MARCH 2012
PUBLISHER New Zealand Customs Service, The Customhouse, 1 Hinemoa St, Wellington 6011, PO Box 2218, Wellington 6140 Ph: 04 901 4500, Fax: 04 901 4555 ISSN 0113-3292 EDITOR Sara Stavropoulos CONTRIBUTORS Sara Stavropoulos, Nicky Elliott, Aaron Hailwood, Angus Senior, Andy Cameron, John Houghton, Stuart Mills, Geoff Wilson, John Ladd, Shane Panettiere, Mark Day. DISCLAIMER While every effort has been made to ensure that the information in Contraband is correct, readers must refer to the relevant statutory publications for confirmation. Opinions expressed in this magazine are those of the contributors and are not necessarily the official views of the New Zealand Customs Service. COPYRIGHT All material published in Contraband is copyright and may only be reproduced with the permission of the Editor. ENQUIRIES Email: SUBSCRIBE To request your free electronic copy of this magazine, email: and list your name, organisation, and email address. IMAGES New Zealand Customs Service, National Drug Intelligence Bureau, Alexander Turnbull Library. Names of individual artists are available on request by contacting the Editor. New Zealand Customs Service is the government organisation that protects the community from potential risks arising from international trade and travel, while facilitating the legitimate movement of people and goods across the border. As New Zealand’s gatekeeper, our role includes: intercepting contraband (such as illegal drugs); checking travellers and their baggage, cargo and mail; protecting businesses against illegal trade; and assessing and collecting Customs duties, excise taxes, and goods and services tax on imports. We use intelligence and risk assessment to target physical checks of containers, vessels, and travellers. As a law enforcement agency we conduct investigations and audits and prosecute offenders. Customs works closely with the other border agencies, the Ministry of Agriculture and Forestry and the Department of Labour’s Immigration New Zealand.


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

For as long as there has been European settlement in New Zealand, there has been drug-use to the point of dependence and abuse.

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

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Message from the Comptroller Government steps up border management work Preparing to introduce the Trade Single Window The importance of inter-agency collaboration Things to consider when buying goods online Cocaine smuggler stopped at the border Advance notice of arrrival – small craft Customs cracks down on money laundering Customs in Court


Contraband March 2012

The benefits of this will be two-fold. and lack the flexibility to respond to changing needs. we will have greater visibility of the risks that are present. and be able to make better-informed decisions on what we do and who we interact with. which will allow single submissions of border-related information. this will require richer and more detailed data and information than is presently the case (as you can read about in the article on page 5 of this issue of Contraband). Customs and MAF will be using a number of new analytical tools and systems. Firstly. Most important for industry will be the Trade Single Window. While the JBMS is a challenging programme of work. It will also allow us to manage effectively the risks at the border in a seamless manner. this will mean we can tell importers and exporters at an earlier stage. and with more certainty. These systems are almost 15 years old. and craft that are coming to New Zealand is increasing every year. I know this is something that will be of real benefit. we are developing the JBMS to provide a modern border management system that will help keep New Zealand secure. ultimately it will enable Customs. but it is one I am excited to be leading. goods. I am looking forward to working closely with our partners in the coming months as we prepare for the introduction of the JBMS. Our current border system relies on Customs’ and MAF’s computer systems (CusMod and Quantum). goods. However. 2012 is going to be a challenging year for the New Zealand Customs Service. The JBMS will be made up of a number of elements. and craft that we need to take a closer look at (or that pose the highest risk). Once we have that richer information. By using these tools. Secondly. Customs and MAF will be better able to identify people. We know that the number of people. So together with MAF. This will provide industry with more information and enable companies to plan their work with more certainty. MAF. while facilitating trade and travel well into the future. effective. A key priority for us in the coming year will be the development of the Joint Border Management System (JBMS) with the Ministry of Agriculture and Forestry (MAF).MESSAGE FROM THE COMPTROLLER With the Government objective of providing better public services. whether or not we are going to interact with their goods. and industry to work more effectively together to manage the risks at our border. Carolyn Tremain Comptroller of Customs Protecting New Zealand’s Border 3 . We also know that those involved in international trade and travel are looking for seamless. From talking with a number of organisations and people involved in importing in recent months. and efficient border systems.

