Press Release

Statement from the Commissioner of Customs - Jamaica Customs and the Fight against Intellectual Property Rights (IPR) Infringement

STATEMENT FROM COMMISSIONER OF CUSTOMS

Jamaica Customs and the Fight against Intellectual Property Rights (IPR) Infringement

The Jamaica Customs Agency (JCA) acknowledges the information presented by Carreras Ltd. at its recent press event. Several issues must be taken into consideration when assessing the current impact the illicit trade is having on revenue:

The advent of several additional players in the tobacco market (two local manufacturers and new importers) and the impact this is having on Carreras’ market share and its bottom line.
The figures being quoted emanates from historical data, to include figures from the time of the introduction of the tobacco regulations, when there was an appreciable drop in revenue due to the uncertainty associated with the introduction of the new regulations.
As can be appreciated, commodities which attract high levels of tax will be increasingly attractive to smugglers.
The matter of the uncontrolled ports of entry is also to be considered. The fact is that there is a very active illegal maritime trade route from Haiti and South American countries which is being used to smuggle various forms of contraband, to include tobacco products. The resources do not exist to effectively monitor these areas which run from Portland to Westmoreland.
Increased production of local tobacco and its use as a substitute for finished cigarettes in the form of GRABBER must also be factored. It has been estimated that currently local tobacco production accounts for at least 100 million sticks of cigarettes.

Counter Measures

The Christmas period sees increased volumes of cargo at all ports as well as passengers, which translate to the increased opportunity for smuggling. To minimize the possibility of contraband entering the country the JCA has intensified its enforcement activities from as early as September. These include increased collaboration with our enforcement partners in the areas of intelligence gathering and sharing, as well as on enforcement operations.

To increase our successes, we see the increased use of technology as both a deterrent and an enforcement tool. In furtherance of this, a team consisting of persons from the JCA, the Ministry of Finance’s, Financial Investigation Division (MOF/FID) and Tax Administration Jamaica (TAJ) has been tasked to investigate the possibility of introducing Tax Stamps as an effective means of controlling the tobacco trade. The use of more modern scanning equipment with the ability to better identify high risk cargo is also being explored.

Operations to Date

The JCA continues to partner with other arms of law enforcement as we seek to protect the borders and increase revenues. In furtherance of this, the JCA has embarked on several operations aimed at removing illegal tobacco products from the streets as well as to prevent their entry into the country. Below is a summary of the results of those operations for the calendar year to October.

NUMBER OF CIGARETTE SEIZURES BY MONTH FOR 2016
MONTH	NUMBER OF SEIZURES	CIGARETTE
JANUARY	2	1,530 sticks
FEBRUARY	4	27,392 sticks
MARCH	5	1,978 sticks
APRIL	5	1,766 sticks
MAY	5	72, 541 sticks
JUNE	3	4,570 sticks
JULY	2	1,696 sticks
AUGUST	0	0
SEPTEMBER	1	84 sticks
OCTOBER	2	491,441 sticks
NOVEMBER
DECEMBER
TOTAL # OF SEIZURES	29	29
QUANTITY OF SEIZURE		602,998 Sticks
STREET VALUE		JMD$24,119,920.00

Jamaica Customs Clears the Air on CAF and ASYCUDA System

The Jamaica Customs Agency takes note of the Sunday Observer article dated October 30, 2016 which raised concerns about the Customs Administrative Fee (CAF) and the Automated System for Customs Data, ASYCUDA World, which had incomplete and in some instances incorrect information.

The article made note of the approved Cabinet Decision #29/13 which was implemented by the Agency. These included revenue enhancement and trade facilitation measures, including the reduction of the cap on Examination CAF (eCAF) to $20,000.

Contrary to the Observer’s report, the Commissioner of Customs communicated the Agency’s responses to the Financial Secretary by letter dated November 18^th, 2015 and by email - December 4th, 2015. The matter was also dealt with between the Commissioner and the Financial Secretary in a meeting on December 3^rd, 2015. On December 7^th, 2015, the Agency implemented corrective measures which remain in effect.

The JCA’s revenue generating capacity is a direct function of the size of the tax base – the CIF value of imports (which is impacted by trade volumes and rate of exchange), tax measures introduced by the Government of Jamaica, and compliance initiatives by the JCA.

