Customs and Excise (Border Security) Amendment Bill

Customs and Excise (Border Security) Amendment Bill EXPLANATORY NOTE GENERAL POLICY STATEMENT The Customs and Excise (Border Security) Amendment Bill (the Bill ) amends the Customs and Excise Act 2018 (the principal Act ). The objective of the Bill is to strengthen the principal Act to enable the New Zealand Customs Service ( Customs ) to more effectively respond to the changing threat environment at the border, especially transnational, serious, and organised crime ( TSOC ). The Bill expands the purpose of the principal Act to explicitly include Customs’ role in protecting border security and contributing to national security. This will enable Customs officers to use border control powers to effectively detect border security and national security risks, and enable evidence and intelligence to be generated and shared to support domestic agencies to carry out their national security functions. Without this clarity, Customs is limited in its ability to effectively respond to those types of risks. Customs is expected to mitigate or respond to prevalent risks at the border. Customs’ existing powers and offences will be enhanced in order to more effectively prevent, detect, deter, and respond to border security threats. This includes powers relating to non-travellers and goods in Customs-controlled areas ( CCAs ), vehicles entering CCAs, vessels, and mass arrival events. The changes to the CCA regime shift this to a targeted and risk-based model through the new principles, a security management plan framework, CCA self-audits, and a greater suite of enforcement mechanisms. These changes are necessary to strengthen oversight, accountability, and compliance of CCAs and those who operate in a CCA. The Bill will provide an efficient and transparent way for Customs and supply chain participants to share information for the purpose of protecting border security. This will enable greater collaboration to strengthen supply chains, inform risk assessment and targeting, and combat TSOC threats. The Bill will also put in place a framework that authorises Customs officers to carry and use less-lethal defensive, restraint, and protective equipment. This will support Customs officers to effectively maintain control and de-escalate volatile situations in a safe and proportionate way, as Customs officers are increasingly operating in environments characterised by unpredictability, confrontation, and elevated risk. REGULATORY ANALYSIS SUMMARY The New Zealand Customs Service prepared regulatory analysis summaries on 24 June, 25 June, 10 July, and 3 October 2025 to help inform the main policy decisions taken by the Government relating to the contents of this Bill. Copies of the regulatory analysis summaries can be found at— https://www.customs.govt.nz/information-releases-and-legislation/legislation/regulatory-impact-analysis https://www.regulation.govt.nz/publications-and-resources/regulatory-analysis-summaries/ CONSISTENCY WITH PRINCIPLES OF RESPONSIBLE REGULATION The New Zealand Customs Service provided the following documents relating to its review of this Bill, and its process for developing it, for consistency with the principles of responsible regulation under the Regulatory Standards Act 2025: a consistency accountability statement on 3 September 2026: a summary of underpinning analysis on 2 September 2026. Copies of these documents can be found at— https://www.customs.govt.nz/information-releases-and-legislation/legislation/consistency-accountability-statements-cass-summary-of-underpinning-analysis-and-minister-maker-statement-of-reasons The New Zealand Customs Service considers that a statement from the responsible Minister under section 11(b) of the Regulatory Standards Act 2025 is not required for this Bill. CLAUSE BY CLAUSE ANALYSIS Clause 1 is the Title clause. Clause 2 provides that most of the Bill comes into force on the day after Royal assent. However, clauses 34 to 37 , which relate to less-lethal weapons, mechanical restraints, and body-worn cameras, come into force on a date set by Order in Council. If those clauses have not been brought into force within 12 months of Royal assent, they come into force automatically at that point. Clause 3 provides that this Bill amends the Customs and Excise Act 2018 (the principal Act ). AMENDMENTS TO PARTS 1 TO 3 Clause 4 adds 2 new purposes to section 3 of the principal Act. The existing purposes include levying and collecting duties, administering customs controls at the border, and setting out obligations of persons and goods crossing the border. The 2 new purposes are— the protection of border security; and facilitating Customs' contribution to the protection of New Zealand's national security. Clause 5 inserts new section 55A , which sets out 2 principles that underpin the regulatory regime for Customs-controlled areas under the principal Act. The principles are that— a licensee of a Customs-controlled area is responsible for the security of the premises and operations within the area, including by overseeing personnel and co-operating with Customs and other licensees; and all persons with functions relating to a Customs-controlled area are responsible for contributing to the overall security of the area when performing those functions, including by complying with any security management plan for the area. Clause 6 amends section 5, which contains definitions for the principal Act. The changes are to— add a cross-reference in the definitions of exportation and importation to new subsections (5) and (6) . Both definitions already extend to the transmission of prohibited goods (other than by broadcasting) across the New Zealand border. The cross-reference signals that new subsections (5) and (6) qualify what counts as transmission for those purposes; and insert new subsections (5) and (6) , which define the scope of transmission as it applies in the definitions of importation and exportation when those definitions refer to prohibited imports or exports. New subsection (5) provides that transmission includes providing access to a prohibited import or export even if it is not in fact accessed, but does not include merely providing some or all of the means by which a prohibited import or export is transmitted. New subsection (6) defines certain terms used in new subsection (5) . Clause 7 amends section 49, which allows the chief executive to require commercial transportation operators to provide passenger name record information to Customs. The amendments are as follows: the existing duty in section 49(6) to have regard to International Civil Aviation Organization standards and recommended practices when specifying required information and the way it is to be provided is limited so that it applies only if the relevant mode of transport is by air: a new duty is added for maritime transport. If the relevant mode of transport is by water, the chief executive must have regard to the standards and recommended practices for international maritime traffic established by the International Maritime Organization under the Convention on Facilitation of International Maritime Traffic when specifying the information required and the way it is to be provided. Clause 8 amends section 60, which sets out the fit and proper person test that the chief executive applies when determining whether to grant a licence for a Customs-controlled area. The changes are to— extend the fit and proper person test so that it applies not only to the applicant but also to a key person associated with the applicant; and add convictions under the Maritime Security Act 2004 to the list of convictions the chief executive may consider under section 60(1)(b); and replace the definition of the persons other than the applicant covered by the test (which was limited to the applicant's directors and senior managers) with a broader definition of key person. A key person includes any of the applicant's directors or senior managers, any person responsible for the day-to-day operation of the business in the area, any person responsible for security operations in relation to the area, any person engaged (other than as an employee of the applicant) to provide services to the applicant in the area, and any directors or senior managers of such a service provider. Clause 9 inserts new section 61A , which imposes an ongoing obligation on holders of licences for Customs-controlled areas to provide information to the chief executive. The main elements are that— a licensee must provide, in the way set out in the chief executive's rules, any information the chief executive reasonably requires to be satisfied that the licensee remains a fit and proper person to hold the licence; and the chief executive may make rules prescribing how that obligation is met, including by requiring licensees to make regular declarations or declarations on request. Clause 10 amends section 63, which allows the chief executive to vary or revoke, or impose new, terms, conditions, or restrictions on a Customs-controlled area licence. Currently, that power applies only to terms, conditions, or restrictions imposed under section 61(c). The amendment extends the power to the matters specified under section 61(a)(ii) and (iii) (the area for which the licence is granted and the purposes for which the area is licensed) so that the chief executive may vary those specified matters. Clause 11 amends section 69, which makes it an offence to fail to comply with a term, condition, or restriction of a licence for a Customs-controlled area. The main changes are to— add a new offence of knowingly or recklessly failing to comply with such a term, condition, or restriction. The existing offence in section 69(1) requires only a failure without reasonable excuse, with no fault element of knowledge or recklessness; and set higher maximum fines for the new offence: $50,000 for an individual and $250,000 in any other case, compared with the existing maximums of $5,000 for an individual and $25,000 for a body corporate. Clause 12 inserts new sections 73A to 73K . The new sections introduce 2 compliance tools (improvement notices and enforceable undertakings) available to the chief executive in relation to contraventions or likely contraventions of provisions of the principal Act or regulations that relate to a Customs-controlled area. Those new sections provide as follows: new section 73A gives the chief executive power to issue an improvement notice to a person who the chief executive reasonably believes is contravening, or is likely to contravene, a relevant provision. The notice may require the person to remedy the contravention, prevent a likely contravention, or remedy the things or activities causing or likely to cause a contravention. A person who is dissatisfied with a decision to issue a notice may appeal to a Customs Appeal Authority within 20 working days: new section 73B sets out what an improvement notice must contain, including the provision believed to be contravened, how it is being or is likely to be contravened, and a reasonable period for remedying the contravention: new section 73C requires a person to comply with an improvement notice within the period specified. Failure to comply is an offence carrying a fine of up to $50,000 for an individual or up to $250,000 in any other case. Failure to follow recommendations in a notice is not an offence: new section 73D permits the chief executive to extend the compliance period for an improvement notice by written notice, but only before the existing period has ended: new section 73E permits the chief executive to accept a written enforceable undertaking from a person in connection with a contravention or an alleged contravention of a relevant provision. Giving an undertaking does not constitute an admission of guilt: new section 73F requires the chief executive to give written notice of the decision to accept or reject an enforceable undertaking, together with reasons, to the person seeking to make the undertaking, and to publish the decision on an internet site: new section 73G provides that an enforceable undertaking takes effect and becomes