New Zealand's border defences are getting a more than $80 million dollar boost, as the Government warns increasingly sophisticated syndicates are targeting the country with drugs and illegal goods.
Announced as part of Budget 2026, Customs will receive $81.5 million to strengthen operations both onshore and offshore.
The majority, $70.7 million, would go into frontline border protection, funding more cargo X-ray machines, tighter security at ports and airports, upgraded tactical gear and training for officers, and increased capacity to store the growing volume of seized contraband.
Another $10.8 million would fund the establishment of four new Customs posts in the Pacific, South America, the Middle East and Europe - key transit routes for international drug smuggling networks.
The funding package included a mix of new government spending and third-party revenue, reflecting Customs' model of partially funding its operations through levies on border services.
Customs Minister Casey Costello said New Zealand was being targeted by transnational organised crime groups.
"The danger is clear and very present, with increasing seizures of illicit drugs and black-market products like tobacco at our border and offshore."
Customs seized nearly 15 million illegal cigarettes and eight tonnes of illicit loose tobacco last year, she said, accompanied by a "marked increase" in the volume of illicit drugs intercepted in the Pacific.
"In the first two months of 2026 more than 14 tonnes of cocaine was seized in the Pacific region."
The offshore expansion will be rolled out in stages, starting in the Pacific and South America which were regions flagged as major pipelines for drug trafficking into New Zealand.
Customs’ overseas staff played a key role in building relationships with partner agencies and gathering intelligence to disrupt criminal operations earlier in the supply chain, Costello said.
"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."
New underwater drones to target smuggling at sea
Three remotely operated vehicles have been launched in Auckland today, adding a new layer to New Zealand’s border defences by allowing officers to inspect vessels below the waterline.
Customs Maritime group manager Paul Campbell said the technology would improve both speed and safety during inspections.
“This enhanced search capability means faster targeted inspections and smarter deployment of specialist divers,” he said.
“With ROVs conducting below‑waterline checks, specialist dive teams can focus on recovery operations rather than routine inspection.”
The drones were introduced following a successful trial supported by the Australian Border Force and use the same technology as both Australian and New Zealand defence partners, improving coordination during joint operations.
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