New Zealand Customs’ 2023 Time Release Study. It’s evident that the customs service is dedicated to optimizing its processes to facilitate fast and effective international trade.
Time Release Study (TRS): The TRS methodology, as established by the World Customs Organization, serves as a valuable tool for assessing customs performance in clearing cargo. By measuring various events and procedures from arrival to release, customs can identify areas for improvement and enhance overall efficiency.
Supply Chain Dynamics: Recognizing that customs is just one component of the broader supply chain, New Zealand Customs acknowledges the interconnected nature of international trade. Efforts to streamline customs clearance contribute to ensuring that trade flows smoothly across borders.
Baseline Indicators: The TRS allows customs authorities to establish baseline indicators, assess their effectiveness, and track improvements over time. This data-driven approach is crucial for identifying successful practices and implementing changes that support economic growth.
Comprehensive Studies: The 2023 TRS is the fourth comprehensive study conducted by the New Zealand Customs Service. The previous studies in 2009 and 2022 provided benchmarks for assessing the effectiveness of customs clearance processes over the years.
Scope of the Study: The study focused on international cargo vessels and flights during a specific week in 2023. Data from a substantial number of import and export entries, involving both sea and air cargo, were analyzed. Collaboration with industry partners, including port and air freight companies, ensured a holistic assessment.
Efficient Clearance: Notably, the key results highlight the efficiency of customs clearance when entries are correctly reported. Import entries that are accurately reported are cleared quickly and, on average, before the arrival of the cargo vessel. Similarly, export entries that are correctly reported are cleared in advance of loading for export.
High Clearance Rates: An impressive statistic is that 98.82% of import and export entries for air and sea cargo were cleared within five minutes of lodgement. This rapid clearance rate underscores the effectiveness of customs processes, particularly when accurate reporting is ensured.
Accuracy is Key: The study emphasizes the importance of accurate reporting. When items are reported accurately, customs clearance can occur within a matter of seconds, further expediting the movement of goods across borders.
In summary, New Zealand Customs’ commitment to continuous improvement and data-driven decision-making is evident in the positive outcomes of the 2023 Time Release Study. The emphasis on accuracy, collaboration with industry partners, and high clearance rates contribute to a more efficient and responsive customs clearance process, ultimately supporting the facilitation of international trade.
Air Cargo
The additional information provides a more detailed picture of the efficiency of New Zealand Customs in handling air cargo.
Export Entry Efficiency: An impressive statistic is that 100% of export entries for air cargo were cleared before the departure time of the aircraft. This indicates a high level of efficiency in processing export documentation, ensuring that goods are ready for departure without delays.
Import Entry Efficiency: For import entries for air cargo, 78.3% were lodged and released by Customs before the arrival of the cargo into New Zealand. This indicates a proactive approach by Customs in processing import documentation ahead of the physical arrival of the goods.
Lead Time for Import Entries: On average, import entries for air cargo were lodged and released by Customs 16 hours and 47 minutes before the arrival of the aircraft. This reflects the relatively short flight times from overseas departure points to the landing of the aircraft in New Zealand. The advanced processing of import entries contributes to a smoother and faster clearance process upon arrival.
Efficiency Considerations: The shorter flight times play a significant role in the overall efficiency of air cargo clearance. With a shorter window between departure and arrival, customs processes need to be well-optimized to ensure that cargo is cleared promptly upon landing.
Proactive Customs Practices: The high percentage of import entries lodged and released before arrival indicates a proactive approach by New Zealand Customs. This approach helps in minimizing potential bottlenecks at the point of arrival, contributing to a faster and more streamlined customs clearance process.
Overall, these statistics underscore New Zealand Customs’ commitment to efficiency and timeliness, particularly in the context of air cargo. The advanced processing of import and export entries reflects a well-organized and responsive customs system, aligning with the goal of making international trade fast and effective.
Sea Cargo
The additional information provides further insights into the efficiency and performance of New Zealand Customs in clearing cargo, particularly in the context of sea cargo and the overall processing timeframe.
Efficiency in Sea Cargo Import Entries for FCLs:
- A significant 93.9% of sea cargo import entries for Full Container Loads (FCLs) were lodged and cleared by Customs before the arrival of the cargo into New Zealand. This indicates a high level of efficiency in processing sea cargo documentation in advance.
Advance Lodgement for Sea Cargo Export Entries:
- For sea cargo export entries involving FCLs, 87.7% were lodged at least 48 hours before loading on the vessel for export. This advance lodging contributes to the smooth movement of goods and ensures that export entries are processed well ahead of the vessel’s departure.
Performance Measures and Targets:
- In the 2022/23 reporting period, New Zealand Customs aimed to process 98% of trade transactions within 30 minutes. Due to improved timeliness, this target was exceeded, and the specified timeframe for the 2023/24 period has been further reduced to 5 minutes. This highlights the commitment to continuous improvement and efficiency in customs processing.
High Clearance Rates:
- During the study, an impressive 98.82% of all import and export entries lodged were cleared within 5 minutes. This high clearance rate demonstrates the effectiveness of Customs’ processes and their ability to facilitate the clearance of cargo promptly.
Processes in Place:
- The success in cargo clearance is attributed to various processes in place, including electronic reporting, business rules, risk management, alert systems, deferred payment schemes, post-entry auditing capability, and ongoing engagement with the importing and exporting industry at all levels in Customs.
Future Time Release Studies:
- Customs plans to conduct Time Release Studies every two years, with the next one scheduled for 2025. This commitment to regular assessments ensures a continuous focus on improvement and collaboration with port and cargo operators.
Overall, the information indicates that New Zealand Customs has implemented effective processes, embraced technology, and engaged with industry stakeholders to create an efficient and responsive customs clearance system. The commitment to regular assessments through Time Release Studies reflects a proactive approach to maintaining and enhancing the efficiency of cargo clearance processes.