Freeport, GB, Bahamas – There was standing room only at the Town Hall Meeting held by the Grand Bahama Chamber of Commerce (GBCC) in Freeport last night to discuss new Customs regulations, VAT and the 2015 Hawksbill Creek Land Act.
President of the GBCC, Barry Malcolm, opened the meeting with an overview of recent events in Grand Bahama since the July 1st implementation of the new Customs regulations. “The Chamber and I personally have been inundated with calls concerning these changes,” said Mr. Malcolm. “We immediately initiated contact with the Government and the Grand Bahama Port Authority to express our concerns. In addition we, along with larger stakeholders, met with a legal team to discuss our rights under the Hawksbill Creek Agreement.”
President of the Grand Bahama Chamber of Commerce addressed attendees at the Town Hall meeting held in Freeport to discuss recent new customs regulations.
Malcolm went on to add that his Chamber Directors met and decided to hold a meeting to address their entire membership and interested Grand Bahama licensees about their concerns. Malcolm then invited attorney Carey Leonard of Callenders & Co. to address the crowd. Leonard explained the legal process to the licensees and gave a brief overview timeline of the actions that could be taken.
“We will give our advice to the Chamber with respect to the customs issue as to whether or not there has been a breach of the Hawksbill Creek Agreement. The Chamber will then, based on our advice, decide if further action is necessary ” he explained. Carey was quick to note that this would be an application asking the court to interpret both the legislation and the HCA and to rule if a breach had occurred or not. He said that this is not a confrontational situation. “All the Licensees are doing is asking the court to protect their rights as he understood licensees are concerned about their rights being breached and want clear clarification on these rights now and for the future.”
The meeting was then turned over to GBCC Director Randy Thompson, who opened the floor to the attendees. “Tonight we are here to hear your thoughts and if we are all agreed to ask for legal advice about our concerns,” he instructed. Several persons from the audience spoke about the new Customs regulations and the effects on their businesses.
One small business owner noted, “Right now I pay a one percent processing fee on items I bring in bonded to the island. If I then sell these items duty paid and go to pay the government their duty, I am being charged another one percent processing fee, double the fees,” he explained. “This means that sometimes my cost is going up sixty-five percent (65%) which I have to pass on to my customer, it is just not sustainable.”
His comments were supported by one of Grand Bahama‘s largest companies, Kelly’s Freeport Ltd., who said they too are having the same issues; increasing their costs by almost five thousand percent which had to be passed on the consumer.” Greg Eglebahr of Polymers was quick to note, “Our company cannot pass on these fees, we don’t sell in The Bahamass, we are competing in a global network.” This was also supported by Director Randy Thompson of PharmaChem.
In addition to the new processing fees, which many compared to a new tax, Knox Russell, who owns a landscaping company said that the Government was now implementing a tire tax. “Our tires are destroyed by Sanitation Services in Freeport, we pay privately for our garbage here in Freeport,” noted Russell. “Why are we paying for services we are not receiving?” His comments were supported by Freeport Jet Wash CEO, Larry Albury, who added, “My company used to pay two-hundred dollars for tires to be destroyed monthly, we are now paying over four hundred dollars a month and all tires are being taxed five dollars whether old or new.”
When retired Assistant Controller of Customs and broker, Merrill Dorsett, asked if anyone had noted that all of these changes were in breach of the Hawksbill Creek Agreement, attorney Carey Leonard quickly pointed out that many laws are made in The Bahamas with out forethought to the HCA agreement. “Many advisors to the Government are not aware of our unique situation and that we do not fit all encompassing laws for The Bahamas.”
The panel was also questioned as to why the Grand Bahama Port Authority was not in attendance and supporting the Chamber at the event. Malcolm answered and advised that the GBPA had met with the Chamber and had made overtures to the Government on behalf of its licensees. “It remains to be determined if they will join us on any action we take, but we feel it is important that be the ‘point of the spear’ and take the lead in required action to preserve the rights of its Licensees.”
President of the GBCC speaks to local media.
GBCC Director Randy Thompson, who opened the floor to the attendees, instructed, “Tonight we are here to hear your thoughts and if we are all agreed to ask for legal advice about our concerns.”
GBCC Director Randy Thompson asked those assembled if they agreed to move forward. There was unanimous agreement that the Chamber fully consider the legal advice being prepared and then move forward with any recommended action to safeguard business and licensee rights. Attendees were also invited to confirm their formal commitment of their companies to any subsequent legal action that may be required by signing the petition on this matter which will be posted on the Chamber’s website, with updates posted on Facebook.
Closing the meeting, President Malcolm thanked everyone for being present. “We are thrilled with the turnout tonight and are pleased with this confirmation of your engagement as the business community of Grand Bahama. You have invested in your business here, your homes, your lives in this place and you have a responsiblity to move forward to safeguard your rights as Licensees. If we don’t make our voices heard now, nothing will ever change.”
By Barefoot Marketing
