The Chamber held discussions with the Customs & Exise Department on the subject of revising the current "Container Examination Fee", which is assessed on importers who need to have their containers examined after working hours. The Customs Regulations (rev, 2008 140(3) (a) (b)) indicates that the standard examination fee is $125.00 to be paid if Customs decides to examine a twenty (20ft) foot container and $225 .00 for the examination of a forty (40ft) foot container, outside the normal working hours.
Initial discussions reveal that the Customs & Exise Department are of the view that the current fee have been in existence for a long time, the actual cost of overtime has now surpassed the current fee and Government is now subsidizing this service.
The Chamber Members were cautious about the proposal to increase the costs of doing business to companies and ultimately consumers at this difficult time. Moreover there were many longstanding and unresolved issues regarding efficiency and productivity improvements that have not been attended to. The Chamber suggested that a comprehensive look be taken at this time rather than the proposed piecemeal approach.
The Chamber pointed out that any increase in cost would be felt by consumers as this would be passed on. If however these increased costs were accompanied by productivity and efficiency gains this would be a "win-win" for Customs Officers, Government of St. Lucia, the Business Community and Consumers.
The Department noted that at this time when Government Revenue had declined due to COVID-19 Pandemic effects, GOSL should not be burdened with a huge overtime bill from the Customs Department. The Chamber in turn cautioned that at the current time when so many persons had been laid off and receiving only a small portion of their regular income through the National Social Stabilization program an increase in costs will impact consumers greatly.
The Department was also reminded that businesses were also experiencing reductions in sales volume and profits and as such they could ill afford increased costs. Moreover it was not mentioned that at this time; the volume of imports were down drastically, thus Customs Officers were not as busy as they usually were. This fact suggests that there should be less need for overtime if the Department was minded to approach the issue differently. With fewer containers being imported, there should be less need for containers to be examined after work hours. Moreover since the Staff were not as busy as they generally are, the option of establishing more than one examination team, and scheduling work in shifts could result in a better outcome for customers and consumers.
The Chamber also strongly recommends that the Customs and Excise Department, institute the full suite of modules of ACYUDA World which has the capacity to bring efficiency gains to the import/export process, increase the use of electronic and digital entries and document submission, activate the long promised "authorized economic operator, the use of the green line and the risk analysis procedures that would first lessen the need for examination of containers generally, and this for that to be carried out outside working hours.
The Customs Department was able to advise the business community of their own efforts already in transition, where during the COVID-19 period very few containers have been examined, a full container examination unit has been subject to examinations, and there are plans to expand the Examination Unit by reassigning Officers to this function.
Added to these efforts the Customs Department informed the private sector of a number of supporting recommendations that include an elimination of the processing fee, upgrading the ASCYUDA Program and a reexamination of other programs may lessen the number of containers examined and increase the efficiency of operations at the ports.
It was noted that the Customs & Excise Department seeks to advance this proposal quickly. The Chamber members remains doubtful of increased costs without commensurate attention being paid to efficiency and use of available technology in that respect. The Chamber however agreed to work with the Department as they promised to revive the Authorized Economic Operator Program and encourage their members to work honestly and diligently with the Customs Authorities in following the laws and rules.
Meanwhile the Chamber will continue to seek ways to make the efforts at improved trade and business facilitation a reality at the Ports in keeping with the WTO Trade Facilitation Agreement and through the National Ease of Doing Business Task Force. Additionally the Chamber will seek to inform itself and the wider community of best practices and ways in which the entire import export process can be streamlined.