by Linda Straker
- Cabinet approved freight duties and taxes on imported goods to reflect 2019 freight costs
- No parliamentary sittings from 1 October 2022 to 5 December 2022
- Legislation set for discussion on 14 December in House of Representatives
More than 2 months after it went into effect, the Dickon Mitchell administration has presented a Bill to the Parliament that will provide for legalising the capping on freight to 2019 levels as of 1 October 2022, and at the same time remove the role of the Parliament to amend the section of the Customs Act which provides guidelines on the valuation of goods.
The Government is seeking to amend the Customs Act No. 9 of 2015 which will first put a retroactive commencement date for the cap on freight. Secondly, it will amend Section 78 of the main Act to insert a new subsection to empower the Minister of Finance to amend Schedule II to the principal Act, by an Order.
A news release from the Government Information Service (GIS) dated 30 September 2022, said that as part of the Government’s efforts to alleviate the impact of external shocks on the Grenadian population, Cabinet has approved the adjustment of freight in the calculation of duties and taxes on imported goods to reflect 2019 freight costs.
“The freight cap will be applied to the importation of all goods landed in Grenada during the period October 1st, 2022, to March 31st, 2023,” said the release. Though the change requires Parliamentary approval, there were no parliamentary sittings from 1 October 2022 to 5 December 2022.
As it currently stands, the Customs Act can only be amended by the approval of members of the Houses of Parliament. Schedule II to the legislation, by virtue of Section 78 of the Customs Act, sets out the manner in which the valuation of goods is assessed for the purposes of calculating customs duties and other taxes concerning the entry of goods.
However, the amendment will provide the Minister of Finance to announce amendments by an order that must be published in the Government Gazette. “The power that this clause seeks to confer on the Minister of Finance would be subject to negative resolution, which is a Parliamentary control mechanism,” said the explanatory notes to the Customs (Amendment) Bill, 2022.
“The amendment will also confer on the Minister of Finance the ability to amend Schedule II to Customs Act by Order to give legal effect to the administrative actions taken by the Government in respect of freight from 1st October 2022,” the explanatory notes further outlined. “Additionally, the power may be exercised generally for other future matters under Schedule II to expeditiously implement governmental measures.” The legislation is set for discussion on 14 December 2022 in the House of Representatives.
A handful if folks just got richer. Unless, there is a law that compels companies to pass on the savings…or fix prices for basic household items.
Why has Government sought to remove the role of the Parliament to amend the section of the Customs Act which provides guidelines on the valuation of goods? Would like a clearer explanation please. Thank you.