Business and Trade

Duties, Taxes And Fees on Imported Items Collected by Customs

1. Import Duty/Customs Duty

   This is the duty payable on imported goods. The rates of duty are published in the Jamaica Customs Tariff, which may be purchased from Jamaica Printing Services at 77 ½ Duke Street, Kingston, Telephone (876) 967-2250; www.jps1992@cwjamaica.com.
   
   

2. Stamp Duty

   Postage Stamps amounting to the value of Jamaican Five Dollars ($5) must be affixed to receipts with a Cost Insurance and Freight (c.i.f.) value of Five Thousand Five Hundred Jamaican Dollars (J$5,500) and less. For receipts with values above this range, One Hundred Dollars ($100) worth of stamps must be affixed.
   
   

3. Additional Stamp Duty (ASD)

   Additional stamp duty is payable on certain items e.g., chicken and most chicken parts, pork and some pork products, beef and some beef products; some aluminum products, alcoholic beverages, and cigarettes.
   
   

4. General Consumption Tax (GCT) and Special Consumption Tax (SCT)

   The General Consumption Tax Act provides for two main types of taxes.
   
   These are General Consumption Tax (GCT) and Special Consumption Tax (SCT).
   
   Since October 22, 1991, the General Consumption Tax (GCT) and Special Consumption Tax (SCT) have replaced several duties and taxes, e.g., Excise Duty, CARICOM Duty, Consumption Duty, Entertainment Duty, Retail Sales Tax, Hotel Accommodation Tax and Telephone Service Tax.
   
   GCT is paid on goods and services except those items that are zero-rated and those that are exempted from GCT. Zero rated items are items that attract 0% GCT. Exempted items are items that do not attract GCT.
   
   SCT is payable on a few items. These are alcoholic beverages, most tobacco products and some petroleum products.
   
   Most items attract only GCT, while some attract both GCT and SCT.
   
   

5. Standard Compliance Fee (SCF)

   This is a fee of 0.3% collected on behalf of the Bureau of Standards. SCF is calculated on the CIF value.
   
   

6. Customs Administrative Fee (CAF)

   The Customs Administrative Fee (CAF) is a fee imposed on or in connection with importation or exportation, and is an approximate cost of the services rendered
   
   

7. Processing Forms

   Processing  Fees are required for the processing of certain documents submitted to the Customs Department. These are:
   C7	Application to load or unload cargo at a Sufferance Wharf
   C15	Application to amend report
   C24A	Provisional entry
   C24B	Bill of Sight
   C25	Request to import goods for temporary use
   C26	Application to remove goods under bond prior to entry
   C27	Unaccompanied baggage declaration
   C32	Request to repack warehouse goods
   C33	Application to remove goods for re-warehousing
   C36	Transshipment-shipment shipping bill
   C43	Permit to export goods for subsequent re-importation
   C78	Import entry
   C82	Shipping bill for export
   C83	Import entry
   C78X	Import entry, which will replace the form C79.

   
   

   
   
   

8. Cost, Insurance and Freight (CIF)

   Cost: This is the total cost of the goods abroad including ex-factory price, commission, mark-up and inland freight but including sales tax and interest. The cost of the goods is sometimes expressed as FOB (Free on Board) or FOA (Free on Air)
   
   

   Insurance: This is the insurance charge which is payable to transport the goods to Jamaica in order to ensure that some compensation will be available to you in the event of the loss or damage of the goods.
   
   If you have not paid any insurance charges when freighting your goods to Jamaica, an insurance charge is still applicable for valuation purposes. For goods arriving by sea, the insurance charge is 1.5% of the total Cost and Freight(c. & f.), that is, if the goods cost US$100 and the freight charge is US$50, then C&F would be US$100 + US$50 = US$150. 1.5% of US$150, i.e. 150 x 3/200 = US$2.25.

   Total c.i.f. therefore is $100 + $50 + $2.25 = US$152.25.

   For shipments arriving by air the insurance applicable is 1% of the total Cost and Freight. The insurance rate of 1.5% is applicable to marine cargo.

   Freight: This is the amount of money paid or payable to the shipping agent or the airlines for the goods to be shipped or transported to Jamaica, including inland freight, packaging and handling charges.

   
   

9. Environmental Levy

   0.5% of the CIF value of all imports
   
   

In order to determine the customs value for Customs duty purposes, it is necessary to have full knowledge of the facts relating to the commercial transaction involving the imported goods. The importer is required to furnish a written declaration of facts, on the forms prescribed by the Commissioner within the provision of Sections 222 and 258 of the Customs Act, in addition to the import entry and the commercial documents.

The prescribed are Forms C84 if Method 1 is being used and Form C85 if any other Methods are being used.

