Justice Minister: ASYCUDA does not mean new import duty is coming

GREAT BAY--Minister of Justice Nathalie Tackling has clarified that the eventual introduction of ASYCUDA does not mean government is preparing to impose a new import duty, stressing that the customs management system can provide detailed import information and administer duties established by law, but cannot itself create a new tax or determine what importers should pay.

The clarification was provided to Parliament in response to questions raised during the Budget 2026 process about whether ASYCUDA's ability to provide more detailed information on imports could open the door for government to introduce a small, targeted import duty.

ASYCUDA, the Automated System for Customs Data, is a computerized customs management platform developed by the United Nations Conference on Trade and Development, UNCTAD. It allows Customs to process declarations electronically, track imports and exports, improve risk assessment, collect trade data and strengthen controls against fraud and smuggling.

The Minister said there is currently no publicly announced government policy indicating that ASYCUDA will be used to introduce a new targeted import duty and that any move to introduce or expand import duties,  considering St. Maarten's longstanding position as a duty-free destination, would require careful consideration.

Under the National Ordinance on the Import Duty Tariff, the statutory rate for general import duty is currently Cg 0. A separate special import duty applies to gasoline. Any decision to introduce a targeted import duty would therefore be a fiscal and economic policy matter, rather than a decision of the Ministry of Justice or the Customs Department.

According to the Minister, responsibility for developing such a proposal and determining possible rates would rest primarily with the Minister of Finance. The Minister of Tourism, Economic Affairs, Transport and Telecommunication and the wider government would also have to be involved because of the potential consequences for the economy and trade.

Any legislative changes required to implement such a policy would ultimately have to go before Parliament. Customs falls under the Ministry of Justice, but the Justice Minister said her role would principally involve determining whether a new system could be administered operationally and, if approved through the required process, ensuring that Customs implements and enforces it.

The Minister explained that ASYCUDA World is primarily intended to modernize the country's Customs operations. The system is designed to facilitate electronic customs declarations, improve information on imported goods, strengthen risk management, speed up legitimate trade and enhance Customs' ability to detect fraud, smuggling and other violations.

ASYCUDA can also provide government with more reliable information on import volumes, classifications of goods, customs values and trading patterns. That information could eventually be used by policymakers when considering fiscal or trade policy. However, the Minister stressed that having the data and technical capability to administer a duty is different from government deciding to introduce one.

If government were to reconsider St. Maarten's import taxation structure in the future, ASYCUDA could provide evidence upon which such decisions could be based rather than relying primarily on estimates.

Among the issues government would have to assess are the potential impact on consumers, local businesses, tourism, government revenue and St. Maarten's competitiveness within the Caribbean. The country's open border with Saint-Martin would also represent an important consideration in any future discussion about import duties, as would St. Maarten's role as a logistics and transshipment point for neighboring islands.

The Minister made clear that such a shift would amount to a significant policy decision requiring consideration by government and Parliament, rather than an automatic consequence of introducing new Customs technology.

The Minister also clarified that ASYCUDA is currently in the implementation phase and has not yet been publicly confirmed as fully operational. She therefore said she could not provide Parliament with a definitive assessment of its full operational performance or the results of its deployment to date.

Implementation work is continuing, including arrangements with two private-sector providers to secure stable and cost-efficient connectivity for the system. Preparations for the ASYCUDA office are also advancing, with a supplier expected to conduct on-site measurements for furniture and other operational requirements.

The Ministry is additionally finalizing recruitment of a qualified IT officer who will provide the technical capacity required to administer the system.

The total funded implementation cost for ASYCUDA in 2026 has not yet been publicly disclosed, according to the Minister. A complete accounting of capital and operational expenses, including any components financed or supported externally, would require additional financial reporting from government.

For now, the Minister said the Customs Department's priority remains enforcing existing legislation, strengthening border security, improving the accuracy and efficiency of customs clearance and ensuring that goods entering St. Maarten are properly declared and controlled through the ASYCUDA platform.

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