Technology-Driven System to Speed Up Customs Operations

Jamaica Customs Agency has launched a major, technology-driven system, aimed at streamlining and reducing the processes involved in cross-border import, export, and transshipment of goods.

The Automated System for Customs Data (ASYCUDA), which is being implemented at a cost of US$4 million, is expected to speed up operations at the ports by fully automating export and import transactions. It allows for real-time updates on new tax regulations to minimise errors and delays in the computation of port taxes and also guarantees transparency, uniformity/standardisation and consistency of Customs procedures.

It is expected to significantly reduce the cost of importation and doing business, to local and foreign investors.

Speaking at the launch at the Jamaica Pegasus in New Kingston on Wednesday, August 13, Finance and Planning Minister, Hon. Dr. Peter Phillips, welcomed the system, noting that “the country needs the additional revenues which can flow from this.”

He said that the application of the computerized platform in other jurisdictions, have realized a 10 to 20 per cent increase in revenues through improved compliance and shorter processing times.

The Minister stated that “smoothing out and speeding up the processing time in Customs is essential to raising the overall productivity of the country in today’s modern, global environment”.

This is important, he said, in light of the fact that manufacturers often do not produce a complete item, and need to import and export multiple times before achieving the final product.

He noted for example, that an item may be semi-processed in Jamaica, moved to the United States for further processing, and then back to Jamaica for final processing.

“It means that if you’re going to be part of that production chain, it means that you’re going to need to move your raw materials in and your product out with as little interference as possible….if you’re not able to do that, then people who are involved in organising those production changes will avoid coming to your country and will seek other jurisdictions,” he argued.

The Finance Minister said the need for this level of efficiency and competitiveness does not only apply to Jamaica Customs, but also the wider public sector.

“Our capacity to compete depends upon us meeting the timelines that are set by this modern global environment. We are here to collect the revenues…but also to facilitate the person doing business. Our business as Government is to enable the people who are doing business to produce and to make us all able to achieve a higher standard of living,” he asserted.

The ASYCUDA World was designed by the United Nations Conference on Trade and Development (UNCTAD), which is providing technical assistance. It is funded under the Inter-American Development Bank/Government of Jamaica Fiscal Administration Modernisation Programme (FAMP), which involves various activities including creating interfaces for external stakeholders, government trade regulatory agencies and brokers, for verifying data and generating reports.

Brokers can expect to clear their consignments at a much quicker pace and transactions will be facilitated online from any location. The version of ASYCUDA World, which is being implemented in Jamaica, is the latest model of the system, which has been significantly improved.

It is being implemented over 24 months, from 2014 to 2016, with a pilot to begin in February 2015 and full roll-out in 2015/16.

ASYCUDA World has been successfully implemented in 80 countries over the past 30 years, including 24 states in Latin America and the Caribbean.