while keeping a firm focus on border security. and pressure is building for more streamlined travel. Ministry of Agriculture and Forestry (MAF).” The work programme will provide recommendations to the Government by mid-year. “New technologies are giving us access to information faster and we should be using this to improve our effectiveness at the border.” The Ministers say the work is consistent with the Government’s goal of delivering better public services across the board. and Immigration Minister Nathan Guy announced “Future Directions for the Border Sector”. The Ministers say travel and trade patterns are changing rapidly as New Zealand interacts with more international partners.GOVERNMENT STEPS UP BORDER MANAGEMENT WORK The Government’s three border agencies — New Zealand Customs Service. “Protecting the integrity of New Zealand’s biosecurity system is a top priority. Protecting the integrity of New Zealand’s biosecurity system is a top priority. which is leading to reduced duplication and fragmentation of border services and lower costs for industry and government. tourism is increasing. This new programme will build on the progress made in improving trade and travel services.” said Mr Williamson.” said Mr Carter. this must not be compromised.” said Mr Guy. On 16 February. a new information system developed by Customs and MAF. “A wide range of collaborative work is already underway across the three agencies. “An example is the Joint Border Management System. “This work programme will build on a number of joint initiatives already overseen by the Border Sector Governance Group to improve information sharing and the targeting of risk at the border.” Mr Carter said. With $80 billion of exports and imports and 10 million travellers across our border each year. a work programme to look at how the three agencies can operate together more effectively. this must not be compromised. Primary Industries Minister David Carter. and Immigration New Zealand — are stepping up work to make trade and travel more efficient through better coordination of border services. “It is about taking a fresh look at the functions of each agency and how coordination of the overall border management system can be improved. Customs Minister Maurice Williamson. An efficient border management system is critical to New Zealand’s economic growth and prosperity. 4 Contraband March 2012 . With $80 billion of exports and imports and 10 million travellers across our border each year. “We must ensure that our border is fit for the future.

airlines.customs. If carriers and freight forwarders are able to complete this information at this early stage. which helps advance logistics Regular information and updates on TSW are also published in Customs Release. freight forwarders. The intent is for TSW to provide a single electronic channel for ports. and traders how much information they want to provide in order to ensure an early and complete response from the agencies. carriers.govt.” “Additionally.” says Pete.” he says. and when. it can do away with the current need for a separate message or application form to MAF to request biosecurity clearance. The current Inward Cargo Report contains details of cargo intended for discharge in New Zealand as well as all cargo to be transhipped in New Zealand. This cuts down the need for separate messages to make these requests. Pete Rosewarne. and means the likes of port companies. says that these messages will be more detailed and contain more information than the current messages that are submitted for customs and biosecurity clearance. importers. Customs’ JBMS Programme owner. TSW will also make it easier for these supply chain parties to share information with each other to better manage the flow of cargo in and out of New Zealand. a draft set of message implementation guidelines is available on the Customs website www. and freight forwarders can get earlier confirmation of Customs and MAF approval or requirements. Protecting New Zealand’s Border 5 . while the phased roll-out of TSW for use by industry will start in early 2013. These are based on the World Customs Organization’s new WCO Data Model version 3. freight forwarders. “High-quality data.” WHERE TO FIND OUT MORE To learn more about the new messages. Customs and MAF will be trialling some elements of TSW from the middle of 2012. customs agents.PREPARING TO INTRODUCE THE TRADE SINGLE WINDOW Customs and MAF are currently developing the Joint Border Management System (JBMS). To subscribe to Customs Release go to our website www.govt. Customs and MAF are developing new cargo reporting and clearance KEY TSW DATES A key part of Customs’ and MAF’s ability to provide early advice of clearance or requirements is the quality and completeness of the information provided in the messages. and others involved in international trade are aware of the upcoming changes. DATA QUALITY Pete says it will be over to carriers.customs. It is intended that the use of TSW and the new messages will be made mandatory 18 months after this. customs brokers. The JBMS will ultimately replace Customs’ and MAF’s current border systems (CusMod and Quantum) and allow us to jointly manage customs and biosecurity risks at our border. “It is therefore important that carriers. freight forwarders. such as a recognised product code instead of a free text description of goods. so we are less likely to hold up consignments because we’re not sure exactly what the goods are. One of the key elements of the JBMS will be the Trade Single Window (TSW). means the agencies can assess risk more easily. shipping companies. the new Inward Cargo Report message enables carriers and freight forwarders to initiate International Transhipment Requests and Domestic Transhipment Requests. our weekly e-newsletter. “The new Inward Cargo Report message includes information to enable MAF to carry out biosecurity risk assessment. and exporters to comply with New Zealand’s border requirements.2. To ensure that all the information agencies and industry require can be submitted via TSW. INWARD CARGO REPORT An example of the changes can be seen with the Inward Cargo Report. air cargo terminals.

