Bermuda Airport (Duty Free Sales) Act 1997

Link to law: http://www.bermudalaws.bm/Laws/Annual%20Laws/1997/Acts/Bermuda%20Airport%20%28Duty%20Free%20Sales%29%20Act%201997.pdf

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Bermuda Airport (Duty Free Sales) Act 1997
THE BERMUDA AIRPORT (DUTY FREE SALES) ACT 1997

1

BERMUDA
1997 : 24

THE BERMUDA AIRPORT (DUTY FREE SALES) ACT 1997

[Date of Assent 14 July 1997]

[Operative Date 14 July 1997]

ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY

1 Short title
2 Interpretation
3 Classes of scheduled

goods

PART II
LICENCE TO SELL DUTY FREE
GOODS FROM AIRPORT SHOP

4 Grant of licence
5 Import and sale of

scheduled goods duty free
6 Bond for licence and

increase
7 Notice of proposed grant

of licence
8 Objection to proposed

grant of licence

9 Considerations for grant
of licence

10 Conditions of licence and
variation of conditions

11 Duration of licence and
fees

12 Renewal of licence
13 Revocation of licence
14 Notice of intention to vary

or revoke a licence
15 Appeals

PART III
STANDARDS FOR OPERATION

OF AIRPORT SHOP

16 Permitted hours of
operation

17 Display of notices
18 Storage and marking of

goods

THE BERMUDA AIRPORT (DUTY FREE SALES) ACT 1997

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19 Power of Collector of
Customs to allow sorting
or repacking of goods

20 Sale of scheduled goods to
purchaser

21 Disposal of goods where
flight is delayed

22 Refund for scheduled
goods if scheduled goods
are not exported

23 Officer's access to goods
24 Records of sales and

distribution
25 Transfer of ownership of

goods to new licensee
26 Provision of information

by licensee
27 Liability of licensee until

goods are exported

PART IV
DISTRIBUTION OF PRE-

PURCHASED DUTY FREE
GOODS FROM AIRPORT SHOP

28 Transfer to and storage of
pre-purchased scheduled
goods

29 Approval of distribution of
pre-purchased scheduled
goods

30 Delayed flights or refunds
31 Conditions for approval
32 Identification of packages
33 Tampering with packages

not permitted

PART V
OPERATION OF AIRPORT

WAREHOUSE

34 Grant of licence

35 Combination of goods
permitted

36 Bond for licence and
increase

37 Notice of proposed grant
of licence and right to
object

38 Considerations for grant
of licence

39 Conditions of licence
40 Duration of licence and

fees
41 Variation of conditions, or

renewal or revocation of
licence

42 Appeals
43 Records of goods in

warehouse
44 Restriction of entry to

warehouse
45 Application and

modification of Revenue
Act 1898

PART VI
MISCELLANEOUS

46 Regulations
47 Offences and penalties
48 Offences by corporations
49 Consequential

amendment
50 Amendment of Liquor

Licence Act 1974
51 Savings and transitional

FIRST SCHEDULE
Scheduled Goods

SECOND SCHEDULE
Application of Revenue Act

1898

THE BERMUDA AIRPORT (DUTY FREE SALES) ACT 1997

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THIRD SCHEDULE
Amendment of Government

Fees Regulations 1976

WHEREAS it is expedient—

(a) to establish licensing systems for the operation of shops
and warehouses at the Bermuda Airport so as to provide
for the sale of duty free goods to departing air
passengers;

(b) to modify the application of certain provisions of the
Revenue Act 1898 in relation to such goods;

(c) to prescribe licensing fees in the Government Fees
Regulations 1976 as respects licences granted under
this Act;

(d) to amend the Liquor Licence Act 1974 so as to permit
the sale of duty free liquor in bonded packages in shops
in Bermuda; and

(e) to make connected provision:

Be it enacted by The Queen's Most Excellent Majesty, by and
with the advice and consent of the Senate and the House of Assembly of
Bermuda, and by the authority of the same, as follows:

PART I

PRELIMINARY

Short title
1 This Act may be cited as the Bermuda Airport (Duty Free Sales)
Act 1997.

