Business leader concerned about Hefty fines for Customs breaches

Offenders under the new Customs Bill could face fines as high as $250 000 and jail terms of up to eight years, as authorities seek to ensure a squeaky-clean Customs and Excise Department.

However, the penalty for at least one of the offences is not sitting well with members of the business community. They believe the punishment being considered for the importation of prohibited goods is “excessive”.

The issue came up for discussion on Wednesday during the third session of a virtual workshop organized by the Barbados Chamber of Commerce and Industry (BCCI) and the Customs and Excise Department. It was the final in a series of workshops intended to discuss the major changes in the new Customs Bill that will revise and update the Customs Act and bring Barbados more in line with regional and international laws.

The seminars were also designed to consider implications for the private sector and obtain comments on the Bill from the business community.

During Wednesday’s session, officials examined provisions relating to prohibited and restricted goods, offences, forfeiture and sale of goods, administrative and court procedures and miscellaneous.

Under the law, an individual found guilty of importing prohibited goods is liable on summary conviction to a fine of $200 000 or two years in prison, or both.

Raising concern about the fine, Chairman of the BCCI Customs and Trade Facilitation Committee, Lalu Vaswani, questioned whether “mischievous” experience had informed authorities to include that level of penalty in the legislation.

“Do we have a repeat practice or bad trend of behaviour? It just seems very, very excessive,” he said.

To that, Comptroller of Customs Owen Holder explained that the amounts were the highest an individual could be charged.

“The fines for an imported prohibited item, I don’t think it is excessive. Remember that fine is the maximum and any fine that is implemented by the department, the Bill gives the Comptroller the authority to mitigate the fine,” he explained.

However, Vaswani insisted the fines outlined were “unrealistic”.

“I take your point, Mr Holder, that this may be a maximum, but I feel that caution should be used. The same argument could be used if we were to make it twice that amount. I just feel that there needs to be sort of a balance,” he said.

“It could come across that the extent and intensity of the punitive levels of the penalty is such that could cause people not to want to trade at all . . . .  I just feel that this area should be reconsidered to put a more realistic level.”

But further defending the proposed hefty fines, Holder added that they should also be considered a deterrent.

“So, when you move away from those regular goods that fall into that category and you go into the importation of guns and illegal drugs, then you are looking at where this fine itself will be appropriate, and may not even be appropriate given the level of finances that may be involved in the drug trade or gun trade. So, you have to look at it across the spectrum and not look at it from a narrow point of view,” he explained.

It was suggested that the term “up to” be used to show that the fines were the maximum and not the intended amount that should automatically be imposed.

Under the new Bill, a person who falsifies or, without permission from the Comptroller, deletes, damages, alters or impairs any record, data message or information stored in the system, is guilt of an offence and is liable on summary conviction to a fine of $50 000 or five years in prison, or both.

For unauthorized use of the Customs system, an individual could face a fine of $250 000 or five years in prison, or both; meanwhile, an individual who impersonates an officer could face a fine of $100 000 and a prison term of five years.

A person who causes the system to stop functioning, either temporarily or permanently, is guilty of an offence and liable on summary conviction to a fine of $50 000 or to imprisonment for a term of two years, or to both.

There are several other offences in the legislation, including offering smuggled goods for sale, bribery and collusion, obstruction, damage, and offences against Customs officers, which carry fines of between $2 500 and $250 000, and jailtime ranging from three to eight years.

The Customs and Excise Department is expected to inform stakeholders of a list of intended changes to the Customs Act to further assist in the consultation process which began at the start of this year.

The next step for the BCCI Committee will be to compile and review the feedback it received from members and put together a formal response to submit to the Customs and Excise Department.

(marlonmadden@barbadostoday.bb)