Mr Giovanini, Organising Executive, Distinguished Guests, Delegates, Ladies and Gentlemen

Kia ora

Greetings from New Zealand,

Aotearoa

The Land of the Long White Cloud

So named according to Maori history by Kupe

The first Maori to visit New Zealand in about 950AD

Mr Chairman

Thank you for your introduction and

Thank you for the invitation and the opportunity of attending this conference.

The NZ Wildlife Enforcement Group is indeed honoured to be represented here, especially as this is the first occasion that a member has officially visited South America.

New Zealand is geographically isolated from South America and indeed the rest of the world with the exception of Australia and its immediate South Pacific Island neighbours.

I am therefore especially appreciative of the efforts made to arrange for my attendance and

I apologise for the challenge the arrangements presented.

WEG

I would like to commence this presentation by briefly outlining the structure, scope and function of the New Zealand Wildlife Enforcement Group

and where it is positioned in terms of international enforcement before

progressing to some case examples of trafficking of South American species.

The New Zealand Wildlife Enforcement Group, as you have heard, is

a multi – agency government group,

established in 1993,

for the purpose of investigating the organised illegal trade in wildlife.

Although Auckland based, the WEG operates nationally and internationally

And has regular liaison and a working relationship with

• The CITES Secretariat

• Interpol

• The US Fish and Wildlife,

• The British Customs and in particular the Customs CITES Team at Heathrow Airport,

• The German Customs,

• The Australian Customs Service and

• Environment Australia.

The WEG also has dealings with national and other international agencies including the Directorate of Fauna and Flora in Argentina

• Environment Canada

• The Hong Kong Agriculture and Fisheries Department which is their CITES Management Authority, and

• Traffic Oceania and

• Is the Oceania representative on the Interpol Wildlife Crime Sub-Group.

The WEG has a staff of 3, one each from

• The New Zealand Customs Service,

• The Department of Conservation, and

• The Ministry of Agriculture and Forestry.

Each member carries the warrant of appointment of all 3 departments and thus have the same powers and authority in discharging WEG’s responsibility for enforcing the provisions of NZ legislation covering the illegal trade in wildlife – these enactments being

• The Trade in Endangered Species Act 1989 dealing with CITES species

• The Wildlife Act 1953 dealing with possession and export of NZ fauna and flora

• The Biosecurity Act 1993 dealing with imported risk goods and

• The Customs and Excise Act 1996 dealing with the enforcement of border controls

• The Animal Welfare Act dealing with animal welfare

The legislation provides for seizure and fofrfeiture and penalties of up to 5 years imprisonment and or a $100,000 fine.

I am the Ministry of Agriculture and Forestry representative.

The Ministry of Agriculture and Forestry are represented because the importation of wildlife or its derivatives is a serious biosecurity issue in New Zealand in addition to conservation.

The WEG is largely proactive and intelligence driven.

Prosecutions are the responsibility of the agency responsible for administering the legislation creating the particular offence.

For example

• Prosecutions for the export of NZ native wildlife are taken by DOC

• Prosecutions for the Import of non CITES wildlife are taken by MAF

• Prosecutions for the Import of CITES wildlife are taken jointly by MAF and DOC

Customs legislation is used to obtain information under requisition and

The Customs provides WEG with a full time intelligence analyst and full use of its data base.

The WEG however is an autonomous group responsible to a committee of senior representatives from each department.

As I have said, WEG is responsible for the investigation of the organised illegal trade in wildlife.

The WEG’s operational definitions are broad

Wildlife for example includes all New Zealand wildlife,

All CITES listed species

All protected fauna and flora from any country, and

Any parts and manufactured derivatives thereof.

Similarly illegal means contrary to the law of any country

And organised means where a person or persons are involved in illegally trading wildlife in a manner or circumstances indicating an intent to facilitate such trade other than one off incidents

Much of the work of the Wildlife Enforcement Group is international including a developing trend of illegal international trade in NZ domestic reptile species.

TRAFFICKING INTRODUCTION

Knowledge of Patterns of animal trafficking,

Species involved

Trafficking routes and

Trafficking organisations

Is obtained through Receipt of information

The interception of animals or their derivatives

The interception and prosecution of offenders and

The cumulative effect of the exchange of information and intelligence by enforcement agencies.

