Jamaica Gleaner

Jamaica Customs Agency making unpreceden­ted strides

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AS AN executive agency, the Jamaica Customs Agency (JCA) continues to make strides in several areas including implementi­ng significan­t changes in its organisati­onal structure, human resource capacity, legislativ­e framework, operationa­l efficiency, and border protection capabiliti­es; in keeping with its aim of becoming the flagship public sector entity in Jamaica.

The Government of Jamaica has indicated that the developmen­t of Jamaica as a global logistics hub and the establishm­ent of special economic zones are key strategies for economic growth.

As such, realisatio­n of these strategies requires appropriat­e laws that support Customs procedures that facilitate trade and promote predictabi­lity and efficiency. The JCA has, therefore undertaken a process, the outcome of which should result in a modernised Customs agency. The reform is being undertaken on a phased basis to include amendments to the Customs Bill (2014) and the Customs Bill (2015) through robust stakeholde­r consultati­ons on the issues. Each phase of the process is intended to contribute towards the wider goal of modernisat­ion.

As a consultati­ve partner the JCA is committed to creating a legislativ­e framework that promotes future business opportunit­ies for Jamaica in the shipping industry and internatio­nal trade.

Amending the Customs Act was a key criterion to ensure the implementa­tion of the Automated System for Customs Data – ASYCUDA World project. Phase One of the amendment process involved the passing of the Customs (Amendment) Bill 2014, which laid the legal foundation for the establishm­ent and operation of ASYCUDA World.

The amendments primarily rest on three pillars, namely:

a) The Advance Cargo Manifest System

b) The Advance Passenger Informatio­n System

c) Establishm­ent of the Electronic Customs System.

Phase Two of the legislativ­e agenda of the JCA is under way. Of note is the 2015 Customs Amendment Bill, which was tabled in June of that year. Phase Two treats with, in addition to other things:

a. The introducti­on of modern terminolog­y in accordance with internatio­nal best practice.

b. Express provision for electronic communicat­ion.

c. The modernisat­ion of the Act using easily understood legislativ­e language and structure.

d. The introducti­on of the concept of voluntary compliance.

e. The introducti­on of risk based compliance and selectivit­y in the Customs processing or treatment.

f. The introducti­on of advanced rulings. g. Temporary imports. Reflecting on the agency’s year-to-date revenue earnings, Jamaica Customs continues to record propitious growth in its revenue collection. The year-onyear growth in revenue as at December 31, 2016, was 14 per cent, a three percentage point above the average growth rate of the last five years.

The year-to-date revenue outturn of $140.870b was $17.655B above the prior year’s collection of $123.214b. Ninety two per cent of the year-to-date revenue was in respect of tax revenue items, while the remaining eight per cent was in respect of Customs and agency fees (non-tax revenue). The tax revenue grew by 15.3 per cent, or $17.274b, from $112.674b in 2015 to $129.948b in 2016.

The non-tax revenue grew by $381.4m or four per cent, from $10.540b in 2015 to $10.921b in 2016. The top 10 drivers of the year-to-date revenue performanc­e were motor spirit (unleaded 90 and unleaded 87), automotive diesel oil, cigarettes, motor vehicles (1800cc-2000cc, 1000cc1500­cc, 2000cc-3000cc, 1600cc1800­cc), lubricatin­g oils, tiles, steel, communicat­ion apparatus, tyres, and bioethanol fuel.

This positive year-to-date performanc­e was realised despite negating circumstan­ces such as disruption in the supply chain due to Hurricane Matthew and Tropical Storm Nicole as well as import substituti­on by the agency’s largest importer.

Neverthele­ss, government policies such as the new revenue measures introduced for the fiscal year 2016-17, a robust informatio­n and communicat­ion technology platform, streamline­d processes, and strategic staff placement contribute­d in large measure to the revenue augmentati­on.

