The role of the Jamaica Customs Agency in the regulation and monitoring of Special Economic Zones
The role of Customs Agencies in the regulation and monitoring of special economic zones (SEZ) is well established globally.
As such, the Jamaica Customs Agency (JCA) plays a crucial role in the regulation and monitoring of Special Economic Zones (SEZs) in Jamaica.
The Jamaica Special Economic Zone Authority (JSEZA) working with our regulatory partner Jamaica Customs Agency recently published an article in the Jamaica Observer entitled ‘Understanding the operations of special economic zones in Jamaica.’
I am especially proud of this article for the following reasons:
- It was written by Kimone Wilson, a member of my Unit within the JSEZA.
- It the JSEZA’s first official publication in a newspaper or periodical
- It was the result of a collaboration between the JSEZA and a major regulatory partner, the Jamaica Customs Agency.
I have decided to reproduce the article in summary format and publish it under its original title: The role of the Jamaica Customs Agency in the regulation and monitoring of Special Economic Zones.
Summary of article
The Jamaica Customs Agency (JCA) plays a crucial role in the regulation and monitoring of Special Economic Zones (SEZs) in Jamaica.
Special Economic Zones (SEZs) are geographically demarcated areas within countries where special tax benefits and fiscal incentives are given to companies operating in these zones.
The agency created to oversee the SEZ Regime is the Special Economic Zone Authority (JSEZA) and all SEZs activities are governed by the Special Economic Zones Act (SEZs), 2016, the Special Economic Zones (SEZs) Regulations, 2017 and guidelines issued from time to time by JSEZA.
Governance, applications and due diligence
The Commissioner of Customs is a named member of the JSEZA Board as stipulated in the SEZ Act. Therefore, JCA is by legislative design a part of the JSEZA governance structure and participates in the review and recommendation for approval of SEZ developers to the Minister with responsibility for SEZs and approvals for occupants.
The Authority engages in a risk-based approach in its evaluation companies seeking SEZ status. The JCA due to its mandate is an agency that the JSEZA relies on and has integrated it in its applications and on-going due diligence processes
Accountable and transparent tax leakage mitigation
The JCA has a key role to play in the SEZ Regime in relation to mitigating against tax leakage through the monitoring of SEZs. JCA monitors the entry, admission, transfer, exit and other movements of merchandise in all SEZs as well as in all SEZ Customs Controlled Areas.
A Customs Controlled Area is an area within a SEZ that is a restricted access area within a SEZ that is subject to the control and supervision of the JCA that is situated outside the customs territory for purposes of exempting the assessment or imposition of customs duties. These areas are controlled by Customs in accordance with the SEZ Act and Regulations, the Custom Laws and any other applicable laws.
Both the JSEZA and JCA, as part of the SEZ monitoring framework grounded in accountability and transparency have the right to inspect both the physical premises and audit the books of any SEZ company.
This is part of a check and balance system that allows the JCA to verify data in its Asycuda Customs management system and the reports generated by the JSEZA.
Conclusion
The JSEZA and the JCA will continue to collaborate with the aim of advancing our special economic zones, ultimately attracting more investments and contributing to the growth and development of the Jamaican economy.
