By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
A Grand Bahama-based courier service is blaming Customs’ “virtually impossible demands” for its decision to close on July 31 after 22 years in business.
GB Express, in a letter to its customers last week, said it was “impractical” to continue operating its air courier service into the island because the implementation of new Customs laws related to air freight had resulted in the company losing “gross amounts of money”.
The document, signed by co-owner, Bob Clutter, and other senior executives, said GB Express could not continue absorbing costs to keep the price of its service within reach of both individual Bahamians and citizens.
Recalling GB Express’s formation some 22 years ago, the company told clients: “Not only did we provide courier services to the individual citizens of Freeport, but we also worked tirelessly to meet the air cargo needs of the vast majority of local businesses.
“The times have changed, especially the Customs laws, and their application at air freight has made it impractical to operate an air courier service. Since we are not set up to operate through the harbour, I am left with two options – shut down the air service and start sea service or close down GB Express Ltd.
“The cost of meeting the demands of Customs has priced the product beyond the reach of the Bahamian citizen and GB cannot continue absorbing this cost. With Customs’ direction in the future it is only going to be more difficult to operate in Freeport. Therefore I feel the best business decision I can make is to close the doors.”
GB Express said it needed both its courier and air freight segments to remain profitable for the business to succeed, but the former is still “losing gross amounts of money at the airport on the courier side”.
“With the changes at air freight via Bahamas Customs over the past few years, it has become impractical and virtually impossible to operate a daily courier service at the airport,” GB Express reiterated to customers.
“I realise our expected daily flights have not been operating on a daily basis. This is due to the fact that our filler (individual) courier shipments have not been sufficient to make the daily flights possible.”
Comments
TheMadHatter 5 years, 3 months ago
Government won't stop its attack on Freeport until Freeport is dead and VAT has to go to 19% to make up for the loss of revenue. Pindling said no country within a country and if you cant fish you will cut bait. Minnis is only following orders.
Gotoutintime 5 years, 3 months ago
Freeport died in 1967!!
proudloudandfnm 5 years, 3 months ago
Time for Freeport to secede.... This crap has to stop.... The Bahamas Government will never be any use to anyone. Idiots, one and all. I've been screaming about that idiotic 25% C-10 for two years now, it's nothing more than legal robbery. 25%??? To amend a bill of laden???? That is ignorant and offensive. Hello Mr. Customs officer, my name was spelled incorrectly on my 1 million dollar invoice. No problem sir, that'll be $250,000.00 to change that little P to an R....
GB and Abaco should unite, secede and start our own country. We'd be rich as hell in a year. With Abaco's tourism and our industrial population and potential we couldn't lose....
The_Oracle 5 years, 3 months ago
There is no doubt the village idiots are running the country. Customs is the result of teaching by Rote: No capacity to understand how they damage the country they depend on for a salary. I could write a book on "stupid things said by Bahamian civil servants" (From self imposed exile of course). Having said that, The port ownership family strains are weak. No purpose, no drive, no results. Precisely why mid level mediocre management has hijacked its assets for themselves and their agendas. as they say "tief tief from tief" make God happy"
bcitizen 5 years, 3 months ago
So many business in this country just hanging on for life, not making profits just treading water and paying a few peoples salary. If things don't improve more will close and cause a domino effect that might take a whole slew of companies with it. The government and civil service people just do not get it.
professionalbahamian 5 years, 3 months ago
So right. Yep- government has no clue on so many fronts. Basic economics - lowering the cost of doing business and buying goods and services (lower fees, lower duties, lower brokerage rates etc) will result in the medium and long term in more business volume which will result in more overall tax revenue... or the government could just kill the hens that lay the eggs by overtaxation while never really balancing the budget. ( Also VAT on health insurance and power consumption is just B.S. - who does that benefit exactly? Fix it please leaders now. Who can afford health insurance at best of times never mind with your VAT.)
Sign in to comment
OpenID