Funding for new tools to beef up border security

Budget 2026 is making a significant investment in Customs' equipment and people to better protect New Zealand's borders and to stop illegal drugs and organised crime.

"New Zealand and the wider Pacific region are being targeted by transnational, serious and organised crime groups and we need to continue to respond," Customs Minister Casey Costello says.

"The danger is clear and very present, with increasing seizures of illicit drugs and black-market products like tobacco at our border and offshore," Casey Costello says.

"In 2025, Customs seized nearly 15 million illegal cigarettes and eight tonnes of illicit loose tobacco at the border. This year has also seen a marked increase in the volume of illicit drugs intercepted in the Pacific through agency and international efforts. In the first two months of 2026 more than 14 tonnes of cocaine was seized in the Pacific region.

"The coalition Government backs Customs' efforts to stop this illegal trade and the harm the criminal groups cause."

The funding in Budget 2026 supports two key initiatives, one focused on strengthening our domestic border and the other on improving New Zealand's offshore capacity and relationships.

To protect our border and respond to increased smuggling, $70.7 million over four years is being invested in:

• Upgraded and additional cargo X-ray equipment
• Strengthening the security of Customs facilities and Customs Controlled Areas in ports and airports
• New defensive equipment and enhanced training for staff
• Increased capacity to store and manage seized illicit goods.

The $70.7m includes $15.3m in new operating funding and $19.5m in new capital funding over four years, plus $35.9m from third party revenue, recognising that criminal groups leverage legitimate trade routes for their activity.

The second initiative expands Customs' ability to disrupt criminal networks overseas by establishing four new international posts in the Pacific, South America, Middle East and Europe, and supporting these with additional intelligence and analytics support.

Budget 2026 provides $10.8m over four years for this initiative, which will allow Customs to work with partner agencies to target transnational organised crime groups and smuggling routes to stop illicit drugs reaching New Zealand in the first place. The new funding includes $5.6m in new operating funding and $5.2m in third party revenue over four years.

"New Zealand Customs' international liaison posts are key conduits for establishing and strengthening relationships that provide valuable intelligence and coordination for border security and trade facilitation," Casey Costello says.

"Customs work is always about supporting our exports and trade and protecting our border. The new international posts will enhance that work and are being established in locations that have key strategic value.

"Their establishment will be phased in over the four years with officers stationed first in the Pacific and South America, in response to a significant increase in drug-smuggling through those regions.

"Customs does an outstanding job in an increasingly difficult and dangerous environment. We need to make sure they are equipped with the best tools, training, and strategic capability to keep delivering strong border security and efficient trade facilitation for New Zealand," Casey Costello said.