Gov’t to Implement New Measures to Crack Down on Customs Fraud

Comptroller of Customs Raju Badu speaks with customs officers. They are not involved in any fraudulent activities.

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Fraudulent activities at the country’s customs department continue to be a major headache for the government, and Prime Minister Gaston Browne says his administration is determined to crack down on importers and customs officers engaged in the malpractice.

Last week, an importer was fined $25,000 and had to pay back $66,000 for misclassifying high-end alcoholic beverages, according to the prime minister.

The beverages’ misclassification caused a discrepancy in the amount of import duty owed, which resulted in the importer being penalized and required to reimburse the additional amount owed.

He explained that the said businessman had been bringing in very expensive drinks, such as Hennessy, and misclassifying the goods they were importing. For example, they would classify the drinks as hygiene products and pay 15% instead of 45% in tariffs.

“In the future, any goods this person brings will be subjected to spot-checks. We are literally doing more regular spot-checks on these imports. We are even thinking that we may have to clothe individuals who are not necessarily customs officers to help us to spot-checks so in the event there is any collusion, that we can spot these individuals who are robbing the revenue”, he said

He also mentioned that the government is considering going to parliament to make the fines more extensive, as $25,000 is like a slap on the wrist when someone is stealing revenue worth $100K.

“We are closing down all of the avenues we know about…We have introduced a new electronic form to eliminate that form of theft, and we are also about to introduce a policy that only the finance minister can preside over duty waiver. Even when I am off the island, the acting prime minister will have no such authority, and the idea is to centralize the process. I am taking full responsibility here,” he said.

There have also been claims of racketeering at Customs not just on goods and services but also on the issue of duty-free concessions, forcing the government to implement laws that now allow only the finance minister to approve duty free concessions.

The signatures of the prime minister and other government ministers have been forged in the past on-duty waivers.

Browne said his government is committed to safeguarding revenue and combatting illegal activities.

To tackle the issue, the Prime Minister stated that the government is closing down all the known avenues for customs fraud.

One of the steps taken is introducing a new electronic form that eliminates signature forgery and manipulation, ensuring that only the finance minister can preside over duty waivers.

The government’s approach aims to enhance accountability and reduce opportunities for corruption.

He emphasized the seriousness of such actions and called for the cooperation of the general public to address these issues.

The government also wants people to come forward with information about those who are robbing revenue so that they can take action against them.

Overall, the government of Antigua and Barbuda is taking decisive steps to combat customs fraud and safeguard the country’s revenue.