UPDATE: Delta Petroleum fires back on lost case with Customs
According to a press release issued by the company’s directors and seen by this news site, the learned Judge, in ruling in favour of the Commissioner of Customs held that “Nevertheless, in light of the conclusions drawn and with considerable reluctance, the Court is obliged to rule in favour of the applicant [Commissioner of Customs].” The release continued, Further, in giving its decision the Court also found that from a “purely commercial standpoint the Respondent’s action is perhaps understandable”.
In the release, it was noted that Delta Petroleum attempted to contact the senior officer of the Customs Department responsible for overseeing the discharge of the fuel by telephone on at least three occasions (both before and during the discharge process) but was unsuccessful in doing so. The release claimed that this evidence was unchallenged in the Court proceedings.
Delta Petroleum sought to make it abundantly clear that there was never an issue of the company engaging in any illegal activity or attempting to evade the payment of Customs duties on imported fuel since the fuel in question was designated for the BVI Electricity Corporation (BVIEC) and was in fact always duty free.
It was felt that the only issue in the matter related to the failure of Delta Petroleum to comply with certain directions previously issued by the Commissioner of Customs and whether such failure or non-compliance permitted the Commissioner of Customs to seize the fuel.
The release stated that Delta Petroleum has been advised by its lawyers that Justice Ellis erred in law in that she allegedly failed to take into consideration the fact that the basis of the seizure by Customs was the failure of Delta Petroleum to comply with certain directions previously issued by the Commissioner of Customs and not a failure to pay customs duties on dutiable fuel, thus making the seizure unlawful.
Delta as a result, plans to lodge an immediate appeal against the decision of the learned Judge on the grounds that the same is wrong in law.
When contacted on the issue, Regional General Manager of Delta Petroleum, Mr Bevis Sylvester said he would not add any further comment to what was sent in the release issued by the company’s directors as this was the company’s official stance. He also noted that the matter was now under appeal.
The basis of the action was a claim by the Commissioner of Customs for an order that 240,826.88 US gallons of fuel stored in bonded tank No. 7 at Pockwood Pond owned by Delta Petroleum (Caribbean) Ltd be declared by the Court as condemned and forfeited on the ground that, “Petroleum fuel was discharged into storage tank No. 7, a tank that was bonded by Customs to be used solely for storage of fuel for the British Virgin Islands Electricity Corporation. This tank was accessed by Delta Petroleum (Caribbean) Limited without receiving permission from Customs and without Customs supervision which is contrary to Customs Management and Duties Act No 2012 Section 30.”
See previous story posted February 14, 2013:
UPDATE: Delta loses court battle with HM Customs
ROAD TOWN, Tortola, VI – Delta Petroleum (Caribbean) Limited has lost its legal battle against Her Majesty’s Customs following a decision handed down by Madame Justice Vicki Ann Ellis in the High Court chambers earlier today, February 14, 2013.
The decision was related to the seizure of Delta’s fuel at its storage facility at Pockwood Pond in September 2012 by Customs Department
Speaking with this news site following the decision, Commissioner of Customs Mr Wade Smith said, “We are extremely happy [about the decision].”
He commended the Customs Department, Solicitor General’s Office, Director of Public Prosecution’s Office, Commissioner of Police and the Immigration Department. He added that it was a collaborative effort that led to a victory for the people of the Virgin Islands.
He further stated, “it was a learning experience for the entire Department, for the officers involved and it was a lot of work… ”
Mr Smith regarded the decision as a landmark one and said, “over the years we’ve been informing the public through the media and symposiums… about the laws and policies of the Customs Department and like we said at the symposiums, we’re not in the business of imposing fines and penalties, we’re just seeking increased compliance.”
He noted, however, if there is any contravention of the legislation, penalties will be imposed.
When contacted earlier, Regional General Manager of Delta Petroleum, Mr Bevis Sylvester could not offer a comment on the issue as he claimed he had not yet been made aware of the judgement.
