The Tribune

By NEIL HARTNELL and YOURI KEMP Tribune Business Reporters

Bahamas Customs yesterday said it was cracking down on potential "abuses" by private aircraft in response to concerns that it has grounded Abaco's only air freight provider post-Dorian.

The agency, in a statement issued yesterday, did not say Abaco Freight or its agents were responsible for potential issues its officers had identified through "enhanced monitoring" of incoming flights to the island.

Noting that private planes do not have to be registered with its Click2Clear electronic goods clearance system "as yet", Customs said some appeared to be running "commercial cargo operations" even though the supplies were destined for Dorian recovery and restoration.

"In the immediate aftermath of Hurricane Dorian, many private aircraft were transporting humanitarian relief supplies into the country under the various Exigency Orders," the agency's statement said. "They were not processed on Click2Clear, and had no need to be familiar with the system because private aircraft are not integrated into the online system as yet.

"However, Customs is finding through its assessments and enhanced monitoring that some private aircraft may be running commercial cargo operations, even though some of the supplies being transported are for Hurricane Dorian restoration activities.

"As a result, Customs is exercising more scrutiny over these operations to prevent abuse of the system under the guise of humanitarian relief. Any abuse of the system does a disservice to Abaco and to the country," Customs continued.

"All commercial operators must follow the same rules when it comes to importing cargo. And if they are unfamiliar with Click2Clear, and if they are not licensed, they have to fulfill the necessary requirements to operate like everyone else."

Customs hit back after Tribune Business yesterday reported fears that its decision to ban incoming Abaco Freight flights until it complied with such decisions would further set back the island's post-Dorian recovery.

Residents said that blocking Abaco Freight's regular flights was the latest example of bureaucratic red tape undermining restoration efforts, with Customs demanding that its local agent both pay a bond and go to Nassau to train on the new Click2Clear electronic goods clearance system before it can return.

Kimber Mazzeo, Abaco Freight's West Palm Beach-based principal, warned that the ever-growing freight backlog - now standing at three to four plane loads - threatened to delay the planned March 4 re-opening of one of the island's major resorts.

She told this newspaper that the flight ban had prevented the delivery of water pumps and other critical equipment essential for the Abaco Beach Resort to resume operations, and pleaded for "leniency" to be shown by the Government given the island's ongoing plight and the absence of Customs brokers to assist.

Ms Mazzeo added that too few persons on Abaco understood how Click2Clear works, as it had only been introduced on the island just weeks prior to Dorian's arrival, and issues with the system were still being worked out. While Customs yesterday said there are seven licensed brokers, couriers and shipping agents on the island, this is being disputed by residents.

Marlon Johnson, the Ministry of Finance's financial secretary, told Tribune Business yesterday: "I got some feedback from our Customs team and I think we understand what transpired. Just to clarify some of the things that were mentioned, the folks in Abaco got on to the Click2Clear system before Dorian and, after Dorian, since October the system has been back up and operational and handling commercial freight.

"That has been a constant and consistent thing, and the persons who are using the system and familiar with it have been using it without any issue." Speaking to Abaco Freight in particular, Mr Johnson said: "When the flight got in I think there was a mix-up with the requirement, from what we gather, to clear a flight with commercial goods. But I think that was communicated to the operators and I think they understand now what's required."

When pressed by Tribune Business would be willing to compromise, especially given the Abaco Beach Resort opening date, Mr Johnson said: "The law is the law with respect to clearing goods and there is a process if companies want to avail themselves of expedited clearances and the like.

"But obviously the Customs Department has a role to play and, again, I think in this specific instance it was a 'one-off' because there was some confusion on the requirements given the broker or the courier service they were using

"I think that was clarified and, as has been the case, there have been tons of goods shipped in and out of Abaco - and which continue to be shipped. So there is no widespread issue or any requirements for leniency."

And Customs reiterated: "No recent changes have been made regarding the use of Click2Clear at ports in Abaco, as the system has been back online for Customs processing since October. Customs had reverted to some manual processes after Hurricane Dorian. However, the online system has been running on island and remotely for months.

"Abaco is very equipped to provide licensed brokerage and courier services to the business community, and the island is not dependent on a single company for Customs processing. Most established Abaco businesses are already using Click2Clear successfully. To date, there are seven licensed brokers, couriers and shipping agents in Abaco.

"The Department continues to invest heavily in Customs modernisation in order to eliminate all irregular processes that were present in the past. In some of the smaller ports in the country, for example, Customs officers themselves used to assist businesses from time to time with Customs processing," the statement added.

"Customs has put a stop to these informal practices, which means businesses must manage their own Customs processing. Businesses must have a licensed broker or courier to take responsibility for processing their goods."

While relief supplies can still be imported into the Dorian disaster zones without incurring VAT or import duties, Customs added that "all goods must be manifested and declared, whether intended for humanitarian or commercial purposes".