The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

THE MINISTRY of Finance’s top official yesterday said Customs is merely seeking to ensure its systems are used properly amid concerns from small brokers about being forced to hire third-party software providers.

Simon Wilson, the financial secretary, told Tribune Business that while Customs had issued “no mandate” to the industry it wanted all brokers to use the Electronic Single Window (ESW) or Click2Clear in accordance with how it is designed based on electronic data indices.

However, David Humes, owner/operator of Integral Logistics, said this means that Customs brokers must now buy third-party entry forms and programs to facilitate the uploading of import declarations and other entry forms to the Cick2Clear portal.

Customs and Ministry of Finance officials met with the broker community over the issue on Monday. The encounter has left Mr Humes and other smaller Customs brokers anxious because they fear they must now acquire - and install - a file upload program.

They previously uploaded Customs declarations to Click2Clear themselves. Brokers said they were given a choice between two software providers, Information Specialists Ltd (ISL) and its SWIM technology, or the Goods Acquisition And Control Solutions (GAACS) system.

Patrick Wilson, owner/ operator of CBD Import/ Export, said: “We were highly concerned in reference to government implementing these secondary companies to supplement the Electronic Single Window that is already in place, and which we have been using without having to go through the secondary company to access the Electronic Single Window.

“That will cost a large expense on us as brokers. If the Electronic Single Window is working as it is, why is there a need to bring in a secondary company for us to access the Electronic Single Window?”

Mr Wilson, though, said the Government is imposing “no mandate” that Customs brokers must use specific firms and products. He added: “That’s not a mandate. That is false. But what Customs said to them is that the system is designed for electronic indices of data. That’s the way the system is designed.

“The way it is being utilised now is not in keeping with the design of the system, and we want them to use the system the way it is designed. We can’t say which system they should go and select. They can build their own system or they can use what’s commercially available off-the-shelf, or they can use what is available in The Bahamas.”

Mr Humes, though, asserted: “They want us to use independent software to upload files into the system because I guess it’s more efficient for them. Larger Customs brokers already use the Bahamas-based SWIM programme to enter their invoices, and some use their own software, as in the case of Pinder’s Customs Brokerage, which inputs using a Microsoft XAML interface, while others have opted for the GAACS.

“They have the SWIM programme created by ISL and they have the GAACS,” Mr Humes added. “The thing about it is they are telling us that we have to use one of these come January 2023. The question is why do we have to use it when the Government system has been accepting our declarations for the past few years? The thing is we have to pay for this and it isn’t cheap.”

The cost of a Customs declaration software program ranges between $2,500 to $5,000 a year depending on the sophistication. This is not a one-time fee in many cases, either, as there are renewals on an annual basis or continual upgrade patches provided. There is also the option of using a generic interface such as XAML, which would cost less.

Mr Humes said: “So the Government spent millions of dollars on the Click2Clear system and it isn’t sufficient, and we have to use a third party? This doesn’t make sense. The other part to this, too, is whether or not this is law as opposed to policy.

“We don’t have any idea as to what this is all about, and we were told that we should contact the financial secretary on whether or not this is a recommendation or a mandate. The meeting on Monday was poorly organised, I can tell you that. To mandate something like this it has to be law. That’s how I see it. Other than that it is a policy, and they may as well had gone to ISL from the get-go.

“Buying a third-party system is a hit to your bottom line, and you have to pass the expense on to your consumer. Large companies like Pinder’s could afford a system that costs thousands of dollars, but most of us are independent small businesses.”

Kenneth Gibson, chief executive of Five Star Brokers, added: “I agree with everything Mr Humes said. Monday’s meeting was supposed to be about concessions, and it turned into a third-party mandate on Click2Clear. They want us to pay for this now when the Government’s system was free.

“The GAACS and SWIM is more for big customs brokerage houses, and that’s why large companies use them because they have the capability of being able to eliminate the redundancies associated with putting in an entry. For them to force the smaller brokerage firms like myself is totally onerous because we don’t need that.”