Customs on the frontline

January 15, 2008

Dear Sir,

Please allow me space in your column to address the concerns raised by Mr. Edward Hinds of Warwick in his letter to the Editor of January 11th entitled "A question of duty".

I read Mr. Hinds' comments with great interest and was somewhat surprised at his lack of knowledge about H.M. Customs' enforcement role. One only needs to read the daily paper to understand that the Customs Department interdicts illicit goods and substances on a regular basis. In fact just this week a member of the public appeared before the courts for importing a large quantity of drugs. These drugs were detected and seized by H.M. Customs personnel.

While I concede that there has not been a large number of firearms detected, there has been a high rate of success with other prohibited and restricted goods. This does not mean that officers are overlooking firearms, it simply means that they have not found a large quantity of illegal firearms. It is important to note that firearms are restricted and not prohibited. Anyone licenced by the Commissioner of Police may import a firearm.

In response to Mr. Hinds' statements in relation to the recent duty collection on rings, I am sure that Mr. Hinds appreciates that all goods in excess of personal duty free allowances are charged on imported goods. Visitors arriving in Bermuda by air or sea may import duty free all of their accompanied baggage consisting of wearing apparel and personal effects, including articles for personal use while travelling. Residents on the other hand must declare all goods obtained abroad and pay the applicable duty on goods in excess of their duty allowance — currently $100 per passenger.

The Mission of Bermuda's Customs Department is ". . .to promote compliance with Bermuda's Customs laws through quality service and responsible enforcement, thereby contributing to the economic and social stability of our community". We accomplish our mission by ensuring that all Customs staff members are highly trained and provided with modern technology that allows them to identify "high-risk" individuals and goods consignments. Of course officers are also armed with intelligence derived from risk analysis and information from confidential informants provided through Crime Stoppers and via our anonymous "Hotline".

I should also mention that, Customs is signatory to a number of international agreements that seek to enhance close cooperation between Customs agencies in the security and facilitation of trade and to fight Customs offences such as commercial fraud, the illicit trafficking in narcotic drugs, psychotropic substances, firearms, biological, chemical and nuclear substances, the diversion of essential or precursor chemicals and money laundering. Customs performs important duties by preventing the importation of obscene materials, embargoed produce, prohibited motor vehicles and endangered or vulnerable plant and animal species. Customs Officers also conduct immigration duties at the borders to prevent the arrival of restricted individuals.

Most Bermudians are familiar with Customs duty collection role and the fact that we control passenger arrivals in Bermuda. However, few Bermudians perhaps realise our wider role in protecting society and facilitating legitimate trade and therefore I understand Mr. Hinds' comments. While his perception is understandable, it is inaccurate and therefore I thought that it would be prudent to provide your readers with a brief summary of how we protect society and facilitate legitimate trade.

We raise approximately 28 percent of Government's total revenues: We collect approximately $228 million a year in duties on imported and exported goods. This revenue enables the Government to pay for essential services such as health and education and help towards developing and maintaining our modern infrastructure. This economic model is quite similar to that employed by other countries, particularly those in the Caribbean Zone. We help international trade to run smoothly

We operate procedures that help Bermuda businesses to import and export goods with the minimum of red tape. We also offer approved importers Simplified Procedures that provide them an opportunity to complete their Customs requirements either before the goods arrive in Bermuda or after release for home use, thus allowing importers to take immediate delivery of their goods when they arrive at our ports. We protect businesses from piracy:

We accomplish this by detaining counterfeit goods at our borders, advising owner/s of the trademark or copyright that the goods are in our custody and what steps they need to take to ensure that appropriate legal action is taken to prevent the goods being allowed to remain in Bermuda. Government will shortly implement new Copyright Legislation that will strengthen the enforcement role that Customs has and provide even greater restrictions for preventing copyright infringements and increased penalties will be imposed to deter trade in these goods.