See previous article posted on October 3, 2012
UPDATE: Civil matter involving Delta & Customs heard in Chambers
- Both parties decline commenting to news media on case
The civil claim filed in the High Court by Delta Petroleum (Caribbean) Ltd against the Commissioner of Customs, which was firstly made known to the public by this news site, was heard in the Judge's Chambers yesterday October 2, 2012.
Both Regional General Manager of Delta Petroleum (Caribbean) Ltd, Mr. Bevis Sylvester and Commmissioner of Customs, Mr. Wade Smith were present at the first hearing, however, both parties declined to speak to news media on the case.
The Customs Department allegedly seized a Delta Petroleum storage fuel tank containing approximately two hundred and forty thousand, eight hundred and twenty six and eighty eight (240,826.88) US gallons of fuel on September 20, 2012.
A civil claim filed late last week by Delta Petroleum Caribbean Ltd, and obtained by this news site’, shows that the Petroleum Company is seeking relief from the High Court for:
1. A declaration that the seizure by the Defendant of the Claimant’s Fuel Storage Tank and Fuel contained therein was wrongful;
2. An Order for the immediate return of the Fuel Storage Tank and the 240,826.88 gals of fuel contained therein; and
3. Both Damages for wrongful seizure and cost.
Delta, in a press release, sought to clarify the issue and stated that the company, after experiencing difficulty discharging the fuel on two ocassions when the Customs Department was notified, was able to get an equipment to complete the job, however, two efforts to contact the Department before discharging and once during the process of discharging were unsuccessful.
The company also said the tank was specifically designed for the storage of fuel to be used exclusively by the BVI Electricity Corporation consequently in its operations, therefore no duty was payable from fuel supplied from the storage tank.
The discharging of the fuel was reportedly done on September 16, 2012, however, HMS Customs was only advised a day after that the process had taken place.
"HMS Customs was also supplied with documented evidence showing the amount of fuel pumped into the tank from the M/T Charmer. At all times HMS Customs was in possession of the relevant information relating to the amount of fuel that had been brought into the Territory by M/T Charmer," the release stated.
HMS Customs served Delta Petroleum with a Notice of Seizure of the bonded tank and all the fuel stored in it on September 20, 2012. The basis of the Notice of Seizure was that "Petroleum Fuel was dischared into storage tank no. 7, a tank that is bonded by Customs to be used solely for the storage of fuel for British Virgin Islands Electricity Corporation. This tank was accessed by Delta Petroleum (Caribbean) Ltd without receiving permission from Customs and without Customs supervision, which is contrary to Customs Management and Duties Act No. 6 of 2012 Section 30", the Delta press release stated.
HMS Customs has requested Delta Petroleum to pay a fine to secure the return of the tank and fuel, however, Delta Petroleum has refused to pay this fine on the grounds that it believes it had not violated any laws of the Virgin Islands and was therefore of the view that the seizure of its property by HMS Customs was unlawful and without basis.
Many media houses reported about the seizure last week but did not name the company, however, a Government spokeswoman confirmed to Virgin Islands News Online that the custom’s department was indeed investigating a local petroleum company. She said that the investigation relates to the partial off-loading of a shipment of fuel without the authorization and supervision of the Customs Department as the law requires.
According to the Claimant Affidavit, they relied on the evidence of Bevis Sylvester-the Regional General Manager of Delta Petroleum and a Damien Lettsome.
Delta Petroleum is being represented by Terrance B. Neale of McW. Todman and Co. and the Commissioner of Customs by the Attorney General.
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61 Responses to “UPDATE: Delta Petroleum fires back on lost case with Customs”
I agree with you a 150%.
When he Bevis win the contract to sell Electricity fuel he said see what good the lord has done, this time he luck run out with the lord. The lord up high but he looking very low
As they say, once a t.....always a t...... Proved in court again of st.....g our taxpayers money!
Keep the boycott going till they put another man in charge of that gas station