Interpretation
2 In this Act, unless the context requires otherwise—

"Airport Duty Free Sales Licence" means a licence granted by the
Minister under section 4;

"regulated shop" means a shop in designated space in respect of
which the Minister has granted a licence under section 4 to
sell scheduled goods and includes a shop from which duty
paid goods may also be sold;

"airport duty free warehouse" means any warehouse in
designated space in respect of which the Minister has granted
a licence under section 34;

THE BERMUDA AIRPORT (DUTY FREE SALES) ACT 1997

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"Airport Duty Free Warehouse Licence" means a licence issued
under section 34;

"authorized person" means a person who is employed at the
Bermuda Airport and authorized by the Minister—

(a) to receive goods to be delivered to a licensee of a
regulated shop or warehouse;

(b) to receive documents which are to be delivered to the
Collector of Customs; or

(d) to receive documents which are to be delivered to a
licensee of a regulated shop or warehouse;

"Bermuda Airport" has the meaning assigned to it in section 1 of
the Civil Airports Act 1949;

"Bermuda Air Terminal" has the meaning assigned to it in
section 1 of the Civil Airports Act 1949;

"customs officer" means an officer of the Customs Department;

"designated space" means any part of the Bermuda Air Terminal
which has been designated by the Minister, after consultation
with the Minister responsible for aviation services, from time
to time in writing as a place from which a person may,
subject to the provisions of this Act, operate a regulated shop
or warehouse;

"duty paid goods" means goods on which customs duty has been
paid in accordance with the Customs Tariff Act 1970;

"licensee" means a person holding a licence to operate a
regulated shop or warehouse, as the case may be;

"Minister" means the Minister of Finance;

"prescribed fee" means a fee prescribed under the Government
Fees Regulations 1976;

"proper officer" means a customs officer or police officer;

"purchaser" means a person who—

(a) proposes to purchase or has purchased scheduled
goods; and

(b) is about to leave Bermuda at the time he—

(i) proposes to purchase or purchases scheduled
goods; or

THE BERMUDA AIRPORT (DUTY FREE SALES) ACT 1997

5

(ii) takes delivery of scheduled goods under Part IV.

"scheduled goods" has the meaning assigned to it in section 3.

Classes of scheduled goods
3 (1) The classes of goods which may, in accordance with this
Act, be received and sold free of duty in regulated shops, and be received
and stored free of duty in airport duty free warehouses are those for the
time being listed in the First Schedule and shall be known as "scheduled
goods".

(2) The Minister may by order subject to the negative resolution
procedure vary the First Schedule.

PART II

LICENCE TO SELL DUTY FREE GOODS FROM AIRPORT SHOP

Grant of licence
4 (1) The Minister may, where he considers it desirable so to do—

(a) upon receipt of an application in such form as may be
specified by the Minister for a licence to operate a
regulated shop in designated space; and

(b) upon payment of the prescribed fee by the applicant,

grant to the applicant a licence to use the space as a regulated shop (in
this Act referred to as an "Airport Duty Free Sales Licence").

(2) The Minister shall specify in such a licence granted by
him—

(a) the name of the licensee;

(b) the situation of the regulated shop and its
measurements; and

(c) any conditions attached to the grant of the licence.

Import and sale of scheduled goods duty free
5 Notwithstanding any statutory provision to the contrary, and
subject to section 20, which relates to the sale of goods to a purchaser,
where the Minister has granted to a person an Airport Duty Free Sales
Licence under section 4 to operate a regulated shop, it shall be lawful for
such a person—

(a) to sell scheduled goods, without payment of duty, from
such a regulated shop to a purchaser; and

THE BERMUDA AIRPORT (DUTY FREE SALES) ACT 1997

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(b) to distribute such goods to the purchaser at the time of
such purchase for use outside Bermuda.

Bond for licence and increase
6 (1) Subject to subsection (3), the Minister may, if he considers
it desirable so to do for the safeguarding of the revenue, require an
applicant for a licence to operate a regulated shop to provide a bond in
respect of scheduled goods in a regulated shop.

(2) The Minister shall specify in the licence the amount of bond
which shall be provided by the applicant.

(3) The Minister may at any time require a licensee to increase
the amount of the bond given under this section to an amount sufficient
to ensure the payment of any duties payable in respect of any scheduled
goods in a regulated shop.

Notice of proposed grant of licence
7 Where the Minister proposes to grant an Airport Duty Free Sales
Licence to an applicant, the Minister shall publish in the Gazette a notice
specifying—

(a) the name of the applicant;

(b) a list of the scheduled goods the applicant proposes to
sell from his regulated shop; and

(c) that a person who objects to the proposed grant of such
a licence may object in writing to the Minister within
seven days of the publication of the notice.

