The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunmedia.net

NEW customs regulations could clamp down on illegal smuggling of items like guns, State Minister for Finance Michael Halkitis said on Friday.

Some in the business community have expressed concern over the recent amendments to the Customs Management Act, which came into force on July 1 and put greater responsibility on freight companies to ensure that their manifests are accurate.

Because of the amendments, cargo operators will be subjected to a $5,000 per item fine for every prohibited or restricted good found on board.

A fine equivalent to 25 per cent of the value will also be incurred for every item not declared prior to landing in Nassau.

Cargo planes must submit their C7 general declaration forms to customs, detailing all freight items they are bringing, one hour before touching down in The Bahamas and shippers must provide their manifest and loading list “at least 12 hours” before their shipment lands in The Bahamas.

Submitting such forms in a timely fashion will require a processing fee of $75, but those who submit their C7s in less than the time allotted prior to their arrival in The Bahamas will be subjected to a $2,500 charge.

“They have to make sure their manifests are accurate when leaving,” Mr Halkitis said, adding that the government has no intention of revisiting the amendments and no discussions are ongoing with stakeholder groups about the matter.

“We are seeking to close loopholes that facilitate fraud and smuggling of contraband including guns ... Last minute changes facilitate fraud and smuggling,” he added. “Those who comply with the law have nothing to worry about.”

Although some have argued that the regulations will reduce the ease of doing business in the country, closing customs loopholes has long been seen as an avenue to clamp down on the illegal smuggling of guns into the country.

American-based air cargo companies are said to be considering withdrawing from The Bahamas market because of the impact of the new regulations. They claim that the cost of freight will go up “tremendously” unless the regulations are reversed.

Businesses in The Bahamas fear that a boycott by the freight operators will lead to difficulties in getting goods to customers in good time.

In January, National Security Minister Dr Bernard Nottage said inspections processes at the country’s borders are currently too weak to successfully handle the problem.

His statement came after he admitted that progress on the matter would not come through legislative changes in the United States where more than 95 per cent of illegal guns in The Bahamas originate.

“(We have to insist) that our customs officers really rummage people’s vessels when they come in,” Dr Nottage said earlier this year. “They have a lot of weapons on these boats.”

Nonetheless, in an interview with Tribune Business last month, Michael Maura, Arawak Port Development Company (APD) chief executive, said customs officials indicated that they would be “reasonable” with its new powers and would not impose sweeping sanctions for infractions that were not the shipper’s fault.