The modernisation of HM Customs will lead to businesses getting their goods cleared faster, cheaper, and with less paperwork.

In a speech to Hamilton Rotarians, Collector of Customs, William LeDrew highlighted changes taking place in the department as part of the modernisation and reform programme which has been pursued over the last two years.

The three main elements are: organisation and human resource management, the re-engineering of business processes and introduction of automation, and the development of a modern legislative basis to support the new process, including the introduction of a new Bermuda Customs Tariff.

Expanding on the first of these issues, Mr. LeDrew said a new organisation structure has been introduced in light of the major changes made to the Customs clearance process.

He said: "We now have an Assistant Collector responsible for all commercial operations, at both the airport and Hamilton offices. "A second Assistant Collector is responsible for our enforcement and traveller processing operations, and a third assistant is responsible for the finance and administration functions.

Mr. LeDrew outlined a new process in order to speed up the release of goods using a "deposit entry'' system.

The importer makes a cash deposit of 150 percent of the estimated duty on a shipment and is then allowed to have goods released without providing invoices.

The importers then have 90 days to adjust the deposit entry, by which time they will have the necessary invoices.

The most profound changes in Customs operations were the result of the development of an automated system called the Customs Automated Processing System (CAPS) and the fundamental review of all business processes in preparation for automation.

Mr. LeDrew said the system will benefit Customs and Government in terms of more efficient revenue collection, better use of staff, more reliable trade statistics and improved drug interdiction.

And concerning trade, CAPS will help release goods faster, reduce paperwork and reduce the cost to clear goods.

The use of electronic data transmission is one of the key elements of the new Customs clearance process.

A carrier will be able to submit its cargo manifest information electronically to Customs before the arrival of the goods which allows Customs the opportunity to review this information before the goods arrive.

Finance Minister Eugene Cox said last month that 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.

Mr. Cox also introduced the Revenue Amendment Act, saying it would be quicker and easier for importers to clear goods through Customs.

Mr. LeDrew said "We are in the process of introducing a new Bermuda Tariff which adopts the Harmonised Commodity Description and Coding System known as the Harmonised System, as the system of classification of goods for the Bermuda Customs Tariff.'' Some 176 countries use the Harmonised System to classify over 98 percent of the world's trade in goods.

Customs have provided free training in the new Tariff and Customs Declaration to more than 300 of their clients and held numerous meetings with individual companies and organisations to obtain input on the types of changes needed.

The principal role of the committee is to provide a forum for stakeholders to provide input into the many policy changes Customs will be introducing in connection with CAPS, and to strengthen co-operation and communications between businesses and Customs.

Mr. LeDrew said: "The department has been working hard to assist its clients in preparing for these changes, and I am confident that implementation will go smoothly.'' He said developing streamlined and straightforward Customs process will reduce costs, enabling business to distribute their goods to Customers quicker and reducing the hassles frequently encountered at customs.

Mr. LeDrew said: "We aim to eliminate the often adversarial relationship that has developed between customs and the importers, and to replace it with one of mutual assistance and respect.