Proposed changes to cost recovery settings: 2025 annual review

Consultation background

The Ministry for Primary Industries (MPI) sought your feedback on increases to:

• the Dairy Standards Processor Levy and the Dairy Exporter Levy
• veterinary service fees for establishments
• veterinary service fees for live animal imports and exports, including germplasm
• the Raw Milk Levy
• the Homekill Levy.

We also proposed 6 relatively small design changes to ensure appropriate charging for the services provided.

Consultation closed on 7 March 2025.

Consultation document

Annual review 2025: Proposed changes to MPI's cost recovery settings [PDF, 1.9 MB]

What was proposed?

Summaries of proposed regulatory design changes to 6 other cost recovery settings

1. Clearance of increased regulatory interest and high regulatory interest foods (for example, frozen berries)

Regulations currently include an administration activity fee for importing of increased regulatory interest food or high regulatory interest food. Under the regulations, charging is specified as being for "each consignment". The administration activity is often done for groups of consignments, for example, where a group of consignments comes from a single origin, rather than for each consignment within that group. This saves time and reduces the bill for the importer. It is proposed to amend the regulations to clarify that charging is done for "each consignment or group of consignments of a single origin".

2. Levy waiver relating to the former Meat Industry Initiative Fund

Regulations state amounts to be charged for a now-ended Meat Initiative Fund. A permanent waiver is in place so that these amounts are not actually charged. The design change proposed to replace the waiver with a change to the regulations to clarify that these charges have ceased.

3. Food export exemptions

It was proposed to add a new charge of $135 per application plus $33.75 per quarter hour beyond the first hour to recover the cost of the work undertaken by MPI officials to process exemption requests under section 347 of the Food Act 2014. For example, if food is destined solely for export, it should comply with standards in the destination market and could be given an exemption from meeting New Zealand standards where these differ from those prevailing in the destination market. The new fee would increase revenue by about $34,000 per annum.

4. Agent collection rate (Domestic Food Business Levy)

A change was proposed to clarify that the $11 collection charge for the Domestic Food Business Levy currently described in regulation is GST-exclusive. Charges in regulations are routinely recorded as GST-exclusive because businesses are generally the one charged and claim back GST (the price businesses are concerned about is the GST-exclusive price). This will also future-proof charges in case of future GST changes. This charge was intended to be GST-exclusive.

5. Animal products: charges for use of electronic system

The proposal was to amend the Animal Products (Dairy Industry Fees, Charges, and Levies) Regulations 2015 and Animal Products (Fees, Charges, and Levies) Regulations 2007, to enable certification costs to be recovered at the same level during 2025–26, as the certification system transitions from the AP e-cert system to the new trade certification system. The proposals include removing the "cost per second" component of the charging formula, and to amend the definition of "cost per request" as the cost per second component is not compatible with how the new system will operate.

6. Food Importer Levy

Three changes were proposed to the new Food Importer Levy. The changes improve efficiency around who pays, what data is used in the calculation of the levy, and the due date for levy payment. The changes reflect original intentions when the Food Importer Levy was approved last year, but which were not given effect at the time. The changes are as follows:

• extend the levy to importers who are registered but who do not import any amount of food. Despite importing no food, these importers generate some cost by interacting with the food safety system
• charge importers at the start of each financial year according to their import amounts from the previous year. This is expected to reduce administration costs for importers and MPI.

We also proposed to standardise the date the levy is payable to within 20 working days of the date of the annual levy invoice.