regulations will not undermine this subpart in promoting compliance, especially voluntary compliance, by all duty payers with this Act and any other enactment relating to any duty.

172 Power to apply refunds towards payment of other amounts payable

If any interest or penalty is refundable to any person under any of sections 165 to 171, the chief executive may, at his or her discretion, apply the whole or any part of the refund towards the payment of—

(a)

any duty payable by that person; or

(b)

any other amount payable by that person under this Act.

173 Administrative reviews and appeals in respect of decisions not to remit or refund

A person who is dissatisfied with a decision of the chief executive not to remit or refund the whole or any part of any interest or penalty under any of sections 165 to 171 may, within 20 working days after the date on which notice of the decision is given, do 1 (but not both) of the following:

(a)

apply for an administrative review of the decision:

(b)

appeal to a Customs Appeal Authority against the decision.

Final provisions

174 Interest and penalties are debt due to Crown, etc

(1)

Any interest or penalty payable under this subpart is a debt that is—

(a)

due to the Crown; and

(b)

owed by the person or persons referred to in subsection (2) and, if owed by more than 1 person, jointly and severally; and

(c)

payable immediately; and

(d)

recoverable by the chief executive (on behalf of the Crown) in any court of competent jurisdiction.

(2)

Any interest or penalty payable under this subpart is owed by the following persons:

(a)

in the case of any interest or penalty payable under section 154 or 159 in respect of any duty, the person or persons by whom the duty is payable:

(b)

in the case of any interest payable under section 161 in respect of any refund of duty,—

(i)

the recipient of the refund; and

(ii)

any other person or persons by whom the duty was payable:

(c)

in the case of any interest payable under section 161 in respect of any drawback of duty,—

(i)

the recipient of the drawback in a case covered by section 163(1):

(ii)

the owner of the goods in a case covered by section 163(3).

(3)

The recovery by the chief executive of any interest payable under section 161 in respect of any refund or drawback recoverable by the chief executive under section 150 is subject to section 150(2)(a) and (b) as well.

(4)

Any payment to Customs by a person who owes any amount under this subpart may be applied by the chief executive towards the payment of that amount before it is applied towards the payment of—

(a)

any duty payable by that person; or

(b)

any other amount payable by that person under this Act apart from this subpart.

(5)

A person’s obligation to pay any interest or penalty under this subpart is not suspended by any administrative review, appeal, or legal proceedings.

(6)

Regulations may do any of the following:

(a)

prescribe an amount of interest or penalty below which interest or penalties under this subpart need not be collected:

(b)

prescribe an amount of duty, refund, or drawback and provide that interest or penalties under this subpart need not be collected in respect of any duty, refund, or drawback that is below the prescribed amount:

(c)

provide that any provision made for the purposes of paragraph (a) or (b)—

(i)

applies only in prescribed circumstances:

(ii)

does not apply in prescribed circumstances.

(7)

To avoid doubt, sections 154 and 159 apply to any duty even if the duty results from an assessment, or an amendment of an assessment, that is made after the payment date (as that term is defined in section 154(5) or 159(5)).

(8)

This subpart applies to levies imposed by section 24 of the Energy (Fuels, Levies, and References) Act 1989 as it applies to excise duty levied under clause 1(1) or (3) of Schedule 3 (as the case requires) to the extent that those levies apply to goods manufactured in New Zealand.

(9)

This subpart does not apply to levies imposed by section 213(2)(c) of the Accident Compensation Act 2001 (see section 250 of that Act instead).

Subpart 9—Forfeiture, seizure, and condemnation

175 Application of subpart

This subpart applies to all forfeitures that arise under this Act.

Compare: 1996 No 27 s 224

176 Goods forfeited

(1)

The following goods are forfeited to the Crown:

(a)

all goods that are unlawfully imported:

(b)

all goods that are unlawfully exported:

(c)

all goods that any person or persons have attempted unlawfully to export:

(d)

goods in respect of which an offence has been committed under—

(i)

sections 363 and 364 (which relate to entries and related returns):

(ii)

sections 366 to 368 (which relate to declarations and documents):

(iii)

section 371 (which relates to defrauding the Customs revenue):

(iv)

section 372 (which relates to possession or custody of uncustomed goods or prohibited imports):

(v)

section 373 (which relates to purchase, sale, exchange, etc, of uncustomed goods or prohibited imports):

(vi)

section 374 (which relates to possession or control of concealed goods):

(vii)

section 381 (which relates to counterfeit seals, stamps, markings, substances, or devices):

(viii)

section 386 (which relates to possession of incomplete documents):

(ix)

sections 388 to 391 (which relate to importation or exportation of prohibited goods):

(x)

section 393 (which relates to exportation of goods):

(e)

goods dealt with in contravention of section 77, 78, 83, or 85:

(f)

dutiable or prohibited goods that are found in the possession of any person who, when questioned under section 205 or 229, denied or failed to disclose possession of those goods:

(g)

dutiable or prohibited goods that are—

(i)

found in the course of a search under section 231; or

(ii)
(h)

dangerous items seized under section 214(1)(a):

(i)

electronic devices treated as forfeited under section 228(10):

(j)

goods treated as forfeited in accordance with section 243(2)(c):

(k)

goods in respect of which an erroneous statement, declaration, certificate, or claim as to the country of which the goods are the produce or manufacture has been made or produced to any Customs officer:

(l)

dutiable or prohibited goods that are found on or in any craft or cargo device that is unlawfully in any place:

(m)

dutiable or prohibited goods that are found on or in any craft or cargo device after arrival in any Customs place from a point outside New Zealand other than—

(i)

goods that are specified in the inward report under section 24(1)(a); or

(ii)

goods that are not required to be specified in the inward report under section 24(1)(a) because of section 24(3); or

(iii)

baggage belonging to the crew or passengers; or

(iv)

goods otherwise accounted for to the satisfaction of a Customs officer:

(n)

dutiable or prohibited goods that are found concealed in or on—

(i)

any craft, vehicle, or cargo device; or

(ii)

any other thing:

(o)

goods in any package if those goods are not fully accounted for in the entry or declaration relating to that package:

(p)

dutiable or prohibited goods that are packed so as to be likely to deceive Customs officers:

(q)

uncustomed goods that are found in any place:

(r)

imported goods that have been acquired (whether by the importer or some other person)—

(i)

in a country outside New Zealand; and

(ii)

by an act that, if done in New Zealand, would have amounted to a crime involving dishonesty:

(s)

goods exported, or in respect of which an attempt to export has been made, that have been acquired (whether by the exporter or some other person)—

(i)

in New Zealand; and

(ii)

by an act that amounts to a crime involving dishonesty:

(t)

any goods, equipment, or apparatus used, or intended for use, in the manufacture of Part A goods in contravention of section 56(1)(a):

(u)

any goods manufactured wholly or partly using any goods, equipment, or apparatus referred to in paragraph (t).

(v)
[Repealed]

(2)

For the purposes of subsection (1)(b) and (c), prohibited goods are treated as exported when they are placed in or on any craft for exportation.

(3)

If goods are forfeited, the following are also forfeited:

(a)

any case, covering, or other enclosure in or on which the goods are contained at the time of seizure, importation, or exportation (other than a cargo device):

(b)

any cargo device in or on which the goods are contained at the time of seizure, importation, or exportation if the cargo device has been adapted for the purpose of concealing goods:

(c)

any animal, craft, vehicle, or other thing (including any machinery or equipment on or in the craft, vehicle, or thing) that is used for the transportation, handling, deposit, or concealment of the goods (whether at the time, or after the time, of any alleged offence in relation to those goods).

(4)

A craft is forfeited to the Crown if—

(a)

the craft is one in respect of which an offence under section 13 or 18(1) is committed; and

(b)

that offence was committed to facilitate non-compliance with any requirement in sections 28 to 30 by a person or persons who arrived in New Zealand (in that craft or in any other craft).

Compare: 1996 No 27 s 225

Section 176(1)(v): repealed, on 21 May 2022, by section 51 of the Maritime Powers Act 2022 (2022 No 23).

177 Forfeiture to relate back

Goods are forfeited immediately at the time the act or event that gives rise to the forfeiture takes place.

Compare: 1996 No 27 s 228

Seizure

178 Seizure of forfeited goods or goods suspected to be forfeited goods

(1)

A Customs officer or constable may seize—

(a)

any forfeited goods; or

(b)

any goods that he or she has reasonable cause to suspect are forfeited.

(2)

Forfeited goods (other than goods forfeited because they are prohibited goods) may be seized at any time within 2 years after their forfeiture.

(3)

Goods that are forfeited because they are prohibited goods may be seized at any time after their forfeiture.

(4)

A Customs officer or constable may use all reasonable force to effect the seizure of goods under subsection (1).

(5)

This section applies in the contiguous zone as it applies in New Zealand.

(6)

The power under this section may be exercised in the contiguous zone only in accordance with article 33 of the United Nations Convention on the Law of the Sea.

Compare: 1996 No 27 s 226(1)–(5)

179 Securing seized goods

(1)

All goods seized under section 178 must be taken to a place of security and detained.

(2)

Despite subsection (1), a Customs officer may leave goods that have been seized under section 178 in the custody of—

(a)

the person from whom the goods have been seized; or

(b)

any other person who—

(i)

is authorised by the Customs officer; and

(ii)

consents to having custody of the goods.

(3)

A person who has custody of goods under subsection (2) must—

(a)

hold them for safe keeping—

(i)

until a final decision is made as to whether they are to remain forfeit; and

(ii)

without charge to the Crown; and

(iii)

in accordance with any reasonable conditions imposed by Customs; and

(b)

make the goods available to any Customs officer on demand; and

(c)

not alter, dispose of, or remove the goods from New Zealand unless the person is authorised to do so by a Customs officer; and

(d)

return the goods on demand to the custody of Customs.

Compare: 1996 No 27 s 226(6)–(8)

180 Offence in relation to securing seized goods

(1)

A person who has custody of goods under section 179(2) commits an offence if the person, without reasonable excuse, fails to comply with section 179(3).

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 215(1), (2)

181 Notice of seizure

(1)

If goods have been seized under section 178, Customs must, as soon as is reasonably practicable, notify—

(a)

any person who is known or believed to have an interest in the goods; or

(b)

if any such person is overseas, his or her agent in New Zealand.