enforceable when the person who made it is notified of the chief executive's decision to accept it, or at any later date specified by the chief executive: new section 73H prohibits a person from contravening an enforceable undertaking that is in force. Contravention is an offence carrying a fine of up to $50,000 for an individual or up to $250,000 in any other case: new section 73I allows the chief executive to apply to the District Court if a person contravenes an enforceable undertaking. The court may order the person to comply with the undertaking or make an order discharging the undertaking, and may also order payment of the costs of proceedings and the chief executive's reasonable future monitoring costs: new section 73J allows a person who has given an enforceable undertaking to withdraw or vary it, but only with the written agreement of the chief executive. An undertaking cannot be varied to relate to a different alleged contravention. The chief executive must publish notice of any withdrawal or variation on an internet site: new section 73K limits proceedings for a contravention or an alleged contravention while an enforceable undertaking is in effect in relation to that contravention. Clause 13 adds a new entry to the overview of Part 3 of the principal Act. The overview will now also describe subpart 2A of Part 3 as covering the preparation of security management plans in relation to existing or proposed Customs-controlled areas or Customs-approved areas for storing exports ( CASEs ). Clause 14 adds a definition of security management plan to section 5(1) of the principal Act, which contains definitions for the Act as a whole. The definition applies in relation to an existing or a proposed Customs-controlled area or CASE. A security management plan must— identify and assess security risks relating to the area or CASE; and set out procedures, minimum standards, and other requirements for managing and controlling those risks; and be made in the way prescribed by the chief executive's rules; and have had its draft approved by the chief executive under new section 73L(3)(a) . Clause 15 amends section 64 to add the following 4 new grounds on which the chief executive may revoke or suspend a licence for a Customs-controlled area: the licensee has not provided a draft security management plan required under section 73L(1)(b) within any time specified under section 73L(2) ; and the chief executive has rejected a draft security management plan provided by the licensee under section 73L(1)(b) ; and there has been a failure to comply with any procedures, minimum standards, or other requirements in a security management plan; and there has been a failure to comply with section 73N . Clause 16 inserts new subpart 2A into Part 3 of the principal Act, creating a framework for security management plans for Customs-controlled areas and CASEs. The new subpart contains new sections 73L to 73O , which provide as follows: new section 73L gives the chief executive the power to require a person who has applied for an area to be licensed as a Customs-controlled area or CASE, or an existing licensee who does not already have a security management plan, to provide a draft security management plan by a set deadline. The chief executive must then approve or reject the draft, and must not approve it unless satisfied that the plan would reasonably manage and control security risks in relation to the area or CASE. The chief executive must notify the applicant or licensee in writing of the decision. An applicant or a licensee has appeal rights under the new section; and new section 73M sets out how a security management plan may be varied or revoked; and new section 73N requires a licensee with a security management plan to carry out periodic audits of the plan's effectiveness and compliance, in the manner and within the time prescribed. Following an audit, the licensee must notify the chief executive of its completion, provide a report if requested, remedy any non-compliance identified, and provide a draft variation to address any issues identified; and new section 73O creates the following 4 categories of offences relating to security management plans: failing, without reasonable excuse, to ensure compliance with the procedures, minimum standards, or other requirements in a security management plan—carrying a fine on conviction of up to $10,000 for an individual or $50,000 for any other person: knowingly or recklessly failing to ensure such compliance—carrying a fine on conviction of up to $50,000 for an individual or $250,000 for any other person: failing to report to the chief executive conduct that the person knows or ought to know is likely to amount to non-compliance with the plan and is likely to materially increase security risks—carrying a fine on conviction of up to $20,000 for an individual or $100,000 for any other person. For this offence, references to the person include references to any of the person's directors or senior managers: failing, without reasonable excuse, to carry out an audit or to notify the chief executive following an audit as required by new section 73N(1) or (2)(a) —carrying a fine on conviction of up to $5,000 for an individual or $25,000 for any other person. Clause 17 amends section 85, which deals with the removal of goods from Customs-controlled areas. Currently, the chief executive may vary or revoke the conditions of a permit or an authorisation to remove goods granted under section 85(1)(b), but may not vary or revoke the permit or authorisation itself. The amendment extends this power so that the chief executive may also vary or revoke the permit or authorisation, in addition to varying or revoking its conditions. Clause 18 inserts new section 86A , which creates a new offence of enabling the unlawful removal of goods from a Customs-controlled area. The existing offence in section 86 applies to a person who directly delivers or removes goods in contravention of section 85 or any condition of a permit or other authorisation. The new offence targets a different category of person—one who has access to a Customs-controlled area, or who has access to an electronic or other system that allows them to control or affect the movement of goods out of such an area, and who knowingly enables, or ought reasonably to know they are enabling, goods subject to Customs control to be delivered or removed in contravention of section 85 or any condition of a permit or other authorisation. The penalties on conviction under new section 86A are,— for an individual, imprisonment for a term not exceeding 5 years, or a fine not exceeding $20,000; and in any other case, a fine not exceeding $100,000. Clause 19 amends the definitions in section 5 of— goods, to update a cross-reference; and importation to remove the reference to other indecent or obscene articles in paragraph (b) of the definition because such articles are already classified as goods, which are covered in paragraph (a) of the definition. Clause 20 amends section 95, which prohibits the importation of objectionable publications, other indecent or obscene articles, and goods for a dishonest purpose, and the exportation of objectionable publications, and goods for a dishonest purpose. The changes are to— remove the words all other from section 95(1)(b) to clarify that indecent or obscene articles are distinct from objectionable publications; and repeal section 95(5) and (6), which deems indecent or obscene articles to be goods for certain purposes even if they are not goods (because articles are always classified as goods). AMENDMENTS TO PARTS 4 TO 6 AND AMENDMENTS THAT AFFECT MORE THAN 1 PART Clause 21 amends section 176, which sets out goods that are forfeited to the Crown. The amendments— extend the forfeiture ground in section 176(1)(d)(ix) so that it covers not only offences relating to the importation or exportation of prohibited goods (under sections 388 to 391) but also offences relating to the livestreaming of objectionable content; and insert new subsection (2A) , which provides that, for the purposes of section 176(1)(d)(ix), goods in respect of which an offence has been committed under new section 390(1)(c) or (d) include any goods used for the purpose of committing that offence. This expressly includes anything used for the purpose of livestreaming or accessing the objectionable content. Clause 22 amends section 390, which creates offences relating to knowingly importing or exporting objectionable publications. The amendments extend the offences and related provisions to cover livestreaming objectionable content with an international element. The main changes are to— add 2 new offences: knowingly accessing objectionable content being livestreamed from outside New Zealand, and knowingly livestreaming objectionable content in a way that enables a person outside New Zealand to access it. These new offences carry the same penalties as the existing offences under section 390(2)—imprisonment for up to 14 years for an individual (increased from 10 years by clause 55 and Schedule 1 ), or a fine of up to $100,000 for a body corporate; and provide that a person does not commit either of the new livestreaming offences solely by reason of being the internet or electronic medium service provider, or the online content host, through whose infrastructure the content was accessed or livestreamed. Clause 23 amends section 392 of the principal Act, which provides that it is not an offence for a New Zealand publications official to import or export a publication in the course of their official duties. The amendments extend this exemption to cover the following 2 additional activities: accessing objectionable content that is being livestreamed from outside New Zealand, whether or not an overseas publications official is involved: livestreaming objectionable content in a way that enables an overseas publications official to access it. Clause 24 amends section 191, which sets out the craft to which Customs officers' boarding and searching powers apply. The amendments make the following 2 changes: a Customs officer may board and search a craft that is in New Zealand if the officer cannot reasonably ascertain whether the craft falls within any of the existing categories in section 191(1)(a) to (e). Previously, a craft had to fall within one of those categories, or the officer had to have reasonable cause to suspect the craft was carrying dutiable, uncustomed, prohibited, or forfeited goods or was involved in an offence under the principal Act, before the boarding and searching powers applied: the reasonable-suspicion ground in section 191(1)(f) is extended to cover craft that a Customs officer has reasonable cause to suspect have been, are, or are about to be involved in the commission of an offence under specified sections of the Crimes Act 1961 or an offence under the Terrorism Suppression Act 2002. Previously, that ground was limited to offences under the principal Act itself. Clause 25 adds a definition of mass arrival group to section 5 of the principal Act. The term takes its meaning from section 9A of the Immigration Act 2009. Clause 26 amends section 205, which sets out the persons who may be questioned by a Customs officer about goods and debt. The changes are to— extend the category of persons in section 205(1)(e) from those within a Customs-controlled area licensed for certain purposes to any person within a designated place; and repeal section 205(1)(f), which separately covers persons within a duty-free store. Clause 27 amends section 210, which provides for the search of persons by a Customs officer or constable. The amendments extend the grounds on which a Customs officer or constable may conduct a search. Currently, a search may be conducted if there is reasonable cause to suspect the person has dutiable, uncustomed, prohibited, or forfeited goods, related evidence, or evidence of a contravention of the principal Act on or about their person, or that they have a dangerous item posing an immediate threat. The amendment adds 2 further grounds: reasonable cause to suspect the person has on or about their person anything that