EDWARDS ... the majority of us,I'll say 99 per cent of persons,want to be in a position tocomply, and if persons are clearon what the law says thenthey'll be in a position to do so(Photo: Naphtali Junior)
November 30, 2021
New Customs Act to be simplified and modernised
The Customs Act 2020 seeks to modernise customs practices and procedures to efficiently facilitate international trade. Such modernisation, which will repeal and replace the current 1941 law, is expected to promote Jamaica’s socio-economic development.
The Jamaica Customs Agency (JCA) was tasked with the responsibility to develop the new legislative framework, particularly in the areas of shipping, logistics and international trade.
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JCA Senior Director of Legal Affairs Hazel Edwards said the Act will improve transparency with modern and simplified terminology to increase the ease with which the legislation is read and understood by the general public.
“We know it’s important for persons to understand the law. The majority of us, I’ll say 99 per cent of persons, want to be in a position to comply, and if persons are clear on what the law says then they’ll be in a position to do so,” Edwards told the Jamaica Observer Business Forum held recently.
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“The legislation also introduces international best practices, because we recognise that Jamaica doesn’t stand alone, we’re a part of an international trade community and for our people to benefit from various opportunities available, then our legislation would have to put us in a position to not only compete effectively but to engage with other modern customs administrations,” she continued.
According to Edwards, provisions have also been crafted with respect to advance rulings, dispute resolution, inward and outward processing, and an expansion of commercial opportunities for stakeholders as it relates to the warehousing regimes.
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“…So you want to know how Customs is going to treat your goods and one of the things that we’re introducing into the legislation is the concept of advanced ruling. Before you import your goods, you can actually write to the commissioner and ask, ‘How will you treat my goods in terms of origin and tariff classification?’” Edwards explained, adding that the ruling is binding.
“When Customs states ‘this is how we’re going to treat your item’, — provided, of course, you haven’t given us false information, Customs will commit for a period of three years, that as long as you import the items in accordance to what you have said, we will honour the ruling,” she continued.
Additionally, JCA has proposed to extend the timeline for clearing goods. Currently under the Act, it is required that imported goods be cleared within 14 days of being off-loaded, but the new Act proposes a period of 90 days to clear all transhipment goods and 30 days for all other types of goods.
“It will give persons more time to clear… sometimes there may be some financial issues or they need to get a motor vehicle, so it gives them additional time to sort out these issues before Customs intervenes,” she said.
Presently, under the Act, after 14 days of off-loading, goods are deposited in the Queen’s Warehouse and auctioned four months after. The exceptions are those items under investigation or pending court procedures.
Nonetheless, the agency pointed out that the extension will attract higher port and storage fees.
Edwards said, too, that the review process of the Act, which was brought before a joint select committee of Parliament in 2019, is almost complete.
“We have engaged our stakeholders very widely and even though we’re at a certain stage in the process, continue to invite persons that have comments on the legislation or any concerns. We’re open to receiving those comments because we recognise that a new Customs Act is a very important piece of legislation that matters to all of us. At some point in time we’re a passenger or an importer so we’re all engaged in the legislation,” she contended.
