Cocaine abuse major threat to N.Z.—Customs

Press, 13 July 1985, Page 8

Cocaine abuse major threat to N.Z.—Customs

Parliamentary reporter Cocaine abuse has been identified by the Customs Department as “a major threat to New Zealand” and the subject of specific enforcement attention in its annual report to Parliament, tabled yesterday. It noted a big growth in drug and fraud activity at both regional and district ports but drew attention specifically to the rise in cocaine trafficking. In repsonse, the department has updated its prosecutions ability and will have greater powers of search when the bill is passed providing for the detention of persons suspected of having internally concealed illicit goods. Most border interceptions continued to be seizings at the Post Office, cannabis and its derivatives being the biggest categories. But the department reports that several joint police-customs

operations were successfully conducted against harder drugs. It says the quantity of heroin seized was the lowest for several years and that this reflects a short supply which is being met in the growing incidence of illegal manufacture of “homebake,” sometimes using illegally imported chemicals. An active external programme is being pursued to increase contact with overseas Intelligence counterparts mainly in the Pacific region and focused primarily on the development of strategies in high-risk border-enforcement areas such as South America. A second trend noted by the department last year was the increase in commercial fraud which the Minister of Customs, Mrs Shields, said was “costing the country dearly.” Revenue forgone was not the only issue; there was also the unfairness to the

majority of importers who abided by the rules, she said. The increase is related to the Closer Economic Relations agreement and to the detection of false claims of Australian origin to get imported goods in at preferential rates of duty. The value of saleable goods seized has shown "a dramatic increase over the last year,” the department says - from $1,562,000 to $7,360,000. It reports major seizings of motor-vehicles, tents, aircraft, earthmoving equipment, and electrical gear. Another growth area is imported indecent material, particularly videotapes. Customs officers viewed more than 14,000 of these in the year, almost double the previous year’s total, and seized 342. Eight new dumping complaints were received in the year and investigations were continued on five outstanding cases from the year before but most lapsed. The department says allegations are being made without evidence and without adequate research and that often complainants do not respond to request for information. In view of this apparent ignorance about the regulations, it points out that the two elements that must be present in any dumping case are price discrimina-

tion and material injury or threat thereof to a New Zealand industry. Customs once again showed a profit last year. The department cost $34,684,922 to adminster and returned $lOO revenue on every $1.27 spent.