is, or might be, evidence of an offence under specified sections of the Crimes Act 1961, or evidence of an offence under the Terrorism Suppression Act 2002. Clause 28 amends section 211, which allows a Customs officer or constable to search a person they have reasonable cause to believe has certain things hidden on or about their person. The amendments— change the term Customs place to designated place in section 211(1)(c), which describes one of the categories of person to whom the search power applies; and extend the grounds on which a search may be conducted to include things that are, or might be, evidence of the commission of an offence under specified sections of the Crimes Act 1961 or an offence under the Terrorism Suppression Act 2002. Clause 29 amends section 214, which allows a Customs officer or constable to seize things found on a person during a search if there is reasonable cause to suspect those things fall within specified categories. The amendments— extend the application of section 214 to include new section 221B (relating to a search of a member of a mass arrival group); and adds 2 new categories of seizable items (a thing that is, or might be, evidence of an offence under specified sections of the Crimes Act 1961 and a thing that is, or might be, evidence of an offence under the Terrorism Suppression Act 2002). Clause 30 amends section 215, which gives Customs officers powers to question, detain, direct, and remove unauthorised persons in certain Customs-controlled areas. Currently, those powers apply only in Customs-controlled areas licensed for the purposes described in section 56(1)(c) to (f). Removing that limitation means the powers in section 215 will apply in all Customs-controlled areas, not only those licensed for those particular purposes. Clause 31 amends section 218, which gives Customs officers the power to question and demand documents from certain persons about their arrival or departure. Currently, that power applies if a Customs officer has reasonable cause to suspect a person has arrived without reporting to Customs or is attempting to depart from a non-Customs place without authorisation. The amendment adds a third trigger: the power also applies if a Customs officer has reasonable cause to suspect that a person is a member of a mass arrival group. Clause 32 inserts new sections 221A and 221B . New section 221A gives Customs officers the power to detain a person who is a member of a mass arrival group. Detention is permitted for any of the following 3 purposes: if the person arrived on a craft that landed outside a Customs place, keeping the person near the craft; and transporting the person to a place where their arrival can be processed under the principal Act, the Immigration Act 2009, and the Biosecurity Act 1993 (including holding the person at an interim location while a suitable processing place becomes available); and keeping the person in a place where that processing can occur. Detention may last as long as is reasonably necessary to complete processing under those 3 Acts. New section 221B gives Customs officers and constables the power to search a person who is detained under new section 221A and who has not already been searched since arriving in New Zealand. The powers are as follows: a preliminary search (as defined in section 210(6) of the principal Act) may be conducted: a rub-down search (as defined in section 85(2) of the Search and Surveillance Act 2012) may be conducted, with sections 86 and 87 of that Act also applying: a search may be conducted if a Customs officer or constable has reasonable cause to suspect the person has hidden on or about their person dutiable, uncustomed, prohibited, or forfeited goods, evidence relating to such goods, evidence of a contravention of the principal Act, evidence of specified offences under the Crimes Act 1961, evidence of an offence under the Terrorism Suppression Act 2002, or a dangerous item. Part 4 of the Search and Surveillance Act 2012 (except subpart 3) applies to the rub-down search power and the search power, but certain provisions of that Part do not apply in relation to forfeited goods. The section does not limit any existing search powers. Clause 33 amends section 222, which gives Customs officers a right of entry to Customs-controlled areas, CASEs, and places that must be passed through to reach those areas. The amendment adds a power of entry that applies after a place has ceased to hold that status and on the following conditions: a Customs officer may enter a place that was a Customs-controlled area, CASE, or necessary passageway within the last 3 months; and the officer must have reasonable cause to suspect that an offence under the principal Act has been committed, is being committed, or is about to be committed in that place or that dutiable, uncustomed, prohibited, or forfeited goods are present there. Clause 34 adds a definition of less-lethal weapon to section 5 of the principal Act. Under the new definition, a less-lethal weapon is any weapon designed to temporarily disable or to incapacitate a person against whom it is used. Clause 35 inserts 3 new sections after section 226, which deals with the use of dogs and other aids during searches. The new sections provide as follows: new section 226A permits a Customs officer to use a less-lethal weapon of a kind prescribed for use, but only if the officer is already authorised by legislation to use force and only if use of the weapon is necessary. The section does not limit section 13(3)(b) of the Arms Act 2026: new section 226B permits a Customs officer to use a mechanical restraint of a kind prescribed for use, but only if the officer is already authorised by legislation to use force and only if use of the restraint is necessary. A mechanical restraint must be used in a manner that minimises harm and discomfort to the person being restrained: new section 226C permits a Customs officer carrying out duties under the principal Act or any other legislation to use a body-worn camera affixed to their person to record sound and visual images. The permitted purposes are to promote de-escalation and reduce risks to Customs officers and members of the public, preserve evidence, and provide material for training Customs officers. Any use of devices in accordance with those new sections is subject to prescribed conditions or restrictions. The new sections do not limit the ability of Police employees or members of the Armed Forces to use devices they are otherwise permitted to use when exercising powers or performing functions under the principal Act. Clause 36 inserts 3 new sections after section 412 of the principal Act, each one setting out a type of regulation that may be made. The main changes are to— enable regulations to prescribe kinds of less-lethal weapons for use by Customs officers and conditions or restrictions on their use ( new section 412A ); and enable regulations to prescribe kinds of mechanical restraints for use by Customs officers and conditions or restrictions on their use ( new section 412B ); and enable regulations to regulate the use of body-worn cameras by Customs officers and the sound and visual images those cameras record ( new section 412C ). Clause 37 replaces section 437, which currently requires any Customs officer who uses force to give the chief executive a written report within 5 working days. The clause replaces that provision with 3 new sections that make the following changes: new section 437 requires Customs to include in its annual report the total number of occasions each type of less-lethal weapon or mechanical restraint was used in the year, broken down by category. Occasions on which a Police employee or a member of the Armed Forces used a less-lethal weapon or mechanical restraint in exercising a power or performing a function under the principal Act are excluded from that count; and new section 437A sets out the complaints process available to a person against whom a less-lethal weapon or mechanical restraint is used; and new section 437B sets out how an investigation under new section 437A is to be conducted. Clause 38 amends section 227, which gives Customs officers the power to examine goods. Currently, that power applies to goods that are subject to the control of Customs, or that a Customs officer has reasonable cause to suspect are subject to the control of Customs. The amendment adds a third category: goods that are in a Customs-controlled area. Clause 39 amends section 228, which provides powers to search data in electronic devices subject to the control of Customs. The main changes are to— extend the section to apply to any electronic device that is in a Customs-controlled area, in addition to devices that are subject to, or reasonably suspected to be subject to, the control of Customs; and expand the definition of relevant offending (the category of offending that triggers the search powers) to include certain offences under the Crimes Act 1961 and offences under the Terrorism Suppression Act 2002. Clause 40 amends section 231(1)(a), which sets out one of the categories of vehicle to which Customs officers' stop-and-search powers apply. Currently, those powers apply under paragraph (a) only to a vehicle that is in a Customs place. The amendment extends this to cover a vehicle that is in or is attempting to enter a Customs place or Customs-controlled area, provided the Customs officer has the requisite reasonable cause to suspect. Clause 41 amends section 242, which gives Customs officers the power to seize and detain goods or documents that are evidence of an offence under specified enactments. The changes are to— extend the list of Crimes Act 1961 offences in section 242(1)(b)(ii) for which goods or documents may be seized. The current provision refers only to section 98C of the Crimes Act 1961; the amended provision adds sections 78, 78AAA, 78AAB, 78AA, 78A, 98A, 98D, and 243 of that Act as additional offences; and add the Terrorism Suppression Act 2002 as a further enactment under section 242(1)(b), so that goods or documents that are evidence of an offence under that Act may also be seized and detained; and update section 242(4)(a) so that, if a Customs officer suspects that the new Terrorism Suppression Act 2002 ground applies, the seized goods or documents must be delivered into the custody of a constable, which is consistent with the existing treatment of certain other offences in that paragraph. Clause 42 amends section 257(1)(c), which sets out when a Customs officer may remove a document obtained during an inspection, audit, or examination in order to copy it. Currently, the officer must have reasonable cause to believe the document is evidence of an offence. The amendment lowers this threshold so that the officer need only have reasonable cause to suspect that the document is evidence of an offence. Clause 43 similarly lowers the threshold from believe to suspect in section 258(1), which allows a Customs officer to seize and retain documents or goods obtained during an inspection, audit, or examination. Clause 44 amends section 259(3), which deems unlawful travel documents to be prohibited goods for the purposes of specified sections of the principal Act. The amendment adds new section 221B to the specified sections, so that a Customs officer or constable may search a person under that section if they have reasonable cause to suspect that the person has an unlawful travel document hidden on or about their person. Clause 45 amends section 263, which sets out the circumstances in which a Customs officer may arrest a person without a warrant. The amendment adds a further ground for warrantless arrest: a Customs officer may arrest a person who the officer has reasonable cause to suspect has committed an offence under section 98D of the Crimes Act 1961 (which relates to trafficking in persons). Clause 46 replaces section 265, which defines controlled item for the purposes of sections 266 and 267. The replacement— adds a definition of carrier (a person engaged in carrying goods, including mail, for hire or reward by land, water, or air), which was not previously defined