New Custom Bill grants duties exemptions for developers, churches, taxi drivers

Members of the House of Assembly this evening, August 11, passed the Customs Management and Duties Amendment bill 2011. Before passing the bill, the members met in committee stage and heatedly discussed the various amendments of the bill, where it was agreed that sub clause 22 (B) be deleted.

Prior to reaching the committee stage, Members of the House debated the bill and its proposed amendments and called for some sections of the bill to be “spelt out” in order to prevent abuse.

The bill seeks to grant exemption from customs duties on construction materials to first time homeowners, as well as first time investors who are constructing office accommodations, small hotels and villas. The construction materials include steel, lumber galvanized and cement.

The bill also proposes to implement exemption from custom duties for churches who wish to import a vehicle. However, the bill states that the church can only import one vehicle within a five year period and that it must not be used for hire or gain any rewards. Additionally, there will be no exemption for spare parts and accessories.

Also, the bill seeks to make life easier for returning Belongers in the Territory. Clause 16 proposes custom duties exemption for returning Belongers with personal and household effects. Returning Belongers who has not lived in the BVI for three years or more and who intend to return to the Territory for 12 months or more will be allowed to import one motor vehicle per family.

Returning Belongers will also have the opportunity to import their vehicle from abroad which they have owned and used for 12 months, exempt from custom duties. However, they are not allowed to sell the vehicle in the Territory.

Meanwhile, the bill also proposes to exempt custom duties on hurricane equipment, which include lamps, laterns, fixtures, shutters and materials for the construction of shutters.

Water containers, computer hardware and software are also items proposed to be exempt from custom duties in the bill.

Taxi drivers will also have the opportunity to import or purchased a motor vehicle free of custom duties.  According to the bill, the vehicle will have to be purchased by a licensed taxi driver and can only be used for the sole purpose of providing taxi services. Also, taxi drivers can only import or purchase one vehicle in five year period.

Car Safety seats for infants and young children are also proposed to be exempted from custom duties.

Premier and Minister of Finance, Hon. Ralph T’ O Neal piloted the bill and told the House of Assembly that the bill is in the interest of the people.

“In this day and age, our people should be granted some kind of concession. Our people trying to invest in hotels but some might not be able to go as far as that so for small hotels and villas - a villa might only be a one room house but if the concession is there some of our people might well use it. The first time home owners certainly...that is a well deserving concession, especially in a community like ours where every blessed thing is important and with the custom duties being one of our main sources…you know it is good that the government can offer first time home owners, especially the younger people that concession in which they want to build a home they call their own,” the Premier said.

Meanwhile, Minister for Communications and Works, Hon. Julian Fraser stood in support of the bill but asked that certain things be clarified.

"I support the bill, but I need to get some things clear in my mind. The principle and concept is good; anything that can be done to encourage or help BVIslanders or Belongers to help with their new home, especially coming from Government. An initiative like this needs to be clear and unambiguous and it need not place burden on officers whose duty is to monitor the transactions taking place," Minister Fraser said.

Additionally, Minister for Education and Culture, Andrew Fahie also pledged his support for the bill but asked for some regulations to be put in place in order to prevent abuse.

"We want to ensure we don't open a black market. A man can say he's building a home and when you look he is taking orders for other people...When the regulations are not there, then when we look we have a full black market...So we have to tighten up in that area in the bill to ensure we avoid that at all cost,” Minister Fahie said.

Raising concerns as well was At – Large Representative, Hon. Irene Penn O’ Neal who noted that while she fully supports the bill on principle, there is still the question of who is going to monitor the materials which are intended to be exempted.

“How are we going to monitor that these materials that will be exempted will really go for the purposes it is intended.”

Leader of the Opposition, Dr. Orlando Smith also supported the bill but asked that parts of the amendment be ‘tightened.’