Having a bureau that could liaise with relevant agencies has led to overall efficiency in New Zealand’s drug enforcement effort. who is responsible to a management committee of senior representatives from each contributing agency. and the NDIB continues to provide quality strategic reporting and high-level service to its stakeholders. and Police. Health. the National Drug Intelligence Bureau (NDIB) will celebrate 40 years of providing tactical.” says Stuart.” The Board of Control. is responsible for high-level governance of the NDIB. In early 1972. in Canberra. composed of the CEOs from Customs. “The excellent work of Customs. “The mission of the NDIB is to provide authoritative intelligence and advice on illicit drugs. Australia in November 1971. 6 Contraband March 2012 . says interagency communication is vital in dismantling illicit drug networks. The day-to-day operations of the NDIB are managed by the Coordinator. Customs. The conference identified the need to establish a national agency to record and disseminate information and direct drug intelligence-related work.40th ANNIVERSARY THE NATIONAL DRUG INTELLIGENCE BUREAU This year. and strategic intelligence support against drugs. This utilises various sources and relationships within New Zealand and overseas. and Health recommending the establishment of the NDIB. a joint paper was placed before the Ministers of Police. and precursors in order for drug-related harm to be reduced through supply-control and demand-reduction measures. The Coordinator of the NDIB. and has had a permanent Ministry of Health representative since April 2004. and apprehending offenders in New Zealand. and Police staff has contributed to the NDIB’s success in the past 40 years. The NDIB was established following a regional Heads of Narcotics Law Enforcement Agencies conference on illicit drug trafficking. operational.” A reunion of former and current NDIB staff is planned to be held in Wellington to commemorate the NDIB’s 40th anniversary. Detective Inspector Stuart Mills. potentially illicit drugs. From 1 May 1972 the NDIB was established with staff from Customs and Police. Ministry of Health. “The need to share information and improve communications between enforcement agencies was one of the main factors in establishing the NDIB.

Customs seize 20 kilograms of cocaine from the Ecuadorian trader Provincia del Guayas. • Provide collated data that requires de-confliction of information from more than one agency. February 1988.THE FUNCTIONS OF THE NDIB • Provide authoritative intelligence and advice on illicit drugs. • Progressively enhance its efficiency and effectiveness. and participate in. • Actively contribute to. and precursors that require multi-agency collation of information. potentially illicit drugs. potentially illicit drugs. regional and international intelligence efforts to combat the illicit drug trade. • Fulfil New Zealand’s international reporting obligations for illicit drugs. at Auckland wharf. Protecting New Zealand’s Border 7 . and precursors that support strategic decision making by participating agencies.

8 Contraband March 2012 . with a considerable proportion of this information coming from New Zealand. particularly women. within those agencies themselves. United Kingdom in October 1979 and charged with the murder of Johnstone. Australian law enforcement agencies had failed to grasp the significance of this major drug network. his activities. to carry drugs and also turned his attention to heroin. began distributing cannabis imported into New Zealand. made several trips to South East Asia bringing back ‘Thai sticks’. and in 1975. particularly the NDIB. Unfortunately this information was rarely distributed effectively between law enforcement agencies and. Having being bailed on this charge he absconded to Australia. Terrance John Clark. New Zealand. Clark’s enterprises prospered and he was soon selling considerable amounts of cannabis through his dealers. After a trial lasting six months. The various agencies held both different and similar pieces of information. but different branches of the Narcotics Bureau were unaware of what other branches were doing. Clark arranged for consignments of heroin to be sent to New Zealand from the heroin he imported into Australia between 1976 and 1979. Australian law enforcement agencies collected a lot of information about Clark and his associates. also known as cannabis sticks. The 1983 Australian Royal Commission of Inquiry into Drug Trafficking found that Australian law enforcement agencies failed to collaborate on Clark. In short. Between 1975 and 1979. Clark was arrested and charged with importing heroin into New Zealand. and his associates. He began using couriers. where he based his activities for the next couple of years. who was one of the main players in the syndicate. This lack of communication and coordination allowed Clark and his associates to evade the authorities and to commit serious crimes in Australia. or what material they held. In October 1975.IMPORTANCE OF INTER-AGENCY COLLABORATION The ‘Mr Asia’ syndicate. and three years’ imprisonment on the second. He was also charged with two conspiracies. which was more valuable than cannabis. he was sentenced to life imprisonment on the murder charge. The importations were arranged by Christopher Martin Johnstone (‘Mr Asia’) and associates who generally used seaman employed by the Straat line of ships to bring the cannabis into New Zealand. even more importantly. (featured in the TV series Underbelly) was active in New Zealand and Australia during the 1970s. and elsewhere. Not only were the agencies not communicating information they held. Clark died in prison in 1983. Clark was convicted on all counts. In July 1981. 14 years’ imprisonment on the first conspiracy. one to import illegal drugs into the United Kingdom and one to supply illegal drugs in the United Kingdom. Clark was arrested in London. Soon he decided to enter the importing side of the business.