Objection to proposed grant of licence
8 (1) A person may object in writing to the Minister, within seven
days of publication of a notice under section 7, to the proposed grant of
an Airport Duty Free Sales Licence specifying the grounds therefor.

(2) The Minister shall consider any objection in relation to a
particular application for a licence when deciding whether to grant a
licence to an applicant.

Considerations for grant of licence
9 The Minister shall not grant an Airport Duty Free Sales Licence
to an applicant unless he is satisfied that—

(a) the applicant is a fit and proper person to be entrusted
with the sale of scheduled goods free of duty;

THE BERMUDA AIRPORT (DUTY FREE SALES) ACT 1997

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(b) the applicant has, prior to the application, obtained any
requisite licence (in particular, a licence required under
the Liquor Licence Act 1974) to sell the scheduled goods
he proposes to sell duty free;

(c) the applicant has sufficient financial resources to enable
him to lease the designated space in the Bermuda
Airport from which he proposes to operate a regulated
shop;

(d) the applicant has sufficient financial resources to enable
him to provide the facilities, equipment and personnel to
operate a regulated shop efficiently;

(e) the applicant has sufficient financial resources to enable
him to provide a bond in an amount sufficient to ensure
the payment of any duties in respect of any scheduled
goods in the shop;

(f) the establishment of the shop will not impede the
movement of persons in the area in which the proposed
shop is to be located;

(g) the Collector of Customs is able to provide customs
services with respect to the proposed shop; and

(h) there are no reasonable objections to the proposed grant
of such a licence to the applicant.

Conditions of licence and variation of conditions
10 (1) The Minister may specify in an Airport Duty Free Sales
Licence such conditions as he considers necessary, including in
particular—

(a) the classes of duty paid goods which may be sold in a
regulated shop;

(b) the circumstances in which any goods may be displayed
or sold therein; and

(c) the content of any form of advertisement used or
intended to be used for the purpose of indicating the sale
of scheduled goods in a regulated shop.

(2) The Minister may, after consultation with the Collector of
Customs, at any time for reasonable cause, add to, or vary, a condition
attached to an Airport Duty Free Sales Licence.

Duration of licence and fees
11 (1) An Airport Duty Free Sales Licence shall be granted for a
period of one year.

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(2) A licensee shall pay to the Minister, for the period beginning
on the day on which his licence is granted and ending on 31 March
thereafter, the prescribed fee.

(3) Where the Minister grants an Airport Duty Free Sales
Licence after 30 September in any year the licensee shall pay half the
prescribed fee which is payable for a year.

Renewal of licence
12 The Minister may renew an Airport Duty Free Sales Licence on
the expiration of its term provided that no grounds exist for the Minister
to revoke the licence.

Revocation of licence
13 Subject to section 14, the Minister may, in writing, at any time,
revoke an Airport Duty Free Sales Licence if the Collector of Customs is
no longer able to provide customs services with respect to the shop, or if
the licensee—

(a) no longer leases the premises from which he operated
the regulated shop;

(b) applies to the Minister in writing requesting the
revocation of the licence;

(c) fails to comply with this Act or any enactment that
prohibits, controls or regulates the import or export of
goods, or that relates to customs tariffs;

(d) is bankrupt;

(e) has, in the course of his operation of the shop acted
dishonestly in his business dealings with customers,
suppliers, customs officers or other servants of Her
Majesty.

Notice of intention to vary or revoke a licence
14 (1) The Minister shall, before he varies any conditions in a
licence or revokes a licence—

(a) give the licensee notice in writing of the ground or
grounds on which he intends so to do;

(b) afford the licensee an opportunity to object in writing
within the period of thirty days after receipt of the notice;
and

(c) take any such objection into consideration,

THE BERMUDA AIRPORT (DUTY FREE SALES) ACT 1997

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and, if the Minister, decides to vary a condition in a licence or revoke the
licence, he shall cause the instrument revoking the licence or varying a
condition in the licence to be served on the licensee.

(2) Subject to section 15, the variation or revocation of an
Airport Duty Free Sales Licence takes effect on the expiration of twenty-
one days beginning on the date of service on the licensee of the
instrument varying or revoking the licence.

Appeals
15 (1) Subject to subsection (2), an applicant or licensee, as the
case may be, who is aggrieved by a decision of the Minister to—

(a) refuse to grant an Airport Duty Free Sales Licence;

(b) attach or vary any conditions attached to such a licence;

(c) revoke such a licence,

may appeal to the Supreme Court within twenty-one days or such longer
period as the Court may allow after receipt of notification of such
decision, so specifying the grounds therefor.

