Customs denies revenue loss, $2b exposure claim

THE LEADERSHIP of Jamaica Customs Agency (JCA) is taking issue with the auditor general’s claim that deficiencies at the agency led to $2.1 billion in financial exposure.

In a statement on Thursday, the JCA said it disagreed with the auditor general’s conclusion as there was no revenue loss.

The JCA said its records indicate that the duties, taxes, and fees in relation to shipments in question were duly accounted for and payments received by the agency.

The JCA also responded to concerns by the auditor general in relation to the import entries for 50.08 million litres of bunker fuel spanning three years after importation by a major local player in the petroleum sector.

There were instances where import declarations were submitted l ate via the Automated System or Customs Data (ASYCUDA), customs management system, the JCA admitted.

According to the JCA, it would have had knowledge of shipments through the uploading of the manifest process and submission of other documents in respect of the cargo.

In her report, the auditor general said that the JCA had failed to ensure that exports from bunker fuel operator 1 (BFO1) or the major local petroleum player’s special economic zone (SEZ) are authentic.

However, the JCA said that there were technical challenges experienced with a specific procedure during the implementation of the ASYCUDA.

The JCA said it relied on other documentary evidence such as bunker delivery notes, invoices, and declarations to verify the removal of fuel from the SEZ.

In relation to combined arrears of $664.3 million by three private bonded warehouse operators, the JCA said it did not agree with the sum stated by the auditor general.

On the matter of private bonded warehouse operators that owe the Government taxes, the JCA said it has demanded payment of the sums owed and some payments have been received towards reducing the arrears.

The JCA said it has also rescinded the private bonded warehouse privileges of the three importers.

It also pointed out that legal action has been taken against the delinquent i mporters to recover amounts owed.