in section 265; and adds an indecent or obscene article as a new category of controlled item, alongside the existing categories of objectionable publications, goods designed, manufactured, or adapted to facilitate dishonesty offences, and tobacco. Clause 47 makes a technical amendment to section 266 resulting from the amended definition of controlled item. Clause 48 amends section 267, which provides protection from criminal and civil liability for constables, Customs officers, and officers of relevant law enforcement agencies who participate in an international controlled delivery. The amendment extends that protection to carriers (including their officers and employees) for anything done in the course of their duties in respect of an international controlled delivery. Unlike the existing protection in section 267(1) relating to constables, Customs officers, and officers of relevant law enforcement agencies, the protection for carriers under new section 267(1A) is not qualified by requirements of good faith and reasonable care. Clause 49 replaces section 278, which sets out which provisions apply to a CASE licence. The current section applies sections 63 to 65 to a CASE licence (with a modification to section 64(1)(c)). The replacement extends the range of provisions that apply to a CASE licence to also include— new section 61A ; and new sections 73A to 73K . Clause 50 inserts new section 317A , which creates a new framework for the exchange of supply chain information between the chief executive of Customs and supply chain participants. This is distinct from the existing section 317, which covers the disclosure of information to private sector organisations but is limited to information that would already be required to be released under the Official Information Act 1982. The main features of new section 317A are that— the chief executive of Customs may enter into a written agreement with a supply chain participant for the exchange of supply chain information; and before entering into or varying an agreement that involves the disclosure of personal information, the chief executive must consult the Privacy Commissioner (and may consult the Chief Ombudsman and affected-interest representatives), and must have regard to any comments received. This mirrors the consultation requirement in section 317 but applies specifically where personal information is involved, rather than to all agreements; and a written agreement must specify various information, including the type or class of supply chain information to be disclosed, how it is to be used, the form of disclosure, safeguards for personal and commercially sensitive information, and other matters; and the Privacy Commissioner may, at intervals of not less than 12 months, require the chief executive to review an agreement with a supply chain participant who is outside New Zealand and the arrangements for disclosure under it, and the chief executive must carry out that review and report the findings to the Privacy Commissioner as soon as practicable. Clause 51 amends section 320, which provides that section 318 does not limit or prevent the disclosure of information authorised or required under a treaty, agreement, or arrangement concluded by the Government of New Zealand. The amendment extends this provision so that it also applies to new section 317A . Clause 52 inserts new section 321A , which sets publication requirements for agreements entered into under new section 317A . Under existing section 321, agreements entered into under sections 315, 316, 317, and 318 must be published in full on a Customs-maintained website, subject to Official Information Act 1982 withholding grounds. New section 321A applies a different publication regime to section 317A agreements. Rather than requiring publication of the full agreement, it requires Customs to publish only 3 specified items of information: the date the agreement (or any variation) was entered into, the identity of the supply chain participant, and the particular type or class of supply chain information to be disclosed under the agreement. Publication of any of those items is not required if the information could be withheld under the Official Information Act 1982. Clause 53 amends section 398(4)(a) of the principal Act, which lists the offences to which section 25 of the Criminal Procedure Act 2011 applies (governing the time limit for filing a charging document). The amendment adds offences under sections 86, 364, 368, and 376, and new sections 73C, 73H, and 86A , of the principal Act to that list. The practical effect is that the standard time limit under section 25 of the Criminal Procedure Act 2011 applies to proceedings for those newly listed offences, rather than the 4-year time limit in section 398(6) that otherwise applies to offences under the principal Act. Clause 54 inserts new section 441A , which provides Customs officers with immunity from certain road rules when conducting visual surveillance from a vehicle on a public road. The immunity applies in 2 situations. The first is if the Customs officer is carrying out visual surveillance from a vehicle on a public road, considers that the action is reasonably necessary to continue that surveillance, and takes all reasonable steps to avoid causing injury or damage. The second is if the officer is being trained to carry out such surveillance under the direct supervision of a suitably qualified trainer, considers the action reasonably necessary to follow the trainer's instructions, and takes all reasonable steps to avoid causing injury or damage. Clause 55 gives effect to the penalty amendments in Schedule 1 . Clause 56 gives effect to the consequential amendments to other legislation set out in Schedule 2 . Schedule 1 amends penalties in the principal Act. Schedule 2 makes consequential amendments to other Acts arising from the changes made by this Bill. The Parliament of New Zealand enacts as follows: 1 Title This Act is the Customs and Excise (Border Security) Amendment Act 2026 . 2 Commencement This Act comes into force on the day after Royal assent. However, sections 34 to 37 (which relate to less-lethal weapons, mechanical restraints, and body-worn cameras) come into force on a single date set by Order in Council. If sections 34 to 37 have not come into force 12 months after Royal assent, they come into force then. An Order in Council made under this section is secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements). 3 Principal Act This Act amends the Customs and Excise Act 2018. 4 Section 3 amended (Purposes of Act) After section 3(d), insert: da to provide for the protection of border security: db to facilitate Customs’ contribution to the protection of New Zealand’s national security: 5 New section 55A inserted (Principles relating to Customs-controlled areas) After the cross-heading above section 56, insert: 55A Principles relating to Customs-controlled areas The regulatory regime established by this Act in relation to Customs-controlled areas reflects the following principles: a a licensee of a Customs-controlled area has a responsibility to ensure the security of premises and operations within the area, including by ensuring appropriate oversight of personnel and co-operation with Customs and other licensees: b all persons who have functions in relation to a Customs-controlled area have a responsibility to contribute to the overall security of the area when performing their functions, including by ensuring that they perform their functions in accordance with any security management plan for the area. 6 Section 5 amended (Definitions for Act) In section 5(1), definition of exportation , paragraph (b), after from New Zealand to a point outside New Zealand , insert (but see subsections (5) and (6) ) . In section 5(1), definition of importation , paragraph (b), after into New Zealand from a point outside New Zealand , insert (but see subsections (5) and (6) ) . After section 5(4), insert: 5 In the definitions of importation and exportation, transmission , in relation to a prohibited import or export,— a includes providing access to the prohibited import or export, even if it is not in fact accessed (for example, making available digital content that is or includes the prohibited import or export by means of a public data network); but b does not include facilitating access to the prohibited import or export by providing only some or all of the means necessary for its transmission (for example, a network operator or service provider providing only a network or facility through which the prohibited import or export is transmitted). 6 In subsection (5) , digital content , network operator , public data network , and service provider have the same meanings as in section 122A of the Films, Videos, and Publications Classification Act 1993. 7 Section 49 amended (Chief executive may require commercial transportation operator to provide PNR information) In section 49(6), replace The chief executive with If the relevant mode of transport is by air, the chief executive . After section 49(6), insert: 7 If the relevant mode of transport is by water, the chief executive must have regard to the standards and recommended practices for the conduct of international maritime traffic established by the International Maritime Organization under the Convention on Facilitation of International Maritime Traffic when specifying— a the information required to be provided by the commercial transportation operator; and b the way in which that information is to be provided. 8 Section 60 amended (Fit and proper person test) In section 60(1)(a) to (e), after applicant , insert or a key person . In section 60(1)(b), after the Wine Act 2003, , insert the Maritime Security Act 2004, . Replace section 60(2) with: 2 In this section, key person means— a any of the applicant’s directors: b any of the applicant’s senior managers: c any person who will be responsible for the day-to-day operation of the business carried on in the area: d any person who will be responsible for security operations in relation to the area: e any person who is engaged (otherwise than as an employee of the applicant) to provide services to the applicant in the area: f any directors or senior managers of a person referred to in paragraph (e) . 9 New section 61A inserted (Assurance that licensee remains fit and proper) After section 61, insert: 61A Assurance that licensee remains fit and proper 1 A licensee must, in the way prescribed by the chief executive’s rules, provide to the chief executive any information reasonably required by the chief executive to ensure that the licensee remains a fit and proper person to hold the licence. 2 Rules made for the purposes of subsection (1) may, without limitation, prescribe— a requirements for licensees to make regular declarations: b requirements for licensees to make declarations on request from the chief executive. 10 Section 63 amended (Variation of terms, conditions, or restrictions) Replace the heading to section 63 with Variation of licence . After section 63(1)(b), insert: c vary a matter specified under section 61(a)(ii) or (iii). 11 Section 69 amended (Offence in relation to failure to comply with term, condition, or restriction of licence) In section 69(2), replace this section with subsection (1) . After section 69(2), insert: 3 A person commits an offence if the person knowingly or recklessly fails to comply with a term, condition, or restriction imposed under section 61(c) in relation to a licence for a Customs-controlled area. 4 A person who commits an offence under subsection (3) is liable on conviction,— a in the case of an individual, to a fine not exceeding $50,000: b in any other case, to a fine not exceeding $250,000. 12 New sections 73A to 73K inserted After section 73, insert: 73A Power to issue improvement notices 1 This section applies if the chief executive reasonably believes that a person— a is contravening any provision of this Act or regulations that relates to a Customs-controlled area; or b is likely to contravene a provision of this Act or regulations that relates to a Customs-controlled area. 2 The chief executive may issue an improvement notice requiring the person to— a remedy the contravention; or b prevent a likely contravention from occurring; or c remedy the things or activities causing the contravention or likely to cause a contravention. 