Protecting New Zealand’s Border 9 .

there are accounts of others indulging in the habit. Wellington. there has been drug use to the point of dependence and abuse. New Zealand. 17 August 1904. Courtesy: Alexander Turnbull Library.“Haining Street – The Chinese quarters of the City of Wellington”. the use of which spread widely in the gold fields. published in ‘The New Zealand Mail’. Chinese miners brought the opium-smoking habit and. this was confined mainly to opium preparations. although generally confined to them. HISTORY OF DRUG ABUSE IN NEW ZEALAND For as long as there has been European settlement in New Zealand. Until the discovery of gold in the mid-19th century. but miners from California created a market for American ‘set remedies’ containing morphine and cocaine. 10 Contraband March 2012 . which had a notorious reputation due to the rumours of opium and gambling dens.

Use at this time had been fairly isolated. particularly amongst those associated with medicine and the entertainment industry. Following the introduction of free medicine under the Social Security Regulations 1941. The main focus centred on LSD. In 1949. a Board of Health report on drug dependency and abuse in New Zealand said that: » the drug scene was one of rapid change. the United Kingdom. although it was commercially grown earlier for fibre. In 1970. During this time New Zealand was named. Until this time. By this time the practice of deceiving doctors to obtain drugs on prescription was documented. LSD was first seen as a problem in 1970. Right: Drugs being destroyed by Customs officers. Cannabis was first noted as being used in New Zealand in the 1940s. heroin. efforts began to eliminate the prescription of heroin and by 1955 this had been virtually achieved. and the Netherlands. Protecting New Zealand’s Border 11 . there was a dramatic increase in pharmaceutical burglaries. Also at this time the emergence of organised drug-trafficking was identified in the form of small syndicates. In the 1960s the ‘hippie’ movement was associated with an increased use of cannabis and it was generally regarded as being a cult phenomenon. cocaine. By 1991. as one of the highest per capita users of heroin. but by the 1950s it had extended to certain areas of the community — the most commonly reported group being musicians. the prescribing of some drugs increased significantly and it seems some patients became dependent on drugs as a result of therapeutic prescribing. caused by the involvement of more experienced and sophisticated criminal enterprises. Far left: An example of marketed ‘medicinal’ heroin from early last century. The 1970s saw the most marked and alarming trends in illicit drug abuse. the majority imported from the United States. several hundred varieties of LSD had been seen in New Zealand. but by 1968. a scene where drug abusers were involved in multi-drug abuse » there appeared to be comparatively little trafficking or pushing drugs for profit » trafficking or pushing was mostly unorganised and it was being conducted on an individual basis. when it seems the supply did not satisfy the demand. together with an upsurge in the abuse of synthetic opiates and cannabis. drugs being abused were usually imported. however. with Finland and Italy. The greatest impact on the illicit drug scene was.Morphine. and barbiturates dependence was seen early in the 1900s. These burglaries were curtailed to some extent by the introduction of regulations requiring chemists to place susceptible drugs in safes.

The Police found that the penetration of a well-established criminal subculture was far more hazardous than dealing with youthful drug abuse. A major factor in the illicit drug scene. During 1979. accentuating the problem.HISTORY OF DRUG USE IN NZ Left to right: A sheet of LSD (Image courtesy USDEA). Opium poppies. particularly through the 1970s and 1980s. The small participation in the 1960s had grown to widespread community use. such as safe blowing. Twenty-four heroinrelated charges were placed before the courts that year and this heralded a rapid increase. This availability continued through the 1980s. Criminals began to travel more extensively and the international aspect of the drug problem became more relevant to New Zealand. Criminals formerly engaged in relatively unsophisticated crimes. on average. this abuse was combined with alcohol. one heroin charge was being laid every day. because of a number of factors. meaning organised crime groups are setting up networks to transport drugs and cause harm to global communities. and ‘Ecstasy’ tablets (Image courtesy USDEA). The ease of international travel has created gateways and growth opportunities into countries for the illicit drug trade. 12 Contraband March 2012 . Cannabis plants. In many cases. the Police noted an increase in the abuse of medicines largely of a psychotropic category — by people known to be heroin users. By 1979. an increase in LSD availability was noted again. the popularity of LSD was waning and little of it was seen in New Zealand for some years. heroin was being seen on a scale never previously encountered and was beginning to cause problems. the availability of heroin declined rapidly. brought their experience and connections to drug importation and distribution. powdered Cocaine. following trends seen in other countries. Late in 1979. Methamphetamine crystals. By 1974. was the increase in the use and availability of cannabis. However. As a result of this decline.

