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Bahamas Customs fees and fines risk general air freight boycott

FLORIDA air cargo companies are threatening to boycott the Bahamas over the new customs fees and fines imposed this month, reports the Bahamas Tribune.

The newspaper has obtained correspondence warning cargo companies to "be prepared to withhold services" if it becomes necessary to force the government to repeal changes that accompany the 2016-2017 Budget.

The letter, addressed to 'all carriers to the Bahamas" and copied to the many local couriers and import brokers they serve, warns that the potential liabilities from the new customs penalties "are more than any reward our airlines can make".

Arguing that these sanctions could be imposed for infractions over which air cargo companies have no control, the letter says the sector "cannot be held hostage by Bahamas Customs".

Then, suggesting a boycott, the letter adds: "The Bahamas needs us as much as we need them."

Documents seen by the Tribune illustrate how the shipping industry has been thrown into turmoil by the Budget amendments, which again have appear to have been introduced without any warning or consultation with Bahamian or international businesses.

National commerce relies heavily on international transport, and any withdrawal or reduction in air cargo services is yet another threat to the Bahamas, the Tribune said.

Cargo airlines are most concerned about changes to regulation 147, which require cargo planes to submit their C7 general declaration forms to customs, detailing all freight items they are bringing in an hour before landing.

While this will incur a US$75 processing fee, any C7s submitted less than an hour before arriving in the Bahamas will be subjected to a $2,500 late fine.

Air cargo operators will also be subjected to a $5,000 per item fine for every "prohibited or restricted good" found on board.

A fine equivalent to 25 per cent of the value will also be incurred for every item not declared prior to landing in Nassau.