Customs Weekly

Jamaica Customs Will Continue to Transform through Automation Supported by Legislative Reform

A key Agency in border protection and an important player in the global supply chain and logistics process, the Jamaica Customs Agency (JCA) will continue to seek ways to expand its capabilities and improve its efficiencies.

The global space is today, much more advanced technologically, and it is imperative that the JCA adopts the relevant automated systems for greater value creation and service delivery that will seek to accelerate us in the right direction.

The JCA is cognisant that the world moves with great speed with the utilisation of Information Communication Technology (ICT), the Fourth Industrial Revolution and emerging technological breakthroughs such as the Internet of Things, Artificial Intelligence, Big Data Analysis and Robotics, coupled with wide and growing mobile usage and internet penetration, and as such, we must ensure security of cross-border trade, through the automated environment.

Our clients are now demanding even faster and more efficient service, by simply using the click of a button, and, businesses too – both local and international have adopted new approaches in serving their own customers. In this respect, we must ensure that we are ready and able to meet their needs. The emergence and growth of e-commerce, for instance, has signalled to us the need to operate in more dynamic ways.

Additionally, the JCA and other Border Regulatory Agencies, in demonstrating coordinated border management in an electronic environment, will be implementing the Electronic Single Window in 2021, that will benefit our traders. This system will allow for the single submission of information by traders along with the electronic exchange of information and delivery of services.

The JCA continues to ensure greater security of the supply chain with our World Customs Organisation (WCO) accredited programme – Authorised Operator Economic (AEO) Programme, which is geared towards encouraging greater compliance and mutual trust and transparency of our traders, who have benefitted significantly from the faster and smoother clearance of their cargo.

Of note, is that tied to automation is the application of a risk-based approach in line with our Service Standards and Charter. The need to mitigate risk is embedded within the dynamic environment within which we operate, which keeps us agile in our transformational pursuits.

Of significance, is that the JCA, in collaboration with its partners, completed the development of the new Customs Act (2019) which was tabled in Parliament in June 2019.  It must be noted that the current Customs Act (1941) remains in effect (law) until the new Act (2019) goes through the required parliamentary processes, and is passed and gazetted.

The new Act has retained some of the substantive provisions of its predecessor, even as it incorporates several new provisions geared towards trade facilitation and international best practices. Additionally, the area of risk-based compliance and selectivity in Customs processing or treatment has also been included.

Provisions have also been crafted with respect to advance rulings, inward and outward processing, and an expansion of commercial opportunities for stakeholders with respect to the warehousing regimes, among other provisions that would be indicative of Jamaica as a logistics and commercial hub. Importantly, the language of the new Act has been simplified and modernised to facilitate ease of understanding, by the general public.

The Jamaica Customs Agency will continue to work with its various partners, towards achieving the country’s national development goals, which seek to make Jamaica “the place of choice to live, work, raise families and do business.”

Jamaica Customs promotes risk-based approach in protecting country’s borders & fostering compliance

As the Jamaica Customs Agency (JCA) continues its thrust to improve its overall efficiency, the entity continues to boost its capacity to identify and combat risks that can   serve to undermine its border protection capabilities and the country’s overall security.  

• What is Risk Management?
• What are the benefits of using a risk-based approach?
• How does it impact border protection?
• How does it foster compliance?

The success of Customs administrations worldwide, depends on an effective Risk Management System. The Risk Management Unit of the JCA is responsible for implementing risk management plans and processes which involves gathering and collating information; identifying, analysing and reporting areas of risk; developing targets and profiles; establishing and maintaining a risk management database; and monitoring the application of risk management remedies across the Agency.    

Risk-based Approach

The risk-based approach adopted by the JCA emphasises that border protection has to remain a priority, while facilitating the legitimate movement of cargo and passengers. The risk-based approach is primarily data-driven, as data analysis, is critical to the risk management process. The purpose of risk analysis is to separate low risks from high risks and to provide data to assist in the assessment and treatment of the risks identified.

Risk Management, Border Protection and Fostering Compliance

The JCA places Risk Management as a focal point of its operations and has formulated an Agency Risk Management Policy (2014) in order to ensure that practices are aligned with the Revised Kyoto Convention (RKC) and other international benchmark guidelines, such as the World Customs Organisation’s (WCO) SAFE Framework of Standards and the Revised Arusha Declaration.