However. the methamphetamine increasing THC level. in significant crimes occurring as a Drug concealment methods seen in result of methamphetamine or ‘P’ New Zealand are also the same ones distribution and use. epidemic took hold in New Zealand. The ‘homebake’ process was brought about by the irregular supply of imported heroin. used to manufacture morphine and heroin from codeinebased products. While Customs is focused on initiatives to reduce the supply of methamphetamine. and the ever-changing ecstasy market due to a worldwide shortage of MDMA. The ease of international this was shown in the large number travel has created gateways and of clandestine methamphetamine growth opportunities into countries laboratories operating throughout the country. and the New Zealand drug environment. rise of internal concealments shows that people are taking bigger risks for bigger rewards. however. Internationally there has been a significant increase in organised As demonstrated previously within crime and illicit drug markets. Protecting New Zealand’s Border 13 . In 2009. against the impact of methamphetamine in New Zealand. with an everIn the late 1990s. they can often pay with their lives.Throughout the past five years the New Zealand illicit drug scene has been punctuated by the impact of BZP. Customs continues to contribute and support the whole-of-government effort to reduce the supply of illicit drugs into our communities. cannabis has continued to be widely used. including harm reduction. meaning organised crime groups are setting importations of pseudoephedrine up networks to transport drugs and into New Zealand. which resulted cause harm to global communities. a Methamphetamine Action Plan between several government agencies was agreed which resulted in coordinated action across a range of areas. The epidemic led to significant for the illicit drug trade. synthetic cannabinoids. that are being seen overseas. which will lead to a reduction in the harm it causes. progress is also being made to reduce methamphetamine use. manufacturers are very resourceful and New Zealand is seen as part of those markets. and the The 1980s also saw the emergence of clandestine laboratories throughout New Zealand.

14 Contraband March 2012 .

or leave New Zealand. SmartGate uses face recognition biometric technology along with information stored in the microchips inside ePassports to perform identity checks and document validations that are usually conducted by Customs officers. The age change from 18 years of age to 16 years came into effect in both New Zealand and Australia on 18 January 2012. “During the 2011 Christmas holiday season SmartGate use reached a new milestone. SmartGate is also operating at eight Australian international airports for arriving passengers.govt. New Zealand and Australian ePassport holders aged 16 years and over are now able to use SmartGates in both countries. Geoff Wilson says the age change has given 16. The change in age has made SmartGate more flexible and we encourage passengers to use this technology.000 passengers per week.3 million passengers have already been processed through SmartGate and by 2015 all Australian and New Zealand passports will be electronic. “There is still the option of manually processing through Customs but now 16.” says Geoff. By using SmartGate a passenger can self-process through passport control.customs.and 17-year-old ePassport holders the opportunity to use SmartGate.and 17-year-olds also have the choice. meaning everyone over the age of 16 will be able to take advantage of this fantastic technology. “Sixteen and seventeen year-olds with ePassports can now take advantage of the benefits of using SmartGate. “Lowering the age for eligible SmartGate users will enable an estimated More than 2.AND 17-YEAR-OLDS Building on the phenomenal success of SmartGate.” Twenty-two gates are now operating throughout the three New Zealand ‘SmartGate enabled’ airports for both departures and arrivals.3 million passengers have already been processed through SmartGate and by 2015 all Australian and New Zealand passports will be electronic. Protecting New Zealand’s Border 15 .” SmartGate is a stress-free way for New Zealand and Australian ePassport holders to enter both countries. and high school sports teams is that they can all self-process together.” For more information on SmartGate. An immediate benefit to families with teenagers. exceeding 40. Manager Passenger Facilitation. “Over 2. meaning everyone over the age of 16 will be able to take advantage of this fantastic technology. please visit www.SMARTGATE NOW AVAILABLE FOR 16. All they need is their ePassport — the two-step SmartGate does the rest.000 additional travellers to use the kiosks every year.

