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Clarke explains duty-free importation policy for European vehicles

Published:Thursday | May 11, 2023 | 9:02 AM
Clarke explained on Twitter that the measure is one of Jamaica’s commitments and obligation under the 2008 Economic Partnership Agreement (EPA) signed with the EU. - File photo

Finance Minister Dr Nigel Clarke has clarified that while European vehicles can now be imported duty-free to Jamaica, there are several other tax types and fees which will still be applied to such imports.

In a Twitter thread on Wednesday evening in response to queries about the duty-free announcement, Clarke also outlined several conditions which must be met for the duty exemption to apply.

On Wednesday, it was reported that Ambassador, Delegation of the European Union (EU) to Jamaica, Marianne Van Steen, had announced that duty-free importation of European automobiles to Jamaica is to come into effect this year.

Clarke explained on Twitter that the measure is part of Jamaica's commitments and obligations under the 2008 Economic Partnership Agreement (EPA) signed with the EU.

He noted that the duty rate on motor vehicles with cylinder capacity of at least 2000cc was reduced on a phased basis from 40 per cent, with the zero per cent duty coming into effect on January 1, 2023.

However, the finance minister clarified that the import duty was not the only tax applicable to these imports.

"It should be noted, however, that the charges applied to all imported motor vehicles, regardless of origin, include Special Consumption Tax (SCT), General Consumption Tax (GCT) and other fees. All of these remain in place," Clarke emphasised.

Clarke further explained that the following conditions need to be satisfied for persons to benefit from the reduced import duty rates under the CARIFORUM-EU EPA:

  • Imports must be under the CARIFORUM-EU and CARIFORUM -UK Agreements.
  • Commodities must be directly consigned from an EU member state or the United Kingdom to Jamaica.
  • Where transit or transhipment is necessary, the items must remain under customs control in the third country.
  • Product specific rules of origin must be met.
  • Commodities must be accompanied by a valid and original Movement Certificate, EUR1.

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