New Customs' forms for imports are a red tape nightmare, a shopkeeper said yesterday.

He warned that the complex new regulations could be the straw which breaks the camel's back for some businesses.

The retailer said there used to be two to three categories for clothing imports for statistical purposes but there were now 34.

He added that regulations for the same types of clothing, which were made from different fabrics, required separate coding for tax purposes.

He said: "These are mostly still in two duty rate bands so this is not an income-producing exercise, just statistics.'' He added: "I, for one, do not have the financial ability to hire personnel to provide a statistical breakdown into 34 different types of clothing.

"This information is not provided on the invoices we receive and will have to be collated by clerks who will need to look at every single garment/article to decide how it is to be classified.'' The retailer said he opted for his own business to be his own boss and made a reasonable living -- even though it meant long hours, cash flow concerns, staff problems, stock levels and finding buyers in a difficult market.

But he added: "Recently, however, the scales have been tipping.

"Within the past year alone, increases in employment tax and land tax and an additional pension scheme, all in what appears to be a declining market, have had us scrambling for more cash just when we thought we had trimmed everything we possibly could to make the business viable.

"More and more I have wondered if the effort required to continue is still worth it.'' The businessman said: "We have had all these problems with added tax and more form-filling.

"I know that the Chamber of Commerce have had talks on this, but I don't believe people have seen what's come out.

"It's frightening and I can't afford to hire extra people to handle the extra work.'' He predicted the retail giants would also have problems coping with the new rules.

He said: "I think they'll be spitting blood and this is only for clothing.'' He added that he was confident he could look after himself but questioned the impact of his operation closing its doors on the staff he employs.

A draft version of the new harmonised tax system, which brings Bermuda into line with international standards, lists a total of 21 sections with 91 chapters "which make up the Harmonised System's Nomenclature''.

Two of the chapters -- listing "articles of apparel and clothing accessories, knitted and crocheted'' and "articles of apparel, not knitted or crocheted'' run to a total of nearly nine pages of computer print-out pages.

But Collector of Customs Bill LeDrew yesterday defended the new system and insisted it was a lot simpler than it might look.

He pointed out that a total of 178 countries had either already adopted the international Customs rule book or had signed up to do so.

Mr. LeDrew said, with the harmonised system, many overseas exporters already tagged their products with the correct coding.

He added: "It does take a different approach from the old one which grouped all different kinds of apparel into one.'' But he said: "It isn't as complex as it might appear and we would be very happy to help.'' Mr. LeDrew added that the new system would give a much clearer picture of what was coming into the Island and what was selling, which would benefit retailers.

And he said: "The logic of the system is very sound. Every retailer knows what he's ordering. Once you know what you've ordered, it isn't complex. It's specific, he is quite right about that, but it isn't complex.'' Mr. LeDrew admitted that firms using computerised systems would have to fork out to change their programmes to incorporate new codes.

But he insisted: "In the long run, it's certainly going to be a far better system.'' BUSINESS BUC