Business owner Steve Thomson has taken legal action against Government over the new duty rates and HM Customs requirements.Mr Thomson’s shipping and courier company, Mailboxes Unlimited, has filed a writ against the Collector of Customs concerning amendments to Customs Tariff Act 1970 and the Customs Procedure Code 4000. MJM Limited is representing Mailboxes in the case.The case is set down for a first hearing tomorrow in Commercial Court before the Chief Justice.Mr Thomson declined to comment yesterday on the writ.The Royal Gazette understands there’s concern about the implementation of the new duty rates and also that new Customs requirements on clearing goods are onerous.A source close to the industry said there can be delays of up to a week or more in getting items cleared. In addition, there are labour cost increases in complying with the new Customs requirements.Effective April 1, Customs put in place a new standard 25 percent import duty rate for non-business goods.Special rates of duty, including zero-rates; higher rates (33.5 percent, 75 percent, 150 percent); and specific rates (e.g., litres of alcohol), remained unchanged.However, Customs stated that the new standard 25 percent duty rate and the special rates will be paid for goods imported by personal taxpayers; while the duty rates specified in the First Schedule to the 2012 Customs Tariff will be paid for business goods.Businesses will be able to apply to benefit from the generally lower duty rates in the Customs Tariff by specifying customs procedure code “CPC 4000” (Goods eligible for business end-use relief) on their Bermuda Customs Declaration.The Customs Short Form-Bermuda Customs Declaration will no longer be accepted by the Customs Long Rooms for declaring business or personal goods.“Businesses currently use CPC 4000 to declare goods for home use in Bermuda,” Government stated. “This means that for most established businesses their imports will be declared and managed in exactly the same way as they are now. If new business or prospective businesses declare goods using CPC 4000, Customs may ask for monetary security (for the protection of the revenue). Security will be repaid once an importer can satisfy Customs that the goods in question have been, or will be, put to a business use.“Goods imported with the benefit of business end-use duty relief (CPC 4000) may not be used by any person (real or corporate) for personal (non-business) use. Unauthorised use of such goods will be an offence and attracts a monetary penalty of up to $12,000 or treble the value of the goods. The goods in question may also be seized and condemned by Customs.“Goods imported for personal (non-business use) will not qualify for business end-use relief (CPC 4000). Duty will be payable at either the 25 percent standard rate or at a special rate (0, higher rate, specific rate) where applicable.”Goods not eligible for business end-use relief include: goods that are imported by an individual for their own personal use; goods imported by a business for a non-business use; and goods imported by a not-for-profit organisation that is not a registered charity, including, chambers of commerce; labour organisations; business leagues; certain religious, educational, charitable, social and recreational organisations etc.