The Ministry of Industry, Investment, and Commerce (MIIC) has revealed that the Government of Jamaica has secured extension approval for the suspension of the Common External Tariff (CET) on 91,600 units of lithium-ion batteries.

According to the ministry, the decision to extend the CET suspension came from CARICOM’s Council for Trade and Economic Development (COTED) and will take effect from February 2, 2025, to February 1, 2027.

Minister of Industry, Investment, and Commerce Senator Aubyn Hill underscored the significance of the CET suspension, noting that, “With the removal of the tariff on lithium-ion batteries, we are reducing operational costs for companies. This enables them to allocate resources toward expanding operations, adopting advanced energy solutions, and driving innovation. These advancements will enhance productivity and also stimulate job creation and investment, fuelling Jamaica’s economic growth.”

The CET suspension follows a thorough verification process led by the MIIC and supported by the Ministry of Foreign Affairs and Foreign Trade, Ministry of Finance and the Public Service, and Ministry of Science, Energy, Telecommunications and Transport as well as the Bureau of Standards Jamaica (BSJ) and the Jamaica Customs Agency to ensure compliance with Article 83 of the Revised Treaty of Chaguaramas.

“This subsequently necessitated an audit exercise conducted through an on-site visit by the key ministries and the BSJ to Barbados in October 2024 to assess the capabilities of OnSolar Inc., a regional lithium-ion battery producer. The audit revealed that the company could not meet Jamaica’s technical specifications and quantity requirements, paving the way for Jamaica’s successful application for CET suspension approval at the 59th Regular Ministerial Meeting of the Council for Trade and Economic Development (COTED) held on November 27, 2024,” a release from the MIIC outlined.

COTED’s decision should significantly boost Jamaica’s renewable energy market by allowing local businesses to import lithium-ion batteries duty-free, thus reducing the cost of investment in energy storage solutions. Lithium-ion batteries are integral to renewable energy systems such as solar and wind power, which require efficient storage capacity, as it ensures a reliable energy supply.

The suspension of the CET aligns with the Government’s broader strategy to diversify energy resources, promote green technology innovation, and advancing the nation’s renewable energy goals.

MIIC said it will continue collaborating with the Ministry of Science, Energy, Telecommunications, and Transport, as well as with stakeholders to maximise the benefits of the tariff suspension.

In the meantime, the ministry encouraged businesses and consumers “to leverage this opportunity to integrate high-quality, cost-effective lithium-ion battery technologies into their operations and lifestyles.

“The Government will conduct public awareness campaigns and industry consultations to inform all stakeholders about the benefits and implementation process of this initiative,” it added.