the package may be delayed while Customs makes further enquiries. 16 Contraband March 2012 . or no declaration is made.customs. If the information is inaccurate. or commercial or personal items. and there may be additional charges. The declaration should include: » an accurate description of the goods » their value (normally the actual price you have paid if. However. and a number of other goods are restricted. PROHIBITED AND RESTRICTED GOODS There are certain goods that you are not allowed to bring in to New Zealand under any circumstances. Make sure the supplier you are purchasing from completes an accurate customs declaration. Goods arriving in New Zealand by post or courier must have a customs declaration completed by the sender and attached to the package. familiarise yourself with the import regulations as they apply to you. and if you are unsure about something check our website www.govt. You should also be aware of what goods cannot be brought in to the country or if they require approval before bringing in. not a gift) » whether they are gifts. this is generally to avoid paying duty and/or GST when the goods come in to New Zealand. Always read options offered to you by the supplier. it’s important to take into consideration any duties or tax payable when the goods are received in New Zealand. Sometimes the goods may be seized and you will be liable for any charges — the normal duty and GST are still payable in respect of seized goods. as the importer you are legally obliged to make sure you have an accurate declaration. as well such as for testing and storage. Before or contact us on 0800 4 CUSTOMS (0800 428 786). and what charges may be due on the goods you wish to bring in.THINGS TO CONSIDER WHEN BUYING GOODS ONLINE If you are purchasing goods online for personal use. FALSE DECLARATIONS Some websites will offer to show a different description of the goods you have ordered and/or a value on the customs declaration much lower than the actual price paid. Further information on the following can be found on our website: » prohibited and restricted imports » excise and duties » tips for buying goods online.

and he could not provide a legitimate reason for his travel. “The high-level training our officers receive gives them the skills and knowledge to profile passengers that may pose a risk to our border”. Customs Manager Drug Investigations. “There has been an increasing prevalence of cocaine in illicit drug markets internationally.000 and $1 million. “Our officers are protecting New Zealand’s border 24 hours a day. United States. and New Zealand is seen as part of those markets. and his case is currently before the courts. Mark Day says this interception was another great example of Customs officers’ vigilance and effort to prevent illicit drugs making their way across our border and into our communities. says Mark. The methods of concealment are also the same ones that are being seen overseas. seven days a week. Mr Rhee was arrested and charged with the importation of cocaine. says Mark. Twenty-nine year old Peter Rhee arrived in New Zealand on a flight from Los Angeles. when they found two bottles filled with cocaine suspended in liquid inside a passenger’s luggage. The maximum penalty for the importation and possession for supply of a Class A drug is life imprisonment. Their commitment shows that people who attempt to bring illicit drugs across our border are not beyond our detection”. Officers carried out a search on Mr Rhee’s luggage and found inconsistencies in two bottles of alcohol he had brought with him. Mr Rhee has been charged with importation of a Class A controlled drug. The cocaine’s value was estimated to be between $800. Protecting New Zealand’s Border 17 . Testing of the substance in the bottles showed a positive match for cocaine.COCAINE SMUGGLER STOPPED AT THE BORDER Customs officers came across an interesting discovery at Auckland International Airport last month. Mr Rhee was questioned by officers about his reason for coming to New Zealand.

and facilitate the arrival and departure of legitimate visitors. protect the biodiversity of New Zealand. the influx of small craft from overseas poses a potential risk and Customs monitors arrivals and departures to ensure these vessels comply. and Auckland are the most popular arrival ports. Many of the craft skippers are regular visitors and fully aware of the border requirements of the New Zealand Customs Service and the Ministry of Agriculture and Forestry. The northern ports of Opua. with about 650 making the journey each year. and arrive in New Zealand from November to January. taking advantage of favourable weather patterns. Most of these depart from the South Pacific islands of Tonga and Fiji. They usually depart New Zealand in April through to June. These requirements have been put in place primarily to prevent the importation of illegal goods. Whangarei.ADVANCE NOTICE OF ARRIVAL — SMALL CRAFT New Zealand is a popular destination for internationally cruising small craft. The vast majority of arriving and departing small craft crew are legitimate and fully compliant. However. 18 Contraband March 2012 .

govt. Customs requires advance notice of a small craft arriving. Leaving New Zealand without obtaining Customs’ clearance of your vessel may result in It is essential that all international craft arrive or depart from a Customs port of entry. or by emailing feedback@customs. The skipper must submit an Advance Notice of Arrival at least 48 hours prior to the vessel entering New Zealand. If the skipper does not submit this form.Customs officers boarding a yacht in Auckland Harbour. This gives Customs the information needed to clear the craft and its passengers. Details on the arrival and departure documentation and formalities. Protecting New Zealand’s Border 19 . and this information is also provided to the Ministry of Agriculture and Forestry.customs. Alternatively.govt. customs. general advice and information is available by calling the Customs Contact Centre on 0800 4 CUSTOMS (0800 428 786). The influx of small craft from overseas poses a potential risk and Customs monitors arrivals and departures to ensure these vessels comply. there can be penalties. +64 9 927 8036 if calling from overseas. These ports are also listed on Customs which provides full information on this topic. You can find this information in the ‘Yachts and small craft’ section. It is highly recommended that anyone arriving or departing on a small craft visit the Customs website (www. The only exceptions are in a severe emergency or with the prior approval of the Comptroller of Customs. and the downloadable forms are available on the Customs website (www. a yacht pack containing the required forms and information is available from any NZ Customs office and some South Pacific ports.