(1A)

Subsection (1) does not apply in respect of seized goods that are tobacco or tobacco products prohibited from import under section 95A.

(2)

The notice referred to in subsection (1) must—

(a)

be in writing and in the prescribed form; and

(b)

contain the reasons for the seizure.

(3)

A seizure is not invalidated or illegal by reason of a failure to provide a notice under this section if reasonable steps were taken to give the notice.

Compare: 1996 No 27 s 227

Section 181(1A): inserted, on 1 July 2020, by section 7 of the Customs and Excise (Tobacco) Amendment Act 2020 (2020 No 16).

182 Delivery of goods seized on deposit of value

(1)

This section applies to goods that—

(a)

have been seized under section 178; and

(b)

have not yet been condemned.

(2)

The chief executive may deliver the goods to the owner (or any other person from whom they were seized) on the deposit with Customs of a cash sum equal to—

(a)

the value of the goods, being—

(i)

the Customs value of the goods, if the goods are imported goods; or

(ii)

the excise value of the goods, if the goods are Part A goods that were manufactured in a manufacturing area; and

(b)

any duty that the chief executive determines is payable on the goods.

(3)

The money deposited is treated as substituted for the goods seized, and this subpart applies to the money accordingly.

(4)

For the purposes of subsection (2)(a)(ii), the excise value of goods must be determined in accordance with subpart 2 of Part 1 of Schedule 3.

Compare: 1996 No 27 s 229

183 Sale of certain seized goods

(1)

This section applies to goods that—

(a)

have been seized under section 178; and

(b)

have not yet been condemned.

(2)

The chief executive may sell—

(a)

a living creature; or

(b)

any thing that, in the opinion of the chief executive,—

(i)

is of a perishable nature; or

(ii)

is likely to deteriorate or diminish in value by keeping; or

(iii)

it is desirable to sell.

(3)

The net proceeds of sale are substituted for the goods sold, and this subpart applies to the proceeds accordingly.

Compare: 1996 No 27 s 230

Review of seizure

184 Application for review of seizure

(1)

Any person who has an interest in goods that have been seized under section 178 may apply to the chief executive in accordance with clause 1 of Schedule 5 for a review of the seizure.

(2)

Schedule 5 applies to reviews of seizures of goods.

(3)

This section does not apply in respect of seized goods that are tobacco or tobacco products prohibited from import under section 95A.

Compare: 1996 No 27 s 231(1)

Section 184(3): inserted, on 1 July 2020, by section 8 of the Customs and Excise (Tobacco) Amendment Act 2020 (2020 No 16).

Condemnation

185 Condemnation of seized goods

(1)

This section applies to goods that have been seized under section 178, other than goods that are tobacco or tobacco products prohibited from import under section 95A.

(2)

If no application is made for a review of the seizure of the goods within the time given by clause 1(2)(b) of Schedule 5, the goods are condemned to the Crown.

(3)

If an application for a review is made within that time, the goods are condemned to the Crown—

(a)

if and when the application is discontinued:

(b)

if the application is dismissed by the chief executive, at the close of the period of 20 working days after notice of the decision is given under clause 8 of Schedule 5 unless an appeal against the decision is lodged within that period under clause 9 of that schedule.

Compare: 1996 No 27 s 235A

Section 185(1): amended, on 1 July 2020, by section 9 of the Customs and Excise (Tobacco) Amendment Act 2020 (2020 No 16).

185A Condemnation of seized goods that are tobacco or tobacco products

(1)

This section applies to goods that—

(a)

are tobacco or tobacco products prohibited from import under section 95A; and

(b)

have been seized under section 178.

(2)

The goods are condemned to the Crown when they are seized.

Section 185A: inserted, on 1 July 2020, by section 10 of the Customs and Excise (Tobacco) Amendment Act 2020 (2020 No 16).

185B Notice of seizure and condemnation of goods that are tobacco or tobacco products

(1)

If goods have been seized and condemned to the Crown under section 185A, Customs must, as soon as is reasonably practicable, notify—

(a)

any person who Customs knows or believes has an interest in the goods; or

(b)

if any such person is overseas, his or her agent in New Zealand.

(2)

The notice must be in writing and contain the reasons for the seizure and condemnation.

(3)

A seizure and condemnation is not invalid or illegal by reason of a failure to provide a notice under this section if reasonable steps were taken to give the notice.

Section 185B: inserted, on 1 July 2020, by section 10 of the Customs and Excise (Tobacco) Amendment Act 2020 (2020 No 16).

186 Condemnation of goods that are subject of appeal

Goods that are the subject of an appeal under clause 9 of Schedule 5 are condemned to the Crown if—

(a)

the appeal is against the dismissal of an application for a review and the appeal is discontinued; or

(b)

the decision of the Customs Appeal Authority on the appeal neither—

(i)

disallows the seizure of the goods under clause 4(2)(a) of Schedule 5 (as applied by clause 13 of Schedule 8); nor

(ii)

grants relief under clause 4(2)(b) of Schedule 5 (as applied by clause 13 of Schedule 8).

Compare: 1996 No 27 s 235C

187 Condemnation of goods where relief granted but condition of relief not met within time limit

(1)

This section applies to goods that have been seized under section 178 if—

(a)

relief is granted under clause 4(2)(b) of Schedule 5 by—

(i)

the chief executive; or

(ii)

a Customs Appeal Authority applying clause 4(2)(b) under clause 13 of Schedule 8; and

(b)

the relief is subject to a condition for which a time limit is set under clause 6(5) of Schedule 5; and

(c)

the condition is not met within that time limit.

(2)

The goods are condemned to the Crown when the time limit expires.

(3)

In relation to a time limit set by the chief executive, subsection (2) applies subject to any appeal in respect of the chief executive’s decision to grant relief (whether or not the time limit expires before the appeal is lodged) if the appeal—

(a)

is lodged under clause 9 of Schedule 5 within the period of 20 working days after notice of the decision is given under clause 8 of that schedule; and

(b)

is not discontinued.

188 Goods forfeit on commission of offence

(1)

This section applies if—

(a)

goods are forfeit on the commission of any offence, being—

(i)

goods in respect of which the offence was committed; or

(ii)

goods that are forfeited under section 176(3) or (4); and

(b)

the goods have not been—

(i)

restored to the person from whom they were seized; or

(ii)

sold or otherwise disposed of by the chief executive under this Act.

(2)

If any person is convicted of the offence, the court may on sentencing, if it thinks fit (and subject to any conditions it thinks fit), order the forfeited goods be restored to the person from whom the goods were seized.

(3)

If the court does not make an order under subsection (2), the goods are condemned to the Crown on the conviction of the person for the offence.

Compare: 1996 No 27 s 236

189 Disposal of forfeited and condemned goods

(1)

To avoid doubt, the Crown has the property in—

(a)

any forfeited goods:

(b)

any deposit made under section 182:

(c)

any proceeds of sale under section 183.

(2)

Condemned goods may be sold, used, destroyed, or otherwise disposed of in any manner that the chief executive considers appropriate.

Compare: 1996 No 27 s 237

Compensation for incorrect disposal of certain goods

Heading: inserted, on 1 July 2020, by section 11 of the Customs and Excise (Tobacco) Amendment Act 2020 (2020 No 16).

189A Application for compensation for incorrect disposal of tobacco and certain tobacco products

(1)

This section applies to any person who has imported goods into New Zealand that—

(a)

are of a kind described in section 95A(1)(a) to (c); and

(b)

have been seized under section 178 and condemned under section 185A, on the grounds that the goods are prohibited from import under section 95A.

(2)

The person may apply to the chief executive for compensation, on the basis that the importation was not in breach of section 95A.

(3)

The application must be made in accordance with Schedule 3B.

Section 189A: inserted, on 1 July 2020, by section 11 of the Customs and Excise (Tobacco) Amendment Act 2020 (2020 No 16).

Part 4 Customs powers

190 Exercise of powers in contiguous zone

(1)

In the following provisions, New Zealand includes the contiguous zone:

(e)

section 199 (except subsection (1)(c)(ii)):

(2)

The following provisions also apply in the contiguous zone as they apply in New Zealand:

(3)

A power under this Act that may be exercised in the contiguous zone as a result of subsection (1) or (2) may be exercised in the contiguous zone only in accordance with article 33 of the United Nations Convention on the Law of the Sea.

Powers in relation to craft

191 Boarding and searching craft

(1)

This section applies to the following craft:

(a)

a craft that has arrived in New Zealand:

(b)

a craft that is departing from New Zealand:

(c)

a craft in New Zealand that is en route to a point outside New Zealand:

(d)

a craft to which section 35(2) applies that is en route to a point within New Zealand:

(e)

any other craft in New Zealand that is transporting any domestic cargo or international cargo:

(f)

a craft that is in New Zealand and that a Customs officer has reasonable cause to suspect—

(i)

is transporting any dutiable, uncustomed, prohibited, or forfeited goods; or

(ii)

has been, is, or is about to be involved in the commission of an offence under this Act.

(2)

A Customs officer may board the craft.

(3)

A Customs officer may search the craft for the purpose of carrying out any function under this Act.

(4)

Part 4 of the Search and Surveillance Act 2012, except subpart 3, applies in respect of a power under this section where it is being exercised solely in reliance on subsection (1)(f).

(5)

Despite subsection (4), sections 125(4), 131(5)(f), and 133, and subparts 6 and 8 of Part 4, of the Search and Surveillance Act 2012 do not apply to forfeited goods.

(6)

In exercising the power to search under this section, a Customs officer may—

(a)

use reasonable force to—

(i)

enter any part of a craft; or

(ii)

open any package, locker, or other place:

(b)

examine all goods found on a craft.

Compare: 1996 No 27 ss 139(1), (5), (6), 140

192 Facilitation of boarding

(1)

A Customs officer may direct the person in charge of a ship to which section 191 applies—

(a)

to stop the ship and bring it to for boarding; and

(b)

to ensure that the ship remains stopped until a Customs officer directs that the ship may proceed.

(2)

A Customs officer may direct the person in charge of a craft to which section 191 applies to facilitate the boarding of the craft by all reasonable means.

