International inspection must clarify origin of imported fish

Dhe fish imports and exports at the centre of the investigation concern fish which, according to the available information, was temporarily brought to Suriname from China and subsequently exported to other countries in the Caribbean. Customs chief Patricia Herfst-Macintosh says that the Surinamese part of the investigation has now been completed, but that the review outside Suriname has not yet been concluded.

The international part focuses primarily on the question of which origin was declared when the fish was exported and whether that information corresponds with the actual origin of the goods. This is important because the origin of a product may affect the documents, customs treatment and possible trade benefits in subsequent exports.

The matter came to public attention in June after customs officer Remo Durham reported alleged irregularities within Customs on ABC Actueel. He claimed, among other things, that fish from China was temporarily imported and would later be exported as a Surinamese product. That allegation was not presented as an established fact and prompted a further investigation.

Investigation following earlier allegations about fish imports and exports

Key News reported earlier that the Belastingdienst considered the allegations serious, but stressed that possible irregularities must be investigated using concrete information and through the designated procedures. The service stated at the time that Customs operates with statutory regulations, internal checks and oversight mechanisms.

The matter was also discussed in De Nationale Assemblee (Suriname’s parliament). Several parliamentarians called attention to possible loss of tax revenue and to the way reports of alleged irregularities within Customs are handled. The fish matter was mentioned as one of the examples for which clarification was sought.

Temporary import does not automatically mean Surinamese origin

Under temporary importation, goods do not automatically become part of the Surinamese market. According to Herfst-Macintosh’s explanation, such a shipment remains under a customs procedure until the conditions for further export have been met. Inspection, documentation and a financial guarantee may form part of that process.

The core of the current international review therefore does not concern only the question of whether the fish entered Suriname and left again. It also examines what was stated on the export documents and which authority is responsible for determining or confirming the origin.

The international review must determine whether the declared origin of the fish corresponds with the documents.

Customs does not independently determine the origin of fish

Herfst-Macintosh stresses that Customs does not itself determine where fish originally comes from. The service checks the documents submitted for import and export and must act when information proves to be incorrect or does not comply with the applicable regulations.

Other bodies are therefore also involved in the review. According to her, Customs works together with, among others, the Visserijdienst (Fisheries Service) and the Viskeuringsinstituut (Fish Inspection Institute). For the international part, contacts have also been established with CARICOM and the European Union. ABC Suriname reported earlier that the investigation is being carried out carefully before any decisions are taken.

CARICOM rules make origin important

CARICOM has rules for determining the origin of goods. Specific conditions apply to fish and other marine products in order to be regarded as goods originating in a member state. The documentary evidence used to demonstrate origin also plays an important role.

These rules are relevant to fish imports and exports, because the mere fact that goods are stored, sorted or re-exported via Suriname does not automatically mean that they acquire Surinamese origin. Which rules specifically apply to the shipments under investigation depends, among other things, on the destination, the procedure followed and the nature of any processing. The official CARICOM rules of origin contain specific conditions for this.

No public clarity yet on outcome of national investigation

Although Herfst-Macintosh says the national part of the investigation has been completed, it has not yet been made public which concrete findings resulted from it. It has also not been disclosed whether violations were actually established in the shipments investigated or whether measures against individuals or companies are being prepared.

That distinction is important because the original reports involved allegations. As long as the results of the investigation have not been fully made public and the international review is still ongoing, it cannot be established whether tax evasion, incorrect declarations of origin or other violations actually occurred.

Entrepots and procedures reviewed again

According to Herfst-Macintosh, Customs has meanwhile evaluated all entrepots and reviewed existing procedures. Where necessary, working methods have been adjusted and set down again. The service aims to prevent ambiguities in procedures from leaving room for errors or possible abuse.

The evaluation means that the matter is being approached more broadly than only the specific shipments of fish. It also examines how goods are tracked from arrival through further export and the information that different services exchange with each other during that process.

Digital monitoring must better track fish imports and exports

A next step is improving digital monitoring mechanisms. Customs is exploring options to better track shipments and vessel movements. Better digital registration should make it easier to compare information from different phases of import and export.

For fish imports and exports, this could mean that it becomes visible more quickly when information about a shipment, origin, storage location or destination changes. This would allow Customs to identify discrepancies earlier and better record which service or official checked a document at which time.

International outcome remains decisive

The international review is now the most important outstanding part of the case. It must determine whether the information used outside Suriname in the further importation of the fish corresponds with the data recorded when it left Suriname.

For Suriname, that outcome is important because of the reliability of customs controls, the position of the fisheries sector and trade relations with countries in the Caribbean and other markets. Clarity on origin and documentation is also important for companies that do comply with the rules and depend on reliable export procedures.

As long as the international verification has not been completed, the question remains whether the fish shipments investigated were correctly documented. Customs says it is meanwhile further tightening controls and systems, while the findings from the international process must show whether further measures are needed.