As at September 30, 2016, the total net revenue generated by the JCA was $93.364B or 3.2 per cent or $2.898B above the target of $90.466B. This revenue outturn was $13.727B or 17 per cent above the fiscal year’s revenue of $79.637B.

The revenue from General Consumption Tax (GCT) accounted for 39 per cent of the year-to-date net revenue, while Special Consumption Tax (SCT) and Import Duty (ID) accounted for 25 per cent ($23.677B/$93.364B) and 19 per cent ($17.375B/$93.364B) respectively.

The Customs Administration Fee (CAF) accounted for only 7 per cent ($6.653B/93.364B) of the year-to-date net revenue. In keeping with the Government’s thrust to incentivise growth enhancing sectors of the economy, CAF revenue has been reduced by discounted CAF rates to sectors such as manufacturing, bauxite and petroleum. As such, CAF revenue’s contribution to the total Agency revenue has declined from 9 per cent in FY13/14 to 8 per cent in FY14/15 with a further decline to 7 per cent in both FY15/16 and FY16/17. The effective CAF rate is steadily being reduced to stimulate and sustain economic growth.

Of the total cost to move cargo from the Port to Free Zone as cited by the Observer, it must be emphasised that only approximately 46 per cent would accrue to the Jamaica Customs Agency, the remainder being port related fees.

As it relates to the implementation of the Automated System for Customs Data, ASYCUDA, within the JCA, Jamaica is one of 90 countries world-wide using the ASYCUDA System. This includes all CARICOM member states, the latest being Antigua which has the Customs Automated System (CASE), which also preceded the implementation of ASYCUDA World in Jamaica. Panama is the latest Customs Administration in the region to express an interest in the implementation and use of ASYCUDA. Of the 90 countries making use of the varying versions, currently 72 countries use the ASYCUDA World version as is the case in Jamaica.

The implementation of ASYCUDA World which resulted in revolutionised improvements in conducting business with Customs has been extremely successful to date. This is evidenced in the 2017 World Bank Doing Business Report:

“Both Grenada and Jamaica made significant upgrades to their electronic platforms, resulting in a substantial decrease in the time required for international trade processes. Their systems allow for the electronic submission of customs declarations and supporting trade documents. As a result, customs brokers no longer need to go to several customs clearance officers or government agencies to validate documents.”

This has resulted in a greater positive outlook for trading across borders in Jamaica. (Jamaica now ranks 67^thcompared to 90^th position when the ASYCUDA project commenced in 2014). The Agency supported by the multilaterals such as the International Monetary Fund (IMF) and World Bank foresees greater insights and improvement in Jamaica’s trade and economy that could be achieved with the expected integration of ASYCUDA World and PCS.

While three (3) agents of the Shipping Association have raised issues concerning the confidentiality of information in ASYCUDA, there has been no evidence to substantiate any breaches to-date. That is, no entity has been able to provide evidence of its information being seen or used by unauthorised persons.

The system mandates the agent of a ship or aircraft to authorise access to Co-loaders, Non-Vessel Operating Common Carriers (NVOCCs), Freight Forwarders and sub-agents using the entities Taxpayer Registration Number (TRN). The approval permits these entities to access pertinent information only pertaining to their cargo for further processing at the varying levels of the logistics and supply chain. Formal declarations can only then be submitted to the Agency for subsequent clearance of cargo.

The United Nations Conference on Trade and Development (UNCTAD) has confirmed that no other country has had issues or claims regarding information being seen by competitors. It is also important to note that many of the shipping lines, including the major ones operating in these countries, are the same operating in Jamaica. Hence, any issue or claim regarding information being viewable by competitors would be unprecedented to UNCTAD in its implementation of the ASYCUDA System over the last 30 years.

The Jamaica Customs Agency wishes to take this opportunity to reassure its valid clients and stakeholders of its commitment to fostering an environment for a more efficient and transparent means of doing business.

Customs Valuation

NOTICE

Customs Valuation

The Jamaica Customs Agency wishes to remind the public about the Valuation Principles contained in the Valuation Schedule, Section 19 of the Customs Act. The schedule specifies the rules of valuation for imported goods, the methods and the manner in which they may be applied.

