SICCI urges government to revoke CEMA fees, citing rising business costs and lack of consultation with stakeholders
Honiara, Solomon Islands– The Solomon Islands Chamber of Commerce and Industry (SICCI) has urged the government to revoke the recently introduced CEMA (Customs and Excise Management Act) fees and initiate wider stakeholder consultations following a key meeting with the Deputy Prime Minister and Acting Minister for Commerce, Industry, Labour and Immigration (MCILI).
During the consultation, SICCI board representatives led by Chairlady Namoi Kaluae and Chief Executive Officer, James Dolarii met with Hon. Manasseh Sogavare, Deputy Prime Minister and Acting Minister for MCILI, to express serious concerns from the private sector about the new fees.
These fees, implemented under recent amendments by CEMA, impose additional financial burdens on businesses already grappling with economic challenges, including high operational costs, supply chain disruptions, and inflation.
SICCI highlighted that the fees – which include processing charges for customs declarations, warehousing, and other import/export services – were introduced without adequate prior notice or consultation with key stakeholders such as businesses, importers, exporters, and industry associations.
This lack of engagement has led to widespread uncertainty and potential disruptions in trade and commerce across the Solomon Islands.
“SICCI stands firmly with the business community in calling for the immediate revocation of these CEMA fees,” SICCI Chair Lady Ms Namoi Kaluae stated.
“While we appreciate the government’s efforts to streamline customs processes and generate revenue, these fees risk stifling economic growth, increasing costs for consumers, and deterring investment. A more inclusive consultation process is essential to ensure policies are practical, fair, and supportive of local businesses.”
Key concerns raised by SICCI include:
Lack of Transparency: Businesses were not informed or consulted before implementation, leading to compliance challenges.
Administrative Burden: Small businesses lack the resources to handle additional paperwork and payments efficiently.
Competitiveness: Higher costs make Solomon Islands businesses less competitive regionally.
SICCI has proposed the following recommendations:
Immediate Revocation: Suspend the fees pending comprehensive review.
Wider Consultations: Engage SICCI, other chambers, trade associations, and the private sector in open forums.
Impact Assessment: Conduct a full economic impact study on businesses and consumers.
Alternative Revenue Models: Explore non-burdening options like digital efficiencies or targeted incentives.
SICCI acknowledges the dialogue and look forward to holding a wider consultation with Ministry of Commerce and CEMA and other stakeholders.
SICCI calls on all businesses, policymakers, and the public to support this push for fairer policies that foster a thriving economy.
SOURCE: PRESS RELEASE
