IMPORTERS will soon start paying less to clear small packages at the port, says Customs Commissioner Major Richard Reece

According to Reece, a review by Jamaica Customs on the customs administration fee (CAF) associated with small packages (excluding D and E containers or Palletised loads) will ease the cost burden on importers of small components and equipment.

“Following discussions with the bonded couriers, JMA (Jamaica Manufacturers’ Association), JEA (Jamaica Exporters’ Association) and JCC (Jamaica Chamber of Commerce), lower CAF rates for small packages will be implemented as soon as the Customs IT System is modified and the Minister of Finance and Planning has approved an increase of the current de-minimis rate from US$20 to US$50,” said Reece, noting that cargos with values at or below the de-minimis rate are not subject to duty.

The customs boss, responding to a Business Observer article on the impact higher duties have had on online sales, noted that the review will be implemented once the ‘Order’ is gazetted.

Jamaican e-commerce providers say higher duties on imports have impacted online retail sales and trends in Jamaica.

MailPac Services, the biggest online shopping company in Jamaica, which claims control for 80 per cent of the market, disclosed that it has observed a slowing down in the growth of purchases since the last round of duty increases, exacerbated by precipitous currency depreciation .

Another provider, Tara Courier Services, reported that the higher import fees have resulted more so in customers consolidating their deliveries rather than cutting volumes.

Government implemented the CAF on April 1 this year to increase revenue flows. But the fee structure has not gone down well with small importers who argue that they have to pay a higher flat fee regardless of the nominal value of their goods.

Meanwhile, MailPac boss Khary Robinson praised the Customs Department for taking “some positive steps” to enable a reduction in importation cost for the typical individual shopper and facilitating trade.

“The issue is that most of the ‘mom and pop’ shippers don’t understand the customs codes properly and don’t even pay attention to the changes in legislature that directly impact their business and their customers,” Robinson said.