Compare: 1996 No 27 ss 23(1), (3), 35

193 Offences in relation to facilitation of boarding

(1)

The person in charge of a ship commits an offence if the person fails to comply with any direction of a Customs officer under section 192(1).

(2)

The person in charge of a craft commits an offence if the person fails to comply with any direction of a Customs officer under section 192(2).

(3)

Section 54 (defences for offences) applies to an offence under this section as if this section were in subpart 1 of Part 3.

(4)

A person who commits an offence under this section is liable on conviction to—

(a)

imprisonment for a term not exceeding 12 months; or

(b)

a fine not exceeding $15,000.

Compare: 1996 No 27 ss 191(1)(c), (2), 193(1)(c), (2), 195

194 Stationing Customs officers on board craft

(1)

The chief executive may, for the purpose of enabling any Customs officer to carry out a function under this Act, station the officer on board a craft that has arrived in New Zealand.

(2)

The person in charge of the craft must ensure that the Customs officer is provided,—

(a)

free of charge, with—

(i)

carriage; and

(ii)

suitable accommodation and board in accordance with the officer’s reasonable requirements; and

(b)

with safe access to any part of the craft; and

(c)

with safe means of leaving the craft.

Compare: 1996 No 27 s 139(2)–(4)

195 Securing goods on craft

A Customs officer boarding or searching any craft in New Zealand under section 191 may, for the purpose of carrying out a function under this Act,—

(a)

secure goods on board that craft by appropriate means; or

(b)

remove goods on board that craft to a secure place.

Compare: 1996 No 27 s 141

196 Firing on ship

(1)

The person in charge of any craft in the service of the Crown—

(a)

must, at the request of the chief executive, give chase to any ship in New Zealand if—

(i)

the ship does not immediately bring to when signalled or required to bring to; or

(ii)

the person in charge of the ship refuses to permit the ship to be boarded; and

(b)

may, as a last resort (after having fired a warning shot), fire at or onto the ship to compel it to bring to.

(2)

In the case of a ship in the service of the Crown, the person in charge of the ship must ensure that the proper ensign of the ship or the Customs flag is hoisted or prominently displayed on the ship at all times when acting under this section.

Compare: 1996 No 27 s 142

197 Power to order ship to leave New Zealand

(1)

This section applies to a ship that has arrived in, or is departing from, New Zealand.

(2)

A Customs officer may, with the approval of the chief executive, order the person in charge of the ship to cause the ship to leave New Zealand.

(3)

If a Customs officer does so, the person in charge of the ship must cause the ship to leave New Zealand immediately.

(4)

The chief executive may approve the giving of an order under subsection (2) only if the chief executive is satisfied that it is in the public interest for the order to be given.

Compare: 1996 No 27 s 23(4), (5)

198 Offence in relation to power to order ship to leave New Zealand

(1)

The person in charge of a ship commits an offence if the person fails to comply with section 197(3).

(2)

Section 54 (defences for offences) applies to an offence under this section as if this section were in subpart 1 of Part 3.

(3)

A person who commits an offence under this section is liable on conviction to—

(a)

imprisonment for a term not exceeding 12 months; or

(b)

a fine not exceeding $15,000.

Compare: 1996 No 27 ss 191(1)(c), (2), 195

199 Detention of craft suspected to be involved in offences or smuggling migrants

(1)

This section applies if a Customs officer has reasonable cause to believe—

(a)

that an offence under this Act has been committed on, or in respect of, a craft that is in New Zealand; or

(b)

that an offence under this Act is being, or is about to be, committed on, or in respect of, a craft that is in New Zealand; or

(c)

that—

(i)

there is a person on a craft in New Zealand; and

(ii)

the craft has transported that person into New Zealand; and

(iii)

that transportation constituted an offence under section 98C(1) of the Crimes Act 1961.

(2)

A Customs officer—

(a)

may detain the craft at the place where it is:

(b)

may also direct—

(i)

that the craft proceed to the nearest Customs place or to any other place that the officer considers appropriate; and

(ii)

that the craft’s detention continue during the craft’s journey to that place, and at that place once the craft arrives there.

(2A)

A power in subsection (2) is exercisable only if, and for so long as, a Customs officer is satisfied that the exercise of the power is reasonably necessary to carry out an investigation into the commission of the offence concerned.

(2B)

If a direction is given under subsection (2)(b), a Customs officer may, for the purpose of implementing the direction, do any of the following:

(a)

direct any person on the craft to take any specified action:

(b)

take charge of the craft:

(c)

arrange for the craft to be towed by another craft.

(3)

Subsection (4) applies if the person in charge of the craft attempts, or threatens, to cause the craft to depart, without a certificate of clearance, from a place where it is detained under subsection (2).

(4)

A Customs officer may detain the craft until a certificate of clearance is issued.

Compare: 1996 No 27 s 143

Section 199(2): replaced, on 1 October 2018, by section 11 of the Maritime Powers Extension Act 2018 (2018 No 38).

Section 199(2A): inserted, on 1 October 2018, by section 11 of the Maritime Powers Extension Act 2018 (2018 No 38).

Section 199(2B): inserted, on 1 October 2018, by section 11 of the Maritime Powers Extension Act 2018 (2018 No 38).

Section 199(3): replaced, on 1 October 2018, by section 11 of the Maritime Powers Extension Act 2018 (2018 No 38).

200 Offences in relation to detained craft

(1)

A person commits an offence if the person, without the permission of the chief executive, takes, carries away, or otherwise converts to the person’s own use a craft detained under section 199(4).

(2)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to—

(i)

imprisonment for a term not exceeding 12 months; or

(ii)

a fine not exceeding an amount equal to 3 times the value of the craft to which the offence relates:

(b)

in the case of a body corporate, to a fine not exceeding an amount equal to 3 times the value of the craft to which the offence relates.

Compare: 1996 No 27 ss 143(2), 215(3), (4)

Powers in relation to persons

201 Evidence of identity, entitlement to travel, etc

(1)

This section applies to the following persons:

(a)

an internationally ticketed passenger using air or sea travel for a domestic sector:

(b)

a domestic passenger using air or sea travel for a domestic sector:

(c)

a person in a designated place who—

(i)

has arrived in New Zealand; or

(ii)

is departing from New Zealand:

(d)

any other person who is within a Customs-controlled area that is licensed to be used for the disembarkation, embarkation, or processing of persons arriving in, or departing from, New Zealand.

(2)

The person must, on demand by a Customs officer,—

(a)

state the person’s—

(i)

full name; and

(ii)

residential address; and

(iii)

date of birth; and

(b)

produce any prescribed document for inspection or, if the person is unable to produce the prescribed document, complete a declaration in the prescribed form.

(3)

A Customs officer may make a demand under subsection (2)(b) only for the purpose of establishing 1 or more of the following:

(a)

the person’s identity:

(b)

the person’s travel movements:

(c)

the person’s entitlement to air or sea travel for a domestic sector.

(4)

A Customs officer must immediately inspect and return a document produced by a person under subsection (2)(b).

(5)

Despite subsection (4), a Customs officer may retain a document produced under subsection (2)(b) for as long as is necessary to determine whether the chief executive wishes to exercise his or her power to retain the document under section 256.

(6)

If a document referred to in subsection (4) or (5) is produced in electronic form on a device,—

(a)

before the device can be retained under subsection (5) or a power under section 228 can be exercised in relation to the device, the relevant threshold in section 228 must be met; and

(b)

a Customs officer must immediately return the device under subsection (4) if paragraph (a) does not apply.

(7)

This section is subject to section 259 (which relates to unlawful travel documents).

Compare: 1996 No 27 s 147

202 Offence in relation to failure to produce evidence of identity, entitlement to travel, etc

(1)

A person commits an offence if the person, without reasonable excuse, fails to comply with a demand made under section 201(2).

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 186

203 Verification of identity using biometric information

(1)

This section applies to a person in a designated place who—

(a)

has arrived in New Zealand; or

(b)

is departing from New Zealand.

(2)

A Customs officer may, during the processing of a person’s arrival in, or departure from, New Zealand, request the person to provide biometric information for the purpose of verifying the person’s identity using biometric matching.

(3)

A Customs officer may direct a person who fails to comply with a request under subsection (2) to remain in the designated place for any of the following purposes:

(a)

to enable a Customs officer to make any inquiries necessary to establish the identity of the person:

(b)

to enable a Customs officer to obtain the attendance of, or make inquiries of, a constable, a bailiff, or an employee or agent of a department of State who is authorised, in respect of a matter specified in section 208(1)(b), to do any of the following:

(i)

question the person:

(ii)

ascertain or determine the status of the person:

(iii)

detain the person:

(iv)

arrest the person.

(4)

A person must comply with a direction given under subsection (3).

(5)

A direction under subsection (3) ceases to have effect 4 hours after it is given.

204 Detention of persons failing to comply with direction under section 203(3)

(1)

A Customs officer may detain a person who fails to comply with a direction given under section 203(3) for any of the purposes referred to in that subsection.

(2)

The person may be detained for a reasonable period not exceeding 4 hours.

(3)

A Customs officer may use reasonable force, if necessary, when exercising the power of detention under this section.

(4)

To avoid doubt, this section does not prevent a person—

(a)

being detained or further detained under any other provision of this Act or under any other enactment (if there are lawful grounds for that detention); or

(b)

being arrested under section 263.

(5)

In this section, detain includes deliver a person to a Police station or into the custody of a constable.

205 Questioning persons about goods and debt

(1)

This section applies to the following persons who are in New Zealand:

(a)

any person who has arrived in New Zealand within the preceding 72 hours:

(b)

any other person who is on board, or is in the process of disembarking from, a craft that has arrived in New Zealand:

(c)

any person who is departing from New Zealand:

(d)

any other person who is on board, or is in the process of embarking onto, a craft that is to depart from New Zealand:

(e)

any other person who is within a Customs-controlled area that is licensed for any of the purposes referred to in section 56(1)(c) to (f):

(f)

any other person who is within a duty-free store.

