Cabinet Extends Import Duty Reductions

In conjunction with efforts to improve processing of cargo at the Port Authority, the Cabinet has extended to 31 March 2005 provision for the reduction of duty on building materials, furniture, fixtures and appliances. The extension also applies to computers and office equipment. Government has also announced an eight-point plan to expedite handling of imports arriving at the port authority.

A waiver on duty for chassis for vehicles to be used in transportation of cargo from the Port Authority has also been approved by Cabinet to alleviate a severe shortage.

Cabinet has taken the decision to extend the 50% duty reduction in response to requests by a number of organisations. The aim is to alleviate some of the “cargo crunch” being experienced as people try to meet the original 31 December deadline, coupled with the normal Christmas season increases. Availability of chassis for transport of trailers became a key problem following Hurricane Ivan which had destroyed many.

Cabinet will review the situation at the end of March, given the fact that customs duty is the single largest contributor to government revenue.

Other initiatives announced this week include immediately establishing an off-site location in the vicinity of the Cargo Distribution Centre (CDC) in the Airport Industrial Park for storage of light cargo to provide additional space at the CDC. The Port Authority will also be fast tracking the earlier planned expansion of the CDC to alleviate congestion and provide for more efficient separation and sorting of containers.

Other efforts will include hiring additional staff to facilitate and expedite the collection of goods; extension of the CDC’s closing times and corresponding hours by shipping agents and Customs; improving the separation of cargo by major importers to ease delays with collections, and expediting the purchase of additional equipment (chassis) for port operations.

The Port Authority continues to appeal to the public to speedily collect containers and goods. The authority has indicated that it will seek, as provided for in law, to organise auctions to dispose of unclaimed goods. The Port Authority will continue to maintain the current ten working days’ grace period before storage charges are payable on goods.