January 20, 2021

MONEY MOVESJA: HOW TO GET DUTY-FREE STATUS FOR YOUR BUSINESS IMPORTS

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Turns out you don’t always have to pay customs.  You or your business may be eligible for Productive Input Relief (PIR) from the Jamaica Customs Agency (JCA). Productive Input Relief allows eligible individuals to import certain items duty-free. If your business is in any of the following sectors, you can apply:

  • Manufacturers
  • Producers
  • Tourism
  • Creative Industries
  • Health

Visit EXIM Bank’s Business Advisory Service at:
https://eximbankja.com

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EPISODE GUEST

Orane Thompson

Supervisor, Customs Incentives Unit, Jamaica Customs Agency

You Don’t Have to Pay Customs – Get Productive Input Relief
By Janel Rodriguez 

Turns out you don’t always have to pay customs.  You or your business may be eligible for Productive Input Relief (PIR) from the Jamaica Customs Agency (JCA). Productive Input Relief allows eligible individuals to import certain items duty-free. Supervisor of JCA’s Incentive Unit, Orane Thompson, appeared on #MoneyMovesJa to tell us all about the PIR and how you can benefit.

In 2013, the government decided that certain sectors needed particular benefits, so they decided to allow waivers so those businesses could import the productive inputs used in their activities duty-free. 

“As the name suggests, it’s a relief based on the fact that you have inputs that are going to be used for productivity,” explained Thompson. 

He added that before 2013, there were no specific laws to allow particular sectors to receive duty exemptions. The Omnibus legislation was therefore created. Based on this legislation, an amendment was made to the Customs Act on January 1, 2014, allowing various sectors to qualify for Productive Input Relief. 

These Sectors are:

  • Manufacturers
  • Producers
  • Tourism
  • Creative Industries
  • Health

The importer is responsible to:

  • Keep proper books/records of concessionary items imported.
  • Allow the JCA to examine books/records/stocks of the organization.
  • Ensure that proper documentary evidence and approval have been ascertained before transferring concessionary items.

The benefits are specific to each category and there are specific items listed under each category. For now, each sector is governed by a particular ministry or agency through which individuals must apply. However, Thompson says JAMPRO is working on a national portal where all the incentives can be applied for under one umbrella. 

If you want to benefit from Productive Inputs Relief (PIR), you must first apply to the Ministry or agency that regulates your sector. These are: 

  • Manufacturers and producers – Ministry of Industry, Commerce, Agriculture and Fisheries (MICAF) 
  • Tourism Industry – Ministry of Tourism 
  • Creative Industries – JAMPRO
  • Healthcare Sector – Ministry of Health 

Relief includes exemption from Common External Tariffs (CET) along with other taxes. You can apply for the exemption over and over, each time you import.  If you are an eligible business owner, make it a priority to apply for Productive Input Relief so that you can avoid import costs and stamp duties on some items and save save save! 

For more information, contact the Customs Incentive unit at (876)-922-5141-9 or email them at incentivesinfo@jca.gov.jm