(2)

A Customs officer may question the person as to any of the following:

(a)

whether the person has or has had in his or her possession any dutiable, prohibited, uncustomed, or forfeited goods:

(b)

the nature, origin, value, ownership, or intended destination of any dutiable, prohibited, uncustomed, or forfeited goods:

(c)

whether any debt—

(i)

is due to the Crown under this Act; and

(ii)

is payable by the person or a company, trust, partnership, or other enterprise of which the person is or was a director, manager, trustee, secretary, officer, or agent:

(d)

the nature and extent of the debt (if any).

Compare: 1996 No 27 s 145

206 Detention of persons questioned about goods or debt and suspected to be involved in offences

(1)

A Customs officer may detain a person if—

(a)

a Customs officer—

(i)

is not satisfied that an answer to a question put to the person under section 205(2) is correct; or

(ii)

has not been given an answer to a question put to the person under section 205(2); or

(iii)

is not satisfied as to a reason or explanation given by the person in response to a question put to the person under section 205(2) about goods that are or have been, or that the officer suspects are or have been, in that person’s possession or under that person’s control; and

(b)

a Customs officer has reasonable cause to suspect that an offence under this Act has been, is being, or is about to be committed by the person or any other person associated with that person.

(2)

The power of detention under this section may be used only for 1 or both of the following purposes:

(a)

to enable the Customs officer to make any inquiries necessary to establish whether an answer to a question or a reason or an explanation given is correct:

(b)

to obtain the attendance, or make inquiries, of another Customs officer or any other person who is entitled to exercise any power to question, detain, or arrest a person under this Act.

(3)

A person may be detained under this section for a reasonable period not exceeding 4 hours.

(4)

To avoid doubt, this section does not prevent a person—

(a)

being detained or further detained under any other provision of this Act or under any other enactment (if there are lawful grounds for that detention); or

(b)

being arrested under section 263.

Compare: 1996 No 27 s 148

207 Completion of processing under Immigration Act 2009 and Biosecurity Act 1993

(1)

This section applies to a person in a designated place who—

(a)

has arrived in New Zealand; or

(b)

is departing from New Zealand.

(2)

The person must remain in the designated place until processing is completed in respect of the person’s arrival in, or departure from, New Zealand under—

(b)

if applicable, the Biosecurity Act 1993.

(3)

A Customs officer may direct the person to comply with the person’s obligations under subsection (2).

(4)

The processing referred to in subsection (2) is completed when—

(a)

the person has complied with all obligations imposed on the person, in respect of the person’s arrival in, or departure from, New Zealand, under—

(ii)

if applicable, the Biosecurity Act 1993; and

(b)

the functions that are required to be carried out under those Acts in relation to the person in the designated place have been, so far as practicable, carried out in that place.

(5)

In this section, processing includes consideration by an officer authorised under the Biosecurity Act 1993 or the Immigration Act 2009 of—

(a)

the applicability of the Biosecurity Act 1993 or the Immigration Act 2009 to a person; or

(b)

whether to carry out any function under the Biosecurity Act 1993 or the Immigration Act 2009 in relation to a person.

Compare: 1996 No 27 s 32B

208 Cases requiring investigation for public health or law enforcement purposes

(1)

This section applies to a person in a designated place if—

(a)

the person—

(i)

has arrived in New Zealand; or

(ii)

is departing from New Zealand; and

(b)

a Customs officer has reasonable cause to suspect that the person—

(i)

is liable to be detained under any enactment because of an infectious disease; or

(ii)

is liable to arrest under warrant; or

(iii)

is, in attempting to depart from New Zealand or in attempting to remove any other person from New Zealand, contravening, or about to contravene, any enactment or an order of a court; or

(iv)

is liable to be prosecuted for an offence punishable by imprisonment; or

(v)

has contravened any of the following enactments:

(G)

regulations under the United Nations Act 1946; or

(vi)

is endangering, or threatening to endanger, the life, health, or safety of a person or group of persons.

(2)

The Customs officer may direct the person to remain in the designated place for the purpose of obtaining the attendance of, or making inquiries of, a constable, a bailiff, or an employee or agent of a department of State who is authorised, in respect of a matter specified in subsection (1)(b), to do any of the following:

(a)

question the person:

(b)

ascertain or determine the status of the person:

(c)

detain the person:

(d)

arrest the person.

(3)

A person to whom this section applies must comply with a direction of a Customs officer given under this section.

(4)

A direction under this section ceases to have effect 4 hours after it is given.

Compare: 1996 No 27 s 32C

209 Offence in relation to requirements imposed under section 207 or 208

(1)

A person commits an offence if the person wilfully fails to comply with any requirement imposed on that person by or under section 207 or 208.

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 180

210 Search of persons

(1)

This section applies to the following persons who are in New Zealand:

(a)

any person who is on board, or is in the process of disembarking from, a craft that has arrived in New Zealand:

(b)

any person in a designated place—

(i)

who has arrived in New Zealand; or

(ii)

who is departing from New Zealand:

(c)

any person who is on board, or is in the process of embarking onto, a craft that is departing from New Zealand.

(2)

A Customs officer or constable may—

(a)

conduct a preliminary search of the person; and

(b)

for the purpose of conducting the preliminary search, detain the person for a reasonable period.

(3)

A Customs officer or constable may search the person (whether or not a preliminary search of the person has been conducted) if a Customs officer or constable has reasonable cause to suspect—

(a)

that the person has hidden on or about his or her person—

(i)

any dutiable, uncustomed, prohibited, or forfeited goods; or

(ii)

evidence relating to any such goods; or

(iii)

any thing that is, or might be, evidence of a contravention of this Act; or

(b)

that—

(i)

the person has a dangerous item on or about his or her person; and

(ii)

the item poses a threat to the safety of the officer or constable, or any other person; and

(iii)

there is a need to act immediately in order to address that threat; and

(iv)

a preliminary search would expose the Customs officer or constable, or any other person, to greater risk from the threat.

(4)

Part 4 of the Search and Surveillance Act 2012, except subpart 3, applies in respect of the powers under subsection (3).

(5)

Despite subsection (4), sections 125(4), 131(5)(f), and 133, and subparts 6 and 8 of Part 4, of the Search and Surveillance Act 2012 do not apply to forfeited goods.

(6)

In this section, preliminary search means a search that—

(a)

involves little or no physical contact between the person conducting the search and the person being searched; and

(b)

is conducted—

(i)

by using an aid or aids such as a Customs dog, a chemical substance, or imaging equipment, or some other mechanical, electrical, or electronic device, or other similar aid; but

(ii)

not by any more invasive means.

Compare: 1996 No 27 ss 149, 149A, 149B(1), (7)–(9), 149BA

211 Search of persons suspected of having goods hidden on or about their person

(1)

This section applies to—

(a)

any person who has arrived in New Zealand at a place other than a Customs place within the preceding 24 hours; or

(b)

any person who is about to depart from New Zealand from any place other than a Customs place; or

(c)

any person who is in a Customs place.

(2)

A Customs officer or constable may search the person if a Customs officer or constable has reasonable cause to believe that the person has hidden on or about his or her person—

(a)

any dutiable, uncustomed, prohibited, or forfeited goods; or

(b)

evidence relating to any such goods; or

(c)

any thing that is, or might be, evidence of a contravention of this Act.

(3)

Part 4 of the Search and Surveillance Act 2012, except subpart 3, applies in respect of the powers under this section.

(4)

Despite subsection (3), sections 125(4), 131(5)(f), and 133, and subparts 6 and 8 of Part 4, of the Search and Surveillance Act 2012 do not apply to forfeited goods.

Compare: 1996 No 27 s 149B(2), (3), (7)–(9)

212 Detention of persons committing or about to commit certain offences

(1)

A Customs officer may detain a person who the Customs officer on reasonable grounds believes is committing, or is about to commit, an offence under section 20, 34, or 209 by—

(a)

leaving or boarding a craft in contravention of section 19; or

(b)

not complying with a Customs direction, in contravention of section 29(2); or

(c)

not proceeding to a Customs-controlled area, in contravention of section 29(3)(a); or

(d)

not remaining in a Customs-controlled area, in contravention of section 29(3)(b); or

(e)

failing to comply with a direction given to the person under section 207(3).

(2)

A Customs officer—

(a)

may detain a person under this section only for the purpose of—

(i)

ensuring the person’s compliance with 1 or more of the provisions referred to in subsection (1)(a) to (e); or

(ii)

delivering the person to a Police station or to the custody of a constable; and

(b)

may detain a person under this section only for a reasonable period; and

(c)

must release a person detained under this section immediately after the person has complied with the requirements of—

(i)

the provision in relation to which he or she was detained; and

(ii)

any other applicable provision referred to in subsection (1)(a) to (e).

(3)

A Customs officer may use reasonable force, if necessary, to detain a person under this section.

(4)

A Customs officer must not detain a person under this section if the officer believes that the person has already committed an offence to which subsection (1) relates.

(5)

To avoid doubt, this section does not prevent a person—

(a)

being detained or further detained under any other provision of this Act or under any other enactment (if there are lawful grounds for that detention); or

(b)

being arrested under section 263.

Compare: 1996 No 27 s 148B(1)(a), (d)–(f), (2), (4)–(8)

213 Detention of persons who do not report to or remain at certain places

(1)

A Customs officer or constable may detain a person who the Customs officer or constable has reasonable grounds to believe is committing, or is about to commit, an offence under section 34 by—

(a)

not reporting immediately to a Customs officer or a Police station on arrival in New Zealand in contravention of section 28(a); or

(b)

not remaining at the place where he or she reported to a Customs officer, or at the Police station, in contravention of section 28(b).

(2)

A Customs officer or constable—

(a)

may detain a person under this section only for the purpose of—

(i)

ensuring that the person complies with section 28; or

(ii)

removing or delivering the person to a Police station; or

(iii)

in the case of a Customs officer, delivering the person into the custody of a constable; and

(b)

may detain a person under this section only for a reasonable period; and

(c)

must release a person detained under this section immediately after the person has complied with section 28(a) or (b) (as the case may be).

(3)

A Customs officer or constable may use reasonable force, if necessary, to detain a person under this section.

(4)

A Customs officer or constable must not detain a person under this section if the officer believes that the person has already committed an offence to which subsection (1) relates.

