Jamaica Customs Agency making unprecedented strides
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.