3 A person who is dissatisfied with a decision of the chief executive to issue an improvement notice may, within 20 working days after the date on which the improvement notice is issued, appeal to a Customs Appeal Authority against that decision. 73B Content of improvement notices 1 An improvement notice must state— a that the chief executive believes the person— i is contravening a provision of this Act or regulations that relates to a Customs-controlled area; or ii is likely to contravene a provision of this Act or regulations that relates to a Customs-controlled area; and b the provision the chief executive believes is being, or is likely to be, contravened; and c briefly, how the chief executive believes the provision is being, or is likely to be, contravened; and d a reasonable period within which the person is required to remedy— i the contravention or likely contravention; or ii the things or activities causing the contravention or likely to cause a contravention. 2 An improvement notice may include recommendations concerning— a the measures that could be taken to remedy the contravention, or prevent the likely contravention, to which the notice relates: b the things or activities causing the contravention, or likely to cause a contravention, to which the notice relates. 73C Compliance with improvement notices 1 A person who has been issued with an improvement notice must comply with the notice within the period specified in the notice. 2 A person who breaches subsection (1) commits an offence and is liable on conviction,— a in the case of an individual, to a fine not exceeding $50,000: b in any other case, to a fine not exceeding $250,000. 3 It is not an offence to fail to comply with recommendations in an improvement notice. 73D Extension of time for compliance with improvement notices 1 This section applies if a person has been issued with an improvement notice. 2 The chief executive may, by written notice given to the person, extend the compliance period for the improvement notice. 3 However, the chief executive may extend the compliance period only if the period has not ended. 4 In this section, compliance period — a means the period stated in the improvement notice under section 73B(1)(d) ; and b includes any extension of that period under this section. 73E Chief executive may accept enforceable undertakings 1 The chief executive may accept an enforceable undertaking given by a person in writing in connection with a matter relating to a contravention or an alleged contravention by the person of any provision of this Act or regulations that relates to a Customs-controlled area. 2 However, the chief executive may refuse to accept the undertaking if it does not provide for the reimbursement of any costs and expenses of the chief executive incurred in relation to— a the undertaking; and b the contravention or alleged contravention. 3 Subsection (2) does not limit the discretion of the chief executive to refuse to accept an enforceable undertaking. 4 The giving of an enforceable undertaking does not constitute an admission of guilt by the person giving it in relation to the contravention or alleged contravention to which the undertaking relates. 5 To avoid doubt, the costs and expenses of the chief executive include any costs or expenses incurred in relation to an employee, an agent, or a contractor of Customs. 73F Notice of decision and reasons for decision 1 The chief executive must give the person seeking to make an enforceable undertaking written notice of— a the chief executive’s decision to accept or reject the undertaking; and b the reasons for the decision. 2 The chief executive must publish, on an Internet site maintained by or on behalf of the chief executive, notice of a decision to accept an enforceable undertaking and the reasons for the decision. 73G When enforceable undertaking is enforceable An enforceable undertaking takes effect and becomes enforceable when the chief executive’s decision to accept the undertaking is given to the person who made the undertaking, or at any later date specified by the chief executive. 73H Contravention of enforceable undertaking 1 A person must not contravene an enforceable undertaking given by the person that is in force. 2 A person who breaches subsection (1) commits an offence and is liable on conviction,— a in the case of an individual, to a fine not exceeding $50,000: b in any other case, to a fine not exceeding $250,000. 73I Court orders if enforceable undertaking contravened 1 The chief executive may apply to the District Court for an order if a person contravenes an enforceable undertaking. 2 If the court is satisfied that the person who made the enforceable undertaking has contravened the undertaking, the court may make either or both of the following orders: a an order directing the person to comply with the undertaking: b an order discharging the undertaking. 3 In addition to the orders referred to in subsection (2) , the court may make any other order that the court considers appropriate in the circumstances, including orders directing the person to pay to the chief executive— a the costs of the proceedings; and b the reasonable costs of the chief executive in monitoring compliance with the enforceable undertaking in the future. 4 This section does not prevent proceedings being brought for the contravention or alleged contravention of the legislation to which the enforceable undertaking relates. 73J Withdrawal or variation of enforceable undertaking 1 A person who has given an enforceable undertaking may at any time, with the written agreement of the chief executive,— a withdraw the undertaking; or b vary the undertaking. 2 However, the provisions of the undertaking cannot be varied to provide for a different contravention or alleged contravention of this Act or regulations. 3 The chief executive must publish on an Internet site maintained by or on behalf of the chief executive notice of the withdrawal or variation of an enforceable undertaking. 73K Proceedings for alleged contravention 1 Subject to this section, no proceedings (whether civil or criminal) for a contravention or an alleged contravention of this Act or regulations may be brought against a person if an enforceable undertaking is in effect in relation to that contravention. 2 No proceedings may be brought for a contravention or an alleged contravention of this Act or regulations against a person who— a has made an enforceable undertaking in relation to that contravention; and b has completely discharged the enforceable undertaking. 3 The chief executive may accept an enforceable undertaking in relation to a contravention or an alleged contravention before proceedings in relation to that contravention have been completed. 4 If the chief executive accepts an enforceable undertaking before the proceedings are completed, the chief executive must take all reasonable steps to have the proceedings discontinued as soon as practicable. 13 Section 4 amended (Overview of Act) After section 4(4)(b), insert: ba the preparation of security management plans in relation to existing or proposed Customs-controlled areas or CASEs ( subpart 2A ): 14 Section 5 amended (Definitions for Act) In section 5(1), insert in its appropriate alphabetical order: security management plan , in relation to an existing or a proposed Customs-controlled area or CASE, means a plan that— a identifies and assesses any security risks in relation to the Customs-controlled area or CASE; and b sets out procedures, minimum standards, and other requirements for how to reasonably manage and control those risks; and c is made in the way prescribed by the chief executive’s rules; and d has had its draft approved by the chief executive under section 73L(3)(a) 15 Section 64 amended (Revocation or suspension of licence) After section 64(1)(a), insert: aa the licensee has not provided a draft security management plan required under section 73L(1)(b) within any time specified under section 73L(2) ; or ab the chief executive has rejected a draft security management plan provided by the licensee under section 73L(1)(b) ; or ac there has been a failure to comply with any procedures, minimum standards, or other requirements in a security management plan; or ad there has been a failure to comply with section 73N ; or 16 New subpart 2A of Part 3 inserted After section 73K (as inserted by section 12 of this Act), insert: 2A Security management plans 73L Chief executive may require security management plan 1 The chief executive may— a require a person to provide the chief executive with a draft security management plan in relation to an area that the person has applied to be licensed as a Customs-controlled area under section 57 or as a CASE under section 277: b require a licensee of a Customs-controlled area or CASE who does not have a security management plan to provide the chief executive with a draft security management plan in relation to the Customs-controlled area or CASE. 2 The chief executive may specify a time by which a requirement under subsection (1) must be complied with. 3 If a draft security management plan is provided to the chief executive in accordance with a requirement under subsection (1) , the chief executive must— a approve the draft security management plan; or b reject the draft security management plan. 4 The chief executive must not approve a draft security management plan unless the chief executive is satisfied that the plan is effective for the purpose of reasonably managing and controlling any security risks in relation to the Customs-controlled area or CASE. 5 The chief executive must notify an applicant or a licensee in writing of any decision made by the chief executive under this section. 6 An applicant or a licensee who is dissatisfied with a decision of the chief executive under subsection (3) may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision. 73M Variation and revocation of security management plan 1 A licensee of a Customs-controlled area or CASE may vary its security management plan if— a the variation is prescribed under the chief executive’s rules as a permitted variation; or b the draft of the variation is approved by the chief executive under section 73N(3)(a) . 2 The chief executive may, by notice in writing to the licensee, vary or revoke the licensee’s security management plan. 3 A licensee who is dissatisfied with a decision of the chief executive under this section may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision. 73N Audit of security management plan 1 A licensee with a security management plan must, in the way prescribed by the chief executive’s rules and within the time prescribed by regulations, carry out an audit of— a the effectiveness of, and compliance with, the security management plan; and b any other matters relating to the plan that are prescribed by the chief executive’s rules. 2 Following the completion of an audit under subsection (1) , the licensee must,— a in the way prescribed by the chief executive’s rules and within the time prescribed by regulations,— i notify the chief executive that the audit is completed; and ii if requested by the chief executive, provide a report on the findings of the audit to the chief executive; and b within a reasonable time,— i remedy any non-compliance identified in the audit; and ii provide the chief executive with a draft of any variation to the plan for the purpose of addressing any issue that has been identified in the audit. 3 If a draft variation is provided to the chief executive in accordance with subsection (2)(b)(ii) , the chief executive must— a approve the draft variation; or b reject the draft variation. 4 The chief executive must not approve a draft variation unless the chief executive is satisfied that the security management plan, as varied, would be effective for the purpose of reasonably managing and controlling any security risks in relation to the Customs-controlled area or CASE. 5 The chief executive must notify the licensee in writing of any decision made by the chief executive under this section. 