(5)

To avoid doubt, this section does not prevent a person—

(a)

being detained or further detained under any other provision of this Act or under any other enactment (if there are lawful grounds for that detention); or

(b)

being arrested under section 263.

Compare: 1996 No 27 s 148B(1)(b), (c), (2), (4)–(8)

214 Seizure of items found

(1)

A Customs officer or constable may seize any thing found on or about a person when carrying out a search under section 210 or 211 that the Customs officer or constable has reasonable cause to suspect is—

(a)

a dangerous item; or

(b)

dutiable, uncustomed, prohibited, or forfeited goods; or

(c)

evidence relating to goods referred to in paragraph (b); or

(d)

a thing that is, or might be, evidence of a contravention of this Act.

(2)

The provisions of subparts 1, 5, 6, 7, 9, and 10 of Part 4 of the Search and Surveillance Act 2012 apply in respect of the powers under this section.

(3)

Despite subsection (2), sections 125(4), 131(5)(f), and 133, and subpart 6 of Part 4, of the Search and Surveillance Act 2012 do not apply to forfeited goods.

Compare: 1996 No 27 s 149C

215 Powers in relation to unauthorised persons remaining in certain Customs-controlled areas

(1)

This section applies to a person who is in a Customs-controlled area that is licensed for any of the purposes described in section 56(1)(c) to (f).

(2)

A Customs officer may—

(a)

question a person to whom this section applies about any of the following matters:

(i)

the person’s identity:

(ii)

the person’s residential address:

(iii)

the person’s reason or purpose for entering or remaining in the Customs-controlled area; and

(b)

detain a person to whom this section applies for a reasonable period for the purpose of questioning the person under paragraph (a).

(3)

A Customs officer may—

(a)

direct a person to whom this section applies to leave the Customs-controlled area; and

(b)

remove the person from the Customs-controlled area if the person does not leave immediately.

(4)

A Customs officer may use reasonable force, if necessary, when exercising a power under subsection (2)(b) or (3)(b).

(5)

This section does not limit section 201.

Compare: 1996 No 27 s 149AA

216 Use of electronic communication devices prohibited in certain places

(1)

This section applies to—

(a)

any Customs-controlled area or Customs place that is used by persons arriving in, or departing from, New Zealand; and

(b)

any other place that is being used by persons arriving in, or departing from, New Zealand.

(2)

A Customs officer may erect a sign in the area or place prohibiting the use of any electronic communication device indicated on the sign.

(3)

If a sign has been erected in accordance with subsection (2), a Customs officer may direct any person in the area or place not to use, or to stop using, any electronic communication device identified on the sign.

(4)

In this section, electronic communication device means any of the following:

(a)

a telephone or computer:

(b)

any other electronic device (except a disability device) that is capable of—

(i)

transmitting sound; or

(ii)

computing information; or

(iii)

communicating in any other way using any technology (including telecommunication, radiocommunication, and broadcasting technology).

Compare: 1996 No 27 s 32A

217 Offence in relation to use of electronic communication device

(1)

A person commits an offence if the person fails to comply with a direction given under section 216(3).

(2)

Section 54 (defences for offences) applies to an offence under this section as if this section were in subpart 1 of Part 3.

(3)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $1,000.

Compare: 1996 No 27 ss 194A, 195

218 Questioning specified persons about arrival or departure

(1)

This section applies if a Customs officer has reasonable cause to suspect that—

(a)

a person has disembarked from a craft that has arrived in New Zealand and, without being otherwise authorised, has not reported to a Customs officer or a Police station on his or her arrival (in contravention of section 28); or

(b)

a person is attempting to depart from New Zealand from a place other than a Customs place without an exemption or without being authorised by a Customs officer (in contravention of section 31).

(2)

A Customs officer may question the person about any of the following matters:

(a)

the person’s identity:

(b)

the person’s residential address:

(c)

the person’s date of birth:

(d)

the person’s travel movements:

(e)

the person’s entitlement to travel:

(f)

any of the matters referred to in section 205(2)(a) to (d):

(g)

if subsection (1)(a) applies (arrival in New Zealand),—

(i)

the craft from which the person disembarked or is suspected of disembarking:

(ii)

any other person who is, or was, involved in the person’s arrival or suspected arrival:

(iii)

whether the other person was on the craft:

(h)

if subsection (1)(b) applies (attempted departure from New Zealand),—

(i)

the craft on which the person attempted to depart, or is suspected of attempting to depart, from New Zealand:

(ii)

any other person who is, or was, involved in the person’s departure, attempted departure, or suspected departure:

(iii)

whether the other person was on the craft.

(3)

A Customs officer may also demand that the person produce documents that—

(a)

are in the person’s possession or under the person’s control; and

(b)

relate to the matters the person has been questioned about under subsection (2).

(4)

A Customs officer may do any of the following things with a document produced under subsection (3):

(a)

inspect the document and immediately return it to the person when the officer has finished inspecting it:

(b)

inspect the document and retain it for the length of the person’s detention under section 220:

(c)

inspect the document and retain it for as long as is necessary to ascertain whether the chief executive wishes to exercise his or her power under section 256 to retain the document:

(d)

inspect the document and remove it for the purpose of making a copy under section 257:

(e)

inspect the document and retain it under section 258.

(5)

Subsections (3) and (4) are subject to section 259.

(6)

Section 383(3) (failure to answer questions on ground of self-incrimination) does not apply in respect of a question asked under this section.

Compare: 1996 No 27 ss 145A, 147A

219 Offence in relation to failure to produce evidence of identity, entitlement to travel, or other matters

(1)

A person commits an offence if the person, without reasonable excuse, fails to comply with a demand made under section 218(3).

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $5,000.

Compare: 1996 No 27 s 186

220 Detention of person to whom section 218 relates

(1)

A Customs officer may detain a person to whom section 218 relates for any of the following purposes:

(a)

to question him or her under section 218(2):

(b)

to enable the officer to make the inquiries that are necessary to establish whether an answer to a question put to the person under section 218(2) is correct:

(c)

to obtain the attendance, or make inquiries, of another Customs officer or person entitled to exercise a power to question, detain, or arrest a person under this Act or the Crimes Act 1961:

(d)

to deliver the person to a Customs place or Police station where the person may be, or may continue to be, questioned.

(2)

The person may be detained—

(a)

for a reasonable period not exceeding 12 hours:

(b)

for a further reasonable period if accident, stress of weather, or some other difficulty of transport or special circumstance makes it impossible for a Customs officer to do any of the things specified in subsection (1)(a) to (d).

(3)

The person must be questioned under section 218(2) as soon as practicable after the person is detained under this section.

(4)

A Customs officer must release the person immediately after the person answers the questions put to the person under section 218(2) if the officer—

(a)

is satisfied that the person has correctly answered the questions; and

(b)

has no reasonable cause to suspect that the person has—

(i)

committed an offence under section 34 by not complying with section 28 or 31; or

(ii)

committed an offence under section 98C(1) of the Crimes Act 1961.

(5)

A Customs officer may continue to detain a person after the person is questioned under section 218(2) if the officer—

(a)

is not satisfied that the person has correctly answered a question put to the person; or

(b)

is not satisfied that the person has given an answer to a question put to the person; or

(c)

has reasonable cause to suspect that the person has—

(i)

committed an offence under section 34 by not complying with section 28 or 31; or

(ii)

committed an offence under section 98C(1) of the Crimes Act 1961.

(6)

A Customs officer may use reasonable force, if necessary, to detain a person under this section.

(7)

To avoid doubt, this section does not prevent a person—

(a)

being detained or further detained under any other provision of this Act or under any other enactment (if there are lawful grounds for that detention); or

(b)

being arrested under section 263.

Compare: 1996 No 27 s 148A

221 Detention for public health or law enforcement purposes

(1)

A Customs officer may detain under this section a person—

(a)

who is being detained under section 206, 212, or 220 if the Customs officer has reasonable cause to suspect that 1 or more of the provisions of section 208(1)(b) apply to that person; or

(b)

who is required to comply with a direction given under section 208 but fails to comply.

(2)

A Customs officer may detain a person under this section to obtain the attendance of, or make inquiries of, a specified official who is authorised to do any of the following:

(a)

question the person:

(b)

ascertain or determine a matter relating to the status of the person:

(c)

detain the person:

(d)

arrest the person.

(3)

A person may be detained under this section for a reasonable period not exceeding the shorter of the following periods:

(a)

4 hours:

(b)

if the person’s detention commenced under section 206 or 220, the maximum period for which the person could, at the time of his or her detention under this section, have been detained under section 206 or 220 (as the case may be).

(4)

A Customs officer may use reasonable force, if necessary, to detain a person under this section.

(5)

To avoid doubt, this section does not prevent a person—

(a)

being detained or further detained under another provision of this Act or under any other enactment (if there are lawful grounds for that detention); or

(b)

being arrested under section 263.

(6)

In this section,—

detain includes deliver a person to a Police station or into the custody of a constable

specified official means a constable, a bailiff, or an employee or agent of a department of State who is authorised in respect of a matter specified in section 208(1)(b).

Compare: 1996 No 27 s 148C

Powers of entry, search warrants, use of aids, etc

222 Entry to Customs-controlled areas and CASEs

A Customs officer may enter any of the following:

(a)

any Customs-controlled area:

(b)

any Customs-approved area for storing exports (CASE):

(c)

any other place that it is necessary to pass through to enter a Customs-controlled area or CASE.

Compare: 1996 No 27 ss 19E, 150

223 Entry to examine goods subject to control of Customs

(1)

A Customs officer may enter any place for the purpose of exercising any power under section 227 or 228 in respect of goods that are, or that the officer suspects are,—

(a)

subject to the control of Customs; and

(b)

in a sealed Customs package.

(2)

However, a Customs officer must not enter a private dwelling or marae except—

(a)

with the consent of an occupier or owner of that dwelling or marae; or

(b)

under a warrant.

Compare: 1996 No 27 s 151(7), (8)

224 Patrols, etc to detect offences

A Customs officer may, at any time and in any manner the officer considers appropriate, do any of the following for the purpose of detecting offences under this Act:

(a)

patrol on or over any Customs place or Customs-controlled area:

(b)

patrol on or over any part of the foreshore or the shore of any lake or lagoon or the banks of any river (including any structure extending from that land) or any part of the adjacent land:

(c)

enter and inspect any landing strip, or any building on an aircraft landing strip:

(d)

remain in an area referred to in paragraphs (a) to (c) for the purpose of carrying out investigations or surveillance.