CUSTOMS CRACKS DOWN ON MONEY LAUNDERING In the past couple of years Customs has made some significant cash seizures under recently introduced legislation. This type of movement in funds may represent the proceeds of importing. to identify and intercept the movement of illegal cash proceeds as part of an international focus on disrupting criminal networks. and bearer bonds moved across our border by making such non-declared items prohibited goods pursuant to the Customs and Excise Act 1996. manufacturing. money orders.29 million in eight separate instances involving serious breaches of the legislation and related criminal offending. 20 Contraband March 2012 . and attempt to launder money through New Zealand. or dealing in drugs. within New Zealand and overseas.” says Shane. of people smuggling. Shane Panettiere says that Customs has made some significant seizures of cash in a short period of time. Customs continues to work with law enforcement partners. The international movement of large sums of cash and BNI is often associated with money laundering — the conversion of ‘dirty money’ to legitimate money or goods. Manager Investigations. This legislation has given us the authority to crack down on those who choose to break the law. including tax evasion. or of fraud and related criminal activities. “To date Customs has seized in excess of $1. The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 strengthened Customs’ powers and responsibilities around cash and other bearer negotiable instruments (BNI) such as cheques.

New Zealand.000. You must advise a Customs officer if you are required to complete a Border Cash Report.000 concealed within the baggage lining. “Customs continues to work with law enforcement partners. If cash is moved in breach of this requirement. He was referred for further examination and it was discovered that he was carrying AUD$15. “The excellent work of our frontline officers and financial targeting team shows that these people are not beyond our detection. money order. A further inspection of his luggage revealed another AUS$90. Cash means physical currency. traveller’s cheque f. A subsequent investigation disproved this explanation and revealed suspected criminal links in Australia. postal order. Customs recently intercepted an Australian man arriving from Sydney who had made a declaration for AUD$8. bearer-negotiable instruments.000 or more (or foreign denominations equivalent to a total of NZ$10.000 (NZ$10. False or misleading reporting. or non-reporting. it is a prohibited import or export under the Customs and Excise Act 1996. The man was refused entry to New Zealand and was arrested. and charged with currency export control violations upon his return to Fiji. The cash was seized by Customs and the man has since been deported from Fiji. Protecting New Zealand’s Border 21 . cheque e. which Customs found in numerous white envelopes in his luggage. of cash may result in its seizure. promissory note d. and he was intending to purchase a rare vehicle in New Zealand. Where you are responsible for other passengers you must make a separate Border Cash Report for them. American. The judge ultimately concluded that the offender could not show the funds had been obtained legitimately. and Iraqi currencies. A key priority for the Government and Customs is to disrupt the contributors in organised crime. within New Zealand and overseas.000 equivalent in Fijian. Customs officers identified the passenger as travelling on a false passport and being engaged in a ‘black money’ scam in which he had defrauded the cash from an investor in Fiji. or both. The male passenger had not declared the cash. convicted. Customs seized the cash and on appeal the decision was upheld by the Customs Appeal Authority. and our officers are successfully delivering this priority. and the total value of cash involved is NZ$10. You may also face criminal prosecution. a Cameroonian male arrived at Auckland from Fiji in possession of NZ$113.000 or more). In another recent interception. to identify and intercept the movement of illegal cash proceeds as part of an international focus on disrupting criminal networks. or similar order. The man admitted to Customs officers that the cash had been concealed to avoid tax obligations in Australia.” NOTICE TO TRAVELLERS CASH REPORTING New Zealand law requires a Border Cash Report to be completed by every person who moves cash into or out of New Zealand.526 equivalent). bill of exchange b. A bearer-negotiable instrument means a: a. This must be done at the same time as passport control formalities are undertaken. bearer bond c.Other instances have attracted fines under the Act provisions instead of prosecution and seizure.

