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Customs Tariff Amendment Act 2013

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Customs Tariff Amendment Act 2013
FA E R
N

AT F
TQUO U

BERMUDA

CUSTOMS TARIFF AMENDMENT ACT 2013

2013 : 8

TABLE OF CONTENTS

Citation
Amends section 1
Amends section 2
Amends section 5
Amends section 5A
Repeals and replaces section 11
Repeals and replaces First Schedule
Amends Second Schedule
Amends Fifth and Sixth Schedules for clarification
Amends Fifth Schedule
Amends Sixth Schedule
Repeal of Seventh Schedule and consequential amendments
Amends Eighth Schedule
Commencement
Consequential amends to Revenue Act 1898

WHEREAS it is expedient to amend the Customs Tariff Act 1970;

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:

Citation
This Act, which amends the Customs Tariff Act 1970 (“the principal Act”), may be

cited as the Customs Tariff Amendment Act 2013.

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

1

1

CUSTOMS TARIFF AMENDMENT ACT 2013

Amends section 1
Section 1 of the principal Act is amended by—

repealing the definitions of “special rate” and “standard rate”; and

inserting, in the appropriate alphabetical order, the following definition—

“ “for home use” means for home consumption or for any use other than
for immediate exportation or shipment as stores.”.

Amends section 2
Section 2(2) of the principal Act is repealed and substituted by the following—

Except as otherwise provided in this Act or any other enactment, on
goods—

imported into Bermuda; or

taken out of bond from any bonded warehouse in Bermuda for
home use,

there shall be imposed duty at the rate specified in the First Schedule with respect
to goods of that class or description, calculated by reference to the unit for duty
specified in relation thereto.”.

“(2)

(a)

(b)

Amends section 5
Section 5 of the principal Act is amended—

in subsection (4) by, immediately after “importer”, inserting “(who is an
eligible beneficiary)”; and

by, immediately after subsection (4), inserting the following—

The Collector of Customs shall refuse to grant an importer relief under
subsection (4) if the importation of the goods in respect of which the relief from duty
is claimed involves arrangements, made at any time before such relief is granted,
that are duty avoidance arrangements.

For the purposes of subsection (5)—

“arrangements” includes any arrangements, scheme or
understanding of any kind, whether or not legally enforceable,
involving any number of transactions; and

arrangements are “duty avoidance arrangements” if the main
purpose, or one of the main purposes, of any party to the
arrangements, in entering into them, is to obtain relief from
duty.”.

“(5)

(6)

(a)

(b)

2

(a)

(b)

3

4

(a)

(b)

2

CUSTOMS TARIFF AMENDMENT ACT 2013

Amends section 5A
Section 5A of the principal Act is amended by, immediately after subsection (5),

inserting the following—

Medals, cups and similar items awarded abroad to any person for
distinction in art, literature, science or sport, or for public service, or otherwise in
recognition of meritorious achievement or conduct may be imported into Bermuda
without payment of duty.

Effects inherited by a person who at the time of death of the deceased,
is ordinarily resident in Bermuda and provided that such effects were for the
personal use of the deceased, may be imported into Bermuda without payment of
duty.”.

“(6)

(7)

Repeals and replaces section 11
Section 11 of the principal Act is repealed and substituted by the following—

“Surcharge on duty suspension goods
Upon the discharge of duty suspension arrangements, in addition to

any duty that may be due, there shall be imposed a surcharge of duty in accordance
with this section.

The surcharge imposed upon goods (except goods of Headings 27.09,
27.10 and 27.11) taken out of bond from any bonded warehouse in Bermuda shall
be three and three quarters per centum [3.75%] of the duty imposed under sections
2(2) and 3.

The surcharge imposed upon goods taken out of a bonded warehouse
under subsection (2) shall be applied to—

goods removed from a regulated shop under the Airport (Duty Free
Sales) Act 1997 for export; and

precious stones taken out of storage in bond under the Bonding of
Precious Stones Act 1952.

