Incentives and Productive Inputs Relief Programme: Paving the way for local investments
The Jamaica Customs Agency prides itself in continuous research and advancement of its processes as it fulfills its mandates of border protection, revenue collection and trade facilitation.
In 2013, with effect in 2014, the Customs Act was amended under the Omnibus Incentives Legislation (OIL) to allow productive sectors to receive concessionary benefits, such as exempted duties and charges and reduced fees, on imports through Productive Inputs Relief (PIR) for:
- The Production of Primary Products
- The Manufacture of Goods
- The Tourism Industry
- The Creative Industries and
- The Healthcare Sector
Senior Incentives Auditor at the Jamaica Customs Agency, Donna Stephens-Edwards, further highlighted another advantage of being a part of the Agency’s incentives programme. “Once you are a bona fide (compliant) manufacturer, you can access the deferred GCT payment, where you do not pay your GCT upfront.” These benefits, she said, can allow manufacturers to redirect their funds to more business-related matters.
The JCA not only provides incentives for importers but under various Trade Agreements, exports are also facilitated.
As a member of CARICOM and CARIFORUM, Jamaica benefits from eight (8) Free Trade Agreements (FTAs) with originating goods imported into or exported from Jamaica under an FTA, benefitting from tariff reduction or elimination on negotiated products.
Under Preferential Trade Agreements, Jamaica is a beneficiary country under non-reciprocal preferential market access to USA, Canada and Generalised System of Preferences Donor Countries for eligible commodities originating in CARICOM and Jamaica.
These reliefs position Jamaica as a preferred location for investors and international manufacturers.
Having been in the international lubricant market for some years, co-owners Sydney Thwaites and Neil Crooks decided, based on their research, that Jamaica was most ideal to start their company, Lubricating Specialties Company Jamaica Limited (LSC Jamaica), mainly due to the incentives provided to importers and exporters through the JCA.
“The incentives have allowed products manufactured in Jamaica to compete with other markets, leading to export opportunities needed to move the needle on Jamaica’s trade imbalance,” shared Mr. Thwaites, highlighting that the company’s customer base and markets served, have been able to grow as a result of the incentives. As an advice, Mr. Thwaites shared with investors to capitalise on incentives offered as they “are key to competing on a regional level.”
The Jamaica Customs Agency continues to urge compliance with all requirements of the Agency. “As a beneficiary of the Incentives Programme, the onus is on the company to be compliant, to ensure that, other qualified individuals or companies can also benefit. Compliance is the key,” said Mrs. Stephens-Edwards. She concluded with a reminder that with the incentives, “Your company benefits, the nation benefits and the citizens of Jamaica benefit.”
For more information on JCA’s Incentives and Productive Inputs Reliefs, you can send an email to email@example.com or firstname.lastname@example.org