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Customs and retailers look at ideas to clear goods quicker and reduce docks' congestion

Looking forward: George Grundmuller

Retailers are expected to turn out in their numbers this morning at a meeting to discuss possible changes in the way they clear imported goods.

Assistant Collector of Customs Larry Conn has arranged the meeting at Number One shed to explain why the Government agency wishes to introduce two major changes.

The first is the possible introduction of licensed Customs brokers to act as clearance agents at the ports.

He said they would do the same job as clearance agents, but would have a greater knowledge of the Customs tariff which would lead to a greater level of accuracy and efficiency.

Mr. Conn said, if accepted by retailers, the brokers would become licensed after receiving training and passing an exam.

But he said he hoped the present clearance agents, such as Bermuda Forwarders, would take up the opportunity to become more organised and licensed and said he hoped retailers would be encouraged to license members of their staff to act as brokers.

However, the assistant collector said it would purely be voluntary and clearance agents would be able to continue under the status quo, if they wished.

Mr. Conn said Customs was also looking at the feasibility of changing the warehousing legislation to enable third parties to operate Customs clearance warehouses at other points on the Island.

Under the current legislation, warehouses for the receipt of in-bond cargo can only be established in the City and at St. George's port.

He said he hoped it would free-up the dock areas and reduce congestion, leading to goods being cleared more quickly.

"We think there will be a number of advantages to the industry if Customs brokers are introduced," said Mr. Conn.

"The details on how we are going to set it up, if there is interest, will have to be worked out over the next year.

"We want to get the clearance agents involved. We believe having licensed brokers would lead to a higher level of knowledge, more accurate declarations made, and a higher knowledge of Customs tariff.

"We are also hoping the licensed brokers will be the first people who link electronically with us, although there will be others.

"We see this as an advantage for retailers in their work, and their industry. It is purely to raise standards."

Mr. Conn said the exam and license would be developed on the Island to suit Bermuda's needs, and Customs would be involved in the training of the brokers.

And the additional warehouses, if set up, could be operated by third parties, with clearance carried out by brokers and clearance agents.

Customs officers would visit the warehouses as and when they were needed, although they would not be based at the site.

The assistant collector said neither of the changes would have any impact on Customs staffing levels.

He added: "There is a congestion issue with the docks. The limit of the docks is becoming problematic. It would simply free up the dock areas more quickly.

"Goods could be transported to the other warehouses and cleared there.

"The bottom line is that we believe these changes would have benefits for the industry. The point of the meeting is to present our ideas and get their feedback. We need to know if there is interest in them."

Head of the retail division of the Chamber of Commerce George Grundmuller said he and other retailers were looking forward to learning more about the proposals.

He said: "I think there are quite a few of us that will attend the meeting. Generally, I think we look forward to receiving more information on how the programme will work and what the benefits are.

"The retailers welcome any steps which don't increase their costs but do increase the speed of customs clearance.

"If this is a step that will make the importing procedures easier, then I'm sure the retail community will welcome that, provided it does not add a cost or burden to the process."

A retailer, who did not wish to be named, said he had some suspicions about the proposals and whether they would work in Bermuda.

"I have a concern about the scalability because Bermuda is not the US it is only small. Your total importer community here at the merchant level is maybe 200 people. Is it really needed?

"And I would strongly object to not having the freedom to clear goods myself, if I wished, or being forced to get a licence to do so, or pay somebody else to do so.

"What about the general public? Will they still be able to clear their own goods?

"However, if it is not mandatory and purely voluntary, I see no problem. And I think the bonded warehouse proposal sounds very good. It would be a win win for everybody."