Legislative Amendments Required for ASYCUDA++

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Raymond Booth
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1 Legislative Amendments Required for ASYCUDA++ It is imperative to review Customs laws and regulations to accommodate some or all of the components specified below. The Kyoto Convention, Annex J. 1, specifies a number of recommendations concerning definition of legal requirements. Further, it is based on the experiences of various countries where ASYCUDA ++ has been implemented. 1) Legal duty/tax point The point in time to determine rates of duty and taxes must be specified in the law and be configured accordingly in the ASYCUDA system. This date may also be used to define the exchange rate, the time of entry to Customs warehouses and be decisive whenever a date is required to define entry under a Customs regime. Presently in St. Lucia, the date when the entry is first presented to Customs determines the rate of duty and exchange applicable for normal entries (section 65). However, in the case of Warehousing Entries and provisional consignments (Bonds and Deposits), the time of delivery of the goods determines the rate of duty applicable, but the rate of exchange is based on the presentation of the final entry (Section 61, subsection 2). This is an obvious anomaly and will therefore complicate system functionality. The rate of duty and exchange applicable on the date of initial registration of declaration should be the duty and tax point. Recommendation: sections 65, Section 61, subsection 2 to be amended. 2) TIN number A registration number is required by ASYCUDA. In that respect a unique Taxpayer Identifier Number - TIN - mutually agreed with the other Government Authorities should be implemented. A unique identification will greatly satisfy the needs for all the authorities involved, i.e. Customs, Inland Revenue, Police and Statistics Department. Recommendation: Amendment to the first schedule to the Customs regulation 1968 and the corresponding S.I # 25 of 1993 to reflect Policy decision (PS Finance or Min. of Finance) 3) New CARISAD and Customs Procedure (CPC) codes During the Prototype building stage, it was discovered that additional information would be required on the CARICOM SINGLE ADMINISTRATIVE DOCUMENT (CARISAD). These changes are based on requests made by various governmental agencies. The CARISAD is legislated as per S.I # 25 of 1993 and SI # 98 of 2000 respectively. It may be necessary to give the Comptroller the authority to amend the CARISAD and the relevant codes as necessary. This would facilitate subsequent revisions of the form and CPCs.

2 4) New modified or Provisional CARISAD There will be need for the introduction of a modified CARISAD to deal with consignments as per Departmental Instructions #1/01 published in January Recommendation for 3& 4 above: Amendment to the first schedule to the Customs regulation 1968 and the corresponding S.I # 25 of 1993 to give the Comptroller of Customs the authority to CARISAD Customs Procedure Codes (CPC s) as necessary. It may also be necessary to review section 27 of the Customs Act # 23 of ) DTI and EDI Legislation must include provision for submission of electronic declarations i.e. paperless transmission of the entry details, including diskettes and tapes and other forms of electronic media. Recommendation: Amend the definition for document in the Customs Act to read Document includes: a) Anything on which there is writing; b) A map, plan, drawing or photograph; c) Any written information relating directly or indirectly to goods which are imported, exported or in transit; d) Any written declaration required by the comptroller; and anything from which sounds or visual images are capable, with or without the aid of a device of being reproduced, And also includes a part of a document as so defined and a copy, reproduction or duplicate of a document or part thereof. * Relevant legislation to be so amended to make reproduction from electronic media acceptable in court. 6) Signature When using electronic declarations the law must provide for an alternative to handwritten signatures. One alternative is to replace the hand-written signature with Passwords, and/or personal identification numbers. Recommendation: Definition required for signed document as per 5 above

3 7) Computer print outs Customs declarations in the form of a print out from the computer should be legally binding for the importer/broker, thus establishing enough evidence in cases of trials between Customs and the importer/broker. Recommendation as per 3 above and amendment of relevant legislation as per 4 above 8) International standards The ASYCUDA system will to a large extent require input of international standards and codes, e.g. for country names and currencies. The legislation must allow for such codes and standards. Recommendation: Amendment to SI# 25 of 1993 to conform to international standards (all ISO 9000 codes available from project Unit) 9) Use of data Legislation should provide for the right for Customs to retain data, use it for its own purpose and to be allowed to transfer certain data to other organisations, such as the statistics office. Recommendation: Amendment and/or modification of Sec102 of Customs Act # 23 of ) Transaction fees When considered necessary by the Government, Customs should be authorized to collect a fee for each Customs declaration. The amounts collected should be earmarked to finance renewal of hardware or to compensate for the loss of income for staff moved from areas with certain extra income to the computer centers, when such income is possible. Recommendation: New legislation to be introduced or amend service Charge Act # 10 of 1989 to reflect intention. 11) Provisional lodgment The ASYCUDA system contains a facility for pre-lodgment of Manifests (Cargo Report) declarations pending arrival of vessel or documents. This should be allowed for in the legislation.

4 Recommendation: Sec 25 and 26 Customs Act # 23 of 1990 to be amended 12) Computer fraud The law should define fraud based on the manipulation of computers as an offence to be fined according to the usual practice in the country concerned. In most countries there is specific legislation to address computer fraud through the introduction of a Computer Misuse and Abuse Act. However in the absence of that authority legal protection must be provided through the Customs Act for: (a) unauthorized access by individuals; (b) Abuse by individuals with authorised access 12. Verification of systems Customs should be authorised to access traders' computer systems for verification and audit purposes. This has particular importance when using EDI transmissions. Recommendation: Amendment and/or modification of Sec102 of Customs Act # 23 of 1990 to grant customs the relevant Powers. Penalties The ASYCUDA ++ system is a self processing system. All data will be entered by Brokers and importers. It is critical that the information entered is accurate and reliable to ensure correct processing and prudent statistics. To ensure this, it is recommended that a schedule of penalties be introduced for the following: a. Incorrect CPC code b. Incorrect classification c. Incorrect Customs Value Recommendation: Relevant amendment under part x (offences) under the customs Act # 23 of 1990 to be made. New and Specific legislation Most of the legal elements identified above can be addressed through the Customs Act and Sec. 170 of the Customs regulation # 36 of This approach will be faster and therefore guarantee a timelier implementation of the system which is scheduled for April 1 st. However, ultimately it will be necessary to specifically deal with them through: 1. Finalisation and introduction of Brokers and Clerks Regulation 2. Finalisation and introduction of Customs Regulations

5 3. Introduction of the Electronic Transaction Act to enable the operational use of electronic customs clearance capabilities (including Direct Trader Input (DTI), Electronic Data Interface (EDI) and Internet) and selectivity mechanisms. (local draft and Barbados Legislation available) 4. Computer Misuse and Abuse Act (local draft and Barbados Legislation available) 5. Data Protection Act.

BOTSWANA CUSTOMS & EXCISE DEPARTMENT: ASYCUDA ++ COMPUTERISATION GUIDE TO COMPLETION OF SAD 500/ 501 CUSTOMS DECLARATION IMPORT, EXPORT & TRANSIT

BOTSWANA CUSTOMS & EXCISE DEPARTMENT: ASYCUDA ++ COMPUTERISATION GUIDE TO COMPLETION OF SAD 500/ 501 CUSTOMS DECLARATION IMPORT, EXPORT & TRANSIT SAD 500 GUIDE JULY 2003 Contents: General INFORMATION 1