CARICOM CET: How Caribbean Imports Are Taxed

The Caribbean Community (CARICOM) operates a Common External Tariff (CET) across its full member states. The CET is the formal external tariff applied to imports from outside the bloc; intra-CARICOM trade in goods of CARICOM origin moves duty-free under the CARICOM Single Market and Economy (CSME). For importers shipping into Jamaica, Trinidad and Tobago, Barbados, Guyana, or the smaller member states, the CET plus the member-state taxes are the duty bill.

This guide covers the CET structure, conditional duty exemptions, member-state specifics, and a worked example for a Jamaica import.

The CET structure

The CARICOM CET uses ad valorem rates in bands generally from 0 to 40 percent. Common rates:

• 0% on most raw materials and capital goods for industry
• 5% on basic raw materials and inputs
• 10% on intermediate goods
• 15% on machinery and certain semi-finished
• 20% on finished consumer goods (general)
• 25% on certain finished goods including some textiles
• 30% on selected agricultural goods
• 35% on selected sensitive agricultural goods
• 40% on certain finished goods on the most-protected list

The 40 percent band covers fewer items than the highest bands in ECOWAS or EAC. The Caribbean economies generally rely more on consumption taxes (VAT) than on duty for revenue.

Conditional duty exemptions (CDE)

A unique feature of CARICOM is the Conditional Duty Exemptions list. Goods on the CDE list can enter at zero duty if used for an approved purpose. The purposes include:

• Agriculture and fisheries production
• Industry and mining
• Tourism (hotel construction, supplies)
• Education
• Health and medical services
• Sport
• Energy

To use a CDE, the importer must hold a license or approval from the relevant ministry. The exemption attaches to the use, not just the import.

Example: a hotel under construction in Saint Lucia can import certain construction materials at zero CET duty under the tourism CDE; the same materials imported by a private homeowner pay the standard CET rate.

Worked example: importing electronics into Jamaica

A US exporter ships 30,000 USD of consumer electronics (HS 8528.72, LED TVs) to Kingston. CET rate for finished consumer TVs: 20 percent. Jamaica GCT (General Consumption Tax, equivalent of VAT): 15 percent. Customs Administration Fee: 1.5 percent. Standard Compliance Fee: 0.3 percent.

Effective rate on FOB: 40.6 percent.

Worked example: importing agricultural inputs into Guyana under CDE

A US agribusiness ships 100,000 USD of fertilizer (HS 3105.30) to Georgetown, Guyana for use in approved agricultural production. The importer holds a Ministry of Agriculture license under the CDE. CET base rate: 5 percent; under CDE: 0 percent. Guyana VAT: 14 percent (zero-rated on certain inputs). Environment levy: 1 percent.

CDE exemption can be the difference between a substantial duty cost and zero. Verify CDE status for your end use carefully; CARICOM customs do follow up on the conditions.

Member-state specifics

CARICOM origin and CSME

Goods of CARICOM origin move duty-free among full CSME members. To qualify:

1. Wholly produced in CARICOM, or
2. Substantially transformed in CARICOM such that:
   • Non-originating materials undergo a change in tariff heading, or
   • Regional value content of at least 60 percent.

A CARICOM certificate of origin (Form CARICOM) is issued by the manufacturer and stamped by the relevant national authority.

The Bahamas is in CARICOM but not in CSME, so Bahamian goods do not move duty-free into the rest of CARICOM as a matter of right.

CARICOM-third-country preferences

CARICOM has preferential arrangements with:

• EU: CARIFORUM EPA (Economic Partnership Agreement). EU-origin goods generally duty-free into CARICOM, but with staging schedules for some categories. CARICOM exports also enjoy preferences into the EU.
• UK: CARIFORUM-UK trade continuity agreement after Brexit.
• Canada: CARIBCAN program (Canadian preference for CARICOM goods); reciprocal preferences proposed but not in force.
• Venezuela: a residual partial scope agreement; trade is constrained by sanctions.
• Cuba: bilateral agreements.

US goods do not benefit from preferences entering CARICOM. The Caribbean Basin Initiative goes the other way (CARICOM exports into the US duty-free for many lines).

Customs procedures

CARICOM members use ASYCUDA World as the common customs platform. Documents required:

• Commercial invoice with HS code, value, origin.
• Packing list.
• Bill of lading or AWB.
• Certificate of origin (Form CARICOM for intra-bloc; commercial invoice for third-country).
• Import license for restricted goods (firearms, certain chemicals, narcotics precursors, used vehicles).

Customs brokers are mandatory in most member states for non-personal imports. Broker fees typically 1 to 2 percent of CIF.

How the calculator handles CARICOM destinations

When you select a CARICOM destination in the calculator, the engine:

1. Looks up the CET rate from the CARICOM tariff schedule.
2. Asks if the import qualifies for a Conditional Duty Exemption.
3. Applies the member-state VAT/GCT on customs value plus duty plus fees.
4. Adds member-state-specific charges (Jamaica CAF, Guyana environmental levy, Trinidad online purchase tax where applicable).
5. Notes excise duty for alcohol, tobacco, vehicles.

Related guides

• ECOWAS Common External Tariff: Complete Guide
• EAC Common External Tariff: Sensitive Items and Rates
• Mercosur TEC: Calculating Argentina/Brazil/Paraguay/Uruguay Duty
• HS Code Lookup: How to Find Yours
• Incoterms 2020 vs Landed Cost: A Clear Guide
• Calculate Import Duty: USA to UK

Run a CARICOM import calculation in the calculator.