Government has shown the "wisdom of Solomon'' in alterations to Customs duties on goods being imported into Bermuda.

That is the opinion of Finance Minister the Hon. David Saul who introduced amendments to the Customs tariff in Parliament on Monday.

It means an estimated $3 million loss of revenue but Dr. Saul is sure it will boost business, make the job of Customs officers easier and benefit the Island as a whole.

The Customs Tariff Amendment Act 1994 was passed this week meaning an original 522 designations in the tariff have now been reduced to 211, a removal of 60 percent of the list.

Dr. Saul said: "The Minister of Finance's role is to protect revenue, that is not to give money away. This, however, is giving revenue away.'' But, he added that it was the culmination of a "yeoman job'' by an economic adviser from the Bank of England working together with the Ministry of Finance, Customs and the private sector.

Dr. Saul said: "This will ease the burden on importers and speed up the process in the Customs long room and in the post offices.'' He has responded to complaints of long queues at the Civil Air Terminal as Customs officers search for items requiring duty to be paid.

The changes will also remove the "archaic'' process of recording volume, by weight and number, of the imports.

He said: "It means a number of concessions on those people who are dealing with overseas competition. Many will find they can get back 100 percent of the duties they have paid.'' Shadow Finance Minister Mr. Eugene Cox asked for some way to stop retailers from adding the tariffs to their make ups. He said there was no way a bottle of lotion costing $4 in Boston should cost $12 in Bermuda.

And fellow Opposition member Mr. Stanley Morton accused some businesses of greed.

Dr. Saul said he did not feel businesses were greedy. He said: "The duty is on the price at the factory, they should not add in insurance and freight.

"I will have to admit that I have been working with the Chamber of Commerce to make firms appreciate that they must work out make ups on a more professional basis.

"It is not reasonable to say firms are being greedy. More often than not it is a result of genuine errors in make up procedures.

"It is going to be very difficult to sell an object in Bermuda at the same rate as in Boston or New York. The economies of scale are completely out of whack that way.'' Dr. Saul admitted he had erred in some ways in the bill and thus another bill was passed with some "extras.'' It also means a third bill must be passed in the future for other matters.

Both he and Mr. Cox had received a number of phone calls on different subjects in which duty was involved.

Dr. Saul said: "If over a period of time we see other errors which are going to put people in an invidious position then we will review the tariff amendment and make changes.

"The sting in the tail is that if, in reducing some of the tariffs, this has an adverse effect on revenues I will consider increasing them.

"I do not think that will be forthcoming. It is not my intention and not my hope.'' Also included in the amendments were the new rules allowing Bermudians to bring in $200 of duty free goods on trips longer than 72 hours. Previously they were allowed duty free trips only twice a year.

The Hon. David Saul.