CUSTOMS & EXCISE DEPARTMENT

MONTSERRAT

INFORMATION NOTICE NO:

A guide to clearing air cargo through Customs

Introduction The information in this leaflet relates to Customs requirements and procedures for the clearance of air cargo in Montserrat. It is one of a series of information notices to importers and others on current Customs requirements but we are constantly seeking to improve our processes and reserve the right to amend and change procedures at any time. The notice does not provide any legal entitlement to any of the services outlined and the information here may be changed without notice. What is air cargo? For the purposes of this guide, air cargo is any freight packages or parcels containing goods of any description being imported by aircraft, including helicopters, into Montserrat. It includes fast parcel consignments consigned to Montserrat by courier services but does not include mail sent under normal postal services that is under the control of the Post Office. It also does not include accompanied passengers baggage, even that which may have been left behind overseas and sent separately from the passenger.

Who is responsible for air cargo held for Customs clearance? All air cargo is held and presented for clearance by Customs by the company contracted to provide air cargo services into Montserrat. The present operator is Air Services Ltd (ASL) based at Gerald’s Airport. The operator works closely with the Customs Department in producing for Customs clearance all air cargo imported, whether by the scheduled WINAIR service or air charter services offered by other airlines. The cargo is presented for Customs clearance at the airport and is generally stored at the Air Cargo shed within the airport secure area although there are special arrangements for some types of cargo. When and where can I clear my air cargo through Customs? Most air cargo is made available for Customs clearance by ASL between the hours of 10am to 3pm, Monday to Friday, at the Air Cargo Shed at Gerald’s Airport. On approaching the Airport Terminal turn right at the roundabout, following the Air Cargo sign and park off the road close to the former airport terminal building. The Air Cargo shed is in the left hand side of the building facing the road. Are there any exceptions to these times? The times outlined above apply to all air cargo except for consignments of printed matter of no commercial value (for example business documentation) carried by fast parcel operators such as FEDEX, DHL and others.

Customs will, on request, release consignments of printed matter of no commercial value to the air courier service importing the consignments, on their arrival at the airport or shortly thereafter. The air courier service will then assume responsibility for release to the importer(s) without further reference to Customs. No other Customs procedures apply in these cases and no Customs duty or tax is liable or payable on these consignments. However, Customs reserve the right to examine these and any other packages for prohibited or restricted items and to check goods are as described. Any packages found to contain other than printed matter of no commercial value will be detained for normal Customs procedures. WARNING: Any prohibited or restricted items found in these or any other air cargo consignments will be detained for investigation that may result in criminal proceedings .There are severe penalties including possible imprisonment for the importation of drugs or other prohibited items or restricted items imported without the appropriate licence. What about other urgent items other than business documents? Customs will by agreement in advance, clear and release urgently required items such as medicines or hospital equipment at times other than the normal opening hours of the Air Cargo Shed. Please contact the Comptroller of Customs giving as much notice of the arrival of the consignment as possible. The Comptroller will advise what Customs procedures will apply. You will also need to make arrangements with the air cargo operator for the production of the consignment to Customs on its arrival. What if I am importing plants or foodstuff?

Plants and foodstuffs, such as fresh vegetables may require special licences from the exporting Agriculture Department and will also need to be produced to an officer from the Ministry of Agriculture for inspection before they can be released. Customs cannot release these products without authority from the appropriate authorised officer. You are strongly advised to arrange for an authorised officer to attend for inspection before arrival of the consignment if possible, as Ministry of Agriculture staff do not routinely attend at the Air Cargo shed. If no prior arrangements have been made Customs are required to detain any possibly restricted items until an authorised officer can attend and inspect the items concerned. Do I have to make a Customs Declaration for air cargo consignments? Except for printed matter described above, air cargo is subject to the same Customs regulation and requirements as other cargo imported into Montserrat. This means that for most commercial importations a formal Customs declaration must be lodged and processed at the Customs Longroom in the main Customs Office at Brades and any duties or taxes due must be paid there to the Customs Cashier. Details on formal Customs procedures and how to make a Customs declaration is provided in a separate Information Notice.

