Here is a breakdown of the guidelines and which vehicles benefit the most

Earlier in January, Finance Minister Dr Nigel Clarke announced that the Jamaican Government is removing the duty on European vehicles imported into the country.

This action stemmed from the economic partnership agreement (EPA) signed between Jamaica and the European Union (EU) back in 2008. The EPA, a free trade agreement aimed at fostering trade and investment between the two regions, has paved the way for a surge in accessibility and competition within Jamaica’s automotive market.

Specifically, for Chapter 87 goods, which include motor vehicles, duty breakdowns have been established to facilitate imports. For instance, motor vehicles with engine capacities exceeding 1000cc but not exceeding 1500cc, imported by individuals using gasoline, which previously attracted an import duty of 20 per cent now attract a 0 per cent import duty rate under the EPAs, while the General Consumption Tax (GCT) remains at 15 per cent and the Special Consumption Tax on Fuel (SCTA) at 20 per cent.

In the case of electric vehicles imported by individuals, with an electric motor for propulsion and manufactured within the past three years, a preferential import duty rate of 0 per cent is applied. Similarly, the GCT remains at 0 per cent, exempted under the GCT Act, while the SCTA stands at 0.5 per cent.

The Jamaica Customs Agency (JCA) has published a guide on the requirements to qualify for duty exemption, which can be found on its website:

• The vehicles must be manufactured or made in any of the EU member states or the United Kingdom.
• The vehicles must meet the requisite origin criteria.
• Vehicles with a date of report prior to January 1, 2023, are not eligible to access preferential rates of 0 per cent under the EPAs.
• A valid, original Movement Certificate EUR.1 must be submitted with your import declaration or a declaration given by the exporter on an invoice, a delivery note, or any other commercial document which describes the products concerned in sufficient detail to enable them to be identified.
• Vehicles must be directly consigned from the exporting EU/UK member state to Jamaica.

Speaking with Our Today, Lynvalle Hamilton, president of Jamaica Used Car Dealers Association (JUCDA), said, “While there are some dealers who are seeing benefits from the duty changes, not a wide selection of the used car dealers opt to import European vehicles due to the high prices coming out of the UK, the better option for them is usually vehicles coming out of Japan.”

Christina Taylor, group marketing manager at ATL Automotive Group confirmed with Our Today, that ATL has not yet obtained units that benefit from the duty removal.

Taylor was mum, however, as to when these new vehicles would arrive in the country.

While she was unable to reveal specific sales information, she confirmed that among motor vehicles where the removal of duty under the EPA applies, the savings will be passed on to customers.