Calculating tax and import duties In Jamaica
Under Section 19 of the Customs Act, “a duty of Customs is chargeable on the value of the imported goods at the time of importation. This duty is charged on the CIF (Cost, Insurance and Freight) value of the goods, when converted into Jamaican currency.” For example, if CIF=US$100 (US$1 to J$33) then total CIF=J$3,300.
Car Import Duty in Jamaica
With car duty averaging 100% car import duty in Jamaica is one of the highest. In June 2012 Jamaica introduced a new duty regime (car-import-duty-june-2012-jamaica.html) and duties have been reduc.ed substantially
| DESCRIPTION | AGGREGATE RATE OF DUTY | |
| Cars/Station Wagons/*Estate Cars | GCT Only | |
| Not exceeding 1000 cc | 67% | |
| Exceeding 1000cc up to 1500cc | 83% | |
| Exceeding 1500cc up to 2000cc (diesel 2200cc) | 94% | |
| Exceeding 2000cc up to 3000cc (diesel 3200cc) | 121% | |
| Exceeding 3000cc (diesel 3200cc) | 180% | |
| JEEPS, RANGE ROVERS & SIMILAR TYPE VEHICLES | ||
| Not exceeding 2000cc (diesel 2200cc) | 94% | |
| Exceeding 2000cc up to 3000cc (diesel 3200cc) | 121% | |
| Exceeding 3000cc (diesel 3200cc) | 180% | |
| Motor Cycles (not exceeding 600cc) | 38% | |
| COMMERCIAL VEHICLES | ||
| Limousines | 121% | |
| Tractor Heads and Trailer | nil | 23.809% |
| Rate for approved agriculture activities | nil | 14.29% |
| Motor Chassis with Engine | nil | 23.809% |
| Panel Vans and Pick-ups | ||
| Not exceeding 2032 kg | 55% | |
| Exceeding 2032 kg | 35% | |
| Rate for approved agriculture activities | 20% | |
| Special Purpose Vehicles | nil | 33.33% |
| Hearses | ||
| Not exceeding 2032 kg | 85% | |
| Exceeding 2032 kg | 35% | |
| *Buses | 105% | |
| Buses Acquired for Used in Public Passenger Transportation | ||
| Not exceeding 6 seats | 55% | |
| 7 to 9 seats (2000-3000cc) | 94% | |
| 15-24 seats | 35% | |
| Buses Acquired for Tourism Activities | ||
| 9-14 seats | 55% | |
| 15-24 seats | 35% | |
| 25 and over seats | 10% | |
| *NB: All persons or organisations seeking to import buses into Jamaica must first obtain the approval of the Ministry of Industry & Tourism (Land Transport Unit) | ||
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 excluding 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 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 sending your goods to Jamaica, an insurance charge is still applicable for valuation purposes. For goods arriving by boat, the insurance charge is 1.5% of the total paid or payable for the Cost and Freight (C&F), that is, if the goods cost US$100 + US$50 = US$150. 1.5% of US$150, i.e., 150×3/200 = US$2.25
For shipments coming by air the insurance applicable is 1% of the total of the Cost and Freight. - Freight
This is the amount of money paid or payable as freight to the shipping agent or the airlines for the goods to be shipped or transported to Jamaica.
Total CIF therefore is $100 + $50 + $2.25 = US$152.25.
Goods will attract different types of duties and taxes and the rates will vary according to the different types of goods. The duties and taxes are based upon a compounded system of taxable values. The following examples will indicate the method of calculation of duties and taxes.
For simplicity the CIF (Cost, Insurance and Freight) value of One Hundred Jamaican Dollars will be used in each example.
CIF.= Cost, Insurance and Freight ID = Import Duty ASD = Additional Stamp Duty GCT = General Consumption Tax SCT = Special Consumption Tax
Household Items for Personal Use
Stoves, fans (table or floor), washing machines, blenders, electric water heaters, turntables, radios attract Import Duty and GCT.
ID = CIF value x Import Duty rate = $100 x 25% $25 GCT = (CIF value + Import Duty) x GCT rate = ($100 + $25) x 15% = $125 + 15/100 = $18.75
Total payable is $25 + $18.75 = $43.75
The total of the Import Duty and GCT on these household items is 43.75%
Figures based on GCT rates established by Parliament in April, 1995.
N.B. The values for General Consumption Tax of items imported in commercial quantities by persons who are not registered taxpayers are subject to an uplift (mark-up) of 33 1/3% under the General Consumption Tax Act.
Please contact the Jamaica Customs Department to confirm that the duties, rates and costs quoted have not been changed. Duties can change pretty quickly in most countries of Asia, Africa and the Caribbean and the Southern America.