What happens once a formal declaration has been made? Once your consignment has been cleared through the Longroom and all duties and taxes have been paid to the Cashier, it can be collected from the Air Cargo Shed on production of the appropriate delivery document from the air courier service and the copy of the Customs declaration returned to you or your Customs Broker (please leave any supporting documents attached). The delivery note and copy Customs declaration must be produced to the ASL representative at the Air Cargo Shed, who will identify the package and produce it in your presence to the Customs Officer for Customs release. All packages are liable to internal examination to verify the contents are as declared. The Officer will advise you if examination is required, if not or once the examination has been made and is satisfactory the consignment will be released from Customs control. What about non – commercial and small value consignments? Customs at the Air Cargo Shed will clear and release non commercial and small value consignments under approved informal procedures in the following circumstances:

• The value of the consignment for Customs purposes is less than EC$1,500

• There are no more than three separate categories of goods within the consignment

• The goods are not subject to an import licence or other restriction

• The goods will not be subject to a claim for release duty or tax free by virtue of an approved duty or tax exemption

What are these informal procedures and what do I need to take to Customs? Under approved informal procedures, Customs staff at the airport may assess and collect any duty and taxes due on non –commercial and small value consignments based on a verbal declaration and production of supporting documentation. Documents required include:

• The original invoice for the goods declared

• The Air Way Bill

• The delivery release from the carrier, this should include an advice of the freight paid for the consignment.

• Any other supporting documents such as a packing list or other relevant papers.

You may be required to open any consignment to enable the Officer to verify description and value. If satisfied, the Officer will then assess any duty and tax due, which can be paid to the Officer at the time. The Officer will issue a formal baggage receipt for the money paid. The goods will then be released from Customs control. A receipt will always be issued for any duty or tax charged. Please check and retain the receipt in case of any later query.

How does the Officer assess the charges and what duties may be payable? All goods imported into Montserrat are potentially liable to Customs Import Duty, Consumption Tax and Customs Service Tax. The rates of Import Duty and Consumption Tax vary depending on the goods concerned – the Officer will tell you the rates that apply for your consignment. The rates applied are those listed in the official Montserrat Tariff. Customs Service Tax is, at present set at a standard 5% for all goods. All Import Duty and Consumption Tax rates as well as Customs Service Tax are set at a % of the value for Customs purposes – this value is normally based on the Cost +Insurance + Freight or CIF which is a standard basis of value used in many countries for Customs purposes. This is why Customs need to know the price paid for the goods, the cost of insuring it for delivery to Montserrat and the cost of freight from overseas to Montserrat. As the cost of air freight can be high this may add significantly to the final Customs charges you have to pay

What if I do not have the original invoice? If you do not have the original invoice please advise the Officer, who may accept a fax copy if one is held by you. If you think the invoice is with the goods or you need to check the goods to establish content and value, the Officer may allow this under Bill of Sight procedures – please ask Customs for more information on this, if required.

How do I know my air cargo package has arrived and is ready for Customs

clearance? Most consignments of air cargo are carried by Fast parcel couriers, who will notify the importer or their agent or broker by telephone of the arrival or expected arrival of the cargo. If you have a prearranged delivery date, you are advised to check with the courier before coming to the airport as consignments can be delayed.

How long can I expect to wait for clearance of my consignment? Times for clearance of air cargo from the Air Cargo Shed will vary depending on the amount of cargo on hand and the number of consignments for release at any particular time. Some periods such as the period prior to Christmas can be busier than others. However, subject to all documentation being in order you can reasonably expect release of your consignment from Customs within a few minutes after its production. to the Officer.

Is there a fee for Customs services at the airport?

Customs do not charge a fee for their services, during normal hours of opening of the airport. However there may be charges payable to the cargo operator and a Broker’s fee is payable if one is employed to clear your cargo. These are not payable to Customs and are not included in the Customs duties and taxes charged. For details of these fees contact the operator or your Broker.

How do I contact Customs? Customs at the airport can be contacted on (1) 664 491 8816 The Longroom office and the Comptroller can be contacted at the main Customs Office at Brades on (1) 664 491 3816 or by fax on (1) 664 491 6909