Rights and Obligation According to the Customs Act

Section 19 (2) – Customs have the right to doubt the truth or accuracy of the information submitted.

Section 19 (3) – Customs is obligated to notify the importer of how the customs value was determined.

Section 19 (4) &19 (5) – Customs must inform the importer of the right to an appeal without penalty.

Section 19 (7) – Customs have two (2) years within which to change a previously accepted value due to new information gathered.

Please note: Importers are obligated to cooperate with Customs during an investigation of values.

The Customs Valuation methods are based on the World Trade Organisation (WTO) Valuation Agreement. There are six methods:

Method 1: Transaction Value
Method 2: Transaction Value of Identical Goods
Method 3: Transaction Value of Similar Goods
Method 4: Deductive Method
Method 5: Computed Method
Method 6: Fall-back Method

For further information visit the Jamaica Customs Agency website at www.jacustoms.gov.jm or contact the Customs Quick Response Team via email at quick.response@jacustoms.gov.jm or via telephone 922-5140-8, 1-888-customs (287-8667).

Valuation Appeal Process

NOTICE
APPEAL PROCESS/VALUATION VERIFICATION UNIT

An importer may request a review of the decision made by the Valuation Verification Unit (VVU), if dissatisfied with the value determined as the price actually paid or payable for the goods when sold for export to Jamaica.

Reference: Section 19 of the Customs Act

Follow the Steps listed below;

Refer your case to the Manager of the Valuation Unit for review with any additional documentation that could assist with the determination of your transaction value.
If dissatisfied with the review, request to have your case heard at the Internal Review Committee (IRC) Meeting, held twice per week at the Head Office, Jamaica Customs Agency.
If dissatisfied with the decision of the VRC, you may appeal to the Tax Appeals Department (TAD) within thirty (30) days of receiving the Commissioner’s decision.
If dissatisfied with the decision of TAD, you may appeal to the Revenue Court within thirty (30) days of the date of receiving that decision.

NB: It is advisable that you:

Commence with the clearance of your goods by making payment of the import duties payable on the declared value and
Make a deposit of the additional duty payable on the value adjusted, while you go through the appeal process;

Disclaimer: The Jamaica Customs Agency will not be liable for demurrage/storage fees incurred during the appeal process

For further information contact:

The Valuation Unit
The Customer Service Unit
Tel: 922-5140-8/1-888-customs (2878667),public.relations@jca.gov.jm
Visit our website at Jamaica Customs Agency website at www.jacustoms.gov.jm

Customs addresses Online (ePayment) Delays to the Automated System for Customs Data - ASYCUDA World

The Jamaica Customs Agency (JCA) wishes to advise our valued clients of resolution to the nuance surrounding inconsistent service while using the ePayment portal. The escalating reports from end users commenced on Thursday August 26th resulted in resources being immediately dedicated to identify and resolve this anomaly. Notifications were issued to the Customs Brokers Associations, Couriers, Shipping Association of Jamaica and other stakeholders alike advising of such matters.

A meeting was convened with the President of the Customs Brokers & Freight Forwarders Association of Jamaica, Ms. Marcia Bent, to update her first hand on the challenges and corrective measures taken. Based on concerns expressed, it was further agreed that offline system protocols were also to be extended as discussed and agreed. The JCA has since rectified the cause and restored normalcy of all online payment services. The Agency regrets any inconvenience caused and assures our clients of our continued commitment to quality services.

Jamaica Customs Warns Public of Motor Vehicle Auction Email Scam

The Jamaica Customs Agency (JCA) wishes to advise the public of an email scam purporting to be from Major (Ret’d) Richard Reese, CEO/Commissioner of Customs bearing the email address reeserr4@gmail.com, informing persons of the sale of motor vehicles that are allegedly on auction by the Commissioner.

The email contains information about 2014 vehicles in showroom conditions to include payment information, deadlines for payment and processing of paperwork, and a bank account number.

The Commissioner is reminding the public that all Public Auctions are advertised in the newspapers 30 days prior to the date of the auction sale and all payments – cash or Managers’ Cheque must be paid directly at the Jamaica Customs Agency Cashier on the day of the auction. All cheques must also be written in the name ‘Collector of Customs’.