Forums of this nature therefore provide an excellent networking and action planning opportunity.

The trafficking of South American animal wildlife predominantly experienced by the Wildlife Enforcement Group relates to animal skins and bird’s eggs.

I now want to outline some case examples involving South American species.

OPERATION ALPACA

Between August and December 1999 a group of Korean nationals began operating in New Zealand, Australia, Bolivia, Peru and Chile in the fraudulent importation into New Zealand of animal hide rugs.

The group were also involved in immigration / passport fraud and were even suspected of international drug trafficking.

During this period some of the group imported a quantity of vicugna rugs with alpaca rugs all mis-declared as alpaca, into New Zealand from South America.

The shipments were sourced from Bolivia and Peru.

These Asians targeted a commodity and used NZ as a transiting and laundering point to supply an Asian market, namely Korean tourists.

The method of operation was very sophisticated.

The merchandise was air freighted to New Zealand.

WEG has been informed that merchandise for the Korean market is pre-ordered from samples shown in Korea and paid for before travel is commenced.

The tourist does not enter a shop in New Zealand and

Money does not enter New Zealand.

The merchandise is simply trans-shipped and is waiting for the tourist on their return to Korea.

An over view of the circumstances of these matters demonstrates the modus operandi used.

In November 1999 the WEG were advised by the NZCS Fraud Unit that they had been investigating the importation of alpaca rugs from South America as it was suspected that the consignments had been grossly undervalued.

Shipment 1

The first consignment consisting of 327 rugs was imported into New Zealand on 3 August 1999 by a Korean Pan Seock KANG

KANG presented to Customs 12 separate waybills, 12 invoices and 12 certificates of origin – all copies, in 12 different names ( none in his name), declaring Bolivian handicrafts described on the invoices as wool carpets.

All the invoices had the same quantity and all the sizes were the same per each invoice.

They were described as samples of no commercial value.

The consignment was sourced from Bolivia and was exported by a company, Bolivia Al Mundo Export of Le Paz. It was routed through Miami and was air freighted to Auckland.

.KANG declared the value of the rugs at $11 US each.

KANG was advised to obtain the services of a customs broker and requested to obtain evidence of valuation and payment.

Copies of cash receipts were duly supplied and although the valuations corresponded with the invoices Customs were not satisfied.

KANG then admitted that the invoices which appeared to be computer generated from the Bolivian shipping agent F.D. World Cargo were false and

The total consignment of 327 rugs was seized for verification of value.

A contract in KANG’s possession provided for the supply of 1000 alpaca rugs to another Korean national Su Hong KIM with exclusive selling rights.

KANG was subsequently intercepted departing NZ on 29/9/1999 and stated that he was going on holiday with his family and produced return airline tickets. He was in possession of $150,000 in 3 cheques and stated that he intended to visit various suppliers of alpaca rugs in Peru and Bolivia while in South America.

KANG was ticketed to return to NZ on 2/11/99 but he never did and the consignment was forfeited.

Shipment 2

On 13 October 1999 another Korean Jeus CHA arrived at Auckland International Airport on a Qantas flight from Australia and was intercepted on arrival as a result of an irregularity in his Korean Passport.

CHA was also found to be in possession of a New Zealand passport which was seized by the Police. Subsequent enquiries revealed that this passport had been fraudulently obtained and CHA was charged. He failed to appear in Court and a warrant has been issued for his arrest.

CHA was also found to be in possession of four undeclared rugs which he claimed were alpaca.

CHA claimed the rugs were valued at $35 US each and they were seized for identification and valuation.

CHA was in possession of invoicing for the rugs from his own Sydney based company Global Fundamental Finance Ltd, indicating the values to be $397, $580 and $738 according to size.

CHA was one of the 12 Koreans named in the false invoices produced by KANG thus showing a link between the two.

Information is that CHA has businesses in Bolivia, Sydney, China and Japan and is involved in the import / export of silver goods and heavy machinery; and is also involved in transportation and language schools.

Shipment 3

A third shipment consisting of 75 rugs was imported into New Zealand on 23 October 1999 by yet another Korean Mr Inn Kyeong YOUN.

YOUN actually produced the detention notice issued to CHA as evidence of the contents of his shipment and stated that CHA was his business partner.

He also said that the rugs had been supplied by a Korean national Jae Duk LEE of Bolivia.

