Red tape is strangling bids by Bermudian business to give an Island flavour to the new-look international airport, it was claimed yesterday.

US Customs regulations will ban anyone selling dutiable Bermudian souvenirs past the customs barrier in the upper area of the airport.

And yesterday two Island businesspeople said Bermudian retailers faced being relegated to second-class citizens in their own Country.

Bermuda Perfumery owner Colin Curtis said: "It's a ludicrous situation -- it's a legitimate expectation of Bermudian manufacturers that Government would represent them.

"But the Bermudian Government is doing nothing to help them -- it's an insult to all Bermudians.

"Government said they wanted to `cultivate a Bermudian theme' and give customers `a sense of place' -- there's not much chance of that if nothing Bermudian can be sold in the areas where people are prepared to buy.'' Mr. Curtis said the ruling meant that souvenirs made in the US and even other parts of the North American Free Trade area like Mexico and Canada could be sold as passengers waited to board -- but not Bermudian items.

And he said shop areas outside the US Customs area would not be as busy because people tended to shop after clearing airport formalities, not before.

He added: "My position is that if Bermudian products can't be sold in the departures area of Bermuda's international airport, no products should be sold there, particularly not American ones.'' And he said if the problem was unsurmountable, Bermuda should drop the special customs arrangements with the US and clear customs on arrival in America like other countries.

Mr. Curtis was backed by Susan Curtis (not related) who owns the Windjammer Gallery.

Ms Curtis said she was not affected by the US rules because artwork is duty-free.

But she supported Mr. Curtis' complaints and added that the whole tendering process for airport concessions was designed to discourage small businesses in favour of large groups.

And Ms Curtis, who is considering withdrawing her already-approved application, slammed the terms of leases being offered as unfair and biased in favour of the landlord.

Among her complaints are the lack of exclusive rights on particular lines, the $5,000 non-interest bearing deposit and the massive design criteria manual, produced to ensure shops -- which have to be built by the winning tenants -- meet Government approval.

She said: "The whole process is designed to exclude as many people as possible and concentrate on the few people who can afford these very large expenses.'' Ms Curtis added: "I would like to be a part of this if it's a real Bermudian thing.

"But I don't want to be in a situation where any American souvenirs are on sale opposite me plus a McDonald's -- that is what I think is going to happen.

"It's a total disgrace this is happening in Bermuda -- the general feeling is the whole thing has been handled very badly and is prejudicial to Bermudians.'' Transport Minister Wayne Furbert was yesterday off the Island and not available for comment.

But in a letter to Ms Curtis earlier this year, the Minister said: "The US Customs and Bermudian merchandise status has always been made clear from the beginning and throughout the information process.'' He added: "All parties, local companies as well as those local companies who wished to partner with overseas companies, were encouraged to participate in the request for proposal process.

"The rules and regulations within the concession proposals have been equal and fair to all. It is understood that small companies as well as large companies have been involved throughout the process.''