Duty-free shopping act approved

Philip Hamilton, Gleaner Writer

LEGISLATION APPROVING duty-free shopping for arriving passengers moved closer to reality yesterday following the Senate's passage of a bill seeking to amend the tourist duty-free shopping system act.

The bill was tabled by Leader of Government Business in the Senate, Dorothy Lightbourne. The legislative measure comes at a time when Jamaica faces stiff competition from rival Caribbean tourist destinations vying for duty-free shopping business.

Additionally, it also seeks to revise existing penalties established in 1974 associated with the operation of duty-free shops, improving the administrative procedures used in monitoring the in-bond system by requiring periodic returns, and ensuring holders of duty-free licences had sufficient resources to conduct operations.

Leader of Opposition Business in the Senate, A.J. Nicholson, said several major players in the tourism industry were of the view that the bill was progressive. He said the proposed law would expand the range of locally produced craft items, while providing additional jobs for persons servicing the shoppers.

He said while operators in the duty-free industry supported the proposed amendments, many were concerned about the slow pace in completing the operations manual which was 90 per cent complete.

Nicholson pointed out that the current paper-based system was susceptible to errors, which exposed them to huge fines, hence the urgent need for a modern operations manual.

"They want automation. They want to move away from the paper-based system and they are anxious that the Government set a deadline for completing the manual so it is ready when the new regulations come into effect," said Nicholson.

Opposition Senator Noel Sloley said the amended legislation would place Jamaica on a path of modernisation. He pointed out that the existing restrictive list of duty-free items had prevented certain brands from opening stores in Jamaica.

He said Jamaica, which was previously the leading Caribbean island for jewellery shopping, had lost ground to other destinations in the region.

Sloley attributed this to Jamaica's current import structure which, he said, severely limited the ability of local jewellers to compete.

"The jewellery industry, which brings in US$80-90 million each year, pales in comparison to islands like St Thomas (US Virgin Islands), where there is an estimated US$300-$350 million per year," said Sloley.

Senator Sloley added that revenue from individual companies in islands like St Thomas, St Maarten and Aruba exceeded all of Jamaica.