The Covid-19 Pandemic in 2020 has caused an increase in online shopping in Jamaica. An estimation of at least 800,000 Jamaicans is importing personal items into the island. However, many of these Jamaicans are ensuring that their products do not have the US$50 Free on Board (FOB) value online. Goods with no commercial purpose that are meant solely for private family use or consumption are personal items. Packages with a free onboard value of US$50 or less are exempt from customs fees, but once the value is higher, fees will be assessed on the entire amount.
Due to the expense of the Jamaica Customs Agency, online shoppers in Jamaica are skilfully trying to avoid the limit and ensure that their orders are US$49.99 and less. The FOB value of US$50 makes it almost impossible for online shoppers to purchase high-quality products online as products that are of higher quality will attract custom fees in Jamaica. Products imported to Jamaica are subjected to various taxes and duties like import duty, stamp duty, general consumption tax, special consumption tax, standard compliance fee, and customs administration fee. These taxes and duties imposed are in addition to the cost, insurance, and freight consumers usually pay to their shipping company which delivers their packages from overseas. The combination of duties and taxes places consumers at a disadvantage because online purchases above US$50 can end up costing consumers more than the product’s price.
Duties, Taxes, and Fees Collected by Customs for Imported Items:
The following duties, levies, and charges that customs collect on imported goods are the main causes of the high cost of customs in Jamaica. The total cost to clear an imported commodity may be higher than the price listed online once tariffs, taxes, and other charges are taken into account.
Import Duties/Custom Duties
A country’s customs agencies collect import duty, which is a tax, on imports and some exports. Import duty is often determined by the product’s worth. Import duty may also be referred to as a customs duty, tariff, import tax, or import tariff, depending on the context.
Stamp Duties
Governments impose a levy known as a stamp duty on legal papers that typically include the transfer of a real estate or other assets. On documents required to officially record such kinds of transactions, as well as on documents registering weddings, military commissions, copyrights, patents, and other similar events, governments may charge stamp duties, commonly known as stamp taxes. On receipts having a Cost Insurance and Freight (c.i.f.) value of Five Thousand Five Hundred Jamaican Dollars (J$5,500) or less, postage stamps with a value of Jamaican Five Dollars ($5) must be attached. The number of stamps required to be applied to receipts with values over this range is One Hundred Dollars ($100).
Additional Stamp Duties (ASD)
Items such as some aluminum products, alcoholic beverages, and cigarettes, as well as chicken and the majority of chicken parts, pork and some pork products, and beef and some beef products, are subject to an additional stamp duty charge.
GCT and SCT
There are two primary types of taxes under the General Consumption Tax Act. These are the General Consumption Tax (GCT) and Special Consumption Tax (SCT). Several levies and taxes, including excise duty, CARICOM duty, consumption duty, entertainment duty, retail sales tax, hotel accommodation tax, and telephone service tax, have been replaced by the general consumption tax (GCT) and special consumption tax (SCT) since October 22, 1991. Except for things that are zero-rated and services that are excluded from GCT, GCT is paid for all goods and services. Items with a zero rating receive 0% GCT. On a few products, SCT is due. These include most cigarette items, alcoholic beverages, and a few petroleum-based goods. The majority of products just draw GCT, however, some products attract both GCT and SCT.
Standard Compliance Fee
The customs agency collects this 0.3% fee on behalf of the Bureau of Standards. The CIF value is used to calculate the SCF.
Customs Administrative Fee (CAF)
The Customs Administrative Fee (CAF) is a tax levied in conjunction with or as compensation for importation or exportation that represents a rough estimate of the cost of the services provided.
Cost, Insurance, and Freight
Cost: This is the price of the items on a whole, excluding sales tax and interest but including the ex-factory price, commission, markup, and inland freight. Sometimes the price is FOB (Free on Board) or FOA (Free on Air)
Insurance: This is the insurance fee that must be paid to carry the products to Jamaica to guarantee that you will be able to receive compensation if the items are lost or damaged. An insurance charge is still necessary for valuation purposes even if you didn’t pay any insurance fees when shipping your products to Jamaica. The insurance fee for items coming by sea is 1.5% of the total Cost and Freight (c. & f.) and the insurance required for shipments arriving by air is 1% of the total Cost and Freight. For marine cargo, the insurance rate is 1.5 percent.
Freight: This includes inland freight, packaging, and handling costs. The freight name is the total price paid to a shipping firm or airline for goods being delivered to Jamaica.
Environmental Levy
Jamaica Customs Agency charges 0.5% of the cost, insurance, and freight (CIF) value of all imports.
The table below provides a more thorough breakdown of the levies, taxes, and other costs associated with importing certain products into Jamaica along with their percentages.
| Products | ID | GCT | SCF | ENVL | Stamp Duties | CAF | Total Duties |
| Clothing/footwear | 20% | 16.5% | 0.3% | 0.5% | $100.00 | $2500.00 | Approx 44% |
| Jewellery | 20% | 25% | 0.3% | 0.5% | $100.00 | $2500.00 | Approx 44% |
| Groceries | 20% | 16.5% | 0.3% | 0.5% | $100.00 | $2500.00 | Approx 44% |
| Phones | 20% | 16.5% | 0.3% | 0.5% | $100.00 | $2500.00 | Approx 54% |
| Laptops/computers (including Parts & Accessories) | 0% | 16.5% | 0.3% | 0.5% | $100.00 | $2500.00 | Approx 20% |
| Television | 20% | 16.5% | 0.3% | 0.5% | $100.00 | $2500.00 | Approx 44% |
| Stereo Systems | 20% | 16.5% | 0.3% | 0.5% | $100.00 | $2500.00 | Approx 44% |
| Auto Parts | 30% | 16.5% | 0.3% | 0.5% | $100.00 | $2500.00 | Approx 55% |
Abbreviation Key:
ID – Import Duties/Custom Duties
GCT – General Consumption Tax
SCF – Standard Compliance Fee
ENVL – Environmental Levy
CAF – Customs Administrative Fee
Due to the charges, levies, and fees levied by the Jamaican Customs Agency, online purchases can occasionally be expensive for a single customer. Businesses that frequently make large purchases are better off since they frequently receive discounts that can help to offset their customs expenses.
Learn about why Jamaican businesses import and export goods to and from other countries here.
