ROADTOWN Tortola BVI, May 17th, 2012    –   In forging ahead on the road to economic recovery, Government, with Cabinet’s recent approval to halt the levying of duty on cost, insurance and freight on imported goods for merchants, is following through with plans to lower the cost of goods to stimulate the economy.

As of March 7, in accordance with No. 1 of 2012 of the Customs Management and Duties (Amendment) Act, 2012, all merchants will bear duty based on the purchase cost of the goods less any insurance and freight costs. The seller will bear freight, insurance, commission and all other cost, charges and expenses incidental to the sale and delivery.

According to Commissioner of Customs Mr. Wade Smith, the act defines a merchant as an importer who has a valid trade licence for the wholesale and retail of goods in an unchanged state.

Mr. Smith encourages merchants to be compliant by completing a ‘Declaration of Merchant’ form which states the said business is licensed by the Department of Trade and Consumer Affairs to carry on the business of merchant, and currently holds a valid Trade Licence for the sale of such goods.

Mr. Smith further explained that the declaration will remain valid until the merchant’s trade licence expires; merchants will then have to renew their licence and complete another declaration.

Premier and Minister of Finance Dr. the Honourable D. Orlando Smith, OBE first made the announcement of Government’s plans to lower the cost of goods at a press conference on February 1 where he stated, “Government’s approach is to provide an enabling environment so that the private sector can be the main driver for economic growth and development.”

At the same press conference, the Premier noted that many persons opt to shop overseas and spend an estimated $40 million annually and that the initiative may curb the ongoing expatriation of funds.

“If we keep that money in our economy, then our local businesses hire more, turn over their products faster and yes, also pay more taxes. A win-win for everyone,” Honourable Smith said.

Lowering the cost of goods being imported is one of several economic strategies Government has introduced to improve the quality of life for all.

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