He further indicated that at no time should persons make payments to any person or entity, outside of these accepted payment channels.

Additionally, the Agency or the Commissioner will at NO TIME use an email to communicate to anyone or the public regarding auction sales.

The Commissioner further advises that the JCA will not sell any item or good, outside of the guidelines that are laid out in the Customs Act and its Regulations.

He further informed that any item placed on auction, such as a motor vehicle, which is not sold at that auction is put up for resale by the JCA, at a subsequent auction.

All persons wishing to participate in an auction must register through the JCA. Registration takes place at the Queen’s Warehouse - 230 Spanish Town Road; Queen’s Warehouse - Norman Manley International Airport; and Queen’s Warehouse - Sangster International Airport (SIA); Monday – Friday between the hours of 9:00a.m. and 3:00p.m. Registration of bidders closes at 3:00 p.m. on the day prior to an auction.

Applicants are required to submit the following:

Two (2) passport sized photographs
TRN Card
Valid ID (Driver’s Licence, Passport or Electoral ID)
Bidder’s registration fee of Two Thousand Dollars ($2,000.00), after which the bidder will be issued with a Bidder’s Registration Card which expires on December 31^st of each year.

All motor vehicles are sold through a competitive bidding process and no individual Bidder is accorded special treatment.

Mandatory use of Automated System for Customs Data (ASYCUDA World) for Commercial Exports at the Port of Kingston Effective May 11, 2015

The Jamaica Customs Agency (JCA) commenced piloting of the export functionalities of its automated system, ASYCUDA World in December 2014. ASYCUDA World System provides for Customs Declarations and all supporting documentation to be submitted electronically.

The JCA has taken specific measures to ensure that end-users are equipped with the capacity to use the system. We have also partnered with JAMPRO to provide client support to registered Exporters who require assistance in preparing Commercial Export Declarations.

Customs Agency Surpasses Revenue Target for First Quarter of 2016/17 Financial Year (FY)

The Jamaica Customs Agency (JCA) continues to be the second largest financial contributor to national development, with the organisation realising a net revenue of $44.422B, during the first quarter of the 2016/17 Financial Year (April to June), surpassing its target by $2.469B or 5.9 per cent.

When compared to the first quarter of the financial year 2015/16, the JCA has recorded growth in its net revenue collection by 14 per cent or $5.406B, up from $39.016B in 2015.

The major tax items - Import Duty, General Consumption Tax (GCT) and Special Consumption Tax (SCT) all performed positively relative to the targets for the quarter and prior year. At the end of June, the collection in respect of Import Duty was 5.4 per cent above the target while GCT and SCT were 9.35 per cent and 8 per cent respectively above the targeted collection. The growth rates in the revenue from these respective tax items, relative to the previous year, were 29 per cent, 15 per cent and 7 per cent respectively.

The non-tax revenue items also recorded similar positive performances against the target and previous fiscal period. Collectively, the non-tax revenue totalled $3.557B and was $139.6M or 4 per cent above the target of $3.417B. The growth in the non-tax revenue relative to the previous fiscal period was 6 per cent or $186.421M.

The drivers of the quarter’s revenue were automotive diesel oil, motor spirits (unleaded 87 and 90), cigarettes and motor vehicles. Other significant contributors included cellular phones, tiles, bus and car tyres, motor vehicle parts and accessories, communication apparatus, lubricating oils, televisions and refrigerators.

The contributory factors to the Agency’s revenue outturn included growth in the tax base, new tax measures and improved compliance effectuated by the Automated System for Customs Data (ASYCUDA World), Jamaica’s premier electronic trade system.

The principal tax base, the composite of the cost, insurance and freight (CIF) values of imports, grew by 20 per cent or $25.495B, to $150.867B in 2016, up from $125.372B in 2015. The growth in the CIF values may be attributable to, inter alia, greater business and consumer confidence resulting in higher trade volumes; the continued depreciation of the Jamaican Dollar against the currency of our major trading partner, the United States of America and mandatory declaration of freight charges by shippers.

The targeted collection of $48.513B for the second quarter of FY2016/17 has increased by 16 per cent over the first quarter. Whilst there are mitigating circumstances to the achievement of the second quarter’s target, there exist equal opportunities for the augmentation of the tax base and consequently the tax revenues to be collected by the JCA.

