Repeal and replace outdated Customs Act- Clarke
Published:Monday | November 19, 2018 | 12:00 AMPaul Clarke/Gleaner Writer
Minister of Finance and the Public Service Dr Nigel Clarke has said the Customs Act should be repealed and replaced if Jamaica is to take advantage of existing trade opportunities.
The act has been on the books without significant change since 1941.
Clarke said what obtains under the current Customs Act is no longer compatible with the vision of a thriving logistics hub, which is a stated ambition of successive government administrations, including the current one.
"The existing legislative framework for the customs procedures dates back to the 1940s. There have been amendments here and there, but the foundation of the legislation is based on practices that we have long moved away from," said Clarke.
The last time an amendment was made to the act was back in 2014, to facilitate the implementation of the Asycuda system, the Automated System for Customs Data, which is a computerised system designed by the United Nations Conference on Trade and Development to administer a country's Customs.
He said Jamaica stands in a premium geographical position located on the path from Asia, which supplies finished and intermediary goods through the Panama Canal on to the eastern seaboard of the United States, one of the biggest markets in the world.
"We are well poised to play a key role in global supply chains. However, we can't just talk about it to get there. We can't just dream about it; we can't just say we have a great location and expect things to happen because we are not the only one on that path. So our Customs Act, for more reasons than one, need to be updated to ensure that Jamaica can take full advantage of opportunities in today's world," said Clarke at Tuesday's joint consultations on the draft Customs Bill at the Shipping Association of Jamaica offices in Kingston.
Further making his point, Clarke said figures show that since the implementation of the Asycuda system at Jamaica Customs, clearance costs and rates on commercial inflows have been reduced significantly, and that approximately 85 per cent of commercial shipments released within 24 hours or less. There has also been a reduction in administrative cost, while revenue collection has improved.
"I want to encourage you to use the process that is being launched today and is being led by the commissioner to make an even greater success. Don't try and stop the progress, the world is moving quickly and if we don't get along they have no problem in leaving us behind," Clarke warned.
Velma Ricketts-Walker, commissioner of customs, said she appreciates the effort stakeholders are prepared to put into the consultation process.