By Erica James-King, Senior Staff ReporterWESTERN BUREAU:
CUSTOM BROKERS in western Jamaica have described the decision by Finance Minister Omar Davies to increase their licensing fees as 'ill-timed', as they are contending that it is compounding the heavy burden they are already facing. The increase moved from $200 to a whopping $6,000 for each individual custom broker, as well as each custom brokerage entities.
According to the disgruntled custom brokers, the new rates, a 60 per cent increase over the old rate, comes at a time when those in the sub-sector are still trying to come to grips with the September 11 attack in the United States, which had caused business to plummet.
The western custom brokers are viewing the latest disclosure by the Finance Minister in the House of Representatives, as yet another indication of the authorities disregarding their interests, by taking decisions without having dialogue with them, and without due regard for the fact that they are the ones affected by the upward swing in rates.
According to Paulette Watt, vice-president of the Custom Brokers Association of Jamaica (CBAJ), the significant decline in business had "forced some brokers to lay off their staff, owing to a slowdown in imports by the tourist industry and other importers."
Mrs. Watt, who operates a custom brokerage firm in Montego Bay, is questioning the reason behind the Finance Minister's decision to announce the increase after the March 31 deadline for the payment of licensing fees had passed. She also wants to know why no consultations on the matter were held with the CBAJ before the announcement.
The annual licensing fees for custom brokerage entities have jumped from $6,000 to $15,000, and from $6,000 to $10,000 for individual brokers. Another new expense facing the sector is an annual licensing fee for the operation of private-bonded warehouse of $25,000 and $50,000 for the operation of public-bonded warehouse. According to Minister Davies, the new increases are needed to offset expenses incurred by the customs department in facilitating brokers to use the new computerised import processing system. "If you increase the fees, you should ensure that the board (the Customs Licensing Board) operates in an efficient manner. The board cannot operate in the interest of custom brokers whilst there is no secretariat," remarked a custom broker in St. James, who requested anonymity.
In throwing his weight behind the sentiments expressed by custom brokers in the county of Cornwall, Hendricks Porter, president of the CBAJ, said, "Every time they increase the fees, we are told that there is going to be a secretariat, so the fees we are paying will be able to pay a secretariat. That has never happened... we have been fooled over the years."