(2) An applicant for a licence or a licensee, as the case may be,
may make an appeal under subsection (1) on either or both of the
following grounds—

(a) that on the facts before him, the Minister's decision was
unreasonable and cannot be supported;

(b) the Minister erred on a question of law which was
material to the decision,

but on no other ground.

(3) If an appeal is allowed by the Court, the Court shall remit
the matter to the Minister with a direction, as the case may be—

(a) to grant the licence which the Minister has refused to
grant;

(b) to remove any one or more conditions attached to the
licence or grant the licence subject to such conditions as
the Court may direct; or

(c) not to revoke the licence,

and the Minister shall comply with any such direction.

(4) The bringing of an appeal under subsection (1) suspends
the revocation or variation appealed against pending the determination
of abandonment of the appeal.

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(5) Section 62 of the Supreme Court Act 1905 shall be deemed
to extend to the making of rules under that section to regulate the
practice and procedure on an appeal under this section.

PART III

STANDARDS FOR OPERATION OF AIRPORT SHOP

Permitted hours of operation
16 Notwithstanding any restriction in any enactment regarding the
sale of any class of scheduled goods, the licensee may, if he deems fit,
sell scheduled goods from his regulated shop every day, twenty-four
hours a day, and this shall include public holidays.

Display of notices
17 Every licensee shall, at the regulated shop in respect of which
his licence is granted, display his Airport Duty Free Sales Licence and
notices indicating—

(a) that the scheduled goods sold in the shop—

(i) are for immediate export; and

(ii) must be reported and returned to a customs
officer if they are not exported from Bermuda;

(b) the restrictions in respect of the minimum age, if any, for
the purchase of classes of scheduled goods;

(c) such other matters as may be specified in writing from
time to time by the Minister.

Storage and marking of goods
18 (1) Every licensee shall, subject to any directions given by the
Collector of Customs, ensure that the goods received and displayed in his
regulated shop are marked in such manner that—

(a) the goods may be readily identified and checked against
his records of inventory and the relevant customs
documents; and

(b) scheduled goods may be readily distinguished from
other goods.

(2) The licensee shall ensure that his shop may be locked and
sealed by a proper officer where the Collector of Customs requests that
the shop be locked and sealed—

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(a) for the purpose of enabling an officer to check the goods
against the licensee's records of inventory;

(b) where the licensee's licence expires or is revoked; or

(c) for the purpose of safekeeping the goods displayed for
sale in his shop.

Power of Collector to allow sorting or repacking of goods
19 The Collector of Customs may, under such directions as he sees
fit, allow the licensee or other authorized person having control over the
scheduled goods to be displayed in a regulated shop to sort, separate
and pack and repack any such goods.

Sale of scheduled goods to purchaser
20 (1) Subject to subsections (2) and (3), a licensee may only sell
scheduled goods in his regulated shop to a purchaser who presents a
valid boarding pass for a flight which is about to leave Bermuda.

(2) Where the licensee is satisfied that a purchaser of
scheduled goods is a member of the crew of an airline assigned to a flight
which is about to depart from Bermuda or such other person who has
not, for a valid reason, been assigned a boarding pass in respect of a
flight, the licensee may accept the form of identification specified in
writing by the Minister, instead of a valid boarding pass.

(3) Scheduled goods sold to a purchaser under this section
shall be distributed to the purchaser in sealed packages in such manner
as the Collector of Customs may direct.

Disposal of goods where flight is delayed
21 (1) Where a flight is delayed and a purchaser re-enters
Bermuda without exporting scheduled goods, a customs officer or other
authorized agent shall—

(a) collect such goods from the passenger and store them in
a secure place reserved for that purpose by the Collector
of Customs, until the departure of the flight; or

(b) collect such goods from the passenger and deliver them
to the licensee of the regulated shop from which they
were purchased by the purchaser; and

(c) give the purchaser a receipt for the goods so secured.

(2) A customs officer or licensee, as the case may be, shall,
upon presentation to him by a purchaser whose goods have been
secured in accordance with subsection (1), and who is about to leave
Bermuda, return the goods to the purchaser, and enter such distribution
in the relevant records.

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Refund for scheduled goods if scheduled goods are not exported
22 (1) Where any scheduled goods sold to a purchaser in a
regulated shop are not exported by him, the licensee shall—

(a) upon satisfactory proof of such sale being furnished to
him by the purchaser; and

(b) upon the return of the scheduled goods for which a
refund is being sought,

refund to the purchaser the price of the goods so returned.

