Retailers will be able to defer part of their Customs import duty payments for up to three months from today.

Approved retailers can pay 25 percent of duty due at the time of entry provided they pay the outstanding duty within 90 days of entry.

The initiative, announced in this year's Budget, helps ease cash flow problems for traders who cannot afford to pay their duty before selling their goods.

Chamber of Commerce retail division chair Kristi Grayston said yesterday: "This is a huge benefit for retailers.

"The problem for us is that we have paid pretty much everything up front. But this allows us to sell the goods and pay the duty afterwards.

"At Christmas time, a lot of retailers have had to take overdrafts out to pay their duty, and they have to pay interest on that. The cost of doing business in Bermuda is expensive, but this will help cash flow."

Anyone who wishes to be approved for the new scheme will be asked to complete and submit an application form to Customs with these documents:

• documentary evidence that the retailer is a fit and proper person to be authorised to use duty deferment;

• description of the range of goods that will be offered for sale in the retail shop;

• plan of the premises of the retail shop;

• description of the means that will enable the retailer to submit all documents and information required under the Revenue Act 1898 to be submitted to the Collector of Customs;

• description of the record-keeping systems and controls of the retail store;

• letter of credit guaranteeing payment of any duty that may be deferred.

A statement from the Customs Department said that, once approved, a retailer will receive a certificate of approval from the Collector of Customs specifying an Approved Retailer Identification Number.

Approved retailers may then apply for duty deferment by completing a Bermuda Customs Declaration.

More information is available on www.customs.gov.bm.