You may ask why it matters — it does not hurt anyone. The answer is simple. The fact is that the manufacture and resale of "fake" goods has a far-reaching impact on society. It results in loss of revenue for the manufacture and the subsequent loss of jobs for their employees, the introduction of faulty equipment into vehicles and aircraft and the distribution of pseudo drugs ("fake" medications) to pharmacists and to the public, which may result in the loss of life.

We have developed electronic government: Approved importers are now able to submit their customs entries electronically using our Customs Automated Processing System (CAPS) if they choose. We are among the leaders in developing electronic government services and devising ways to make them safe from fraud.

We protect honest businesses by fighting revenue fraud and duty evasion: Through our efforts, we try to make sure that no trader, whether a large department store or a person with a pedlar's licence, has to face unfair competition from people who evade taxes or import and sell "fake" goods.

Because H.M. Customs performs services across a wide range of Government policies, we interact with many other government departments. H.M. Customs currently carries out agency work for the Department of Immigration, the Department of Environmental Protection, Health and Government's Statistical Department.

Additionally drug usage and increased criminality generally has an adverse impact on Tourism and International Business — the two pillars of Bermuda's Economy.

Tourism (Bermuda's Economic pillar) depends upon us to help maintain a peaceful and crime free society that affords visitors a pleasant, clean environment that will not adversely impact their freedom of movement or health. Customs are instrumental in providing this for Bermuda via the implementation of effective and efficient processing at the borders and by preventing the importation of illicit goods — keeping the environment clean, safe and pleasant.

International Businesses (the second pillar of Bermuda's economic success) are looking for stable governments that provide a safe environment for their employees to work and live in.

This safe and stable environment is achieved through a sound Customs Service that provides strong border controls/protection while facilitating legitimate trade. It also requires a service that complies with internationally agreed standards for the cross-border controls of passengers and goods. They demand consistent application of policies and must be able to rely on Customs to provide effective and efficient clearance at border crossings.

We have actively used technology to perform our drug interdiction and security role. Officers use sophisticated analytical and detection technology, now more than ever, to accomplish that mission. At the airport and airmail facility we have deployed static x-ray units. In addition, we have deployed portable IONSCAN drug detection machines and employ a static IONSCAN machine in the baggage hall. We will also shortly introduce automated targeting capabilities for goods with the implementation of the new Customs Automated Processing System (CAPS).

Without an efficient and effective Customs Department the Bermuda Government will not be able to meet its policy objectives in respect of revenue collection, trade facilitation, trade statistics, and the protection of society from a range of social and national security concerns. Offenders like drug traffickers and individuals and businesses involved in revenue fraud are not only breaking the law — they are posing a serious threat to our society and draining millions of dollars of taxpayers money which could be spent on vital services such as healthcare and education.

In working to stop these criminals, we are protecting society while also ensuring that legitimate trade and travel so vital to the health of Bermuda's economy, continues to flow. I hope that this letter serves to inform Mr. Hinds' understanding of the important role that Bermuda's Customs Department continues to play in protecting and serving the Community. I am also hopeful that through this letter other members of the public will have a broader appreciation of the diverse responsibilities of the Customs Department, and how through our programmes and activities Customs serves to make our country a better place to live.

While Customs cannot promise to detect every single item that is illegally imported into Bermuda, I would like to assure Mr. Hinds and members of the public that the Customs Officers working on our borders are highly trained professionals — they are Bermudians who are strongly motivated to defend their home against all manner of threats. These officers and their managers continually review and revise techniques and procedures to address changing patterns of smuggling of all forms of contraband, from drugs and firearms to copyright or trademark infringing goods.

I invite members of the public to visit our website at www.customs.gov.bm and learn more about the Customs Department. In closing I would take the opportunity to announce that H.M. Customs will be celebrating World Customs Day on January 26th and I encourage members of the public to take time to thank Customs employees for their contribution to protecting society.

W. FOSTINE DESILVA

Collector of Customs