The surcharge imposed upon goods discharged from CPC 5000 of the
Sixth Schedule (business temporary importation relief), shall be calculated as
follows—

if the goods are discharged by re-export, then the surcharge shall
be equal to the amount of duty at the time of discharge that would
have been payable on identical goods with the deemed customs
value entered for home use;

if the goods are discharged by diversion to home use at an
applicable rate determined by section 2 and the Fifth Schedule,
then the surcharge shall be equal to the amount of duty payable
at the applicable rate on identical goods with the deemed customs
value.

11 (1)

(2)

(3)

(a)

(b)

(4)

(a)

(b)

5

6

3

CUSTOMS TARIFF AMENDMENT ACT 2013

All provisions of law relating to the circumstances in which duty is
imposed, the payment and collection thereof, the refund, drawback, penalties and
legal proceedings in respect thereof shall apply in like manner to the surcharge
imposed under this section.

In this section—

“deemed customs value” means—

the actual lease payment for the goods for the period between the
date of importation and the date of discharge; or

if there is no actual lease payment, a deemed lease payment
representing the open market cost in Bermuda of leasing the goods
for the same period; or

if there is neither an actual lease payment nor an open market cost
in Bermuda of leasing the goods then, by reference to the same
period, the deemed customs value shall be 10 per centum per
annum of the customs value of the goods ascertained in
accordance with the Second Schedule to the Revenue Act 1898;

“discharge” means—

diversion to home use; and

export;

“duty suspension arrangements” means arrangements for the purposes
of—

bonded warehousing under the Revenue Act 1898;

storage in a regulated shop under the Airport (Duty Free Sales) Act
1997;

storage in bond under the Bonding of Precious Stones Act 1952;
and

temporary importation under the Sixth Schedule.”.

(5)

(6)

(a)

(b)

(c)

(a)

(b)

(a)

(b)

(c)

(d)

Repeals and replaces First Schedule
The First Schedule to the principal Act is repealed and replaced by the First

Schedule, which is published separately on the website of the Customs Department located
at: www.customs.gov.bm.

Amends Second Schedule
The Second Schedule to the principal Act is amended by repealing CPC 3007.

Amends Fifth and Sixth Schedules for clarification
The general provisions of the Fifth Schedule to the principal Act are amended

in paragraph 1—

7

8

9 (1)

4

CUSTOMS TARIFF AMENDMENT ACT 2013

at the end of subparagraph (4)(b), by deleting “and”;

at the end of subparagraph (4)(c), by deleting the full stop and substituting
“; and”;

immediately after subparagraph (4)(c), by inserting—

has shown that the importation of the goods does not involve duty
avoidance arrangements within the meaning of section 5.”; and

“(d)

immediately after subparagraph (4), by inserting—

For the avoidance of doubt, an end-use does not include a use to which
goods are put before they have been duly landed in Bermuda.”.

“(5)

The Fifth and Sixth Schedules to the principal Act are amended in their
respective tables by inserting the following at the end of each CPC—

“ Construction For the avoidance of doubt, the general provisions of
this Schedule shall be construed as one with this
CPC. ”.

Amends Fifth Schedule
The Table of End-Use Reliefs in the Fifth Schedule to the principal Act is

amended by repealing—

CPCs 4000, 4129 and 4168; and

CPC 4161.

The Fifth Schedule to the principal Act is amended by repealing CPC 4141 and
substituting the following—

“ Description Community service vehicle
CPC 4141
Duty Rate 0%
Eligible Beneficiary All importers.
Qualifying Goods Goods of heading 87.02.
End-Use Conditions /
Restrictions

Goods must be imported and used only to provide a
free-of-charge community transportation service.

Specific Controls /
Diversion
Construction For the avoidance of doubt, the general provisions of

this Schedule shall be construed as one with this
CPC. ”

(a)

(b)

(c)

(d)

(2)

10 (1)

(a)

(b)

(2)

5

CUSTOMS TARIFF AMENDMENT ACT 2013

The Fifth Schedule to the principal Act is amended by inserting the following
CPC 4194 in the appropriate numerical order—

“ Description Goods for Cable Co. Ltd
CPC 4194
Duty Rate 0%
Eligible
Beneficiary

Cable Co. Ltd.

Qualifying Goods Telecommunication cable, equipment,
apparatus and machinery.

