National Assembly |27 July 2023
Members vote to accede to two international conventions on temporary admission of goods into the country
The National Assembly yesterday approved two motions as amended, namely to accede to the Customs Conventions on the A.T.A. Carnet for temporary admission of goods and to accede to the Convention on Temporary Admission.
Both motions tabled by the leader of government business (LGB), Hon. Bernard Georges, received 21 votes in favour, no votes against and 10 abstentions.
The votes came after the original motions were amended replacing the word ‘ratify’ with ‘accede’.
In his presentation, Hon. Georges explained the two motions were two international instruments which were inter-related but would be voted on separately.
He explained that although the two conventions have been in force for decades – 1962 and 1990 respectively – Seychelles had never ratified them.
“The executive is requesting that we accede to the two conventions because they are in force. So although my motions request ratification, it should be in fact accession,” explained Hon. Georges.
He reminded the house of an instance during the sixth National Assembly where a similar request was made with regard to an accession to the New York Convention of 1964 on the Recognition and Enforcement of the Foreign Arbitral award. The convention was already in force and the assembly voted to accede to it.
“Unfortunately, under the constitution the assembly does not have the power to accede, but only to ratify. So that is why the motions state ‘ratify’ although what we are doing today is ‘accede’ to,” explained Hon. Georges.
He stated that with regard to the New York Convention the former LGB, following discussions with the opposition at the time, brought a motion for accession.
“However, after a lot of reflection, I have chosen to request ‘ratify’, in line with what is permissible within our constitution,” he added.
When detailing the two motions, Hon. Georges said they were both the work of the World Trade Organisation and Unesco and the aim is to allow the free movement of goods across frontiers and their temporary admission into a Customs territory with relief from duties and taxes.
“For example if a film unit wants to make a movie in Seychelles, they will have to bring in their equipment, camera and others. They will be leaving after the production so they should not go through customs as if those equipment are being imported into Seychelles and are going to remain here,” he explained.
The conventions make provision for a form (carnet) that should be filled in those instances, giving information about the activity, duration of their stay, among others and make a commitment that in the event these items do not leave the country, then they would have to pay any available custom duty applicable in Seychelles, plus 10 percent above.
“It is something simple and I do not see any downside for our country. On the contrary we have several benefits. We could even encourage countries that have their movie industry to come to Seychelles,” he added.
The members from Linyon Demokratik Seselwa, who intervened on the motions, all spoke in favour of their merit. Hon. Waven William of Grand Anse Mahé, said they would facilitate and simplify procedures for certain importation activities in the country.
For his part, Hon. Phillip Arissol of Anse Boileau said Seychelles will benefit immensely through the ATA ‘carnet’, promoting business opportunities in sectors such as tourism, cultural exchange and science among others.
The opposition members from the United Seychelles party also highlighted the advantages of the two conventions. The first to intervene was Hon. Egbert Aglae, elected member for Port Glaud, who said there were no contentions with the two agreements, as they would only make things easier and simpler for people travelling to Seychelles for work-related purposes, without having to go through long taxation procedures.
Hon. Johan Loze said as a responsible global citizen, Seychelles should be acceding to those two conventions.
However, the leader of the opposition, Hon. Sebastien Pillay, had several questions such as who will administer the ‘carnet’ citing that in Mauritius and England, this was being done by their chamber of commerce, while in other countries it is by their customs division.
“We are giving the government approval to put in place this structure so is it the government itself through the Seychelles Revenue Commission, or will it go with the Seychelles Chamber of Commerce and Industry,” he queried.
Another point raised was the application of fees in relation to the ‘carnet’. He also questioned the negative effect this could have on local businesses citing those providing filming and sound equipment, which will be allowed entry into Seychelles, at the detriment of local businesses.
“Have we considered establishing internal control in these circumstances? We need to compare our size and space for those local individuals we are encouraging to venture into business,” said Hon. Pillay, pointing out the need for Seychelles to have a protectionism approach towards local businesses, citing the information sector. Hon. Pillay also queried as to their implementation once approved.
In his reply, Hon. Georges, said “we cannot become protectionist. We need to compete with others that come in. We need to have a bigger mindset instead of one that is protectionist”.
He also informed the National Assembly that the ‘carnet’ will be managed by the SCCI, as stipulated in the report submitted to the house and that concerns raised by Hon. Pillay were also already considered in the report, and taken into account.
It should be noted that yesterday’s sitting chaired by deputy Speaker Gervais Henrie ended midday, as the two motions were the only two items on the agenda.
Patsy Canaya