(2) Where a proper officer, for security reasons, determines that
a purchaser seeking such a refund may not re-enter the regulated shop
where he purchased the scheduled goods to seek a refund, the officer
shall, upon satisfactory proof of the sale of the goods being furnished to
him—

(a) receive and secure the goods on behalf of the licensee of
the regulated shop, in accordance with the directions of
the Collector of Customs, pending the return of the
goods to the licensee; and

(b) give the purchaser a receipt for the returned goods.

Officer's access to goods
23 A licensee shall, where a proper officer so requests—

(a) afford the officer free access to his regulated shop; and

(b) open any package or container of goods therein or
remove any covering therefrom.

Records of sales and distribution
24 (1) A licensee shall—

(a) keep all records that relate to scheduled goods received
into his shop; and

(b) furnish such records to the Minister from time to time as
the Minister may require.

(2) The records which the licensee is required to keep under
subsection (1) shall contain information concerning—

(a) the sale of the goods from the regulated shop;

(b) the price that a person paid for the goods;

(c) the control of inventory in the shop;

(d) the composition of the inventory in the shop;

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(e) the payment of fees to the Minister or charges to any
other authorized person; and

(f) any other matter specified by the Minister from time to
time.

(3) The records required to be kept under subsection (1) shall
be kept for the period of 5 years after the sale or disposal of the goods.

Transfer of ownership of goods to new licensee
25 (1) Where a person's Airport Duty Free Sales Licence is about
to expire or be revoked and a new licensee is granted a licence to operate
the regulated shop on the same premises as the premises of the licensee,
the ownership of the scheduled goods may, with the prior written
approval of the Collector of Customs, be transferred to the new licensee.

(2) The licensee shall, when he requests the written approval of
the Collector of Customs under subsection (1)—

(a) produce to the Collector of Customs records that contain
information sufficient to identify the scheduled goods he
intends to transfer to a new licensee; and

(b) pay any applicable duties for such goods in full.

Provision of information by licensee
26 (1) Every licensee shall provide to the Minister responsible for
aviation services a summary of monthly sales and such other
information as he may request not later than 15 days after the last day
of the month in which the sales described on the form were made.

(2) The licensee shall make an annual report to the Minister
responsible for aviation services in respect of his regulated shop, not
later than 21 days after the end of the year for which the report is made.

Liability of licensee until goods are exported
27 A licensee in respect of his regulated shop is liable to pay all
duties under this Act or any other enactment relating to customs duties
on scheduled goods that have been received in his shop unless he
proves—

(a) that the goods are scheduled goods and are still in his
shop or an airport duty free warehouse;

(b) have been destroyed in his shop or an airport duty free
warehouse;

(c) have been lawfully removed from his shop or an airport
duty free warehouse by sale or by a proper officer.

THE BERMUDA AIRPORT (DUTY FREE SALES) ACT 1997

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PART IV

DISTRIBUTION OF PRE-PURCHASED DUTY FREE GOODS FROM
AIRPORT SHOP

Transfer to and storage of pre-purchased scheduled goods
28 (1) Where a licensee requests such approval in writing, the
Collector of Customs may approve the distribution from the licensee's
regulated shop of scheduled goods which have been purchased from a
shop owned by the licensee and located outside the Bermuda Airport.

(2) Subject to the directions of the Collector of Customs, the
licensee may receive and store scheduled goods in an area of his
regulated shop specified by the Collector of Customs pending
distribution to a purchaser.

Distribution of pre-purchased scheduled goods
29 (1) The licensee shall only distribute scheduled goods to a
purchaser upon the production by the purchaser of his sales slip and
valid boarding pass; and section 20 applies to the distribution of
scheduled goods to a purchaser without a valid boarding pass.

(2) Where any scheduled goods which have been received in a
regulated shop for distribution therefrom are not collected by the
purchaser, such goods shall be warehoused in an airport duty free
warehouse as soon as is practicable that same day, and such
warehousing shall be recorded in the manner required by the Collector of
Customs.

Delayed flights or refunds
30 Sections 21 and 22, which relate to delayed flights and refunds
respectively, apply with the necessary modifications, to the distribution
of scheduled goods under this Part.

Conditions for approval
31 The Collector of Customs may give his written approval under
section 28 subject to any conditions specified therein in respect of—

(a) persons who are authorized to undertake such
distribution;

(b) the area of the regulated shop designated for such
distribution; and

(c) the records to be kept in respect of such distribution.

