Term of Reference when Establishing Tyre Disposal Tariffs

Anthony Jordan made this Official Information request to Ministry for the Environment

The request was successful.

From: Anthony Jordan

Dear Ministry for the Environment,

Please provide terms of reference/formula used to establish tariffs for tyre disposal initiative beginning 1 March 2024

Please provide any other information that maybe helpful to indicate tyre size relative to cost of disposal

Yours faithfully,

Anthony

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From: OIA
Ministry for the Environment

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From: Taku Mahi
Ministry for the Environment

Kia ora Anthony Jordan,

Thank you for your Official Information Act request received on
07/02/2024.

We will endeavour to respond to your request as soon as possible and in
any event no later than 20 working days after the day your request was
received. If we are unable to respond to your request by then, we will
notify you of an extension to that timeframe.

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If you have any queries, please feel free to contact us at
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Ngâ mihi nui

Ministerial Services Team 

Ministry for the Environment – Manatû Mô Te Taiao

Email: [MFE request email] Website: [2]www.mfe.govt.nz 

8 Willis Street, Wellington Central, Wellington 6011

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2. http://www.mfe.govt.nz/

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From: OIA
Ministry for the Environment


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Tēnā koe Anthony

 

Thank you for your email of 6 February 2024 to the Ministry for the
Environment (the Ministry) requesting the following information:

 

Please provide terms of reference/formula used to establish tariffs for
tyre disposal initiative beginning 1 March 2024.

Please provide any other information that maybe helpful to indicate tyre
size relative to cost of disposal.

 

Your request has been considered under the Official Information Act 1982
(the Act).

 

We hope that the below information is helpful to you. If, after reading
through this information, you wish to make a more specific request you are
welcome to do so by submitting a new request via the FYI.govt.nz website
or by emailing [1][MFE request email].  

 

Codesign / Consultation process

Codesign on a product stewardship scheme for tyres began in 2012. The
Tyrewise scheme was designed by an industry-led working group (the Working
Group) and accredited in 2020 by the then associate Minister for the
Environment under the Waste Minimisation Act 2008 (section 15). The
Working Group were supported by funding from the Waste Minimisation Fund
and coordinated by the product stewardship consultancy 3R Group Ltd. From
the start of the Tyrewise scheme codesign project in 2012, there has been
extensive engagement with industry stakeholders. Further information about
Tyrewise can be found on their website at: [2]https://www.tyrewise.co.nz/.

 

Public consultation on proposed regulations to support tyre product
stewardship took place in late 2021. Overall, 87% of total submitters were
in support of:

o requiring tyres to be sold in accordance with an accredited scheme.
o a stewardship fee to cover the end-of-life management for tyres.

 

Use of tariff codes to determine the fee

 

The Tyrewise Working Group (who developed the scheme design) recommended
the tyre fee be paid at first point of entry onto the market, to maximise
the capture rate. The Working Group discussed the option of the importers
self-declaring goods based on weight to the Product Stewardship
Organisation (PSO, who manages the scheme), with the New Zealand Customs
Service (Customs) data being used for verification.  However, this option
was not selected, as it likely involved increased manual checking by the
PSO, which was deemed to be administratively burdensome and costly.

 

It was subsequently determined that tariff codes would adequately identify
liable parties for loose imported tyres. The average tyre weights per
applicable tariff code were developed based on industry data where the
majority of tyres would have graded fee increases for larger categories of
size (and weight) of tyre. Noting that NZTA vehicle registration
categories would be used for tyres attached to vehicles, with NZTA
collecting the fee.

 

As part of public consultation on proposed tyres regulations in 2021, the
Ministry sought feedback on the use of tariff codes and the proposed fee.
71% of total submitters agreed that the fee should be collected on loose
tyres (at import) by Customs. Following consultation, it was identified
that the fee needs to be classified as a duty under the Customs and Excise
Act 2018 for Customs to collect the fee. Whilst this amendment is being
made the Ministry will be collecting the fee in the interim. Further
information on the public consultation can be found on the Ministry’s
website at:
[3]https://environment.govt.nz/publications....

 

Formula to determine the fee

Tyres were grouped by type, typical weights were averaged and multiplied
against the number of EPU (Equivalent Passenger Unit, average weight of
new passenger tyre 9.5kg) and converted into the below formula:

Tyres manufactured onshore and sold to the New Zealand market: calculated
using the formula: f = (w /9.5) x $6.65. where:

·         w is the weight of tyres (kg)

·         9.5 is the value representing the Equivalent Passenger Unit
(EPU) standard measure of a new passenger tyre.

This is mapped (insofar as possible) to the tariff codes for tyres and the
Waka Kotahi NZ Transport Agency vehicle registration classes. Further
information regarding tariff codes is available on the Customs website at:
[4]https://www.customs.govt.nz/about-us/new....

 

The estimates for the average weight of used tyres in the first instance
were taken from the Australian report “[5]Financial and Economic Analysis
of the Proposed Use Tyre Stewardship Scheme” and data supplied by the NZ
tyre importers. In 2019, Tyrewise were able to further split out Off the
Road Tyres (OTR) and their weights which further improved accuracy when
calculating EPUs for collection, transport and processing. The full list
of fees for regulated tyres (loose or attached to vehicles) is available
at:
[6]https://www.legislation.govt.nz/regulati....

 

Thank you again for emailing.

 

You have the right to seek an investigation and review by the Office of
the Ombudsman of the Ministry’s response to your request, in accordance
with section 28(3) of the Act. The relevant details can be found on their
website at: [7]www.ombudsman.parliament.nz.

 

Nāku noa, nā

Official and Parliamentary Information team.

 

 

Ashleigh Watson [8]she/her

Senior Advisor | Kaitohutohu Matua
Ministerial Services

Ministry for the Environment | Manatu Mo Te Taiao

027 416 5034 | [9][email address] | [10]environment.govt.nz
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References

Visible links
1. mailto:[MFE request email]
2. https://www.tyrewise.co.nz/
3. https://environment.govt.nz/publications...
4. https://www.customs.govt.nz/about-us/new...
5. https://www.accc.gov.au/system/files/pub...
6. https://www.legislation.govt.nz/regulati...
7. http://www.ombudsman.parliament.nz/
8. https://www.publicservice.govt.nz/guidan...
https://www.publicservice.govt.nz/guidan...
9. mailto:[email address]
10. https://environment.govt.nz/
11. http://www.mfe.govt.nz/
12. https://www.facebook.com/environmentgovt...
13. https://www.instagram.com/environmentgov...
14. https://www.linkedin.com/company/environ...
15. https://www.youtube.com/channel/UCXZKmx5...
16. https://twitter.com/environmentgvnz

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