End-Use
Conditions /
Restrictions

1. Goods must be imported and used
directly and solely in the building,
renewal, provision, operation, repair,
maintenance or extension of the
eligible beneficiary’s
telecommunications network
infrastructure.

2. Goods must be installed on premises
owned, leased or otherwise occupied
by the eligible beneficiary.

Specific Controls /
Diversion
Construction For the avoidance of doubt, the general

provisions of this Schedule shall be
construed as one with this CPC. ”

The Fifth Schedule to the principal Act is amended by inserting the following
CPC 4195 in the appropriate numerical order—

“ Description Chemicals, products and equipment for
combating oil pollution

CPC 4195
Duty Rate 0%
Eligible
Beneficiary

All Importers

Qualifying Goods Chemical dispersants, biological agents,
machinery, apparatus and equipment.

End-Use
Conditions /
Restrictions

Goods must be imported and used only to
manage oil spills.

Specific Controls /
Diversion

(3)

(4)

6

CUSTOMS TARIFF AMENDMENT ACT 2013

Construction For the avoidance of doubt, the general
provisions of this Schedule shall be
construed as one with this CPC. ”

The Fifth Schedule to the principal Act is amended by inserting the following
CPC 4196 in the appropriate numerical order—

“ Description Supplies for Honorary Consul
CPC 4196
Duty Rate 0%
Eligible
Beneficiary

Honorary Consuls.

Qualifying Goods Flags, stationery, seals of office, official
correspondence, passports and similar
supplies.

End-Use
Conditions /
Restrictions

1. Goods must be imported and used
only by the Honorary Consul of a
foreign country.

2. The Deputy Governor must certify that
similar supplies for the use of Her
Majesty’s consular representative are
admitted duty free in such foreign
country.

Specific Controls /
Diversion
Construction For the avoidance of doubt, the general

provisions of this Schedule shall be
construed as one with this CPC. ”

The Fifth Schedule to the principal Act is amended by inserting the following
CPC 4197 in the appropriate numerical order—

“ Description Educational material from International
Labour Organization (“ILO”)

CPC 4197
Duty Rate 0%
Eligible
Beneficiary

Registered trade unions.

Qualifying Goods Educational materials (including audio
visual aids and equipment).

(5)

(6)

7

CUSTOMS TARIFF AMENDMENT ACT 2013

End-Use
Conditions /
Restrictions

1. Goods must be imported and used
only by a registered trade union.

2. Goods must be from the ILO.

Specific Controls /
Diversion
Construction For the avoidance of doubt, the general

provisions of this Schedule shall be
construed as one with this CPC. ”

The Fifth Schedule to the principal Act is amended by inserting the following
CPC 4198 in the appropriate numerical order—

“ Description Awards
CPC 4198
Duty Rate 0%
Eligible
Beneficiary

All importers.

Qualifying Goods Medals, cups and similar articles
End-Use
Conditions /
Restrictions

Goods must be imported for award to a
person for distinction in art, literature,
science or sport, or for public service, or
otherwise in recognition of meritorious
achievement or conduct and must be so
awarded.

Specific Controls /
Diversion
Construction For the avoidance of doubt, the general

provisions of this Schedule shall be
construed as one with this CPC. ”

The Fifth Schedule to the principal Act is amended by inserting the following
CPC 4199 in the appropriate numerical order—

“ Description Paintings, photographs and sculptures
CPC 4199
Duty Rate 0%
Eligible
Beneficiary

Bermuda Society of Arts

Qualifying Goods Paintings, photographs and sculptures

(7)

(8)

8

CUSTOMS TARIFF AMENDMENT ACT 2013

End-Use
Conditions /
Restrictions

Goods must be imported for exhibition
and sale through the medium of the
Bermuda Society of Arts and must be so
exhibited and sold.

Specific Controls /
Diversion
Construction For the avoidance of doubt, the general

provisions of this Schedule shall be
construed as one with this CPC. ”

The Fifth Schedule to the principal Act is amended by inserting the following
CPC 4201 in the appropriate numerical order—

“ Description Poppies
CPC 4201
Duty Rate 0%
Eligible
Beneficiary

Bermuda War Veterans Association.