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Identification of packages
32 (1) Scheduled goods to be distributed under this Part shall be
properly packaged in bonded packages.

(2) Each package and its contents shall be clearly identified in
such manner as the Collector of Customs may from time to time direct.

Tampering with packages not permitted
33 Where scheduled goods are in a regulated shop pending their
distribution under this Part, the licensee shall not allow any person to
open or otherwise tamper with any bonded package of scheduled goods—

(a) while it is stored in a regulated shop; and

(b) while it is being distributed therefrom to a purchaser,

unless authorized in writing by a customs officer so to do.

PART V

OPERATION OF AIRPORT WAREHOUSE

Grant of licence
34 (1) The Minister may, where he considers it desirable so to do—

(a) upon receipt of an application in the prescribed form for
a licence to operate a duty free warehouse in designated
space; and

(b) upon payment by the applicant of the prescribed fee,

after consultation with the Collector of Customs, grant to the applicant a
licence to use the space as an airport duty free warehouse (in this Act
referred to as an "Airport Duty Free Warehouse Licence").

(2) A licence granted under subsection (1) shall specify—

(a) the name of the licensee;

(b) the situation of the warehouse and its measurements;
and

(c) any conditions attached to the licence.

Combination of goods permitted
35 Notwithstanding any requirement in section 50(2) of the Revenue
Act 1898 that goods on which customs duty has not been paid shall be
kept entirely separate and apart from duty paid goods in bonded
warehouses, a person who holds an Airport Duty Free Warehouse
Licence may lawfully store in an airport duty free warehouse scheduled

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goods together with duty paid goods, so however, that the Collector of
Customs may attach conditions in relation to such storage of goods.

Bond for licence and increase
36 (1) In respect of scheduled goods stored in a warehouse, the
Minister shall, for the purposes of safeguarding the revenue, require an
applicant for a licence to operate an airport duty free warehouse to
provide a bond with two sureties to be approved by the Collector of
Customs, in an amount specified by the Minister, he and they being
jointly and severally bound thereby.

(2) Section 6(3), which empowers the Minister to increase a
bond in respect of an Airport Duty Free Sales Licence, applies to the
grant of an Airport Duty Free Warehouse Licence as it applies to the
grant of an Airport Duty Free Sales Licence.

Notice of proposed grant of licence and right to object
37 Sections 7 and 8, which require notice to be given of the
proposed grant of an Airport Duty Free Sales Licence, apply with the
necessary modifications to the proposed grant of an Airport Duty Free
Warehouse Licence as they apply to the proposed grant of an Airport
Duty Free Sales Licence.

Considerations for grant of licence
38 The Minister shall not grant an Airport Duty Free Warehouse
Licence to an applicant unless he is satisfied that—

(a) the applicant is a fit and proper person to be entrusted
with the storage of scheduled goods without the payment
of duty;

(b) the applicant has sufficient financial resources to enable
him to lease the designated space from which he
proposes to operate an airport duty free warehouse;

(c) the applicant has sufficient financial resources to enable
him to provide a bond in an amount sufficient to ensure
the payment of any duties in respect of any scheduled
goods in the warehouse;

(d) the establishment of the warehouse will not impede the
movement of persons in the area in which the proposed
warehouse is located;

(e) the Collector of Customs is able to provide customs
services with respect to the proposed warehouse; and

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(f) there are no reasonable objections to the grant of an
Airport Duty Free Warehouse Licence to the applicant.

Conditions of licence
39 The Minister may, for the purpose of safeguarding the revenue,
impose the following conditions in relation to an Airport Duty Free
Warehouse Licence—

(a) that the licensee shall provide a bond for the scheduled
goods;

(b) that no scheduled goods be removed from the warehouse
except with the authority of a proper officer;

(c) that scheduled goods be stored only in the part of the
warehouse and the manner in which the Collector of
Customs directs;

(d) that only duty paid goods of the class or description
specified in the licence be stored in the warehouse;

(e) that no alteration be made to the warehouse or the
means of access or approaches thereto, except such
alteration as the Collector of Customs may expressly
approve in writing.

Duration of licence and fees
40 (1) An Airport Duty Free Warehouse Licence shall be granted
for a period of one year.

(2) A licensee shall pay to the Minister, for the period beginning
on the day on which his licence is granted and ending on 31 March
thereafter, the prescribed fee.