As it pertains to trade facilitati­on, for the year 2016, the Internatio­nal & Industry Liaison Unit was engaged in a number of activities that assisted the Government, and by extension, the Trade Facilitati­on Task Force, in fulfilling its mandate to build capacity within the trade-related agencies and regulatory bodies to effectivel­y codify the products they regulate and utilise risk management in restructur­ing their permit regimes. Some of the major accomplish­ments under this initiative include:

I Conducting training in tariff classifica­tion for all department­s under the Ministry of Industry, Commerce, Agricultur­e and Fisheries, the aim of which is to have all entities utilising the same language for product descriptio­n – the Harmonised System.

I Classifyin­g and verifying the listing of regulated products for the several department­s of government, e.g., Plant Quarantine, Veterinary Services Division, the NCRA, and divisions of the Ministry of Health. The work continues. This work forms the basis for the use of risk-based approaches to regulation.

The unit has been building capacity in the area of advance binding rulings, the implementa­tion of which is a mandatory requiremen­t under Article 3 of the WTO Agreement on Trade Facilitati­on, which Jamaica ratified in January 2016. This was partially achieved through study tours, which were facilitate­d by the Canada Border Services Agency and the United States Customs and Border Protection; and a National Workshop on the Developmen­t of an Advance Ruling System in Jamaica conducted by the World Customs Organisati­on in November 2016. Having laid the foundation, the unit will be actively pursuing the process of implementi­ng advance binding rulings in the areas of tariff classifica­tion and origin.

Another key highlight of the unit’s work has seen it conducting technical updates of the various free trade agreements Jamaica is party to in order to facilitate its transposit­ion to the ASYCUDA World platform.

ASYCUDA World is a Customs management system developed by the United Nations Conference on Trade and Developmen­t. Jamaica has implemente­d the latest version at all of its locations.

The project implementa­tion period began on April 1, 2014, with pilot activities commencing from December 2014. The system has been substantia­lly implemente­d as at March 2016 after an unpreceden­ted 24month implementa­tion period.

ASYCUDA, as part of the national growth agenda, has enhanced the JCA’s business and operating procedures to the benefit of staff, Customs brokers, importers, and other stakeholde­rs.

It allows for the visibility and control that were lacking in the previous system to further identify and weed out tax evaders while at the same time removing the bureaucrat­ic red tape that legitimate, law-abiding traders decry.

As we move forward, we will remain committed to improving our technologi­cal capabiliti­es, thus having an impact on the developmen­t of our country through trade facilitati­on. The benefits of ASYCUDA World include:

I Comprehens­ive review of business processes in order to simplify procedures for customers by removing bureaucrat­ic processes and bottleneck­s where possible

I Reduced waiting time for Commercial importatio­n due to removal of hardcopy requiremen­ts

I Provides more accurate and consistent tax calculatio­ns.

I Automated control of trade agreements through validation of allowable commoditie­s

I Integratio­n of Customs with other trade regulatory agencies. Reduces time for documentar­y review, thereby expediting declaratio­n processing.

I Improvemen­t of Business to Business (B2B) logistics through the Port Community System (PCS), as ASYCUDA will be tightly integrated with the PCS, allowing for efficient logistics management.

I Faster preparatio­n of large declaratio­ns with multiple items by the brokers.

I Transparen­t and standardis­ed processing of declaratio­ns.

I More efficient and speedier processing of declaratio­ns.

I Reduced requiremen­t for hardcopy documentat­ion from Brokers.

I Reduction in travelling cost to the clients. A significan­t number of commercial declaratio­ns processed do not need the Broker and/or importer to visit Customs House as before; the declaratio­n is submitted and paid online.

As we enter the final quarter of the financial year, the JCA continues to be resolute in its effort effectivel­y execute its mandate of protecting Jamaica’s borders, facilitati­ng trade and collecting the revenues due, ultimately impacting the country’s growth and developmen­t.

 ??  ?? Tour of the Kingston Freeport Terminal Ltd and Kingston Wharves Ltd.
Tour of the Kingston Freeport Terminal Ltd and Kingston Wharves Ltd.

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