Jamaica’s bid to continue importing lithium-ion batteries without regional tax hits snag
Published:Friday | December 29, 2023 | 2:45 PM
The Ministry of Science, Energy, Telecommunications and Transport has advised that a 20 per cent tariff will be applicable to the importation of lithium-ion batteries from outside the CARICOM region as of January 1.
A two-year suspension of the common external tariff (CET) is in place until the end of December, and Jamaica requested a further two year extension at a November meeting of the Council for Trade and Economic Development (COTED).
However, the ministry said in a media release on Friday that a Barbados-based company has objected to Jamaica's application, indicating through the Barbados government that they produce the type of lithium-ion batteries being requested for CET suspension.
The ministry said the necessary due diligence is now being done by the Jamaican authorities to assess the Barbadian company's certificate of origin and their ability to meet the specifications and provide the quantities required by Jamaica's renewable energy sector.
The company from Barbados has been asked to provide the relevant information by no later than January 5, 2024, to allow for the preparation of the Government of Jamaica's response to COTED.
"Due to the objection raised by the Barbadian company, a 20 per cent CET will be applicable to the importation of lithium-ion batteries from outside the region as of 1st January 2024. While the country's renewable energy stakeholders should remain guided by the Jamaica Customs Agency, it should be noted that only lithium-ion batteries imported for use in solar applications will be exempt from GCT," the ministry stated.
The CET is applied by all participating countries on select products. It effectively raises the price of imports from outside of the region, giving internally manufactured products a competitive advantage.
Follow The Gleaner on X and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com.