Qualifying Goods Artificial poppies and forget-me-nots.
End-Use
Conditions /
Restrictions

Goods must be imported and distributed
under the auspices of the Bermuda War
Veterans Association

Specific Controls /
Diversion
Construction For the avoidance of doubt, the general

provisions of this Schedule shall be
construed as one with this CPC. ”

The Fifth Schedule to the principal Act is amended by inserting the following
CPC 4202 in the appropriate numerical order—

“ Description Sculptures and metal plaques
CPC 4202
Duty Rate 0%
Eligible
Beneficiary

All importers.

Qualifying Goods Sculptures and metal plaques.
End-Use
Conditions /
Restrictions

Goods must be imported and used only as
memorials or to be affixed thereto.

Specific Controls /
Diversion

(9)

(10)

9

CUSTOMS TARIFF AMENDMENT ACT 2013

Construction For the avoidance of doubt, the general
provisions of this Schedule shall be
construed as one with this CPC. ”

The Fifth Schedule to the principal Act is amended by inserting the following
CPC 4203 in the appropriate numerical order—

“ Description Samples of goods
CPC 4203
Duty Rate 0%
Eligible Beneficiary All importers
Qualifying Goods Samples of goods
End-Use Conditions /
Restrictions

1. The goods must be imported and used only to
solicit orders for goods of the type they represent.

2. Goods must not be sold or otherwise disposed of
by way of trade.

3. Goods must be—
(a) clearly marked as samples; or
(b) of negligible value.

4. In this CPC “samples of goods” means any article
representing a type of goods whose manner of
presentation and quantity rule out its use for
any purpose other than that of seeking orders for
goods of the same type or quality.

Specific Controls /
Diversion

1. The Collector of Customs may require that certain
articles, to qualify for relief, be rendered
permanently unusable by being torn, perforated,
or clearly and indelibly marked, or by any other
process, provided such operation does not
destroy their character as samples.

2. In determining whether samples are of negligible
value the Collector of Customs may consider the
value of the individual sample or the aggregate
value of all the samples in one consignment.

Construction For the avoidance of doubt, the general provisions of
this Schedule shall be construed as one with this
CPC. ”

The Fifth Schedule to the principal Act is amended by inserting the following
CPC 4204 in the appropriate numerical order—

(11)

(12)

10

CUSTOMS TARIFF AMENDMENT ACT 2013

“ Description Goods acquired by Government from a foreign
government

CPC 4204
Duty Rate 0%
Eligible Beneficiary All importers.
Qualifying Goods All goods.
End-Use Conditions /
Restrictions

1. Goods must be imported and used only by
Government.

2. Goods must be acquired from a foreign
government or an agency of a foreign
government.

Specific Controls /
Diversion
Construction For the avoidance of doubt, the general provisions of

this Schedule shall be construed as one with this
CPC. ”

The Fifth Schedule to the principal Act is amended by inserting the following
CPC 4205 in the appropriate numerical order—

“ Description Commercial bindery supplies
CPC 4205
Duty Rate 15%
Eligible
Beneficiary

All importers

Qualifying Goods Bindery supplies
End-Use
Conditions /
Restrictions

Goods must be imported and used only
for commercial binding.

Specific Controls /
Diversion
Construction For the avoidance of doubt, the general

provisions of this Schedule shall be
construed as one with this CPC. ”

The Fifth Schedule to the principal Act is amended by inserting the following
CPC 4206 in the appropriate numerical order—

“ Description Electric motors for boats
CPC 4206
Duty Rate 0%

(13)

(14)

11

CUSTOMS TARIFF AMENDMENT ACT 2013

Eligible
Beneficiary

All importers.

Qualifying Goods Electric propulsion motors of heading
85.01.

End-Use
Conditions /
Restrictions

Goods must be imported and used only to
propel boats.

Specific Controls /
Diversion
Construction For the avoidance of doubt, the general

provisions of this Schedule shall be
construed as one with this CPC. ”

Amends Sixth Schedule
The Sixth Schedule to the principal Act is amended by inserting the following new

CPCs in appropriate numerical order—

“ Description Goods eligible for business temporary importation
relief.