No order for compensation under section 236(2) of the Customs and Excise Act 1996 was made by the Court. approximately 23. The judge considered home detention was appropriate and sentenced the man to six months’ home detention. The man was sentenced to two years’ intensive supervision (with conditions to complete an internet offending course) and 180 hours of community work. The computer held numerous movie files which the man had downloaded. He was also granted permanent name suppression on the basis of a medical certificate and affidavit from his wife that indicated adverse consequences on her already poor mental health.000 objectionable images were located. Both sets of charges carry maximum penalties of five years’ imprisonment. a man was sentenced at the Manukau District Court after having previously pleaded guilty to charges of importing objectionable material. for releasing goods from a Customs controlled area without Customs’ authority. Both companies were fined $2. In March 2009. two companies were charged under section 200(1)(c) of the Customs and Excise Act 1996. the man’s luggage had been searched at Auckland International Airport. 22 Contraband March 2012 . He had provided documents to Customs on a number of occasions with false values for the furniture. and random drug testing. A psychological report stated that the man suffered from “megarexia” — the overwhelming desire to be very muscular.COURT REPORT CUSTOMS IN COURT Customs continues to prosecute offenders for a variety of border-related offences. alcohol and drug treatment. a man was sentenced in the Wellington District Court after pleading guilty to importing the class B controlled drug GBL. a man was sentenced on 10 charges of importing objectionable material and seven charges of possessing objectionable material. The judge ordered the man to pay a fine of $2. The files depicted rape and other degrading and dehumanising sexual conduct. In December 2011. When a search warrant was executed at his property. After Customs refused to accept the initial invoices. He admitted he had known the value all along and that he had sent incorrect documents to Customs. On 29 November 2011.500. At the time of the offence the man was on parole for similar offending. FRAUD On 9 December 2011. the majority of these involving child sexual exploitation. UNAUTHORISED DELIVERIES On 15 December 2011. On 2 May 2011.000 and court costs of $133. A number of suspect files were found on a hard drive in his possession and many of the files were encrypted so that they could only be opened using a specific computer. at the Lower Hutt District Court. DRUGS The judge said that ‘human error’ was not an acceptable excuse and was unimpressed that both companies were offering the same excuses. Here are some recent matters: OBJECTIONABLE MATERIAL On 22 November 2011. followed by a further 12 months’ post-release conditions including attendance at psychological. The man was sentenced to five months’ community detention and 18 months’ supervision with a condition that he completes a programme for internet sex offenders. saying it was up to the companies to ensure human error was avoided. The computer used to view the encrypted files was found during a search warrant executed by Customs. the man had arranged the importation of a consignment of wooden furniture into New Zealand. a man was sentenced at the Auckland District Court on four charges of providing false invoices and incorrect documents to Customs officers. The man said he used the GBL for building muscle mass. the man had finally provided correct invoices with the true value of the goods.

which you will need for step two. and Wellington International Using SmartGate to depart from New Zealand 1 STEP ONE • Look for the SmartGate kiosk – signs will help guide you. For more information. If you have this symbol on your passport you will be able to use SmartGate. • The kiosk will issue you with a SmartGate ticket. • Answer the standard declaration questions using the touch screen. Christchurch.SmartGate SmartGate is now available for eligible ePassport holders aged 16 and over. Holders of New Zealand and Australian ePassports have the option of using SmartGate when arriving at or departing from Auckland. While the New Zealand Customs Service is pleased to offer you this option. Protecting New Zealand’s Border 23 . • Hand in your departure card.customs. visit www. • Look at the camera ahead of you while your face is compared with your ePassport photo. ePassport symbol *All New Zealand passports issued after November 2005 and all Australian passports issued after October 2005 are ePassports. and proceed through the Aviation Security Service screening point. Passports with the international ePassport symbol* are called ePassports.govt. you can still have your ePassport manually checked if you prefer. 2 STEP TWO • Proceed to the gate and insert your SmartGate ticket. • Place your ePassport into the reader by simply following the instructions on the screen. SmartGate offers you a simple and efficient way to self-process through passport control with an easy two-step process. • Proceed through the gate.

terrorism.GOVT. including people and craft that seem out of place. so let Customs know if you spot anything unusual or suspicious.BORDER SECURITY IS EVERYONE’S BUSINESS It was local knowledge and vigilance that helped identify and capture the Rainbow Warrior bombers. CONTACT COASTWATCH 0800 4 CUSTOMS (0800 428 786) free 24-hour. illicit drugs. You can play a vital role in protecting New Zealand communities from international crime.CUSTOMS.NZ 24 Contraband March 2012 . You know your area best. The community has an even greater role in protecting our border today. anonymous hotline WWW. and other illegitimate activities by reporting any suspicious border activity to Customs. smuggling.