House Approves Joint Select Committee Report on Customs Act

Debate on the Customs Act, 2020 is expected to begin shortly, following the House of Representatives’ approval of the report and recommendations of the Joint Select Committee (JSC) on Tuesday (Oct. 4).

The report outlines the recommended changes to the Bill, following the review and deliberations of the Committee.

The Customs Act, 2020 will repeal and replace the current 1941 law and provide a modern framework that further enhances ease of doing business.

It will improve Customs practices and procedures to facilitate trade effectively and efficiently and will also ensure increased predictability and compliance with Customs requirements.

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, said that the legislation will transform the country’s Customs landscape.

He said the modernisation of the Customs Act of 1941 is expected to bring benefits for the trading community and the Jamaica Customs Agency (JCA) by improving the customs clearance and revenue collection processes, simplifying procedures for businesses, enhancing the authority’s ability to protect Jamaica’s borders, and providing more efficient service delivery to the public.

He pointed out that the JSC, in reviewing the Bill, recommended that the definition of goods be amended to include any form of currency.

“This seeks to clarify that the Customs framework applies to the import and export of large sums of cash by various financial institutions,” he said.

He said that Tax Administration Jamaica and the Tax Policy Division of the Ministry were not opposed to the recommendation.

He said it was also proposed that clear language be inserted in Clause 169 of the Bill to impose an obligation on the Postmaster General to ensure that, before the arrival of postal articles in or departure from Jamaica, a report should be provided to the Commissioner of Customs detailing the estimated time of arrival or departure.

The report should also indicate the customs control area where the postal articles will arrive or depart, and any other information prescribed by the rules.

The required information should be provided to the Commissioner within the timeframes specified by the rules.

Minister Clarke said that during the deliberations by the JSC, it was noted that administrative arrangements were in place between the entities, with the Post and Telecommunications Department facilitating the Customs Agency in obtaining advanced arrival and departure information electronically.

He noted, too, that the JSC recommended that the reference to private treaty in Clause 121 of the Bill be removed to make it clear that “all goods to be sold by Customs will be sold by public auction”.

He said Clause 262 stipulated that there should be a publication of rules and regulations before they are brought into operation.

“During the deliberation of the JSC, it was noted that this provision could have unintended consequences, and members agreed that certain events and decisions should not be subject to full-scale public consultation while acknowledging the need for balance and transparency,” he said.

Dr. Clarke informed that the JSC recommended that the circumstances under which public consultation should not be allowed should be listed in the provision.

“The rules and regulations that are recommended for exemption from the public consultation requirement include those relating to rates of duty or rates of tariff, restrictions or prohibitions on the importation of goods, the internal administration of the Customs

Agency, the delegation of any functions under the legislation and amendments that are minor in nature,” he pointed out.

Dr. Clarke pointed out that following the deliberations of the Committee, amendments to other legislation, including the General Consumption Tax Act and the Stamp Duty Act, will be made.

He thanked the members of the Committee, various stakeholder groups and individuals, who gave substantial feedback, as well as the teams from the Houses of Parliament, JCA, Ministry of Finance and the Public Service, Chief Parliamentary Counsel and the Attorney General’s Chambers for their dedication to the review of the Bill and production of the report.

Member of Parliament for Western St. Andrew, Anthony Hylton, who was a member of the Committee, said public education on the legislation is crucial.

“This will touch every Jamaican, whether you import or export, or simply just buy products that are imported into this country… . This is a 1941 Act, and in my estimation, this has implications not only for the day-to-day economic activities but have macro implications,” he said.

The Committee met 14 times to examine the 852-page Bill.