Duty break for overseas repairs
for repair under manufacturers' warranty -- thanks to updates to the antiquated Revenue Act which were passed in the Senate last night.
But they will be required to prove they had previously purchased the item for repair and produce its warranty.
In introducing the 1994 Amendment, Sen. Grant Gibbons conceded the Revenue Act was "a little behind the times''.
The Bill's purpose was to give equal treatment to Bermudian and foreign goods.
After two years residents have had to pay duty on foreign-made goods covered by warranty, such as a computer or watch, after sending them away for repair and then re-importing them.
But Bermudian-made goods could be sent away for repair duty-free for up to five years.
"The Amendment Act now enables Bermuda residents to take full advantage of manufacturers' warranties free of customs duty,'' Sen. Gibbons said.
Opposition Senators had concerns the public would not be properly informed about the changes and the fact they must produce proof of previous purchase and the product's warranty.
Sen. Milton Scott (PLP) said Customs and the Community Affairs Ministry should produce a pamphlet outlining the changes and requirements to take advantage of the measure.
Sen. Norma Astwood (Ind) gave an example of the importance of "educating the public'' about the changes.
She said two musicians who recently returned from abroad had to pay full duty on their drums -- which they had brought with them for repair -- because they could not prove they previously owned them and had already paid Customs duty on them when they imported them the first time.