The JCA’s Risk Management Policy (2014) involves the following:

• Application of risk management techniques which will strengthen the resilience of the organisation and ensure integrity and ethics standards are upheld. It allows the Agency to use risk-based information to make strategic and proactive decisions.
• Implementation of a structure that supports risk management and which ensures that  employees have a clear understanding of the nature of the risks in their areas, and are able to systematically identify, analyse, prioritise and develop treatment programmes to mitigate those risks.
• Provision of suitable and timely training for staff.
• Adoption of the latest Customs technologies, automation of key Customs processes and increased reliance on effective post clearance audit techniques.
• Use of non-intrusive examination techniques, such as cargo imaging (screening) and the use of profiling of high-risk cargo and passengers. Another mechanism is the application of a uniformed approach to risk management, such as the Risk Register Template.
• Fostering compliance, through simplification and automation of processes, through the revamped Authorised Economic Operator (AEO) programme and the implementation of the Customs Automated System, allowing for greater predictability and faster processing of cargo.

Additionally, the Agency continues to be proactive in seeking to reduce and eliminate illegal activities that threaten the economic stability and safety of our people, including detecting and seizing counterfeit goods.  

The JCA wishes to reassure our stakeholders that the Agency remains committed to securing Jamaica’s ports and keeping our people, society and economy safe from illegal imports and trading activities.

New Customs Act (2019) tabled – aimed at promoting and supporting Jamaica’s socio-economic development

Arising from a decision of Cabinet in 2017, the Jamaica Customs Agency (JCA) was tasked with the responsibility to develop a new legislative framework which would further promote business opportunities for Jamaica, particularly in the areas of shipping, logistics and international trade. Following several stakeholder consultations, the Agency, along with its partners, completed a significant leg of the process, which resulted in the new Act being tabled in Parliament in June 2019.

The JCA however, reminds all its stakeholders that the current Act (1941) remains in effect (law) until the new Customs Act (2019) goes through the required parliamentary processes, and is passed and gazetted.

The new Act has retained some of the substantive provisions of its predecessor, even as it incorporates several new provisions geared towards trade facilitation and international best practices. Additionally, the area of risk-based compliance and selectivity in Customs processing or treatment has also been included.

Provisions have also been crafted with respect to advance rulings, inward and outward processing, and an expansion of commercial opportunities for stakeholders with respect to the warehousing regimes, among other provisions that would be indicative of Jamaica as a logistics and commercial hub. Importantly, the language of the new Act has been simplified and modernised to facilitate ease of understanding, by the general public.

Benefits of the New Legislation:

• Promote socio-economic development and assist with the creation of the conditions for economic growth.
• Facilitate the efficient processing of Customs-related transactions.
• Aid in protecting local businesses and the international supply chain from unfair international trading practices, smuggling of goods, under-invoicing, fraud and intellectual property rights infringement.
• Encourage voluntary compliance with Customs laws and procedures.
• Further support the implementation of ASYCUDA World.
• Strengthen the enforcement powers of the Commissioner of Customs.
• Strengthen the ability of the JCA to effectively protect Jamaica’s borders.
• Assist the JCA in facilitating the processing of increased volumes of trade in an increasingly complex international trading environment.
• Encourage new business models and requirements, including e-commerce.

Modern Terminology and Ease of Use

The new terms and definitions in the Customs Act are consistent with the Revised Kyoto Convention (RKC) which has been adopted by several Customs administrations worldwide. The use of internationally accepted terms and definitions will facilitate Jamaica's interaction with the international trading community and will assist carriers, agents and all the industry professionals who operate in the global context.

Wide Range of Security

There is an overarching provision in the Act which deals with security. The JCA will facilitate a broader range, of types of security. Further, security may be specific, that is, relating to a specific consignment of goods; or general, that is, relating to any class/kind/category of goods during a specified or indefinite period. 

Fluidity of Procedures

Express provisions are made for different Customs procedures in keeping with a logistics-focused economy. For example, the new legislative framework will facilitate the introduction of Customs processing and procedures, such as inward and outward processing. Such processing procedures will enable goods to be imported for the specific purpose of under-going processing in Jamaica on condition that the products that result from the processing will be exported. In addition, goods may be seamlessly moved from one Customs procedure to another, once all Customs requirements are satisfied.

