Introduction:
On 1st May 2009, the Government announced that it would adjust its customs procedures to ensure that the manner in which items are documented for clearance adhered to the policy, which it indicated was being abused and creating significant wastage in collecting its revenue behalf of the Government.

However, the procedure, which was rolled ?out in Nassau on 1st June 09, and in Grand Bahama on 1st July 09, where a further extension to use the old system until the end of the year, was granted due to as noted by the Comptroller ? ?quirks? in the process, was done hastily with little notice and preparation time for industry participants prior to its implementation.

The Challenge:
As a consequence, the Government now required all items, previously declared on a C-13 form be done on a C-19 form and itemized to ensure that the correct duty was being assessed based on the accurate product description and the correct rate. The procedure, while enforcing the Government?s policy, created additional documentary work initially for the Custom?s department personnel, who were clearly not adequately prepared to deal with the significant increase in volume resulting in significant delays.

Additionally, it required the Brokers to now make an almost immediate adjustment to dealing with the increased level of detail the new form required and the Courier Companies to make significant changes in its bond or pay all duties immediately prior to items being released.

The financial cost borne by the industry estimated in the hundreds of thousands associated with the customs documentary change and the non-financial cost in terms of loss of credibility due to unprecedented delays experienced by consumers were incalculable.

Summary:
While acknowledging a shared responsibility for the current state of the system between businesses, government and the wider users of the system within civil society, The Bahamas Chamber of Commerce is gravely concerned and disappointed in the lack of preventative and pre-emptory measure by the Department of Customs and the Ministry of Finance for its limited action in making sufficient adjustments to safeguard businesses from stalling.

The current issue is not necessarily the purpose and intent of the enforcement, but the impact of the changes upon business operations (delays in the clearance of shipments, cash flow implications due to the cancellation of bonds, assessment of freight charges, increase in costs, process involved in getting exemptions, etc).

Finally, the BCOC has not and would never endorse or condone any of its members engaged in the distribution industry to abuse the system and not pay its applicable duties to the Government, as it appears to have been suggested. We are again lending our voice to the immediate need for the Comptroller of Customs and his department to work more assiduously with the industry stakeholders to improve the process of how items are cleared to ensure that the Government collects more efficiently its revenues while ensuring that such procedures do not create an unintended tax on the industry and the consumer alike.