Jamaica Customs Agency Rolls Out New Contactless Clearance Process

The Jamaica Customs Agency (JCA) has rolled out its contactless clearance process option for non-commercial cargo, following a pilot undertaken from October 2022 to January 2023.

As a result of the pilot’s effectiveness and success, the JCA, in collaboration with its partners, port operators and freight forwarders, forged ahead with the initiative’s implementation.

Project Manager, Kingsley Henry, explains that contactless clearance is a process by which the agency will do its inspection of non-commercial cargo, without the importer or an agent having to be present for that exercise.

“So, in the current process, an agent or an importer must go through all the steps… to be present, to unpack their stuff and to prepare their items for customs inspection,” he tells JIS News.

“Under contactless clearance, we are trying to move away from that and to say to importers and agents, customs will do the inspection and when the cargo has been inspected and released, customs will inform you and all you have to do is come and collect your cargo,” he states.

Mr. Henry informs that during the pilot phase, the JCA received almost 3,000 contactless clearance declaration submissions.

“That was a learning experience. The overwhelming feedback was that contactless clearance is a more efficient, hassle-free process for our customers. They are also freight forwarding agents who share that view, notwithstanding them pointing out that there is some tweaking that is required to ensure further improvements,” the Project Manager states.

He further notes that the pilot confirmed a need to expand the number of payment options available to importers.

“In the old system, most importers would have to physically go to the customs public bonded warehouses and pay their customs charges before the goods can be inspected. We realised that [what] we are saying to the importer [is] do not come to the warehouses; so, if you do not come to the warehouse, how are you going to pay?” Mr. Henry points out.

“Right now, the agents are playing a critical role in supporting that payment from the importer; but what customs is working on is to expand those options. So, we are in discussions with banks. We are in discussions about the use of, for example, digital currency and electronic and digital wallets. We are also exploring other options, in terms of making cashiers available at some of our outposts, like in Port Antonio and in Mandeville,” he adds.

Mr. Henry further explains that “if you are in St. Ann or nearby in St. Mary and you have shipped something, once you know what the customs charges are, you can go to the customs office in St. Ann’s Bay and make a payment. The same thing is true in Montego Bay.”

Mr. Henry tells JIS News that several outcomes are anticipated from the initiative, including improved efficiency in the clearance process.

“We want to improve the overall experience that our people have in doing business with customs [by] reducing the hassle, reducing the amount of wait time that customers go through, the stress that is associated with clearing cargo for the importer, and to improve the overall experience that importers have in clearing cargo. I do not know of any importer that enjoys coming to a public bonded warehouse and clearing the cargo,” he states

Mr. Henry also notes that through the initiative, the JCA is trying to improve the security of the inspection area.

“We don’t just collect the revenue. Border security is an important part of our mandate, and we want our officers to be able to do inspections in an area that is not overcrowded. Our inspection areas now are overcrowded. We want to make the space more sterile… more secure so that when our officers execute their border protection mandate, they can do so in a safer environment,” he states.

Mr. Henry points out that when searches are conducted for illicit items, “we want to do so in an environment that our officers can feel more secure.”

“Then on the warehouse side, what it does, as well, is it increases the flow of cargo through the space. It reduces the dwell time for cargo in the warehouse space. A lot of these warehouses are working with limited space; so, it is in their interest to have the cargo moving through as quickly as possible,” he adds.

Mr. Henry says that, for the agents, the new process allows them to focus on other activities, like ensuring that the declarations are correct.

“What we’re trying to do is also change the whole landscape and tradition that we have in Jamaica of saying that people must come and sit down and wait hours to get business done. It should not be. You should be able to just come and collect your goods if your declarations are correct, and that is what we’re trying to accomplish,” the Project Manager explains.

Meanwhile, Mr. Henry advises that the contactless process is now optional, as the JCA is still working on expanding the payment option.

“So, we’re saying right now it is an option that is available to those who are shipping and clearing non-commercial cargo or personal cargo. An agent can offer it as an option to an importer or an importer can request it.

“Once you have shipped, you can indicate overseas, or in Jamaica when the agent contacts you, that you want to use contactless clearance because you don’t want to go through the stress and hassle of being present for all of the processes that are involved in clearing the cargo,” he says.

Mr. Henry adds, however, that the JCA is looking to make the process compulsory by the end of the summer, where the only way that persons can clear non-commercial cargo through customs, is via contactless clearance.

“If Customs needs you for any reason, Customs will reach out and say we need you in the space. Other than that, [we] are saying [that] you don’t need to be in the space for inspection,” he states.