(3) Where the Minister grants an Airport Duty Free Warehouse
Licence after 30 September in any year the licensee shall pay half the
prescribed fee which is payable for a year.

Variation of conditions, or renewal or revocation of licence
41 Sections 12 to 14, which relate to the variation of conditions, or
renewal or revocation of an Airport Duty Free Sales Licence, apply with
the necessary modifications to an Airport Duty Free Warehouse Licence
as they apply to an Airport Duty Free Sales Licence.

Appeals
42 Section 15, which relates to appeals in respect of an Airport Duty
Free Sales Licence, applies, with the necessary modifications, to an
Airport Duty Free Warehouse Licence as it applies to an Airport Duty
Free Sales Licence.

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Records of goods in warehouse
43 (1) A licensee shall—

(a) keep all records that relate to the scheduled goods
received into and removed from his airport duty free
warehouse; and

(b) furnish such records to the Minister from time to time as
the Minister may require.

(2) The records required by subsection (1) shall contain
information—

(a) describing the goods;

(b) accounting for the goods when they are removed from
the warehouse;

(c) concerning inventory;

(d) concerning the transfer of the goods to another bonded
warehouse or to the regulated shop;

(e) concerning the unpacking, packing, manipulation or
alteration of the goods;

(f) concerning the combination of the scheduled goods with
other goods; and

(g) any other matter which the Minister shall specify from
time to time.

(3) The records required to be kept under subsection (1) shall
be kept for the period of 5 years after the sale or disposal of the goods.

(4) For the avoidance of doubt, it is hereby declared that
requirements in respect of record keeping under this Act are
supplementary to and in addition to any such requirements under the
Revenue Act 1898.

Restriction of entry to warehouse
44 The licensee shall only allow—

(a) a proper officer; or

(b) a person authorized so to do by the Collector of Customs
or a customs officer,

to enter an airport duty free warehouse.

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Application and modification of Revenue Act 1898
45 Subject to the modifications specified in the Second Schedule,
the provisions of the Revenue Act 1898 specified in that Schedule shall
apply for the purposes of this Act

(a) as if an airport duty free warehouse were a bonded
warehouse;

(b) as if an Airport Duty Free Warehouse Licence were a
licence issued under section 50 of that Act; and

(c) as if references to uncustomed goods were references to
scheduled goods.

PART VI

MISCELLANEOUS

Regulations
46 (1) The Minister may make such regulations as may appear to
him necessary or desirable for the purposes of this Act.

(2) The negative resolution procedure shall apply to regulations
made under this section.

Offences and penalties
47 (1) A licensee who fails, without reasonable excuse, the proof of
which shall be upon him, to comply with any requirement or direction or
prohibition imposed on him by or under a provision to which this section
applies commits an offence and shall be liable—

(a) on summary conviction, to a fine of $1,000; or

(b) where such summary conviction is subsequent to a
previous conviction for a failure to comply with the
substance of that requirement, direction or prohibition,
to a fine of $5,000.

(2) The provisions to which subsection (1) applies are those of
sections 10, 18 to 27, 29, 32, 33, 35, 43 and 44.

(3) A licensee who, in any information required to be furnished
under any provision of this Act—

(a) makes, or authorizes; or

(b) allows to be made or authorized,

any statement or entry which he knows or has reasonable cause to
believe to be false or misleading in a material particular, commits an
offence and shall be liable—

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(c) on summary conviction to imprisonment for 3 months or
a fine of $1,000 or both such imprisonment and fine; or

(d) on conviction on indictment to imprisonment for 2 years
or a fine of $10,000 or both such imprisonment and
fine.

(4) It shall be a defence for a licensee charged with an offence
under subsection (3) to prove—

(a) if an individual, that he had no knowledge of the falsity
or misleading character of the document or information,
and took every reasonable precaution to ensure its
accuracy;

(b) if not an individual, that every person acting on his
behalf had no such knowledge, and took every such
reasonable precaution, as aforesaid.

(5) Without prejudice to subsection (3), the court, upon the
conviction of a person under that subsection may, in addition to any
punishment imposed in connection with that conviction, order that the
scheduled goods upon which duty has not been paid, and in respect of
which the offence was committed, shall be forfeited.

Offences by corporations
48 Where a body corporate is guilty of an offence under this Act and
that offence is proved to have been committed with the consent or
connivance of, or to be attributable to any neglect on the part of, any
director, manager, secretary or other similar officer of the body corporate
or any person who was purporting to act in any such capacity, he, as
well as the body corporate, shall be guilty of that offence and shall be
liable to be proceeded against and punished accordingly.