Compare: 1996 No 27 s 137

225 Issue of search warrant

(1)

An issuing officer, on an application, may issue a search warrant if he or she is satisfied that there are reasonable grounds to believe that there is, in or on any place or thing,—

(a)

any thing that there are reasonable grounds to believe may be evidence of—

(i)

the commission of an offence under this Act; or

(ii)

the unlawful exportation or importation of goods; or

(b)

any thing that there are reasonable grounds to believe is intended to be used for the purpose of—

(i)

committing an offence under this Act; or

(ii)

unlawfully exporting or importing goods; or

(c)

any thing that is liable to seizure under this Act.

(2)

Part 4 of the Search and Surveillance Act 2012 applies.

(3)

However, sections 125(4), 131(5)(f), and 133, and subparts 6 and 8 of Part 4, of the Search and Surveillance Act 2012 do not apply to forfeited goods.

(4)

In this section,—

application means an application made by a Customs officer in accordance with subpart 3 of Part 4 of the Search and Surveillance Act 2012

issuing officer has the meaning given to that term in section 3(1) of the Search and Surveillance Act 2012.

Compare: 1996 No 27 s 167

226 Use of dogs and other aids

(1)

A Customs officer or any other person who is exercising any power of boarding, entry, or search under this Act may have with him or her, and use for the purpose of searching, any of the following:

(a)

a Customs dog:

(b)

any chemical substance:

(c)

X-ray or imaging equipment or any other mechanical, electrical, or electronic device.

(2)

However, neither a Customs officer nor any other person may use a dog or aid of the kind referred in subsection (1) in a private dwelling or marae except—

(a)

with the consent of an occupier or owner of that dwelling or marae; or

(b)

under a warrant.

Compare: 1996 No 27 s 172

Powers in relation to goods

227 Examination of goods subject to control of Customs

(1)

A Customs officer may examine any goods—

(a)

that are subject to the control of Customs; or

(b)

that a Customs officer has reasonable cause to suspect are subject to the control of Customs.

(2)

The power in this section authorises a person exercising it to do any of the following:

(a)

examine, weigh, analyse, or test the goods, or cause the goods to be examined, weighed, analysed, or tested:

(b)

open, or cause to be opened, any packages in which the goods are contained or suspected to be contained:

(c)

examine, weigh, analyse, or test a suitcase, cargo device, or other package:

(d)

conduct an examination that includes the physical or chemical testing of, or the drilling into, or the dismantling of, the goods:

(e)

conduct an examination facilitated by any other means whatever:

(f)

take and use samples of the goods, although the samples must be as small as possible for the purpose for which they are taken:

(g)

dispose of those samples.

(3)

Regulations may prescribe the way in which samples must be taken, used, or disposed of under subsection (2)(f) or (g).

(4)

All reasonable expenses incurred by Customs under this section are a debt due to the Crown by the importer, exporter, or owner of the goods, as the case may be, and are recoverable in the same manner as duty under this Act.

(5)

In relation to an electronic device, the power in this section does not authorise a person to access data in the device (see section 228) or to access data that is not in the device (see section 225, which relates to search warrants).

Compare: 1996 No 27 ss 151(1)–(6), 286(1)(v)

228 Data in electronic devices that are subject to control of Customs

(1)

This section applies to any electronic device—

(a)

that is subject to the control of Customs; or

(b)

that a Customs officer has reasonable cause to suspect is subject to the control of Customs.

(2)

Data in the device may be searched in accordance with the following powers:

Powers if threshold met

(a)

the power to make an initial search if a Customs officer has reasonable cause to suspect that—

(i)

a person in possession of the device has been, is, or is about to be involved in the commission of relevant offending:

(ii)

an importer or exporter of a device (other than a person to whom subparagraph (i) applies) has been, is, or is about to be involved in the commission of relevant offending:

(iii)

an unaccompanied device has been, is, or is about to be used in the commission of relevant offending and the importer or exporter cannot be reasonably identified or located:

(b)

the power to make a full search if a Customs officer has reasonable cause to believe that evidential material relating to relevant offending is in the device:

(c)

the power to require a user of the device to provide access information and other information or assistance that is reasonable and necessary to allow a person exercising a power under paragraph (a) or (b) to access the device:

Powers with no threshold

(d)

the power to make a full search of a stored value instrument (including power to require a user of the instrument to provide access information and other information or assistance that is reasonable and necessary to allow a person to access the instrument):

(e)

the power to make a full search of unaccompanied electronic storage media that is an optical disc imported other than for personal use for the purpose of determining whether it contains any pirated copy within the meaning of Part 7 of the Copyright Act 1994.

(3)

However, there is no power under subsection (2) to search material (of any kind) that is accessible from the device but is not stored in the device (see section 225, which relates to search warrants).

(4)

The powers in subsection (2)(a) and (b) may be used for the purpose of determining whether evidential material relating to relevant offending is in the device.

(5)

In this section and section 227,—

access information includes codes, passwords, and encryption keys, and any related information that enables access to an electronic device

data means information in digital format and other intangible material in an electronic device

electronic device or device means anything that contains data (including an electronic communication device or any other data storage device)

full search means that—

(a)

the device may be accessed and searched using any technology aids; and

(b)

the device or data may be copied, reviewed, or evaluated (including by means of previewing, cloning, or other forensic methods); and

(c)

the device may be removed or detained for the time reasonably necessary to conduct the search; and

(d)

the search must not damage the device or damage or interfere with the operation of the device; and

(e)

any transmitting functions on the device must be disabled, wherever possible, before the search of data in the device; and

(f)

the device must be returned to the person entitled to its possession at the conclusion of the search (unless evidence of relevant offending is found)

initial search means that—

(a)

the device may be accessed, searched, reviewed, or evaluated either manually or by using a technology aid that has completed a privacy impact assessment in consultation with the Privacy Commissioner; and

(b)

any temporary files created by a technology aid must be immediately deleted when the search is complete (unless the device is detained for a full search); and

(c)

the search must not damage the device or damage or interfere with the operation of the device; and

(d)

any transmitting functions on the device must be disabled, wherever possible, before the search of data in the device; and

(e)

if the person in possession of the device is in a Customs-controlled area (or an unaccompanied device is in a Customs-controlled area), the device must not be removed from that area; and

(f)

the search must take no longer than reasonably necessary; and

(g)

the device must be returned to the person entitled to its possession at the conclusion of the search (unless the device is detained for a full search)

relevant offending means—

(a)

the importation or exportation of any prohibited goods; or

(b)

an offence under this Act; or

(c)

the unlawful importation or exportation of any goods

stored value instrument

(a)

means a portable device (for example, a debit card) that contains monetary value that is not physical currency but that can be reloaded or redeemed for cash; and

(b)

includes an instrument that is prescribed as a bearer-negotiable instrument under section 153(b) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009

user means a person who owns, leases, possesses, or controls a device (or an employee of such a person) and who has relevant knowledge of the device.

Duty to assist access to device

(6)

Section 130(2) and (3) of the Search and Surveillance Act 2012 (which relates to incrimination) applies, with any necessary modifications, to a requirement of a Customs officer under subsection (2)(c) or (d) (except that section 130(2) and (3) is subject to subpart 5 of Part 4 of that Act if that subpart applies under subsection (14)).

(7)

Subsections (8) to (11) apply if a person fails to comply with a requirement of a Customs officer under subsection (2)(c) or (d).

(8)

If the person has no reasonable excuse for failing to comply with the requirement, the person commits an offence and is liable on conviction to a fine not exceeding $5,000.

(9)

A Customs officer may retain the device for the purpose of arranging access to, and searching, the device.

(10)

After the prescribed period, a Customs officer who retains a device may treat it as forfeited, in which case subpart 9 of Part 3 applies.

(11)

If a person is convicted of an offence under subsection (8), a court may order the device to be condemned to the Crown, destroyed, or returned subject to any conditions that the court thinks fit.

Procedures applying to seized or produced material

(12)

Subpart 6 of Part 4 of the Search and Surveillance Act 2012 applies in respect of devices detained for a full search under this section.

Privilege and confidentiality

(13)

If any information or document on a device that is subject to an initial search under subsection (2)(a) is privileged from disclosure within the meaning of section 254, that section applies to the information or document but otherwise the search of the device may continue.

(14)

Subpart 5 of Part 4 of the Search and Surveillance Act 2012 (which relates to privilege and confidentiality) applies, with any necessary modifications, in respect of a power to make a full search under subsection (2)(b).

Other powers, protections, and safeguards apply

(15)

To avoid doubt, this section does not limit—

(a)

the provisions of subpart 4 of Part 4 of the Search and Surveillance Act 2012 that are otherwise applied by this Act:

(b)

the powers in section 201 if evidence of identity and entitlement to travel is on a device:

(c)

sections 257 and 258 (copying and retention of documents and goods), which apply, with any necessary modifications, to material and information under this section.

Compare: 2012 No 24 s 130

229 Questioning employees of airlines and shipping companies about international cargo or domestic cargo

(1)

A Customs officer may question any of the following persons about any international or domestic cargo:

(a)

a person who, as an employee of an airline or a shipping company, manages or carries out the receipt, handling, custody, or dispatch of international or domestic cargo by that airline or shipping company:

(b)

a person employed by the licensee of a Customs-controlled area that is licensed for any of the purposes described in section 56(1)(c), (e), or (f):

(c)

any other person who is in a Customs-controlled area that is licensed for any of the purposes described in section 56(1)(c), (e), or (f).

(2)

Section 383(3) (failure to answer questions on ground of self-incrimination) does not apply in respect of a question asked under this section.

