Corporate Bahamas and the private sector have mobilized tens of thousands of tons of goods to be donated to the southern Bahamas islands that were shattered by Hurricane Joaquin. The goods will be shipped, flown and barged into the storm-ravaged locations, and now the government of The Bahamas has issued an exigency order to allow for specific tax exemptions on goods imported "for recovery and rebuilding purposes" for the next 90 days. And while the order is certainly welcome, it is not without critics.
The islands covered by the order, which has been back-dated to October 3, are Acklins, Cat Island, Crooked Island, Exuma, Inagua, Long Cay, Long Island, Mayaguana, Rum Cay, Ragged Island, Samana Cay and San Salvador.
The list of approved duty free goods are building materials; plumbing fixtures and materials; household furniture, furnishing and appliances; generators and motor vehicles.
The order
The order refers to goods that the minister of finance is satisfied are intended for the relief of residents in the affected islands. Its language is very careful. The relief applies to residents who suffered hardship or loss as a result of Hurricane Joaquin. Applications in respect of goods residents claim to have lost are certified by the director of the National Emergency Management Agency (NEMA).
The Ministry of Finance released a statement on October 10 declaring the waiver of landing fees, departure tax for non-commercial flights bringing in relief goods, and customs processing fees on imports in the above-mentioned islands for a period of one month commencing October 3.
The ministry also noted that Acklins, Crooked Island and Long Cay have been declared "sufferance port areas" for a period of three months commencing October 3. Although no explanation was given, it is understood that a sufferance port is a private wharf where dutiable goods may be kept until the duty is paid. This would allow dutiable goods to be shipped and stored on these islands for the next three months.
The ministry has reasserted that customs duty and VAT exemption will only be granted to registered charitable organizations and individuals whose loss from Hurricane Joaquin has been verified by NEMA.
"In all other circumstances, donations would be deemed 'gift to government' and would be distributed by NEMA," the statement read.
Public notice
At the same time, the government announced that for a period of two weeks, starting October 13, special procedures for the importation of goods for hurricane relief will be in place. In order to clear goods duty and VAT free, importers will be required to complete a special form that can be obtained from all ports of entry.
"They will outline on the form a listing of the donated items, the amount, and the location of the intended recipient. Please note that completion of the Customs C13 entry form is still required," a statement from the Ministry of Finance said.
In both instances - the exigency order and the notice of special importation rules - the ministry warned that where abuse or misuse on the imported goods is observed, the goods would be seized and disposed of in accordance with Section 268 of the Customs Management Act.
Precedent, questions
The most recent use of exigency orders was in 2012, when Prime Minister Perry Christie signed an order in November 2012 to aid those affected by Hurricane Sandy. The specified items permitted were building materials, electrical fixtures and materials, household furniture, fixtures, furnishings and appliances, freezers and heaters, materials for clean-up or repairs to property including fences, fishing boats, gear, parts and apparatuses, farming equipment and utensils and motor vehicles.
Also on that list are fisheries and farming equipment. The first knock on the exigency order for Hurricane Joaquin relief is that no exemption has been declared to rebuild and replace farming and fisheries industry items.
Questions have also been raised about some of the limitations contained in the order, and the new special importation procedures. One critical question is whether or not the Customs Department has been instructed to limit the duty exemptions only to disaster relief agencies and groups operating presently.
The fact that the government has not yet sought to "correct" the October 3 date suggests that it is not a misprint and the relief is retroactive. No instructions have been given, however, as to how those who imported goods for the relief effort prior to now but after October 3 are to be reimbursed for their costs.
A critical question has been asked, and one that has echoes in some of the private sector concerns. Since NEMA must approve all applications for the duty and VAT free import of rebuilding and replacement items, is NEMA sufficiently staffed to quickly and expeditiously process these applications?
Still, despite the questions, MICAL MP V. Alfred Gray, who represents some of the most severely affected islands, welcomed the exigency order and even thanked the government for its "quick response".
"The exigency order will certainly allow those who are able to buy whatever they require to bring their lives back to normal duty-free. And I am advised that that takes place immediately, so that is good news," Gray said.
"Everybody may not be able to, but the order really is designed for those who are able to take advantage of it. It is not up to us to decide who can and who cannot. Individuals will have to - under their own circumstances - take advantage of the opportunity that the government is providing," he said.
Gray also addressed the 90-day window.
"Three months from now is a long time, but it may not be the end of the story. I think if the government has to extend it, having regard to the needs of our people, I am sure that will happen."
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