6 A licensee who is dissatisfied with a decision of the chief executive under subsection (3) may, within 20 working days after the date on which notice of the decision is given, appeal to a Customs Appeal Authority against that decision. 73O Offences in relation to security management plans Failure to comply with plan 1 A person commits an offence if the person, without reasonable excuse, fails to ensure compliance with any procedures, minimum standards, or other requirements in the person’s security management plan. 2 A person who commits an offence under subsection (1) is liable on conviction,— a in the case of an individual, to a fine not exceeding $10,000: b in any other case, to a fine not exceeding $50,000. Knowingly or recklessly failing to comply with plan 3 A person commits an offence if the person knowingly or recklessly fails to ensure compliance with any procedures, minimum standards, or other requirements in the person’s security management plan. 4 A person who commits an offence under subsection (3) is liable on conviction,— a in the case of an individual, to a fine not exceeding $50,000: b in any other case, to a fine not exceeding $250,000. Failure to report material non-compliance 5 A person commits an offence if— a the person knows, or ought to know, that— i conduct has taken place that is likely to amount to a failure to comply with any procedures, minimum standards, or other requirements in the person’s security management plan; and ii that failure to comply is likely to materially increase the security risks of the Customs-controlled area or CASE to which the security management plan relates; and b the person fails to report the conduct to the chief executive in the way prescribed by the chief executive’s rules. 6 A person who commits an offence under subsection (5) is liable on conviction,— a in the case of an individual, to a fine not exceeding $20,000: b in any other case, to a fine not exceeding $100,000. 7 In subsection (5) , references to the person include references to any of the person’s directors or senior managers as if the security management plan belonged to them. Failure to comply with audit requirements 8 A person commits an offence if the person, without reasonable excuse, fails to comply with section 73N(1) or (2)(a) . 9 A person who commits an offence under subsection (8) is liable on conviction,— a in the case of an individual, to a fine not exceeding $5,000: b in any other case, to a fine not exceeding $25,000. 17 Section 85 amended (Removal of goods from Customs-controlled areas) Replace section 85(4) with: 4 The chief executive may, by notice in writing,— a vary or revoke a permit or other authorisation granted under subsection (1)(b); or b vary or revoke the conditions of a permit or other authorisation granted under subsection (1)(b). 18 New section 86A inserted (Enabling unlawful removal of goods from Customs-controlled areas) After section 86, insert: 86A Enabling unlawful removal of goods from Customs-controlled areas 1 This section applies to a person who— a has access to a Customs-controlled area; or b has access to an electronic or other system that allows them to control or affect the movement of goods out of a Customs-controlled area. 2 A person to whom this section applies commits an offence if the person knowingly enables, or ought reasonably to know that they are enabling, goods subject to the control of Customs to be delivered or removed from a Customs-controlled area in contravention of— a section 85; or b any condition of a permit or other authorisation granted under section 85(1)(b). 3 A person who commits an offence under this section is liable on conviction,— a in the case of an individual, to— i imprisonment for a term not exceeding 5 years; or ii a fine not exceeding $20,000: b in any other case, to a fine not exceeding $100,000. 19 Section 5 amended (Definitions for Act) In section 5(1),— a definition of goods , replace sections 95(3) to (6) with sections 95(3) and (4) ; and b definition of importation , paragraph (b), delete or other indecent or obscene articles . 20 Section 95 amended (Prohibition on importation and exportation of objectionable publications, other indecent or obscene articles, and goods for dishonest purpose) Replace the heading to section 95 with Prohibitions relating to objectionable publications, indecent or obscene articles, and goods for dishonest purpose . In section 95(1)(b), delete all other . Repeal section 95(5) and (6). 21 Section 176 amended (Goods forfeited) In section 176(1)(d)(ix), after importation or exportation of prohibited goods , insert and livestreaming of objectionable content . After section 176(2), insert: 2A For the purposes of subsection (1)(d)(ix), goods in respect of which an offence has been committed under section 390(1)(c) or (d) include any goods used for the purpose of committing the offence (including, without limitation, any thing used for the purpose of livestreaming or accessing the objectionable content). 22 Section 390 amended (Offences in relation to knowingly importing or exporting objectionable publications) In the heading to section 390, replace importing or exporting objectionable publications with importing, exporting, or livestreaming objectionable material . After section 390(1)(b), insert: c is knowingly concerned in accessing objectionable content that is being livestreamed from a point outside New Zealand; or d is knowingly concerned in livestreaming objectionable content in a manner that enables a person who is outside New Zealand to access the content. After section 390(2), insert: 2A A person does not commit an offence under subsection (1)(c) or (d) by reason only that they are— a the service provider who provided access to the Internet or other electronic medium on which the content was livestreamed to the person who accessed or livestreamed the content; or b the online content host who has control over the part of the electronic retrieval system, such as an Internet site or an online application or similar, on which the content was accessed or livestreamed. After section 390(4), insert: 5 In this section, livestream , objectionable , online content host , and service provider have the same meanings as in section 132C(4) of that Act. 23 Section 392 amended (Publications imported or exported in course of official duties) In the heading to section 392, replace Publications imported or exported with Importing, exporting, or livestreaming . In section 392(1)(b), replace official with publications official . After section 392(1)(b), insert: c access objectionable content that is being livestreamed from a point outside New Zealand (whether with the involvement of an overseas publications official or not): d livestream objectionable content in a manner that enables an overseas publications official to access the content. 24 Section 191 amended (Boarding and searching craft) After section 191(1)(e), insert: ea a craft that is in New Zealand, if a Customs officer cannot reasonably ascertain whether or not it falls within any of paragraphs (a) to (e): After section 191(1)(f)(ii), insert: iii has been, is, or is about to be involved in the commission of an offence under section 78, 78AAA, 78AAB, 78AA, 78A, 98A, or 243 of the Crimes Act 1961; or iv has been, is, or is about to be involved in the commission of an offence under the Terrorism Suppression Act 2002. 25 Section 5 amended (Definitions for Act) In section 5(1), insert in its appropriate alphabetical order: mass arrival group has the same meaning as in section 9A of the Immigration Act 2009 26 Section 205 amended (Questioning persons about goods and debt) In section 205(1)(e), replace Customs-controlled area that is licensed for any of the purposes referred to in section 56(1)(c) to (f) with designated place . Repeal section 205(1)(f). 27 Section 210 amended (Search of persons) After section 210(3)(a)(iii), insert: iv any thing that is, or might be, evidence of the commission of an offence under section 78, 78AAA, 78AAB, 78AA, 78A, 98A, or 243 of the Crimes Act 1961; or v any thing that is, or might be, evidence of the commission of an offence under the Terrorism Suppression Act 2002; or 28 Section 211 amended (Search of persons suspected of having goods hidden on or about their person) In section 211(1)(c), replace Customs place with designated place . After section 211(2)(c), insert: d any thing that is, or might be, evidence of the commission of an offence under section 78, 78AAA, 78AAB, 78AA, 78A, 98A, or 243 of the Crimes Act 1961; or e any thing that is, or might be, evidence of the commission of an offence under the Terrorism Suppression Act 2002. 29 Section 214 amended (Seizure of items found) In section 214(1), replace section 210 or 211 with section 210, 211, or 221B . After section 214(1)(d), insert: e a thing that is, or might be, evidence of the commission of an offence under section 78, 78AAA, 78AAB, 78AA, 78A, 98A, or 243 of the Crimes Act 1961; or f a thing that is, or might be, evidence of the commission of an offence under the Terrorism Suppression Act 2002. 30 Section 215 amended (Powers in relation to unauthorised persons remaining in certain Customs-controlled areas) In section 215(1), delete that is licensed for any of the purposes described in section 56(1)(c) to (f) . 31 Section 218 amended (Questioning specified persons about arrival or departure) After section 218(1)(b), insert: c a person is a member of a mass arrival group. 32 New sections 221A and 221B inserted After section 221, insert: 221A Detention of member of mass arrival group 1 A Customs officer may detain a person who is a member of a mass arrival group for any of the following purposes: a if the person was a passenger on a craft that arrived at a place other than a Customs place, ensuring that the person does not leave the vicinity of the craft: b transporting the person to a place that may be used for the purpose of processing the person’s arrival in New Zealand under the Acts specified in subsection (2) (including transporting the person to an interim location where they can be detained pending the availability of a suitable place): c ensuring that the person remains in a place that may be used for the purpose of processing the person’s arrival in New Zealand under the Acts specified in subsection (2) . 2 A Customs officer may detain a person under this section for as long as is reasonably necessary to complete the processing of the person’s arrival in New Zealand under— a this Act; and b the Immigration Act 2009; and c the Biosecurity Act 1993. 3 The processing referred to in subsection (2) is completed when— a the person has complied with all obligations imposed on the person in respect of the person’s arrival in New Zealand under the Acts specified in subsection (2) ; and b the functions that are required to be carried out under those Acts in relation to the person in the relevant place have been, so far as practicable, carried out in that place. 4 A Customs officer may use reasonable force, if necessary, to detain a person under this section. 5 To avoid doubt, this section does not prevent a person— a being detained or further detained under any other provision of this Act or under any other enactment (if there are lawful grounds for that detention); or b being arrested under section 263. 6 In this section, processing includes consideration by an officer authorised under the Acts specified in subsection (2) of— a the applicability of the Acts specified in subsection (2) to a person; or b whether to carry out any function under the Acts specified in subsection (2) in relation to a person. 221B Search of member of mass arrival group 1 This section applies to a person who— a is detained under section 221A ; and b has not been searched by a Customs officer or a constable since they arrived in New Zealand. 2 A Customs officer or constable may conduct a preliminary search of the person. 