Compare: 1996 No 27 s 146(1), (5)

230 Questioning certain persons about cargo to be exported

(1)

A Customs officer may question any of the following persons about any cargo to be exported:

(a)

a person who is the owner or operator of a vehicle that a Customs officer has reasonable cause to suspect has in or on it, or has within the previous 72 hours had in or on it, goods that are—

(i)

subject to the control of Customs; and

(ii)

in a sealed Customs package:

(b)

a person who is the owner or occupier of premises that a Customs officer has reasonable cause to suspect have in or on them, or have within the previous 72 hours had in or on them, goods that are—

(i)

subject to the control of Customs; and

(ii)

in a sealed Customs package:

(c)

a person employed by a person described in paragraph (a) or (b).

(2)

Section 383(3) (failure to answer questions on ground of self-incrimination) does not apply in respect of a question asked under this section.

Compare: 1996 No 27 s 146(2)–(5)

231 Powers if vehicles suspected to be transporting certain goods involved in offences, etc

(1)

This section applies to the following vehicles:

(a)

any vehicle that is in a Customs place if a Customs officer has reasonable cause to suspect that—

(i)

any dutiable, uncustomed, prohibited, or forfeited goods are in or on the vehicle; or

(ii)

there is evidence in or on the vehicle relating to any dutiable, uncustomed, prohibited, or forfeited goods; or

(iii)

there is evidence in or on the vehicle relating to any offence under this Act:

(b)

any vehicle if a Customs officer has reasonable grounds to believe that—

(i)

there are goods in or on the vehicle that have been unlawfully imported or are in the process of being unlawfully exported; or

(ii)

there is evidence in or on the vehicle relating to—

(A)

the unlawful importation of any goods; or

(B)

the unlawful exportation of any goods or an attempt to export any goods unlawfully:

(c)

any vehicle if a Customs officer has reasonable cause to suspect that there are in or on the vehicle goods that are subject to the control of Customs and that have been removed from a CASE:

(d)

any vehicle if a Customs officer has reasonable cause to suspect that there are goods in or on the vehicle that are—

(i)

subject to the control of Customs; and

(ii)

in a sealed Customs package.

(2)

A Customs officer may—

(a)

stop and search the vehicle; and

(b)

detain the vehicle for as long as is reasonably necessary for the purposes of the search.

(3)

Part 4 of the Search and Surveillance Act 2012, except subparts 2 and 3, applies in respect of the powers under this section.

(4)

Despite subsection (3), sections 125(4), 131(5)(f), and 133, and subparts 6 and 8 of Part 4, of the Search and Surveillance Act 2012 do not apply to forfeited goods.

Compare: 1996 No 27 s 144

232 Accounting for goods

The chief executive may, by notice in writing, require the licensee of a Customs-controlled area to immediately—

(a)

account for goods that the chief executive believes have been entered into that Customs-controlled area; and

(b)

produce any documents relating to the movement of goods into or out of that Customs-controlled area.

Compare: 1996 No 27 s 153

233 Production of goods

A Customs officer may require the licensee of a Customs-controlled area to produce goods that are shown in any record as being in that area.

Compare: 1996 No 27 s 154

234 Failure to produce or account for goods

(1)

A person commits an offence if the person fails to comply with a requirement imposed on the person under—

(a)
(b)

(2)

It is a defence to a prosecution for an offence under this section if the defendant proves that he or she—

(a)

did not have possession or control of the goods; or

(b)

was otherwise, for good reason, unable to comply with the requirement.

(3)

A person who commits an offence under this section is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

Compare: 1996 No 27 s 187

235 Temporary removal of goods from Customs-controlled area

(1)

The chief executive may permit goods to be temporarily removed from a Customs-controlled area without payment of duty for any time, and in any quantities, that he or she considers appropriate.

(2)

Goods removed under subsection (1)—

(a)

remain subject to the control of Customs; and

(b)

are treated as being within the Customs-controlled area from which they were removed.

(3)

This Act continues to apply to those goods as if they had not been removed.

(4)

This section is subject to section 240 (security for payment of duty) and to any other applicable provisions of this Act.

Compare: 1996 No 27 s 48

236 Offences in relation to temporary removal of goods from Customs-controlled area

(1)

A person commits an offence if the person, without reasonable excuse, does any act in relation to goods removed from a Customs-controlled area under section 235 that is a contravention of the permission granted by the chief executive under that section.

(2)

A person who commits an offence under this section, other than an offence relating to goods that are tobacco (whether manufactured or not), is liable on conviction,—

(a)

in the case of an individual, to a fine not exceeding $5,000:

(b)

in the case of a body corporate, to a fine not exceeding $25,000.

(3)

A person who commits an offence under this section involving goods that are tobacco (whether manufactured or not) is liable on conviction,—

(a)

in the case of an individual, to—

(i)

imprisonment for a term not exceeding 6 months; or

(ii)

a fine not exceeding $20,000; or

(iii)

both:

(b)

in the case of a body corporate, to a fine not exceeding $100,000.

Compare: 1996 No 27 s 200(1)(d), (2), (2A)

237 Powers if goods no longer under control of Customs suspected to be involved in offences or to be forfeited goods

(1)

This section applies to goods—

(a)

that have ceased to be subject to the control of Customs; but

(b)

that the chief executive has reasonable grounds to suspect are—

(i)

goods in respect of which an offence under this Act has been committed; or

(ii)

forfeited goods.

(2)

The chief executive may require a person who the chief executive believes has possession or control of the goods to produce them for inspection by a Customs officer.

(3)

A Customs officer may inspect the goods and do any of the things listed in section 227(2) in relation to them.

(4)

If goods referred to in subsection (1)(b)(i) are an electronic device, a Customs officer may do any of the things listed in section 228(2) only if the relevant threshold (if any) is met.

(5)

Part 4 of the Search and Surveillance Act 2012, except subpart 3, applies in respect of the powers under this section.

(6)

Despite subsection (5), sections 125(4), 131(5)(f), and 133, and subparts 6 and 8 of Part 4, of the Search and Surveillance Act 2012 do not apply to forfeited goods.

Compare: 1996 No 27 s 152

238 Verification of entries

(1)

The chief executive may—

(a)

require a person entering goods to provide proof (by declaration or the production of documents) of the correctness of the entry; and

(b)

refuse to deliver the goods, or to pass the entry, before that proof is provided.

(2)

The proof required under subsection (1) may be in addition to any declaration or documents otherwise required by this Act, regulations, or the chief executive’s rules.

(3)

If the chief executive is not satisfied with the correctness of any entry in relation to any goods, or with any other aspect of the importation or exportation (as the case may be) of those goods, he or she may detain the goods for a period that is reasonably necessary to enable—

(a)

the goods to be examined; and

(b)

any necessary investigation to be made, whether in New Zealand or elsewhere, into the importation or exportation of those goods.

Compare: 1996 No 27 s 155

239 Cancellation and amendment of entries

(1)

The chief executive may cancel or amend any entry that is required to be made under this Act for the purpose of—

(a)

preventing duplicate entries; or

(b)

correcting any entry or any part of an entry.

(2)

A cancellation or an amendment does not affect any penalty, liability to seizure, or criminal liability that has already accrued or been incurred in respect of the entry.

(3)

The chief executive may, subject to section 142, refund duty in accordance with the cancellation or amendment of the entry.

(4)

A person who is dissatisfied with a decision of the chief executive under subsection (3) may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 155A

240 Security for payment of duty

(1)

The chief executive may require and take security for payment of any duty.

(2)

The chief executive may require security—

(a)

of a prescribed type:

(b)

in relation to a particular transaction, transactions generally, or a class of transactions:

(c)

for any period and amount:

(d)

on any conditions as to penalty or otherwise that the chief executive considers appropriate.

(3)

The security must be given in the form that the chief executive approves.

(4)

The chief executive may refuse to pass an entry or to do any other act in relation to any matter in respect of which the security is required until the security is given.

(5)

The chief executive must release the person who gave the security from the conditions of the security as soon as possible after the chief executive is satisfied that the obligations for which the security was given have been fulfilled.

(6)

Subsection (5) is subject to sections 127(3)(b) and 136(2) (which provide for a person to be released from the conditions of security in certain circumstances).

(7)

A person who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 156

241 New security may be required

(1)

If the chief executive is dissatisfied with the sufficiency of any security, he or she may require new security in place of or in addition to the existing security.

(2)

Until the new security is given, the chief executive may refuse to pass an entry or to do any other act in relation to any matter in respect of which the new security is required.

(3)

A person who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision.

Compare: 1996 No 27 s 157

242 Power to seize and detain risk goods or goods involved in certain offences, etc

(1)

A Customs officer may seize and detain any goods or documents that are presented or located in the course of exercising any power of inspection, search, or examination under this Act, if he or she has cause to suspect on reasonable grounds that the goods or documents—

(a)

are risk goods (within the meaning of the Biosecurity Act 1993) for which no biosecurity clearance has been given under that Act; or

(b)

are evidence of the commission of an offence under any of the following enactments:

(i)

section 130 of the Animal Products Act 1999:

(ii)

section 98C of the Crimes Act 1961:

(iii)

section 232 or 233 of the Fisheries Act 1996:

(iv)

section 342(1)(c) or 345(1) of the Immigration Act 2009:

(v)

section 37 or 43 of the Medicines Act 1981:

(vi)

section 29A, 30, or 31 of the Passports Act 1992.

(2)

A Customs officer who detains goods or documents under this section must, as soon as practicable, deliver those goods or documents into the custody of the appropriate person specified in subsection (4).

(3)

Once goods or documents have been delivered to the appropriate person, responsibility for those goods or documents passes to that person.

(4)

The appropriate person referred to in subsections (2) and (3) is,—

(a)

if the Customs officer suspects that subsection (1)(b)(ii), (iv), or (vi) applies to the goods or documents, a constable; and

(b)

if the Customs officer suspects that another provision of subsection (1) applies to the goods or documents, an appropriately authorised officer who—

(i)

holds office under the Act specified in that provision; or

(ii)

is employed by the department of State that, with the authority of the Prime Minister, is responsible for the administration of that Act.

(5)

Part 4 of the Search and Surveillance Act 2012, except subparts 2 and 3, applies with any necessary modifications.

