Chamber cracks down on contraband
Virtually every week we hear reports of smugglers being caught with goods they are trying to cross into Belize. But what we seldom hear about are the high volume of importers who manage to bypass the systems set in place to collect the proper duties and ensure there is a level playing field for all Belizean businesses. Well, the impact of the duty evasions, bribes, and price under-cutting is finally more than the members of the Belize Chamber of Commerce and Industry are willing to tolerate. Today, they presented a united front and stood with Customs Department officials and the Prime Minister to announce a crackdown on lawbreakers.
Arturo Vasquez, President, B.C.C.I.
“Customs officers cannot take bribes if we do not offer to pay bribes and they won’t hardly solicit bribes if we refuse to pay them.”
Janelle Chanona, Reporting
This morning, the Belize Chamber of Commerce and Industry officially launched its anti-contraband campaign. According to the Chamber, in conjunction with the Customs Department and the support of the Government of Belize, the project will negate the effects of the black market on local businesses.
Dionne Miranda, Manager, B.C.C.I. Membership Services
“We are looking at the truckloads and trailer loads that are being seeped out of the Free Zone areas, we are looking at the amount that comes over the border in the night, where millions of dollars are being lost. We are not looking at the little five dollars and the ten dollars that’s for a sack of flour that’s feeding a family; we are looking at where it is actually hurting the country at large levels. And that is the focus of the Belize Chamber of Commerce; we are taking care of business.”
In addition to a public relations campaign, the idea is to modernise the Customs Department, increase penalties and public embarrassment for offenders, create a reward system for whistleblowers, license customs brokers and maintain an efficient system of enforcement.
Gregory Gibson, Comptroller of Customs
“But let us not fool ourselves, this is the easy part, the job ahead is a daunting one.”
According to Comptroller of Customs Gregory Gibson, every year hundreds of thousands of dollars in goods are smuggled into Belize.
Gregory Gibson
“It’s a very huge figure and especially since this year since the new taxes have been introduced, we have noticed a tremendous increase in fuel, beers, soft drinks.”
“We are concerned about the Free Zone, we are concerned about fuel coming in by way of the Orange Walk District and perhaps maybe from some of the areas in the south, there may be leakages in terms of Export Processing Zones, although we don’t have evidence to confirm that at this stage.”
But local businesses contend that the reality of globalisation bearing down on Belize’s open borders, and with the country still in the grips of a financial crisis, the business of competing at any cost has created an entrenched system of corruption.
Rommel Perdomo, Travellers Liquors Limited
“We have found out that there is a lot of smuggling of liquors, beer, and cigarettes coming from the Northern border and since the excise went up again, in my case rum, we have seen a dip in our sales, which we think is because of the smuggling.”
Arturo Vasquez
“Because of the increase in taxes, for whatever reason, the Prime Minister can answer that, people have found ways of being more creative in doing under-invoicing. But on the other hand, I think if people would pay their fair share and the tax base is not eroded, then maybe perhaps taxes can be brought down.”
Prime Minister Said Musa
“I believe that for growth and development, you have to set as your goal, lower taxes. I take the point that the higher tax, the more creative people will become to avoid paying their just taxes?I don?t think we need to dispute that premise; it’s a fact of human nature. However, you cannot just ascribe the contraband trade just to higher taxes…as you put it, a direct proportionality; it is a contributing factor.”
“But deep down you can’t escape the fact, which is what this whole press conference is all about today, that contraband has to do with dishonesty. You can find all the excuses you want, but it’s basically a dishonest way of doing business and we will never be able to totally eliminate it. They say that prostitution is perhaps the oldest profession and I would think that contraband comes pretty close right after that.”
According to Comptroller Gibson, this week the department has made two major busts in the west, one involving fifteen hundred cases of Gatorade and another with a container filled with Skittles candy. The public is advised that reports regarding un-customed goods or smuggling can be made to the crime stoppers hotline at 0-800-922-TIPS effective immediately. Funding for the customs modernisation project will come from the European Union.
