RISE IN SMUGGLING OF DRUGS AND PORN

New Zealand is increasingly being targeted as both a staging post and
final destination for shipments of illicit drugs, pornography and
pirated goods.

There has been a steady rise in criminal activity at the borders by
organised international crime groups, according to the New Zealand
Customs Service annual report.

The 2005-06 report, issued yesterday, says terrorism is still a
serious threat to the security and safety of both New Zealand and our
key international partners.

Global public health threats such as bird flu also pose risks to New
Zealand citizens, and economic and political instability affecting
Pacific Island nations could undermine domestic border protection.

Highlights last year included the country's biggest drugs seizure and
an $8.4 billion windfall in customs and excise revenue.

In May, customs officers seized $135 million worth of crystal
methamphetamine and pseudoephedrine in a joint operation with police.

The drugs were concealed in shipping containers sent from China. The
investigation resulted in seven arrests. A spike in the amount of
seized precursors and crystal meth was of concern, particularly given
the link between methamphetamine abuse and violent crime, the report says.

Customs has already intercepted 110kg of methamphetamine so far this
year - nearly 10 times the amount it seized in all of last year.

It carried out 1976 investigations for serious offending in the last
year, including the seizure of hard drugs, objectionable material and
intellectual property right breaches.

Customs Minister Nanaia Mahuta said customs and excise revenues
netted the Government $8.4 billion in the past year - about 15 per
cent of total Crown revenues.

New Zealand also signed a deal with the United States giving Kiwi
exporters assurances of smooth access to the US, even in times of
heightened security.

But counterfeit goods continued to pose a threat to New Zealand and
international businesses, accounting for an estimated 10 per cent of
world trade.