This consignment was exported by Orurena Artesanal Navyl Exportadora from La Paz, Bolivia via Buenos Aires and was air freighted to Auckland by Aerolineas Argentinas.

It was noted that the consignment had been mislabeled as going to Sydney but this was incorrect.

The consignment, declared as alpaca handcrafts was examined and with the exception of 3 samples was released after YOUN explained the lower cost being due to the Bolivian supplier sourcing pelts and manufacturing the rugs.

The Customs Fraud Unit later advised WEG that an informant had claimed that in respect of this consignment, 64 of the 75 Alpaca rugs were in fact Vicugna, a CITES I listed species and a prohibited import.

There was no CITES documentation or reference therein of vicugna.

The information was that the Koreans intended to import further consignments of vicugna rugs into NZ from South America

Further Action

Clearly this information was disturbing, especially as all but 3 of the rugs had been released.

The examinations made to date had essentially been made by Customs Fraud on the basis of valuation.

Alerts were placed on all alpaca imports and named Korean traders. All alpaca rug importations were thereafter subject to a full inspection by WEG.

Company Office and travel checks and document analysis by Customs Intelligence staff established that this group of Korean nationals were closely associated through business and trade.

Enquiries were also made from a number of sources including the US Fish and Wildlife Laboratory in Oregon for assistance with forensic identification of vicugna, and also South American authorities - with a negative result.

A further 5 consignments in November and another in December 1999 followed – a total of 9 consignments of alpaca from South America to New Zealand in all.

Of these was a second consignment by YOUN on 29 November 1999 of 81 rugs declared as alpaca from Bolivia.

The authenticity of the accompanying documentation was highly doubtful as a number of irregularities were noted including a mis-spelling of the supplier Orurena Artesanal Navy Exportadora.

This consignment was declared as alpaca but owing to a discrepancy in identification and irregularities in value it was seized and forfeited.

On 4 December 1999 Korean nationals Han Young CHAE , Young Min YOON and Chang Sung MOON imported 41 items declared as alpaca.

Inspection revealed however that one rug and three hats were Andean Fox, 6 rugs were of a small unidentified animal, and 4 rugs were vicugna.

These had been supplied by Korean Jae Duck LEE from Bolivia. MOON was interviewed and claimed that the small animal rugs were in fact chinchilla.

The consignment was seized for false documentation and under declaring the values.

As a consequence of the interception and seizure of consignments no further attempts were made by this group to import into New Zealand.

All Koreans interviewed denied importing vicugna or CITES species skins and departed New Zealand.

It was not until August 2000, a year after the first importation, that a Chilean importer, manufacturer and retailer of alpaca products based in Queensland Australia, viewed the seized rugs identifying 9 items from 4 shipments, namely shipments 2, 3, 8 and 9, as vicugna, 4 as Andean Fox, and 6 items as possibly being baby viscacha.

He noted that each of the vicugna rugs consisted of up to 15 infant hides.

The Koreans in the meantime had departed from New Zealand and three months later this witness suddenly died.

Summary

These Korean nationals were a very determined interconnected group.

Who had money and contacts and travelled frequently.

They disguised their illegal trade by concealing CITES species skins amongst mis-declared alpaca consignments and

Used conventional air freight routes from South America to NZ.

NZ was used to supply a Korean market.

The trade was intercepted as a result of information and border controls.

Of interest is that each consignment was checked by a drug dog before inspection but no evidence of drugs was found.

One consignment though had knife slit marks in the cartons from a US Drug inspection which of course shows that an inspection for illegal wildlife items requires closer attention.

OTHER OPERATIONS

I would now like to briefly outline another case involving some South American species with an Asian connection illustrating global agency co-operation.

Operation Marie

On 15 March of this year a New Zealand national Marie JACKSON was intercepted at Auckland International Airport from Bangkok and was found to be body packed with 26 bird eggs.

She was a courier and admitted that these eggs had been sourced in Thailand.

They included South American Macaws which are available on a four day order for 20,000 baht each.

The suppliers have been identified and have a stock of South American Macaws and Crimson Bellied Conures.

Thai breeders and traders are accessing South American species and in turn are supplying smugglers / traffickers for the NZ trade.

All exotic bird importations into NZ are prohibited due to strict quarantine and biosecurity controls.

