Customs duties, process and procedures

1. Customs duties, process and procedures Bermuda Small Business Development Corporation Government Benefit Matters – Evening Seminar Thursday, March 26, 2009 Fairmont Hamilton Princess

2. Who is she? • Imported or local product? • Duty paid? • Duty relief available? • Import licence required? • What is she made of? • What does she weigh? • Tariff code? • Value for duty? • Duty rate? • Does Government pay duty?

3. Fundamentals • All imports and exports subject to duty • Even Government Departments subject to duty • All importers subject to prohibitions and restrictions

4. Duty Rates Regular rate 22.25% Books 0% Milk 0% Medicaments 0% Butter & Cheese 5% Meat & Fish 5% Clothing 6.5% Alcohol $24.15 per la Cigarettes $36.00 per carton Passenger cars 75% & 150%

5. Duty Relief • Customs Tariff Act (Schedules 5,6 &7) • Revenue Act • Other outlying statutory provisions (listed in Customs Tariff Appendix A)

6. Duty Deferment • Simplified Procedures (RA Part IIA) • retail goods deferment • Economic Development Act • approved schemes

7. Duty Suspension • Inland clearance warehouses • LCL containers • Bonded warehouses • Proper entry and duty payment upon ex-bonding

8. Prohibitions & Restrictions • Protect our natural environment • Protect our cultural heritage • Protect the public health • Protect persons at risk • Give effect to UN sanctions • Comply with international conventions • Suppress global terrorism • Protect local commerce • Give effect to social policy • Protect the health of pets and livestock • Support conservation efforts • Protect the social health of the community • Protect the economic health of our community • Suppress international crime • Protect the rights of the owners of trademarks • Protect intellectual property rights

9. Use of Customs laws • Raise revenue • Change consumption patterns • Encourage commercial activity • Comply with international obligations • Enforce prohibitions

10. Entry of Goods • BCD • Payment (duty and wharfage) • Invoices • BOL/AWB • Relevant permits licences or authorisation • Refer to PN 17

11. Internationally accepted rules World Customs Organization • Harmonized System Rules • Classification of goods • Customs Valuation Rules • value for duty and wharfage

12. Duty refunds • Duty paid in error • Application within 6 months of payment • In order to give effect to a duty relief • Written application to Collector of Customs

13. Customs reviews and appeals • Two stage: • Departmental review • Appeal to Tax Tribunal • Appealable matters: • Duty • Penalties • Ancillary matters • Refer to PN 15

16. Customs Automated Processing Systems (CAPS) • All BCDs processed in CAPS from 1 April 2009 • Trader ID mandatory • BCD Completion Codes are key • Declarant responsible for duty payment

17. New process • Drop off:- • 1 copy of BCD + payment • Supporting documents (no delivery order required) • Receipt issued for all payments

18. Review of BCD • Long Room review followed by:- • Release note; or • Query note • Query Note answered by client

19. Please note: • BCD input as presented • Trader account must have sufficient monies to cover BCD being processed. • Customs will only provide the release Note of query note from CAPS. • Stevedoring will require the Delivery Order PLUS the Release Note. • No “machine stamped” BCD will be mailed to the client.

20. Ready and willing trained agents • Responsible for legal machinery • Technically competent • Can help with your questions • But … will not take part directly in declaration process. • Remember www.customs.gov.bm

21. Any questions?