Importing Japanese used cars to Jamaica

Calculating tax and import duties

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.

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., 150x3/200 = 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.

Household Items for Personal Use

Stoves, fans (table or floor), washing machines, blenders, electric water heaters, turntables, radios attract Import Duty and GCT.

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.

Goods Exempt from Import Duty

The Customs Tariff, Item 6 of the Second Schedule, allows for each passenger to receive duty concessions in respect of the following:

1. Reasonable quantity of wearing apparel, articles of personal adornment and toilet requisites whether new or used;

2. Instruments and tools to be used by him for the purpose of his profession, trade, occupation or employment, provided that they have been in his possession and bona fide use for a reasonable period;

3. Tobacco and some potable articles including wines and spirits in his baggage or on his person which he might reasonably be expected to carry with him for his personal use, in such quantities as the Commissioner may from time to time approve;

4. Used household effects which have been in the passenger's use for a reasonable period of time and are not imported for sale;

5. A passenger who is eighteen (18) years or older and who is the holder of a Jamaican passport or is ordinarily resident in Jamaica is entitled to additional duty concession in respect of other personal or household effects not specified in (1), (2), (3) above which the proper officer is satisfied are not imported for sale or commercial exchange and do not exceed One Thousand Jamaican Dollars (JA$1,000) in total value. This concession will not be granted to a person who has been permitted duty free importation under this section within the six-month period immediately prior to the date of this return to Jamaica.

What are Personal and Household Effects?

Personal effects are those items which are:

(i) worn on the body, that is, wearing apparel and articles of personal adornment;

(ii) basic to the individual, for example, toilet requisites, medicine.

Household effects are those items basic to the home, for example, furniture, television, radio, stove, and refrigerator.

Personal and household goods which are not in commercial quantities and some other items may be cleared without the services of a licensed Customs Broker. Goods which have a CIF value of the Jamaican equivalent to United States One Thousand Dollars (US$1,000) or less may be cleared without the services of a licensed Customs Broker. The clearance of goods valued in excess of this amount will require the services of a licensed Customs Broker.

Returning Residents (who resided abroad for more than 3 years)

Returning residents who satisfy the under mentioned condition would be eligible for additional duty concessions in respect of personal and household effects and/or tools of trade.

a. be a Jamaican national who has attained the age of eighteen (18) years;
b. have been resident overseas for not less than three (3) consecutive years; and
c. be returning to Jamaica to reside permanently.

Are there any Special Cases?

1. Returning non-Jamaican spouses or persons who qualify as Returning Residents will be afforded the same concession as their Jamaican partner.

2. Returning students who have attained the age of eighteen (18) years and who have studied abroad for more than one (1) year but less than three (3) consecutive years will qualify for concessions in respect of tools of trade and some personal and household effects.

3. Jamaicans who gave up their citizenship (and can provide proof of their previous status) and who return home will be granted the status of a Returning Resident with the attendant benefits.

IMPORTANT INFORMATION FOR RETURNING RESIDENTS

If you intend to return to Jamaica to reside permanently, you should contact the Returning Residents Facilitation Unit at the Ministry of Foreign Affairs and Foreign Trade or any of the Jamaican Embassies or Consulates in foreign countries in order to obtain a copy of the Returning Residents Information Pack.

Your eligibility for concessions as a Returning Resident is established by the Department of Customs. This must be done after your arrival in Jamaica and before you begin the process of clearing your personal and household effects and /or tools of trade.

All goods should be imported within six (6) months before or after the arrival in Jamaica of the Returning Resident.

Please ask at this Unit for the list of concessions to which you are entitled. In order to establish your eligibility for duty concessions, you will be required to submit:

• your passport;
• such documentary evidence as may substantiate your permanent residence outside of Jamaica for more than three (3) consecutive years. Note that short visits to Jamaica for vacations, et cetera will not affect your eligibility;
• such documentary evidence as may substantiate your intention to re-establish permanent residence in Jamaica;
• in the case of a student, you will also have to provide a letter from your university, college or educational institution confirming the duration of your course of study or time spent at that institution; and
• the Unaccompanied Baggage Declaration Form (C27) which you received at the airport on arrival in Jamaica.

Import License

Issued by the Trade Board Limited authorising the importation of the motor vehicle. (Telephone: 876-926-3130)

Title

A document issued to the owner of the vehicle by the Government of the country where the vehicle was purchased.

Bill of Lading/Order

Obtained from the shipping agent with information about the particulars of the vehicles, the date it landed in the island and port of entry.

Invoice

For a new motor vehicle (that is, a vehicle under 3,000 miles) an invoice from the supplier is required.

Bill of Sight

This is a document on which details of the motor vehicle being imported are recorded. It is prepared and signed by the owner of broker and certified by the Customs.

Tax Compliance Certificate (TCC)

Obtained from the Revenue Board.

Import Entry - C78

This is the primary import document on which all particulars of the motor vehicle, the name of the importer, shipping information and the duties paid are recorded. It is completed by the broker and submitted to Customs. Only a licensed customs broker should complete this form.

Note: All persons/organisations seeking to import buses into Jamaica must first obtain the approval of the Ministry of Water and Transport.

Customs Examination of Goods

In simple cases involving small shipments or certain classes of goods such as bulk shipments, examination may usually be made on the docks, at container stations, cargo terminals, or the importer's premises.

The goods are then released to the importer. In other shipments, representative packages of the merchandise may be retained by Customs for appraisal or classification purposes and the remainder of the shipment released.

These packages will also be released to the importer after examination has been completed.

Examination of goods is necessary to determine:

If necessary, goods may be analyzed by a Customs laboratory to determine proper classification and appraisal.

When examination or appraisal of the goods by Customs reveals differences from the entered descriptions in terms of characteristics, quantity or value, or when Customs finds that a different rate of duty than the one indicated by the importer applies, an increase in duties may be assessed.

When all the information has been acquired, including the report of the Customs import specialist as to the customs value of the goods, and the laboratory report, if required, a final determination of duty is made. This is known as liquidation of the entry. At this time, any overpayment of duty is returned or underpayments billed

More info contact

Jamaica Customs Department
P.O. Box 466
Marcus Garvey Drive, Newport East
Kingston 16
Jamaica, W.I.
(876) 922-5140-9

Export Jamaica website