would make it much quicker and easier for importers to clear goods through Customs.

Under the new legislation, importers would be able to make electronic rather than paper transactions, in recognition that international companies and consumers need a faster process for clearing goods.

He said various Government departments had held extensive consultations with businesses to ensure the new procedures, the Customs Automated Processing System (CAPS), would be implemented smoothly in September.

Government will also be introducing new legislation to harmonise the Island's tariff system to bring it in line with international standards.

Shadow Finance Minister Grant Gibbons said importers should be able to not only download the new declaration forms, but also submit them electronically from their offices and not have to be in the Customs service offices.

The cost of getting the new CAPs system up and running with computerisation and refurbishment of the Customs shed was pegged at less than $1 million.

Finance Minister Eugene Cox added that this figure did not include the cost of employing special overseas consultants, and was "to the best of'' his knowledge.

There will also be a three-month period following the September 1 introduction of the computerised system when people could still use the old paper-based system.

And for businesses, especially smaller ones without access to computer accounting software, HM Customs will provide special computers in kiosks so they can file electronically.

Delaey Robinson (PLP) recalled his days as a summer student "marking off'' thousands of bills of entry forms at Customs and said he was thankful those days were long gone.

"This will be a boon not only to Customs, but also a real boon to importers who need not show up to Customs,'' Mr. Robinson said. "This legislation is designed to aid both the large and small business. It will speed up the whole process.'' Allan Marshall (UBP) said he wanted to know not only the cost of the new system, but also the potential savings it may bring.

Small businesses might be hampered by the more detailed tariff schedule because sometimes one person was responsible for processing a "kazillion'' different goods.

Mr. Marshall said a health food store might have dozens of different spices or a sporting goods store might have clothing of different fabrics which could become too difficult to keep track of.

He also questioned whether importers would still be able to pay a flat duty of 33 percent to quickly get their goods off the docks and then wait for a "variance'' if they paid too much.

And he suggested changes by the new Government had put a strain on smaller businesses and questioned if the new system would hamper them even further.

"For a lot of small businesses, the jury is still out,'' he said.

"They're seeing a market deterioration, they're getting taxed left and right, tourism is down, Internet purchases are up and Bermudians are doing more and more overseas travel. A lot of things have happened since November, 1998.'' Home Affairs Minister Paula Cox characterised the legislation as "innovative'' and said Customs was being proactive in introducing the simplified procedures.

"This doesn't mean you have to take it all or nothing,'' she said. "The infrastructure will still be there and with bigger businesses moving to the new system, there will now be more bodies freed up to assist you in the Long Room.'' And she hinted at future changes in the Immigration Department.

She noted Customs was "first past the post'' in making their processing more user friendly and added: "But we hope to not be so far behind the post.'' Dr. Gibbons asked who could use the simplified procedures.

Mr. Cox said firms with a proven track record would benefit from the new scheme.

Dr. Gibbons claimed the "great unwashed'', who fell outside the scheme, would be hit by forms which were more detailed than before.

But Mr. Cox said the detailed forms were a one-off deal and, from then on, computerisation would speed the process leading to less hassle for the importers.

Dr. Gibbons also said the new system needed to be firewalled against hackers.

He said: "When starting up these kinds of things, they are remarkably easy to get into by 14-year-olds cleverer than you or I.'' But Dr. Gibbons asked who would be required to complete the forms and sought clarification of the scope of businesses covered by the bill.

"I'm trying to get a sense of what the boundaries are here,'' he said. "I would like to clarify things up front and now rather than further down the road.'' He asked whether the rules would apply to a person completing their own building project, to which the Minister replied: "No, not unless they are part of a legitimately qualified business.'' And Dr. Gibbons said small businesses might be hit hard because they wouldn't necessarily keep the records that Customs required.

"Large businesses do this all now, but a lot of requirements will all of a sudden be put on small businesses. They may find it difficult to be approved because of all these records requirements.'' Mr. Cox said electronic records would be sufficient for Customs purposes and the UBP was "making a mountain out of a molehill'' over the whole issue.

But Dr. Gibbons said small businesses wouldn't consider it a molehill once they got into it.

The bill was approved without a vote.

Innovative: Paula Cox Taxed: Allan Marshall CUSTOMS CUS