In the Declaration of Particulars, the importer must state whether:

1. any payment in addition to the invoice price has been or will be made, and that all relevant invoices and information included in contractual arrangements have been submitted,
2. the importer is related to the foreign supplier and whether the price has been influenced by this relationship,
3. any part of the proceeds of later resale will accrue directly or indirectly to the seller, etc. (Reference: Paragraph 8(1)(d) of the Schedule).

If the imported goods are not the subjects of a sale, this also has to be stated in the declaration at line seven (7) of the C85 (e.g. goods sent on consignment to an agent or transferred to a branch or samples sent free of charge).

Importer’s responsibilities

1. For valuation purposes, the importer is required to calculate and declare a value for duty on the Customs entry documents that meet all of the requirements of the valuation provisions of the Customs Act, Regulations and Administrative Policies.
2. It is the practice and a requirement under the regulations that an importer hires a customs broker to transact his Customs business where the value of the imports exceeds US$5000 whether or not the consignment is personal effects or for commercial use. (See Regulations 147(c)). Note that it is the importer, and not the broker or authorized agent, who is ultimately responsible and liable for the correct declaration of the Customs value.
3. All documentary evidence to support the declared value may not need to accompany each entry, but should be available for Customs review when required. It is the responsibility of any person concerned with the importation of goods to maintain, in a manner that facilitates Customs review, all information and records used in the determination and declaration of the value for duty. See Regulations 26 and 147(b) and Section 223 of the Customs Act.
   

   Cases where a declaration of Particulars may be unnecessary:

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4. It is general practice to dispense with the written declaration of Particulars in certain cases, such as:

• non-commercial importation by passengers;
• importation of a value not exceeding US$1000;
• free of charge goods of a value less than US $1,000 imported as a part of a larger consignment;
• where the nature of the Customs procedures and/or legislation to which the goods are subject do not require submission of a Declaration of Particulars.

Who can sign the Declaration of Particulars Form?

The Declaration of Particulars form can be signed by any of the following person:

1. The actual importer if an individual
2. A partner in the case of a partnership
3. A director or the secretary in the case of an incorporated company
4. Any employee duly authorised in writing by one of the persons mentioned above.

Note: An in-house broker can sign the declaration form (C84 or 85) only if he is authorised to do so on a C73. However, the authorization form (C73) must be filed with the Department.

Importers using the transaction value method (method 1) should use the C84 form and are required to complete this form and sign at box 27. All questions regarding the transaction between the seller and the buyer should be answered. The transaction value should be calculated taking into account the adjustments under Paragraphs 8 and 9 of the Schedule or where appropriate. The reverse of the form will capture this calculation and will ensure that the importer considers all the elements or components necessary and is required to be added to or deducted from the price paid to arrive at the value for duty. If there is more than one invoice, then the importer should combine all invoice values to complete lines 11 – 25 using the first invoice column.

If value for duty cannot be determined under the transaction value method then the goods must be valued under a subsequent method and the C85 form must be used. Importers using one of these other methods must visit the Valuation Verification Unit for guidance in arriving at the value for duty before preparing the import entry (C78) form. They are required to take all the relevant information and documents relating to the imported goods to determine the value. Both sides of the form must be completed and the declaration signed at Box 27.

One of the roles of the Customs Department is the protection of the borders of our country. This includes protection from all goods or products that are deemed harmful to our nation. Harmful goods have traditionally been thought of as guns, ammunition and illicit drugs, but the category extends beyond that to include agricultural products which, if not properly monitored on importation, can result in the spread of disease and pests.

The Customs Department executes its role to protect our borders, by performing agency functions on behalf of other government departments and ministries. These departments and ministries are guided by laws, which dictate the necessity of using import permits or licenses for the importation of certain goods. If you attempt to bring these goods into the country without the required permits or licenses, Customs has the authority to confiscate them, as well as impose fines, as this represents a breach of Customs regulations.

Below is a list of some items that require permits/licenses and the agencies from which they can be obtained:

• Meat - Obtain a certificate from the Ministry of Agriculture, contact number- 927-1731
• Ground Provisions - Obtain a Phyto Sanitary Certificate from the Ministry of Agriculture, contact number- 927-1731
• Fruits & Vegetables - Obtain a Phyto Sanitary Certificate from the Ministry of Agriculture, contact number- 927-1731
• Drugs - Obtain a PSD Certificate from the Ministry of Health, contact number - 926-9220
• Firearms- Obtain a Permit/Licence to Import from the Police/ Commissioner of Customs/Trade Board 927-4421, 922-5140-8, 926-3130
• Used Tyres - Obtain a Certificate from the Bureau of Standards, contact number: 926-3140-6
• Radios (two-way) - Obtain a Permit from the Post Master General, contact number: 922-9430