Carter Chris: Customs and Excise Amendment Bill (No 3) — First Reading 
Carter Chris: Customs and Excise Amendment Bill (No 3) — First Reading 
[Volume:644;Page:13991] 
Hon CHRIS CARTER (Minister of Education) 
 on behalf of the  
Minister of Customs 
: I move  
That the Customs and Excise Amendment Bill (No 3) be now read a first time. 
 At the appropriate time I intend to move that the bill be considered by the Foreign Affairs Defence and Trade Committee.  
The bill deals with three aspects of customs work. It will enhance the current statutory appeal and review rights in relation to the forfeiture and seizure regime provide greater flexibility for the New Zealand Customs Service to deal with ad hoc arrivals and departures from our shores and strengthen the service’s ability to deal with the illegal manufacture of tobacco. It also makes minor technical amendments to clarify certain provisions in the Act.  
The first major change relates to the appeal process about forfeiture of goods. The forfeiture regime is a whole-of-Government mechanism that the Customs Service enforces in its own right and also on behalf of approximately 15 other Government agencies with border-related interests. The regime is a strong one and it needs to be in order to encourage people to comply with New Zealand’s laws and to deter people from attempting to evade New Zealand’s legitimate revenue-gathering activities or to breach its borders by importing or exporting restricted goods.  
A recent Law Commission report reviewed the forfeiture appeals regime and suggested it could be reformed to be simpler and to provide greater transparency and better access to justice. It also recognises that where people want to claim back an interest in forfeited goods the process should be low-cost and speedy and should be able to be dealt with by the Customs Service in the first instance.  
To simplify the process the bill proposes replacing the existing system with an internal review process with the right to appeal to the independent Customs Appeal Authority. There will be a single point of entry to the appeal process via the Customs Service chief executive which will cost the applicant nothing and will enable matters to be dealt with speedily. The amendments will streamline customs processes and provide a greater level of transparency and protection for innocent third parties. We thank the Law Commission for the work that it has done in reviewing the current customs forfeiture legislation.  
The second major change relates to the arrival and departure of craft at places outside the main entry points to New Zealand. Currently the Customs and Excise Act requires that craft arrive and depart within a designated customs-place except for where emergencies or weather conditions dictate otherwise. This could be unnecessarily restricting in some circumstances. The proposal seeks to allow the chief executive to grant reasonable one-off requests to land outside official customs points of entry on a case by case basis where that is considered appropriate. The proposed amendment responds to a public need and supports both regional and economic development and a thriving tourism industry—for example by allowing charter flights to land at smaller airports without compromising border security.  
The third major proposal in the bill relates to the management of domestic tobacco production. The current regime for controlling the manufacture of tobacco products makes it illegal to manufacture tobacco products outside a licensed Customs Service - controlled area. There is an exemption that allows the manufacture of tobacco products for personal use without a customs licence. It is proposed to add conditions to this exemption to provide more flexibility and clarity about the regulations.  
We are also proposing to increase the penalties associated with dealing in illegally manufactured tobacco products. The bill is particularly concerned about the undesirable health and social consequences that stem from the illegal manufacture of tobacco products. These include making tobacco products available at low cost which encourages higher consumption levels with the associated health impacts. The illegal manufacture of tobacco products also reduces the amount of excise duty the Government collects. Increased penalties will provide a greater disincentive for people to abuse the personal use exemption and will signal how seriously the Government regards the illegal supply of tobacco products.  
Finally there are some minor technical amendments to the Act contained in the bill. A change to section 209(1A) under clause 9 clarifies that this offence provision involves an element of knowledge. A change to section 148B under clause 7 corrects a drafting error and a change to section 288(1)(a) under clause 15 includes “outward reports” that were omitted when the Act was last amended.  
In conclusion I tell the House that the bill has been carefully drafted to strike a balance between the need to protect our communities and the rights of individuals. It will allow greater flexibility of customs processes and facilitate smoother interactions between the Government and the New Zealand public. Thank you very much.