Compare: 1996 No 27 s 175C

243 Power to seize, copy, and detain certain drugs and objectionable publications

(1)

A Customs officer may seize and detain any goods that are presented or located in the course of exercising any power of inspection, search, or examination under this Act, if he or she has cause to suspect on reasonable grounds that the goods are evidence of the commission of an offence under any of the following enactments:

(a)

section 6, 7, 12A, 13, or 22 of the Misuse of Drugs Act 1975:

(b)

section 123, 124, 131, or 131A of the Films, Videos, and Publications Classification Act 1993.

(2)

A Customs officer who detains goods under this section may, if the appropriate person specified in subsection (4) agrees, do any of the following:

(a)

deliver the goods into the custody of the appropriate person:

(b)

retain the goods pending further investigation:

(c)

treat the goods as forfeited.

(3)

Once goods have been delivered to the appropriate person, responsibility for those goods passes to that person.

(4)

The appropriate person referred to in subsections (2) and (3) is,—

(a)

in relation to an enactment referred to in subsection (1)(a), a constable:

(b)

in relation to an enactment referred to in subsection (1)(b), an Inspector of Publications within the meaning of the Films, Videos, and Publications Classification Act 1993.

(5)

In this section, goods includes documents that would not otherwise be goods, except that subsection (2)(c) does not apply to such documents.

(6)

A Customs officer may copy any document that is detained under this section and subsections (2) and (3) apply to any copy as they apply to the original document.

(7)

Subparts 1, 5, 6, 7, 9, and 10 of Part 4 of the Search and Surveillance Act 2012 apply in respect of the powers under this section.

(8)

Despite subsection (7), sections 125(4), 131(5)(f), and 133, and subpart 6 of Part 4, of the Search and Surveillance Act 2012 do not apply to forfeited goods.

Compare: 1996 No 27 s 175D

244 Detention of goods suspected to be instrument of crime or tainted property

(1)

A Customs officer may seize and detain goods if—

(a)

the officer is satisfied that the goods are being, have been, or are intended to be exported or imported; and

(b)

the goods came to the officer’s attention, or into his or her possession, during a search, inspection, audit, or examination under—

(i)

this Act; or

(ii)

subpart 6 of Part 2, or sections 114 and 115, of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009; and

(c)

the officer has good cause to suspect that the goods are an instrument of crime or are tainted property (as those terms are defined in section 5(1) of the Criminal Proceeds (Recovery) Act 2009).

(2)

A Customs officer may use reasonable force, if necessary, to seize or detain goods under subsection (1).

(3)

If the person from whom goods have been seized and detained under subsection (1) is known, but is not present when the seizure and detention occurs, Customs must, as soon as practicable, make all reasonable efforts to notify that person of the detention and seizure.

(4)

A Customs officer may direct that goods seized under subsection (1) be taken to any place of security and detained.

Compare: 1996 No 27 ss 166A, 166C

245 Custody of certain goods detained under section 244

(1)

If a craft, vehicle, or animal is detained under section 244, a Customs officer may leave those goods in the custody of—

(a)

the person from whom the goods have been seized; or

(b)

any other person authorised by the Customs officer who agrees to having custody.

(2)

A person who has the custody of goods under subsection (1) must—

(a)

hold them in safe keeping—

(i)

until a final decision is made under section 247; and

(ii)

without charge to the Crown; and

(iii)

in accordance with any reasonable conditions that are imposed by Customs; and

(b)

on request, make the goods available to a Customs officer; and

(c)

not alter or dispose of the goods or remove the goods from New Zealand, unless authorised to do so by a Customs officer; and

(d)

on demand, return the goods to the custody of Customs.

Compare: 1996 No 27 s 166F

246 Offences in relation to custody of detained goods

(1)

A person who has custody of goods under section 245(1) commits an offence if the person, without reasonable excuse, fails to comply with section 245(2).

(2)

A person who commits an offence under subsection (1) is liable on conviction to a fine not exceeding $5,000.

(3)

A person commits an offence if the person, without the permission of the chief executive, takes, carries away, or otherwise converts to the person’s own use goods to which section 245(2) applies.

(4)

A person who commits an offence under subsection (3) is liable on conviction,—

(a)

in the case of an individual, to—

(i)

imprisonment for a term not exceeding 12 months; or

(ii)

a fine not exceeding an amount equal to 3 times the value of the goods to which the offence relates:

(b)

in the case of a body corporate, to a fine not exceeding an amount equal to 3 times the value of the goods to which the offence relates.

Compare: 1996 No 27 s 215A

247 Return of goods detained under section 244

(1)

Goods seized and detained under section 244 must be returned to the person from whom they were seized as soon as practicable after the first of the following to occur:

(a)

the completion of all relevant investigations if the investigations determine that the goods are not an instrument of crime or are not tainted property (as those terms are defined in section 5(1) of the Criminal Proceeds (Recovery) Act 2009):

(b)

the expiry of the investigation period.

(2)

Despite subsection (1), Customs may continue to detain goods until the relevant proceedings are completed, or the relevant request is determined, if, on or before the expiry of the investigation period,—

(a)

a charging document is filed in respect of the relevant qualifying instrument forfeiture offence (as that term is defined in section 5(1) of the Criminal Proceeds (Recovery) Act 2009); or

(b)

a foreign country makes a request to the Attorney-General under section 54 or 60 of the Mutual Assistance in Criminal Matters Act 1992 (relating to foreign restraining orders).

(3)

In this section and sections 248 and 249, investigation period, in relation to goods seized and detained under section 244, means—

(a)

the period of 7 days after the date on which the goods were seized and detained; plus

(b)

any further period that the court allows under section 248.

Compare: 1996 No 27 s 166D

248 Extension of investigation period

(1)

The High Court may once only, by order, extend the 7-day period referred to in section 247(3)(a) for a reasonable period not exceeding 14 days if—

(a)

an application for an extension is made within the 7-day period; and

(b)

the court is satisfied that—

(i)

there is good cause to suspect that the detained goods are an instrument of crime or are tainted property (as those terms are defined in section 5(1) of the Criminal Proceeds (Recovery) Act 2009); and

(ii)

the extension is necessary to enable investigations (in or outside New Zealand) in relation to the goods to be completed.

(2)

An application must—

(a)

be made in writing; and

(b)

be served on the person from whom the goods were seized (if that person can be identified and located); and

(c)

include the following particulars:

(i)

a description of the goods detained:

(ii)

the date on which the detention commenced:

(iii)

a statement of the facts supporting the good cause to suspect required by section 244(1)(c):

(iv)

a statement of reasons why the extension sought is necessary to enable investigations (in or outside New Zealand) in relation to the goods to be completed.

(3)

Customs must make all reasonable efforts to notify the person from whom the goods were seized of the time and place of the hearing of the application at least 24 hours before the hearing.

(4)

The person from whom the goods were seized is entitled to appear and be heard on the application.

Compare: 1996 No 27 s 166E

249 Return of cash necessary to satisfy basic needs

(1)

The power to detain goods under section 244 does not extend to cash that is seized under that section if Customs is satisfied that the cash is necessary to satisfy basic needs (as defined in section 4(1) of the Terrorism Suppression Act 2002)

(a)

of an individual from whom the cash was seized, or his or her dependants; and

(b)

that arise during the investigation period.

(2)

Customs must, if practicable, immediately return any cash in relation to which it is satisfied as referred to in subsection (1).

Compare: 1996 No 27 s 166B

Section 249 heading: amended, on 5 October 2021, by section 57 of the Counter-Terrorism Legislation Act 2021 (2021 No 37).

Section 249(1): amended, on 5 October 2021, by section 57 of the Counter-Terrorism Legislation Act 2021 (2021 No 37).

250 Seizure and detention of dangerous civil aviation goods

(1)

A Customs officer may seize and detain goods that are presented or located in the course of exercising any power of inspection, search, or examination under this Act, if he or she has cause to suspect on reasonable grounds that the goods—

(a)

are dangerous civil aviation goods that may not be lawfully transported on an aircraft; and

(b)

are proposed to be transported on an aircraft.

(2)

If a Customs officer detains goods under this section, he or she must, as soon as practicable, deliver those goods into the custody of—

(a)

the Aviation Security Service to be dealt with under section 80A of the Civil Aviation Act 1990; or

(b)

the operator.

(3)

Once goods have been delivered under subsection (2), responsibility for them passes from Customs to the Aviation Security Service or the operator (as the case may be).

(4)

In this section,—

Aviation Security Service has the meaning given to that term in section 2(1) of the Civil Aviation Act 1990

dangerous civil aviation goods has the meaning given to dangerous goods in section 2(1) of the Civil Aviation Act 1990

operator has the meaning given to that term in section 2(1) of the Civil Aviation Act 1990.

Compare: 1996 No 27 s 175A

Powers in relation to documents

251 Requirement to produce documents

(1)

This section applies—

(a)

if a Customs officer has reasonable cause to suspect—

(i)

that goods have been dealt with unlawfully; or

(ii)

that a person intends to deal unlawfully with any goods; or

(b)

if goods have been seized under this Act.

(2)

The chief executive may, by notice in writing, require a person who the chief executive suspects is or was the owner, importer, exporter, or manufacturer of the goods (or the agent of that person) to do any of the following:

(a)

produce specified records and documents for inspection by Customs:

(b)

allow Customs to make copies of, or take extracts from, specified records and documents:

(c)

answer any question about specified records and documents.

(3)

In this section, specified records and documents means any invoices, accounting records, or other documents that relate to, evidence, or refer to the purchase, importation, exportation, manufacture, cost, or value of or payment for—

(a)

the goods; or

(b)

any other goods dealt with unlawfully within a period of 7 years preceding the date of the notice under subsection (2).

(4)

For the purposes of this section, goods are dealt with unlawfully if, in contravention of this Act, they are unlawfully imported, exported, manufactured, undervalued, entered, removed, or otherwise dealt with.

Compare: 1996 No 27 s 160

252 Further powers in relation to documents

(1)

The chief executive may, by notice in writing, require a person, as and when specified in the notice, to do any of the following:

(a)

to produce for inspection by Customs any records or other documents that the chief executive considers necessary or relevant to—

(i)

an investigation under this Act; or

(ii)

an audit under this Act; or

(iii)

the recovery of a debt due and payable to the Crown under this Act:

(b)

to allow specified Customs officers to take extracts from, or make copies of, records or other documents of the kind referred to in paragraph (a):