(CNS): As online shoppers and small businesses tear their hair out over delays in the clearance of packages passing through local courier companies, customs officials said the delays are due to the record-breaking level of imports last month as a result of the closed borders. Customs and Border Control said they received 18,000 individual imports in June, which was 5,000 more than in May, placing “a great strain on CBC resources” as well as the couriers and agents bringing in the goods.
Over the last few weeks CNS has been receiving stories from angry and frustrated readers about delays in the arrival of packages since Cayman’s borders and shops closed because of the COVID-19 pandemic. Some importers claim they have waited over two months for packages despite paying ‘next day’ or express delivery premiums.
As a result we asked the CBC about the reports we were getting from the public regarding the clearance issues, which appear to be caused by a combination of problems, including a shortage of staff and ailing computer systems.
The CBC did not respond directly to any of our questions. Instead, a press release was issued stating that an increase in imports as well as problems relating to importers not providing the necessary paperwork and poor invoicing were fuelling the delays.
Approximately 40% of imports to the Cayman Islands arrive with the incorrect invoice, contributing to further delays in accessing goods, officials stated in the release. But the agency said it has now deployed additional officers to manage the increase.
CBC Deputy Director Kevin Walton said that the increase of imports was “directly linked to travel restrictions, so the normal baggage imports by passengers are now being routed through couriers and other consolidated cargo imports”.
As the borders remain closed, leading to a rising trend in shopping online and importing goods, it appears that July is going to be just as busy. Officials said that they had already received almost 5,000 individual imports in the first week of July.
In addition to the fact that people cannot travel overseas to shop, the increase in imports is also likely being fuelled by the hundreds of thousands of dollars paid out over the last few weeks from pension funds under the new emergency COVID-19 provision in the law.
While this may not be good news for local retailers, it is very good news for the public purse. As the country waits for Finance Minister Roy McTaggart to release a revised budget for the 2020/21 period, he is already warning of a potential shortfall in government revenue of some 25% due to the shutdown of tourism. This warning comes at a time when public spending has increased as government tries to prop up local business and support those who have their jobs frozen or lost them altogether.
The overseas shopping spree may help boost government earnings slightly. But while the number of individual imports has increased, the total value of imports has not yet been released. Although much of this would have been lost in the personal allowance of people returning from overseas trips, it is unlikely to make a significant difference to the revenue hole government is expecting.
Meanwhile, customs is reminding the general public of the importance of completing and submitting an Appointment of Agent Authorisation form when using courier or broker services. Importers must also provide all necessary documents to the agent, as this is their responsibility.
The completed form should be signed, dated and accompanied by a valid, legible government-issued identification, such as a passport or driver’s licence, with colour copies preferred. The appointed agent should have the completed form at least 48 hours prior to the arrival of goods and customers are urged to submit the appropriate invoice in order to expedite the clearing of their goods.
To avoid delays customers should provide customs with sales invoices and suppliers commercial invoices with the required proof of payment. Courier system generated commercial or hand written invoices are not acceptable and the misrepresentation or omission of the value of goods can further delay the process.
For more information call the CBC at 949-4579 or visit the CBC website.