Consequential amendment
49 Consequential upon the enactment of this Act, the Schedule to
the Government Fees Regulations 1976 is amended as specified in the
second column of the Third Schedule.

Amendment of Liquor Licence Act 1974
50 In section 9(1)(b) of the Liquor Licence Act 1974, which relates to
the class of licence for sale in an hotel shop of intoxicating liquor in
bonded packages for consumption outside Bermuda, the words "located
within the precincts of an hotel" shall cease to have effect and are hereby
repealed.

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Savings and transitional
51 (1) Nothing in this Act shall be construed so as to derogate
from or abridge any provision—

(a) of the Revenue Act 1898;

(b) of the Customs Tariff Act 1970;

(c) of the Customs Department Act 1952,

which relates to the operation of bonded warehouses, except to the
extent that the effect of any such provision is expressly excluded or
modified by this Act.

(2) For the avoidance of doubt, the Revenue Act 1898 and the
Customs Tariff Act 1970 shall apply in relation to—

(a) any duties payable upon the import of scheduled goods
into Bermuda by a licensee or applicant; and

(b) duty paid goods stored or sold respectively in an airport
duty free warehouse or regulated shop by a licensee or
an applicant.

(3) Nothing in this Act shall affect any duty, tax, charge or fee
payable by a licensee in respect of any scheduled goods which a licensee
or applicant has imported into Bermuda in bond before the coming into
operation of this Act.

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FIRST SCHEDULE (section 3)

SCHEDULED GOODS

Cigarettes

Cigars

Snuff

Spirits

Tobacco

Wines

SECOND SCHEDULE (section 45)

APPLICATION OF PROVISIONS OF REVENUE ACT 1898

1 The following are the provisions of the Revenue Act 1898 ("the
Act") which apply, with the modifications as specified below, for the
purposes of this Act, in accordance with section 45.

2 Sections 24, 25 and 28 of the Act, which relates to the
ascertainment of value of goods for the purposes of duty and
remuneration to appraisers; quarterly tables of imports and exports,
shall apply.

3 (1) The following provisions of Part IV of the Act, which relate to
the licensing of bonded warehouses and the conditions in respect of the
warehousing of goods, shall apply as follows.

(2) Section 50 shall not apply.

(3) Section 51 shall apply where an Airport Duty Free
Warehouse Licence is revoked under this Act.

(4) Sections 52, 53, 54(1), 55 and 56 shall apply.

(5) Section 57 shall apply with the omission, in subsection (4),
of the words "and when any such malt liquor" to the end.

(6) Sections 59 to 61 and 63 shall apply.

(7) Section 64 shall not apply.

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(8) Section 65 shall apply

(a) with the substitution for the words "for exportation" to
the end of subsection (1) of the words "for the sale or
distribution from a regulated shop."; and

(b) with the omission of the words "either for home
consumption or for exportation" from subsection (2).

(9) Sections 66 to 70 shall apply.

(10) Section 71 shall apply with the following substituted for the
words from the beginning to "such other port"

"Any scheduled goods warehoused in Bermuda may be
removed for re-warehousing to an airport duty free
warehouse";

and, accordingly, sections 72 and 73 shall apply in relation to the re-
warehousing of scheduled goods with the necessary consequential
modifications.

4 Except where a specific penalty is imposed by this Act, those
provisions of the Act which impose forfeitures or penalties in respect of
the unlawful removal of goods from a bonded warehouse or the unlawful
disposal of goods so removed shall apply in respect of the removal of
scheduled goods in bond or the disposal of such goods from an airport
duty free warehouse.

5 The following provisions of the Act shall apply

(a) sections 96 to 103, which relate to search and seizure;

(b) sections 104 to 108 of the Act, which relate to claims;
and

(c) section 109 of the Act, which relate to writs of
assistance.

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THIRD SCHEDULE (section 49)

Column 1 Column 2

Government Fees
Regulations 1976:

insert next after Head 2 in the
Schedule the following new Head—

"Head 2A
Bermuda Airport (Duty Free Sales)

Act 1997

Granting an Airport Duty Free Sales
Licence under section 4

Granting an Airport Duty Free
Warehouse Licence under section
34—

(a) where the value of the
bond for scheduled
goods is $100,000 or
less; or

(b) where the value of the
bond for scheduled
goods exceeds $100,000

$1,000

$5,000

$10,000".