3 A Customs officer or constable may conduct a rub-down search of the person (whether or not a preliminary search of the person has been conducted). 4 Sections 86 and 87 of the Search and Surveillance Act 2012 apply to a rub-down search under this Act as if it were a rub-down search under section 85 of the Search and Surveillance Act 2012. 5 A Customs officer or constable may search the person (whether or not a preliminary search or a rub-down search of the person has been conducted) if a Customs officer or constable has reasonable cause to suspect that the person has hidden on or about their person— a any dutiable, uncustomed, prohibited, or forfeited goods; or b evidence relating to any such goods; or c any thing that is, or might be, evidence of a contravention of this Act; or d any thing that is, or might be, evidence of the commission of an offence under section 78, 78AAA, 78AAB, 78AA, 78A, 98A, or 243 of the Crimes Act 1961; or e any thing that is, or might be, evidence of the commission of an offence under the Terrorism Suppression Act 2002; or f any dangerous item. 6 Part 4 of the Search and Surveillance Act 2012, except subpart 3, applies in respect of the powers under subsections (3) and (5) . 7 Despite subsection (6), sections 125(4), 131(5)(f), and 133, and subparts 6 and 8 of Part 4, of the Search and Surveillance Act 2012 do not apply to forfeited goods. 8 To avoid doubt, this section does not limit section 210 or 211. 9 In this section,— preliminary search has the same meaning as in section 210(6) rub-down search has the same meaning as in section 85(2) of the Search and Surveillance Act 2012. 33 Section 222 amended (Entry to Customs-controlled areas and CASEs) In section 222, insert as subsection (2): 2 A Customs officer may enter any area or place if— a it was, within the last 3 months, an area or a place referred to in subsection (1); and b the officer has reasonable cause to suspect— i that an offence under this Act has been committed, is being committed, or is about to be committed in that area or place; or ii that there are any dutiable, uncustomed, prohibited, or forfeited goods in that area or place. 34 Section 5 amended (Definitions for Act) In section 5(1), insert in its appropriate alphabetical order: less-lethal weapon means any weapon designed— a to temporarily disable a person against whom it is used; or b to incapacitate a person against whom it is used 35 New sections 226A to 226C inserted After section 226, insert: 226A Use of less-lethal weapons 1 If a Customs officer is authorised by this Act or any other legislation to use force, a Customs officer may, if necessary, use any kind of less-lethal weapon prescribed for use. 2 The use of a less-lethal weapon by a Customs officer is subject to any prescribed conditions or restrictions. 3 This section does not limit— a the use of any kind of less-lethal weapon by a Police employee (as that term is defined in section 4 of the Policing Act 2008) or member of the Armed Forces in the course of exercising any power or performing any function under this Act if they are otherwise permitted to do so: b section 13(3)(b) of the Arms Act 2026. 226B Use of mechanical restraints 1 If a Customs officer is authorised by this Act or any other legislation to use force, a Customs officer may, if necessary, use any kind of mechanical restraint prescribed for use. 2 The use of a mechanical restraint by a Customs officer is subject to any prescribed conditions or restrictions. 3 A mechanical restraint must be used in a manner that minimises harm and discomfort to the person on whom it is used. 4 This section does not limit the use of any kind of mechanical restraint by a Police employee (as that term is defined in section 4 of the Policing Act 2008) or member of the Armed Forces in the course of exercising any power or performing any function under this Act if they are otherwise permitted to do so. 226C Use of body-worn cameras 1 A Customs officer carrying out their duties under this Act or any other legislation may use a body-worn camera affixed to the officer’s person to record sound and visual images for any or all of the following purposes: a to promote de-escalation and reduce risks to Customs officers and members of the public: b to preserve evidence: c to provide material for use in the training of Customs officers. 2 The use of a body-worn camera by a Customs officer is subject to any prescribed conditions or restrictions. 3 This section does not limit the use of any kind of body-worn camera by a Police employee (as that term is defined in section 4 of the Policing Act 2008) or member of the Armed Forces in the course of exercising any power or performing any function under this Act if they are otherwise permitted to do so. 36 New sections 412A to 412C inserted After section 412, insert: 412A Regulations in relation to less-lethal weapons 1 Regulations may be made, on the recommendation of the Minister, prescribing— a the kinds of less-lethal weapons that a Customs officer may use under section 226A ; and b conditions or restrictions on their use. 2 Before making a recommendation under subsection (1) , the Minister must be satisfied that— a the use of that kind of weapon is reasonably necessary and suitable for Customs officers to carry out any of their functions under this Act; and b the potential benefits of the use of the weapon outweigh the potential risks. 3 The Minister must consider sufficient information relevant to the use of that kind of less-lethal weapon to be satisfied of the matters in subsection (2) . 4 The information must be provided to the Minister by the chief executive and may include, without limitation, the following: a operational policies and procedures including, without limitation, those relating to the management of health impacts relating to the use of the weapon: b training manuals: c manufacturers’ safety and operational information: d any reports by domestic or international agencies that relate to the consistency of the use of the weapon with the humane treatment of people. 412B Regulations in relation to mechanical restraints 1 Regulations may be made, on the recommendation of the Minister, prescribing— a the kinds of mechanical restraints that a Customs officer may use under section 226B ; and b conditions or restrictions on their use. 2 Before making a recommendation under subsection (1) , the Minister must be satisfied that— a the use of that kind of restraint is reasonably necessary and suitable for Customs officers to carry out any of their functions under this Act; and b the potential benefits of the use of the restraint outweigh the potential risks. 3 The Minister must consider sufficient information relevant to the use of that kind of restraint to be satisfied of the matters in subsection (2) . 4 The information must be provided to the Minister by the chief executive and may include, without limitation, the following: a operational policies and procedures including, without limitation, those relating to the management of health impacts relating to the use of the restraint: b training manuals: c manufacturers’ safety and operational information: d any reports by domestic or international agencies that relate to the consistency of the use of the restraint with the humane treatment of people. 412C Regulations in relation to body-worn cameras 1 Regulations may be made, on the recommendation of the Minister, regulating the use of body-worn cameras and the sound and visual images recorded by those cameras. 2 The Minister must consult the Privacy Commissioner before making a recommendation under subsection (1) . 37 Section 437 and cross-heading replaced Replace section 437 and the cross-heading above section 437 with: Use of less-lethal weapons and mechanical restraints 437 Annual report must state total use of less-lethal weapons and mechanical restraints The annual report of Customs must state, by category, the total number of occasions on which each kind of less-lethal weapon or mechanical restraint was used in the year, excluding any occasions on which a Police employee (as that term is defined in section 4 of the Policing Act 2008) or member of the Armed Forces used a less-lethal weapon or mechanical restraint in the course of exercising any power or performing any function under this Act. 437A Complaints about use of less-lethal weapons or mechanical restraints 1 A person (the complainant ) may complain to Customs either orally or in writing about any use of a less-lethal weapon or mechanical restraint against them. 2 If the complainant makes the complaint orally, they must confirm the complaint in writing as soon as practicable. 3 A complaint must be made within 6 months after the event the complaint is about. 4 On receiving a complaint, the chief executive must appoint an independent person (who may be a Customs employee) to investigate the complaint. 5 Despite subsection (4) , the chief executive may decline to take any action in relation to a complaint that the chief executive considers to be frivolous or vexatious. 6 If the complaint is about the exercise of a power or the performance of a function under this Act by a Police employee (as that term is defined in section 4 of the Policing Act 2008) or member of the Armed Forces, subsection (4) does not apply and the chief executive must send the complaint to the Chief of Defence Force or the Commissioner of Police as soon as practicable. 437B Investigation of complaint 1 The person appointed to investigate a complaint under section 437A(4) (the investigator ) must investigate the complaint and report to the chief executive— a whether the use of the less-lethal weapon or mechanical restraint was lawful and reasonable: b the investigator’s recommendations (if any) about what action the chief executive should take. 2 During the investigation, the investigator— a is entitled to access any Customs records the investigator considers relevant: b may contact and obtain information from the complainant or any other person. 3 The investigator’s report to the chief executive must also be sent to the complainant and the Customs officers involved in the event the complaint is about. 4 The annual report of Customs must state the number of investigations under this section completed in the year. 38 Section 227 amended (Examination of goods subject to control of Customs) In the heading to section 227, delete subject to control of Customs . After section 227(1)(b), insert: c that are in a Customs-controlled area. 39 Section 228 amended (Data in electronic devices that are subject to control of Customs) Replace the heading to section 228 with Search of data in electronic devices . After section 228(1)(b), insert: c that is in a Customs-controlled area. In section 228(5), definition of relevant offending , after paragraph (b), insert: ba an offence under section 78, 78AAA, 78AAB, 78AA, 78A, 98A, or 243 of the Crimes Act 1961; or bb an offence under the Terrorism Suppression Act 2002; or 40 Section 231 amended (Powers if vehicles suspected to be transporting certain goods involved in offences, etc) In section 231(1)(a), replace in a Customs place with in or attempting to enter a Customs place or a Customs-controlled area . 41 Section 242 amended (Power to seize and detain risk goods or goods involved in certain offences, etc) Replace section 242(1)(b)(ii) with: ii section 78, 78AAA, 78AAB, 78AA, 78A, 98A, 98C, 98D, or 243 of the Crimes Act 1961: After section 242(1)(b)(vi), insert: vii the Terrorism Suppression Act 2002. In section 242(4)(a), replace or (vi) with (vi), or (vii) . 42 Section 257 amended (Copying of documents obtained during inspection) In section 257(1)(c), replace believe with suspect . 43 Section 258 amended (Retention of documents and goods obtained during inspection) In section 258(1), replace believe with suspect . 44 Section 259 amended (Unlawful travel documents) In section 259(3), after 211, , insert 221B , . 45 Section 263 amended (Arrest of suspected offenders) After section 263(1)(c), insert: d has committed an offence under section 98D of the Crimes Act 1961 (which relates to trafficking in persons). 