IMPORTERS SHIFTED comfortably on Monday from paying the four per cent cess to the new two per cent fee, sector spokesmen say.
The four per cent import cess announced by Finance and Planning Minister, Dr. Omar Davies, in his April Budget presentation was changed to a two per cent fee in May, following hard lobbying by private sector groups. This meant that the cess, which became effective on May 1, was replaced by the Customs processing fee, which became effective on June 1.
"It was a smooth transition from our point of view," said Michael Ammar, Jr., president of the Jamaica Chamber of Commerce. "I don't think it was any major problem."
The Customs service adjusted their computer programming on the weekend so that, by Monday, documents were being processed without problem, he said.
An importer, who could not find the money to pay the four per cent cess before June 1, could simply wait and resubmit documentation from June 1, paying half as much. Former president of the Customs Brokers Association of Jamaica, Hendricks Porter, said, "It was a matter of whether importers needed their goods at the time."
Goods which arrive on the wharf, or at the airport, before June 1 could have been warehoused by those importers who could afford the storage, Mr. Porter said.
The Gleaner received reports that some importers were confused about the two per cent fee thinking that it had been implemented from May.
"I did not see any confusion at all," Mr. Porter said. "I think anybody who was confused probably just was not aware of what was happening, because it was very clear to all of us," Mr. Ammar, Jr. said.
"People who paid the four per cent cess in May, have the opportunity to use it as a credit against their income tax liability," said Clive Nicholas, director-general of the Tax Admini-strative Services Department. He said, "after May, the two per cent is not creditable against your income tax liability. It is like an expense."
