Advance Rulings & the JCA: critical for efficient and effective trade

Worldwide, trade has become characterised by the ability to exchange goods and services without the constraints of geographic borders. Organisations and individuals seek to optimise on opportunities to increase efficiency, effectiveness, and ultimately their bottom-line, wherever they are in the world. Thus, saving themselves time, money and resources.

The rapid pace of technological advancement, especially in transportation and communication has meant that global trade continues to increase, as access to raw materials, intermediate and final goods has become easier on a production level.

Also serving as a catalyst for the continued increase in global trade, from a political and trade standpoint, is the negotiation of free trade arrangements among countries at the bilateral and multilateral levels. As the world continues to embrace being a global marketplace, despite the many recent shocks that disrupted the supply chain, the relevance and timeliness of the facilitation of legitimate trade becomes even more apparent. The need for the expeditious processing of goods has been acknowledged by major international organisations, at the forefront of which are the World

Customs Organisation (WCO) and the World Trade Organisation (WTO). The WCO, in one of its flagship instruments, the Revised Kyoto Convention (RKC), first introduced the concept of advance binding rulings, which was further reinforced by the WTO at Article 3 of the WTO Agreement on Trade Facilitation (TFA), which was signed in 2013 and is binding on all members of the WTO.

An Advance Ruling is a binding official advice or decision granted prior to an importation or exportation, issued in writing by a competent Customs authority and it provides the applicant with a time bound ruling on the treatment of the goods to be imported. Advance rulings have proven to be a means of facilitating trade, promoting transparency and predictability in Customs operations. Jamaica, as a member of both the WCO and the WTO, is committed to the implementation of advance rulings in the areas of classification and origin.

The Jamaica Customs Agency (JCA), in keeping with its vision of being a modern Customs administration that delivers excellent service and fosters compliance, is delighted to add Advance Rulings to its repertoire of trade facilitation initiatives in the near future. Characteristic of an advance rulings program is its legally binding nature, and in the case of Jamaica, on both the applicant and the JCA. Key to the implementation of Jamaica’s advance rulings program is the existence of a strong legislative framework, which the Bill Shortly Entitled the Customs Act 2020 provides.

Key benefits to be derived from the implementation of Advance Rulings include:

• Certainty to traders and their agents of the treatment of their goods upon importation and clearance in accordance with the applicable laws and procedures

• A transparent framework that encourages compliance and reduces the possibility of corruption

• Promotion of the consistent application of Customs decisions and laws, fostering trust between Customs and traders

• Reduced delays at the point of clearance

• Improved ability to forecast and manage inventory

Applications for Advance Rulings will be open to importers and exporters in Jamaica, producers of the goods in question, or agents acting on their behalf. The application must be regarding future importation of goods, within the stipulated timeframe, and is restricted to an individual product or issue.

All applications for advance rulings will be facilitated electronically through the JCA’S ASYCUDA Advance Ruling Portal.

As the JCA moves forward on its trajectory to being a leading Customs administration, we commit to improving our service to all stakeholders through the continued review of our processes and procedures to ensure harmonization, to increase certainty and predictability in conducting transactions, to promote facilitation of legitimate trade, and in so doing improve your ease of doing business with the Agency and to promote your growth and that of our nation.

We look forward to facilitating your applications in the near future.