46 Section 265 replaced (Definition for sections 266 and 267) Replace section 265 with: 265 Definitions for sections 266 and 267 In sections 266 and 267,— carrier includes every person engaged in carrying goods (including mail) for hire or reward by any means, and whether by land, water, or air controlled item means— a an objectionable publication; or b an indecent or obscene article; or c any goods that have been designed, manufactured, or adapted to facilitate the commission of a crime involving dishonesty; or d any tobacco. 47 Section 266 amended (Controlled delivery) In section 266(1)(b)(ii), replace a controlled item referred to in section 265(c) with tobacco . 48 Section 267 amended (International controlled delivery) After section 267(1), insert: 1A A carrier (including any officer or employee of the carrier) is not under any criminal or civil liability for anything done in the course of their duties in respect of an international controlled delivery. 49 Section 278 replaced (CASE licence) Replace section 278 with: 278 CASE licence 1 The following sections apply to a licence for a CASE granted under section 59 (as applied by section 277(2)) as if it were a licence for a Customs-controlled area granted under section 59: a section 61A : b sections 63 to 65 (but with section 64(1)(c) read as if the reference to the purpose or purposes for which the area is licensed were a reference to the purpose in section 276(1)): c sections 73A to 73K . 2 See also subpart 2A of Part 3 (security management plans in relation to Customs-controlled areas and CASEs). 50 New section 317A and cross-heading inserted After section 317, insert: Exchange of information with supply chain participants 317A Exchange of information with supply chain participants 1 The purpose of this section is to facilitate the exchange of supply chain information between the chief executive of Customs and a supply chain participant for the purposes of— a ensuring that goods are imported and exported in accordance with New Zealand law: b protecting border security. 2 The chief executive of Customs may, for the purpose of this section,— a enter into a written agreement with a supply chain participant for the exchange of supply chain information; and b disclose supply chain information held by Customs to a supply chain participant in accordance with that written agreement. 3 Before entering into an agreement under this section that involves the disclosure of personal information, or varying any such agreement, the chief executive of Customs— a must consult the Privacy Commissioner; and b may consult— i the Chief Ombudsman; and ii any person that the chief executive considers is representative of interests likely to be substantially affected by the proposed agreement; and c must have regard to any comments received from the persons consulted under paragraphs (a) and (b) . 4 The written agreement must specify— a the particular type or class of supply chain information to be disclosed; and b how the information is to be used by the recipient; and c the form in which the information is to be disclosed; and d the positions or designations of the persons in Customs and the supply chain participant to whom the information may be disclosed; and e the safeguards that are to be applied for protecting personal information, or commercially sensitive information, that is disclosed; and f the safeguards that are to be applied to prevent the disclosure of information that is not covered by the agreement or that cannot lawfully be disclosed (whether by reason of legislation or otherwise); and g the requirements relating to storage and disposal of the disclosed information; and h the circumstances (if any) in which the information may be disclosed to another specified person or body, and how that disclosure may be made; and i the requirements for reviewing the agreement. 5 The Privacy Commissioner may, at intervals of not less than 12 months, require the chief executive of Customs to undertake a review of— a an agreement entered into under this section with a supply chain participant who is outside New Zealand; and b the arrangements for disclosure under the agreement. 6 The chief executive must undertake a review required by the Privacy Commissioner under subsection (5) and, as soon as practicable after concluding that review, report the findings of the review to the Privacy Commissioner. 7 This section does not limit the general powers of the chief executive to enter into agreements not related to the exchange of supply chain information with any supply chain participant. 8 In this section,— supply chain information — a means information in relation to the supply chain for goods that are, or are intended to be, imported or exported; and b includes, without limitation,— i information about the persons, places, processes, and systems involved in the supply chain: ii information about the assembly, packaging, or further processing of the goods: iii certificates of origin or authenticity in relation to the goods: iv inspection reports in relation to the goods; but c does not include any biometric information or passenger name record in relation to any person supply chain participant means a person or body involved, directly or indirectly, in the supply chain for goods that are, or are intended to be, imported or exported. 51 Section 320 amended (Relationship between section 318 and treaties, etc) In the heading to section 320, replace section 318 with sections 317A and 318 . In section 320(1), after Nothing in section , insert 317A or . 52 New section 321A inserted (Publication of agreements entered into under section 317A) After section 321, insert: 321A Publication of agreements entered into under section 317A 1 This section applies to an agreement entered into under section 317A . 2 The following information must be published on an Internet site maintained by or on behalf of Customs: a the date on which the agreement (including any variation to the agreement) was entered into: b the supply chain participant with which the agreement was entered into: c the particular type or class of supply chain information to be disclosed under the agreement. 3 However, subsection (2) does not require the publication of information that may be withheld on a request under the Official Information Act 1982. 53 Section 398 amended (Filing of charging document) Replace section 398(4)(a) with: a any offence under section 18(3), 20, 25(1) or (2), 27, 40, 73C, 73H , 79, 86, 86A , 132(1), 180, 202, 209, 217, 219, 253, 352, 353, 358(3), 364, 368, 371, 376, 377, 378, 383, 386, or 390 of this Act; and 54 New section 441A and cross-heading inserted After section 441, insert: Immunity 441A Exceptions to Land Transport (Road User) Rule 2004 1 If this section applies, a Customs officer who takes an action referred to in subsection (2) or (3) does not commit an offence against the following provisions of the Land Transport (Road User) Rule 2004: a clause 2.3 (which relates to the use of lanes): b Part 3 (which sets out requirements in relation to traffic signs and signals): c Part 5 (which relates to speed limits): d Part 6 (which relates to stopping and parking). 2 This section applies if the Customs officer— a is carrying out visual surveillance from a vehicle on a public road; and b considers that taking the action is reasonably necessary in order to continue the visual surveillance; and c takes all reasonable steps to ensure that their actions do not cause injury or damage. 3 This section also applies if the Customs officer— a is being trained to carry out visual surveillance from a vehicle on a public road under the direct supervision of a suitably qualified trainer; and b considers that taking the action is reasonably necessary to follow the trainer’s instructions; and c takes all reasonable steps to ensure that their actions do not cause injury or damage. 55 Amendments to penalties Amend the principal Act as set out in Schedule 1 . 56 Consequential amendments Amend the legislation specified in Schedule 2 as set out in that schedule. 1 Amendments to penalties In section 68(2)(a)(i), replace $5,000 with $10,000 . In section 68(2)(b)(i), replace $25,000 with $50,000 . In section 69(2)(a), replace $5,000 with $10,000 . In section 69(2)(b), replace $25,000 with $50,000 . In section 71(2)(a), replace $5,000 with $10,000 . In section 71(2)(b), replace $25,000 with $50,000 . Replace section 79(2) with: 2 A person who commits an offence under this section is liable on conviction,— a in the case of an individual, to a fine not exceeding $10,000: b in any other case, to a fine not exceeding $50,000. Replace section 86(2)(a) with: a in the case of an individual, to— i imprisonment for a term not exceeding 5 years; or ii a fine not exceeding $5,000; or iii both: In section 86(3)(a)(i), replace 6 months with 5 years . Replace section 228(8) with: 8 If the person has no reasonable excuse for failing to comply with the requirement, the person commits an offence and is liable on conviction to— a imprisonment for a term not exceeding 3 months; or b a fine not exceeding $10,000; or c both. In section 359(2)(a), replace $5,000 with $10,000 . In section 359(2)(b), replace $25,000 with $50,000 . In section 361(5)(a), replace $5,000 with $10,000 . In section 361(5)(b), replace $25,000 with $50,000 . In section 362(2)(a), replace $5,000 with $10,000 . In section 362(2)(b), replace $25,000 with $50,000 . In section 364(5)(a)(i), replace 6 months with 7 years . In section 368(2)(a)(i), replace 6 months with 7 years . In section 372(3)(a)(i), replace 6 months with 2 years . In section 373(3)(a)(i), replace 6 months with 2 years . In section 376(3)(a), replace 12 months with 3 years . In section 376(3)(b), replace $15,000 with $20,000 . In section 377(2)(b), replace $5,000 with $10,000 . In section 389(2)(a)(i), after months , insert (unless subparagraph (ia) applies) . After section 389(2)(a)(i), insert: ia imprisonment for a term not exceeding 5 years (if the offence involves the movement of cash in breach of any requirement of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 or any regulations made under it); or In section 390(2)(a), replace 10 years with 14 years . 2 Consequential amendments In section 114(4)(c), replace and 214 with 214, and 221B . In Schedule 2, clause 1(ab), replace importing or exporting objectionable publications with importing, exporting, or livestreaming objectionable material . In Schedule 2, clause 1(ab), after publication , insert or content in each place. In section 118A(1), after 211, , insert 221B , . In section 36(1), after 221, , insert 221B , . In Schedule 1, Part 4, clause 8(f), after 214, , insert 221B(2) , 221B(3) , 221B(5) , . In Schedule 2, item relating to section 191(1)(f) of the Customs and Excise Act 2018, column 3, after Customs and Excise Act 2018 , insert or Terrorism Suppression Act 2002, or certain offences under Crimes Act 1961, . In Schedule 2, item relating to section 214 of the Customs and Excise Act 2018, column 3, replace section 210 or 211 with section 210, 211, or 221B . In Schedule 2, after the item relating to section 214 of the Customs and Excise Act 2018, insert: The following table is small in size and has 4 columns. This table amends Schedule 2 of the Search and Surveillance Act 2012 and should be read with that table to provide understanding of the context. 221B(3) Customs officer or constable may conduct rub-down search of person who is member of mass arrival group detained under section 221A of Customs and Excise Act 2018 and has not been searched since they arrived in New Zealand Subparts 1, 2, and 4 to 10 221B(5) Customs officer or constable may search person who is member of mass arrival group detained under section 221A of Customs and Excise Act 2018 who has not been searched since they arrived in New Zealand if officer or constable has reasonable cause to suspect that certain items are hidden on or about that person Subparts 1, 2, and 4 to 10 (except that sections 125(4), 131(5)(f), and 133 and subparts 6 and 8 do not apply to forfeited goods) In Schedule 2, repeal the item relating to clause 9(2) to (5) of Schedule 5A of the Customs and Excise Act 2018. In section 38A, after 214, , insert 221B , .