Enquiries are continuing with Thai authorities to obtain evidence to also prosecute the NZ organiser and his assistant.

Operation Traveller

And another case

On 16 May of this year a 70 year old New Zealander Stanley Frederick GOVER was intercepted by UK Customs at Heathrow Airport on departure for NZ following a 2 year operation by WEG and was found to be in possession of 50 body packed eggs.

The eggs were incubated and the hatchlings are being reared.

The eggs were sourced in Belgium and contained 3 CITES 1 South American Illiger’s Macaws.

GOVER was intending to fly to NZ via Hong Kong on Cathay Pacific as it offered the shortest transit stop.

European breeders and traders are accessing South American species and in turn are supplying smugglers / traffickers for the New Zealand trade with Asia being used as a preferred air route.

WEG and UK Customs are continuing jointly with enquiries for the prosecution. This case also illustrates that trade is global requiring a global approach by co-operative liaison and action.

DOC

Of interest perhaps is that the NZ Department of Conservation have advised that in the year 1999 – 2000 there were a total of over 4500 items seized from 62 passengers arriving in NZ from South America with CITES items although these statistics include flora.

Most South American countries are represented.

Excluding flora, items seized included macaw feathers and a hornbill.

Traffic Oceania

Traffic Oceania in Sydney have advised that an officer in Vietnam and Cambodia up until last year did not come across any wildlife traffic from South America to South East Asia although he stated it was possible there could be traffic through Singapore and or Kuala Lumpur in Malaysia.

Environment Australia

Environment Australia maintain a database of CITES seizures and have advised there have been no live animal seizures from South America in the past 5 years.

Seizures of items of South American animal species over this period however include armadillo musical instruments and handbags, scorpions, spiders and butterflies, crocodile skin watch straps, snake skins, monkey skulls and eagle parts;

from a number of countries including Argentina, Brazil, Chile, Columbia,

Peru and Ecuador.

Australia has a National Exotic Bird Registration Scheme and as at this time last year (July 2000), registered populations of South American species included -

13 Hyacinth Macaws (valued at A$20,000 each)

309 Blue and Gold Macaws (A$10,000 each)

137 Scarlet Macaws and

126 Blue Fronted Amazons.

Last year WEG received information concerning Ales HAVELKA, A Czech National, resulting in his arrest in Australia for attempting to smuggle out native geckos for which he was imprisoned.

I mention HAVELKA because he is an international animal trafficker who targets South America and South American animal species.

HAVELKA was arrested in Frankfurt in April 1996 in possession of 17 primates from Lima, Peru, and

Came to notice again in March the following year, 1997, when he was arrested in Lima in possession of 20 primates and 7 reptiles. HAVELKA was bailed but absconded using a false passport and is now wanted on a warrant to arrest.

Drugs

NZ Drug investigators have advised that there is no discernable link between drugs and wildlife trafficking in their experience and

that there is no discernable pattern of traffic from South America.

Argentina

Perhaps of some interest is that on the 24/4/2001 two Argentine nationals transited through NZ from Singapore enroute to Buenos Aires in possession of 34 eggs.

They had no documentation for the eggs which were possibly CITES species.

The Argentinean Authorities were alerted but the pair were missed owing to confusion over an air strike.

The itinerary for the two, Hector O.CICERCHIA and Gustavo Ignacio IZON was Argentina – USA – Hongkong – China – Thailand – NZ – Argentina.

It is believed that the eggs were sourced from Thailand.

Conclusion

The operational experience and research of the Wildlife Enforcement Group illustrates something of the patterns of animal trafficking from South America (to Asia) – of the species involved – the trafficking routes and makeup of the organisations and people involved.

NZ is both a destination and a transiting point.

Routes, organisations and people involved however are ever changing.

The NZ Wildlife Enforcement Group is committed to its national and international obligations in investigating the organised illegal trade in wildlife.

Offenders will always be motivated by profit and to that end are resourceful and determined.

This forum is nonetheless equally determined and has the benefit of a larger resource base including that of international agency co-operation.

Our Group commends the initiative of this conference and welcomes the opportunity of providing any possible assistance in combating illegal animal trafficking.

I wish the organisers a successful conference and all delegates every success in achieving our common objectives.

I thank you for your interest.