Foreword

I intend to regularly review the activities of those public sector entities that collect the majority of the Government’s revenue. The New Zealand Customs Service was responsible for collecting about 15% of the Government’s total forecast revenue for 2006/07, so it is important that I regularly provide assurance to Parliament over the Service’s revenue systems and controls.

As part of this regular review, I conducted a performance audit that assessed the Service’s arrangements for collecting customs duties, excise, and Goods and Services Tax on imported goods.

Although I have made recommendations for improvement, I am satisfied that the Service’s arrangements for collecting customs revenue are sound, and that its information technology systems are performing effectively.

The Service does need to improve its performance measures to reflect the quality and outcome of its performance. This is a deficiency that the Service has in common with other entities I audit, and is one that I would like to see remedied. I am pleased that the Service had already identified this matter for serious attention.

I thank the Service’s staff for their willing help with this audit. I also thank the people in the industry who generously gave their time and views to my audit team.

K B Brady
Controller and Auditor-General

8 June 2007