An outcomes framework for biosecurity

1
Review of Border Cost Recovery Regime
2
Review of Biosecurity Cost Recovery

• Current regulations in place since May 2003
• Current regime proving difficult to administer
• Some under-recovery some over recovery.

3
Funding review cost recovery appropriate when
those charged can

• Change behaviour to reduce the costs of the
  service or the risks that give rise to the need
  for the service
• Assess whether the benefits of the service at its
  current level exceeds the cost
• Determine whether the service is being delivered
  efficiently

4
Proposed principles for revised border regime

• Costs which are variable should be recovered by
  charges which reflect this variability (ie hourly
  rates)
• Costs which are fixed should be recovered by
  costs payable as specific amounts
• Fees should be kept as simple as possible and
  those that are very similar are combined so as to
  reduce transaction and compliance costs

5
Key changes proposed

• Simplify charges for border clearance
• Hourly rate charge increase from 72.30 to 98.00
• Charges at either hourly rates or specific
  amounts as appropriate
• Organism identification full cost recovery
• Sea container levy
• Biosecurity entry levy
• Memorandum accounting

6
Proposals to charge at hourly rates

• Non complying shipping containers
• Offshore inspection of ships
• Unaccompanied baggage or effects
• Sawn timber
• Logs or round wood
• Stored produce
• Fishmeal
• Plant material

7
Costs payable as set fees

• Organism identifications
• Inspection of vehicles
• Inspection of animals or animal material
• Permits issued under Import Health Standards
• Travel costs (Zone charges)
• Biosecurity entry levy
• Container levy

8
Proposed hourly rate charges

• Currently 4 inspection hourly rates charged (from
  72 - 130)
• MAF is proposing to rationalise to 2 charging
  rates
• Veterinary inspection rate 96.10
• All other MAF inspections 98.00
• Current minimum charge is for 30 minutes
• Proposed minimum charge is for 15 minutes

9
Proposed sea container levy

• Current charge of 8.75 for monitoring and
  verifying sea containers replaced by
• Levy to implement the Import Health Standard for
  Sea Containers
• Levy of 13.00 on loaded containers (paid by
  importer)
• Levy of 5.00 on empty containers (paid by
  shipping company)

10
Actions to be funded by proposed sea container
levy

• Monitoring and verifying container compliance
• Identifying high risk containers and notifying
  port company
• Auditing the clearance of containers
• Paying port companies for moving audit containers
  for inspection
• Notifying the port company when the container can
  be moved to transitional facility

11
Further actions funded by container levy

• Responding to accredited persons enquiries
• Identifying organisms intercepted by accredited
  persons
• Entering data and issuing biosecurity clearance
  for compliant containers
• Analysing data sourced from accredited persons
  and other sources
• Providing information (newsletters and manuals)
  to assist in identifying and managing biosecurity
  risks

12
Inspection of non-complying sea containers

• Currrent charge is 40.40 per container
• MAF will charge for inspection at an hourly rate
• MAF will pay port companies for requesting them
  to move containers
• MAF will charge importer for the cost of moving
  for 6 sided inspection

13
Proposed charges for used vehicles

• Simplify the current 15 categories of charge to
  4 as follows
• Motor cycles and mopeds - 15
• Light motor vehicles - 25
• Heavy motor vehicles- 50
• Used machinery etc - 98 per
  hour
• Re-inspection charged same amount as initial
  inspection

14
Proposed memorandum accounting

• Under or over recovery of costs to be carried
  forward and costs subsequently adjusted
• Will apply to
• Used vehicles
• Sea container levy

15
Biosecurity Entry Levy

• Levy will replace current documentation fee of
  28.70
• Levy will fund electronic screening to identify
  risk goods
• Proposed levy of 2.25 on all NZCS import entries
• Levy to be paid by all importers and collected by
  NZCS (when it collects its own fees)

16
Identification (ID) of organisms

• Review of policy on organism ID and charging
  underway
• Two proposed options for charging if importer is
  required to have an organism ID undertaken
• Option 1 importer would only pay organism ID
  cost if organism is found to be regulated
• Charge applies irrespective of whether organism
  ID is needed for clearance or for future risk
  profiling.

17
Organism ID option 1 (cont.)

• Crown would fund IDs for non-regulated organisms.
• Where live organism is found, importers could
  have goods treated, without having to wait for
  ID
• Importers would be required to pay for both
  treatment of their goods and organism ID.

18
Organism ID option 2

• Option 2 importer would pay for organism ID only
  where it is required for clearance
• ID charge would be applied to all organisms
  regulated non-regulated
• Where a live organism is found, importers could
  have goods treated and not be required to have
  organism identifed
• Importer would be required to pay for treatment
  of goods but not organism ID.

19
Organism ID (cont)

• MAF preference is for Option 2.
• Charges for organism ID will not be included in
  regulations
• Charges contestable subject to market forces
• Other competing providers can provide organism
  identifications.

20
Proposed charges

• Current charge is 130.55 per specimen (174.60
  after hours)
• Proposed charges per submission and per product
  line are
• 370 (single or multiple IDs) for identification
  of invertebrates, nematodes, fungi bacteria
• 490 (single or multiple IDs) for identification
  of viruses
• Level 3 post-entry quarantine actual and
  reasonable costs.

21
Travel costs for MAF staff

• Payable by person who needs service
• Zone 1 0-10 km 45
• Zone 2 11-25 km 70
• Zone 3 26-50 km 140
• Zone 4 51-75 km 200
• Where the distance is greater than 75 km, hourly
  rate of 98 and actual and reasonable costs would
  apply

22
Proposal for offshore inspection of ships

• Charge ship operator actual travel costs and
  travel time to complete inspection at 98 per
  hour
• General surveillance and clearance of ship in
  port relating to refuse and meat lockers will
  continue to be Crown funded

23
Proposal for individual risk goods

• Risk goods imported in baggage to be charged
  actual and reasonable cost of treatment by MAF
  approved treatment supplier
• Costs of packaging returning goods also to be
  paid
• Charges will be paid before treatment commences
• Goods requiring on-site cleaning, (eg, dirty
  footwear, tents), at ports of first arrival or
  International Mail Centre will not be charged.

24
Proposed timeline

• Consultation completed by 24 May 06
• Sea container and biosecurity entry levies,
  revised charges for used vehicles, and revised
  hourly rates in place by 1 July 06, or as soon as
  possible thereafter
• Revised system for identification of organisms to
  be implemented from November 2006 if not sooner.