Clarification of the Transit and Transshipment Procedures

The Act seeks to clarify the regimes relating to transit and transshipment to promote improved alignment with ASYCUDA World and international best practice.

 Advance Arrival Reports

The Agency has sought to revise the provisions concerning advance reports to be provided by carriers engaged in short haul flights and voyages as opposed to long haul flights and voyages. The time frames in the new Customs Act will conform to the World Customs Organisation’s (WCO) SAFE Framework of Standards. These time frames will facilitate further compliance by shipping agents.

The Jamaica Customs Agency takes this opportunity to thank all its partners and stakeholders for the roles they played in coining the new Customs Act (2019), as together we work towards achieving the goals of (Vision 2030) Jamaica’s National Development Plan, which seeks to make Jamaica “the place of choice to live, work, raise families and do business.”

Jamaica Customs Urges Travellers & Importers to Adhere to Import Regulations

With summer travel in high gear, the Jamaica Customs Agency (JCA) is reminding travellers and importers to comply with regulations governing the importation of restricted and prohibited items. Restricted goods, such as meats and plants, require a permit, while prohibited goods, such as toy guns and fire crackers are not allowed into the island, and will be seized at the port.  

Other items that require permits and/or licences include motor vehicles, pesticides, agricultural produce, human remains, fire arms and holsters, and several others. Importers and travellers are therefore being urged to contact the JCA and the relevant agency or agencies (below), for further guidance or clarification, as it relates to importing goods/items that may require a permit.

The JCA performs border protection or agency functions on behalf of the following agencies and encourages importers to make contact with these entities if they require details on importing any item that falls within their purview:   

• The Firearm Licensing Authority (FLA), Ministry of National Security
• The Pesticides Control Authority (PCA),Ministry of Health
• Plant Quarantine Unit, Ministry of Industry, Commerce, Agriculture & Fisheries (MICAF)
• The Veterinary Services Division, MICAF
• Trade Board Limited
• Jamaica Civil Aviation Authority (JCAA)
• The Public Health Department, Ministry of Health
• Bureau of Standards (MICAF)
• National Compliance and Regulatory Authority (NRCA) 
• National Environment and Planning Agency (NEPA)
• Tax Administration Jamaica (TAJ)
• Coconut Industry Board
• Spectrum Management Authority (SMA)
• Department of Cooperatives and Friendly Societies (DCFS)
• The National Environment and Planning Agency (NEPA)
• Department of Cooperatives and Friendly Societies (DCFS)

The Agency further advises that importers can be breached for failing to obtain the relevant permits when importing certain items. Other reasons for which persons can be breached are:

• Under-invoicing;
• False Declarations;
• Undeclared Excess Goods;
• Intellectual Property Rights Violations;
• Violations of the requirements of regulatory authorities.

Ensure:

• No excess goods are being shipped and that invoices are authentic;
• Supporting documents, such as Tax Compliance Certificate (TCC), Certificate of Registration of Approved Charity, etc. are valid;
• Documentation for shipments to Charities bears the consignee’s name and address. 

Reminders

• If the passenger uses a portion, or all of the Duty Free Allowance (US$500.00), the Customs Official will indicate on the C-27 electronic form (formerly Yellow Form) that full allowance was given, or the amount of the allowance utilised. Once there is an allowance remaining, the passenger will utilise the balance to clear the unaccompanied baggage.
• The C-27 electronic form is valid for clearing goods that arrive in the island two months before, or two months after the passenger arrives. This form is completed by the Customs Officer.
• Goods with a Cost Insurance and Freight (CIF) value of more than US$5000.00 must be cleared by a licensed Customs Broker.
• Barrels containing ‘personal effects’ (e.g. food, clothes, toiletries, basic household items) or ‘non-commercial’ items attract a minimum charge of JMD$6,500.00 per barrel.
• If items are being cleared on behalf of a consignee, the representative must present a letter of authorisation, signed and stamped by a Justice of the Peace (JP). The consignee’s Tax Payer Registration Number (TRN) card and valid identification must be presented to the Customs Official (photocopied documents must also be signed/stamped by a JP).

For further information telephone the JCA at: 876-922-5140-8; Toll free: 1-888-287-8667 or email public.relations@jca.gov.jm or quick.response@jca.gov.jm.