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The fulfilment industry and its impact on the local economy - Visit to Postal HQ - Submission - 2 Ma

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Site Visit to Postal Headquarters, Postal operations at Jackson 's Garage, and Condor logistics

The Panel convened at Postal Headquarters, Rue des Pres Trading Estate, St. Saviour , at 1.00pm.

The Panel was addressed by Mr. B Jones, Marketing Director of Jersey Post, with Mr. P. Allman, Commercial Manager in attendance.

The history of the industry was detailed, from the small-scale posting of flowers in the 1980s to the position of the industry at the current time as the Islands biggest physical export market. Local entrepreneurship was a key factor in developing markets in flowers, contact lenses, and entertainment.

A method of facilitating rapid delivery by circumventing the usual UK clearing house' procedures had been developed. This consisted of having a Customs Officer whose wages were funded by Jersey Post on site to vet all items and ensure that they were compatible with the provisions of EEC Regulation 1983R0918 Article 27 (as amended) Consignments of Negligible Value', or alternatively to arrange pre-payment of VAT on those items not complainant with that article. It was not commonly understood that Jersey Post had been responsible for forwarding £8.8 million in pre-paid vat to the UK Treasury in 2005.

The role was also intended to promote product compliance, inasmuch as the officer was involved in ensuring that no material banned in the UK was delivered there.

The Panel then undertook tours of both the Jackson 's Garage' site and Condor logistics operation at the Harbour.

The Panel was informed that the pick and pack' operations were carried out by persons who might normally fall outside of the labour force. Part-time variable hours were permitted, and that all operators could expect to find themselves in a number of positions in the course of a normal working day, in order to avoid boredom. The operations at the Harbour were noted to consist primarily of weighing and cross-shipping consignments of fulfilment goods into more suitable containers for use in the UK.

During discussions it was noted that third party service provision companies would cease to be liable to taxation under the zero/ten' tax arrangements if foreign owned with non-Jersey principals.