The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Customs brokers yesterday admitted they were going through a “trying period” in the wake of Value-Added Tax (VAT) implementation, with one broker encountering challenges with its IT system.

Wendall Lewis, the Alliance Customs Brokers head,  told Tribune Business: “We have had some challenges with our IT system in that I guess Customs got the information to our provider late. We have to go directly into Customs’ system now.

“We are dealing with it. It is a challenge with all of the new information. Our main challenge is with our IT system. They said that because they received the information late from Customs it’s going to take about a week-and-a-half, but they are going to try and do something in a day or two to help us.

“For now we have to go directly into Customs system, which is a bit of a challenge. There are still a lot of issues and questions, but as we go along we will see how a number of things are going to pan out.”

Ulric Armbrister, manager at T&A Enterprises, said: “Right now everyone is just testing the waters. There isn’t any mass confusion but still it’s a trying period for everyone to see if we can get this right.

“Everyone is trying to bear with it as best as possible. There are a few hitches but as time goes we will be able to get over that. Things appear to have slowed down a bit because the officers themselves have to get accustomed to it as well. There hasn’t been any massive backup, however.”

Customs Comptroller Charles Turner told Tribune Business that while the roll-out from Customs’ perspective was going well, it was not a total success.

“I could say in the early stages that it’s going pretty well. It’s not 100 per cent. We had one or two challenges with the system,” Mr Turner said.

“I think it has been rectified - the electronic system - in moving it over for it to include VAT. We have had some small hiccups, very minute, nothing major.”

Mr Turner added that a number of items have been reduced in the Tariff and Excise Act.

“If you look at clothing for example, all clothing now is 20 per cent. Persons coming  through at the airport will realise a savings on clothing; some used to be 35  per cent cent,” Mr Turner added.

“There is no duty on the exemption. However, once the exemption is claimed, duty and VAT will be collected on the difference. For example, if it is clothing and the value is $400, and a persons wants to claim his or her exemption, they would get their exemption of $300  and duty would be paid on the $100. VAT would be paid on the $100 plus the duty at 7.5 per cent.”