Derrick Kellier (left), Minister of State in the Ministry of National Security, receives information on Jamaica's shipping industry from Grantley Stephenson, immediate past-president of the Shipping Association of Jamaica, during the most recent Customs Fair staged by the Jamaica Customs Department. The next Customs Fair is scheduled to take place on January 28, 2006, at the Ranny Williams Entertainment Centre.
CUSTOMS VALUATION SYSTEM
THE CUSTOMS Value of imported goods shall be the transaction value, that is, the price actually paid or payable for the goods when sold for export including freight charges and insurance cost to the country of importation.
Jamaica is a member of the World Trade Organisation (WTO), hence, signatory to the various agreements of the said organisation.
The WTO Agreement on Valuation is intended to provide a single system that is fair, uniform and neutral. One that conforms to commercial realities, is based on objective and quantifiable data and outlaws the use of arbitrary and fictitious values for customs duty purposes.
There are six methods of valuation:
1. Transaction value (primary method of valuation)
2. Transaction value of identical goods
3. Transaction value of similar goods
4. Deductive value
5. Computed value
6. Fallback.
These methods must be applied sequentially; method one must be used before method two and so on. The only exception is the reversal of the order of application of the Computed and the Deductive value methods if the importer so requests and the commissioner agrees.
THE TRANSACTION VALUE
The transaction value is the price actually paid or payable for the imported goods when sold for export to Jamaica with certain adjustments, i.e., duty will be charged on what was actually paid or payable for the goods.
The customs department will require documentary evidence to support the price paid or payable. The importer must produce a copy of the seller's invoice or other documents against which full payment will be made. This includes facsimile invoices, additional invoices and all payments to and for the benefit of the seller.
NOTE: It is the importer's responsibility to maintain and make available upon request, all documentary evidence to support declared values.
The agreement imposes rights and obligations on customs and the importer.
PRINCIPAL RIGHTS OF CUSTOMS
Customs has the right to satisfy itself as to the truth or accuracy of any statement, document or declaration presented for customs valuation purposes.
Reference: Section 19 (2) of the Customs Act.
OBLIGATIONS OF CUSTOMS AND RIGHTS OF THE IMPORTER
1. Appeal
Customs is obligated to inform importers of their rights to appeal without penalty.
Reference: Section 19 (4)(5) of the Customs Act.
Levels of appeal
a) Valuation Division Review
b) Taxpayer Appeals Department
c) Revenue Court.
2. Confidentiality
All information which is by nature confidential or which is provided on a confidential basis shall be treated as strictly confidential by the customs authorities concerned, who shall not disclose it without the specific permission of the persons or Government providing such information, except to the extent that it may be required to be disclosed in the context of judicial proceedings. Reference: Section 19A of the Customs Act.
3. Transparency
Laws, regulations, judicial decisions and administrative rulings shall be published and made accessible to the public.
Reference: Article 16 of the WTO Valuation Agreement.
4. Explanation
The Commissioner of Customs shall, on a written request by the importer, give reasons in writing as to how the customs value of the importers' goods was determined. Reference: Section 19(3) of the Customs Act.
5. Release of goods
In the majority of cases, it should be possible to clear goods without delay, but there may be instances in which there are delays, e.g. goods for which the value cannot be established or verified.
Reference: Section 81 of the Customs Act.
No goods shall be detained for valuation purposes, providing the importer supplies all the necessary information and have put the necessary security in place.
OBLIGATIONS OF THE IMPORTER
Maintain proper books and accounting records for customs review.
Make complete and accurate declaration on the prescribed forms of the goods at the time of importation.
Must cooperate with customs authorities during investigations of values.
The burden of proof is on the importer to substantiate the value of the imported goods being valued. Non-Compliance with the above is in breach of section 223 and 209 of the Customs Act.
For further information please visit the Jamaica Customs Department website www.jacustoms.gov.jm or call Public Relations/Customer Service at 922-7618.