CPC 5000
Duty Rate 0% subject to the surcharge imposed by section 11
Eligible
Beneficiary

All importers

Qualifying Goods All goods
End-Use Conditions /
Restrictions

The good must be both imported and used wholly
and exclusively for business purposes.
In this CPC “business” means—
(a) the supply of goods and services for
consideration; and
(b) not for profit supplies of goods and services as
made otherwise than in a personal capacity.

Specific Controls /
Diversion

Security for the relieved duty shall be provided in
such form and manner as the Collector of Customs
may require as a condition of authorization.

Construction For the avoidance of doubt, the general provisions of
this Schedule shall be construed as one with this
CPC.

Description Goods for exhibitions
CPC 5029
Duty Rate 0%
Eligible All importers

11

12

CUSTOMS TARIFF AMENDMENT ACT 2013

Beneficiary
Qualifying Goods All goods
Temporary Importation
Conditions /
Restrictions

Goods must be imported—

1. with the consent of and under conditions laid
down by the Collector of Customs; and

2. for the purpose of display at exhibitions

Specific Controls /
Diversion

Security in such form as the Collector of Customs
may require to ensure that, in the event of such
goods being lost, sold or otherwise dipsoed liocally,
the duty ordinarily payable on simialr goods at the
time of sale, loss or other disposal will be paid.

Construction For the avoidance of doubt, the general provisions of
this Schedule shall be construed as one with this
CPC. ”

Repeal of Seventh Schedule and consequential amendments
The Seventh Schedule to the principal Act is repealed.

The following amendments are made to the principal Act in consequence of that
repeal—

section 5(3) is repealed;

in sections 5(4) and 13(1), delete “Fifth, Sixth or Seventh” and substitute
“Fifth or Sixth”; and

in section 12(1), delete “, Seventh”.

The following enactments are amended in section 2(2) by deleting “seven” in
the definition of—

“the Customs Tariff” in the Hotels (Temporary Customs Duty Relief) Act
1991;

“the Customs Tariff” in the Restaurants (Temporary Customs Duty Relief)
Act 2002; and

“Customs Tariff” in the Retail Shops (Temporary Customs Duty Relief for
Capital Investments) Act 2008.

Amends Eighth Schedule
The Eighth Schedule to the principal Act is amended—

by repealing paragraph 1 and substituting the following—

“1. In the First Schedule—

goods of tariff code 1905.091;(a)

12 (1)

(2)

(a)

(b)

(c)

(3)

(a)

(b)

(c)

13

(a)

13

CUSTOMS TARIFF AMENDMENT ACT 2013

goods of Headings 49.07 and 71.18;

petroleum oils and petroleum gases of Headings 27.09, 27.10 and
27.11 imported via the ship terminal at the Oil Docks, St. George’s;

goods of Heading 98.02;

goods of Heading 98.03 that are imported by post.”;

(b)

(c)

(d)

(e)

in paragraph 2 by deleting “and 4186” and substituting “4186, 4201 and
4204”; and

by repealing paragraph 4.

Commencement
Section 6, with respect to—

subsection (4); and

definition of “deemed customs value”,

of the replaced section 11 of the principal Act, comes into effect on such day as the Minister
may appoint by notice published in the Gazette.

Section 10(1)(b) (which repeals CPC 4161) comes into effect on such day as the
Minister may appoint by notice published in the Gazette.

Section 11 (which inserts new CPCs 5000 and 5029 into the Sixth Schedule.)
comes into effect on such day as the Minister may appoint by notice published in the
Gazette.

The remaining provisions of this Act come into effect on 1 April 2013.

Consequential amends to Revenue Act 1898
The Revenue Act 1898 is amended in section 2 by inserting, in the appropriate

alphabetical order, the following definition—

“ “for home use” means for home consumption or for any use other than
for immediate exportation or shipment as stores;”.

[Assent Date: 28 March 2013]

[Operative Date: 01 April 2013]

(b)

(c)

14 (1)

(a)

(b)

(2)

(3)

(4)

15

14