The JCA is committed to ensuring that it contributes to the GOJ’s achievement of all fiscal targets of the economic programme being pursued and as such it continues to ensure the strict application of the Customs laws and affiliated legislation while implementing efficient and cost–saving procedures for our valued stakeholders.

Customs e-based system to further improve Countrys trade and travel capacity –ASYCUDA now fully enforced at Ocho Rios, Falmouth Piers

The Ocho Rios Pier in St. Ann and Falmouth Pier in Trelawny are the latest ports to benefit from full implementation of the Automated System for Customs Data – ASYCUDA World – by the Jamaica Customs Agency (JCA), as the entity continues to roll-out its electronic based system at its satellite offices island wide.

Since April 1 this year, the project has being fully implemented at the major ports of entry in Kingston and St. James.

Other satellite offices to benefit from the full implementation of ASYCUDA World by the end of July 2016 are Port Royal – Kingston, Ian Flemming International Airport – St. Mary, Black River – St. Elizabeth and Mandeville – Manchester.

Parcels Post (Central Sorting Office) – Kingston, Duty Free Shops at the major international airports and transshipment zones will also benefit from the implementation of ASYCUDA World.

All private passenger aircrafts and small fishing vessels will also be incorporated in the use of this e-based system.

ASYCUDA World has significantly transformed the JCA’s businesses processes in several areas, including the submission of manifests and declarations, payment of duties and taxes and facilitating e-based risk assessment, coordinated inspections, the release of cargo and performance management and reporting, particularly as it pertains to data retrieval and analysis by the Agency.

CEO/Commissioner of the JCA, Major (Re’td) Richard Reese has expressed full confidence in ASYCUDA World, which he said will promote better risk assessment and management, facilitate faster clearance of cargo and significantly reduce and ultimately eliminate revenue leakage.

“ASYCUDA has played and will continue to play a significant role in ensuring that the Government receives what is due, as the system’s capacity to assign for instance, correct Tariff codes to goods, as well as to accurately undertake fees, tax and duty calculations will reduce error, which is more likely in a paper intensive environment,” he pointed out.

Since April this year, ASYCUDA World has significantly reduced clearance time by more than 50 per cent for low risk commercial consignments. The average time from payment and selectivity to processing of documents and release of cargo has been reduced from 54 hours to 26 hours.

Authorised Economic Operators (AEO) consignments continue to enjoy a one hour clearance time.

Major Reese, in commenting on Jamaica’s reduced ranking on the World Bank’s latest Logistics Performance Index (LPI), said that while the Index looked at all areas in the logistics chain covering air and sea travel, he expects that the use of ASYCUDA World will result in marked improvements in efficiency, as measured primarily by speed, simplicity and predictability of Customs operations, ultimately, positively impacting the country’s LPI ranking overtime.

The Customs dimension of the LPI encompasses more than procedures peculiar to the JCA as it also involves other agencies and entities providing various services at our ports.

Importantly, the integration of ASYCDA World and the Port Community System (PCS) will further enhance efficiency on the ports and has poised Jamaica to take greater advantage of the transshipment opportunities that will exist with the recent opening of the Panama Canal.

The Commissioner commended the ASYCUDA World Project team and JCA employees, for ensuring that the core processes of the project was fully completed within the requisite time-line.

He has also extended appreciation to the Customs Brokers fraternity, importers, exporters, port operators, partner agencies and all other stakeholders for their support.

Queen’s 230 Warehouse Auction Notice

Effective December 1, 2015, all items placed on an Auction List by the Jamaica Customs Agency (JCA) will remain on said list until sold, unless otherwise directed by the CEO/Commissioner of Customs in accordance with Section 88 (2) of the Customs Act which states:

“Where any goods are deposited in a Queen’s Warehouse under the provisions of this Act and the same are not entered for warehousing or delivery from such Queen’s warehouse within three months after such deposit, or within such further period as the Commissioner may direct, and all charges for removal, freight and rent and all other expenses incurred in respect thereof duly paid, such goods may be sold by public auction after one month’s notice being given by publication in the Gazette”.

For additional information, persons may contact us at: 922-5140-8, ext. 3031; or email: joycelyn.payne@jacustoms.gov.jm.