Calculating Duties


The first step is to find the CIF Value of the Item(s) being imported. Each duty, tax or fee is a percentage of, or is directly related to the CIF Value of the Items being imported. These duties, taxes and fees are collectively referred to as ‘Duties’. After the CIF Value is found, the next step is to find out which duties, taxes or fees apply to the item being imported. One way to do this is to classify the item(s), that is, to see where in the Common External Tariff the item falls. This will tell us the Tariff code and what rate of Import Duty applies, as well as Guide us in determining which taxes and fees apply to the particular item(s). The rate of exchange on the day the goods arrived in Jamaica is used to convert The CIF Value of the Item(s) into Jamaican dollars. All Duties are payable in Jamaican dollars.

Step #1

For this example the Item imported is a 42” Television The Television was purchased in the USA for US$450.00 The importer, John John, purchased the item online and had it sent by air to Jamaica. He paid US$120 to freight the Television to Jamaica First we find the CIF Value for this Item which is $450+$120+$5.70 = US$575.70

Step #2

Then we find where the item is classified in the Customs Tariff. When we find the item in the Tariff then we can know what duties, taxes and fees this item attracts. In this case this item attracts: Import Duty (ID): 20% General Consumption Tax (GCT): 16.5% (since it is a personal item) Standard Compliance Fee (SCF): 0.3% Customs Administration Fee (CAF): J$2500 Environmental Levy (ENVL): 0.5% Stamp Duty: J$100

Step #3

Next we find the rate of exchange (ROE) on the day the item arrived in Jamaica. Let say the ROE from US Dollars to Jamaican Dollars is 106.31; then the CIF Value in Jamaican dollars would be : 106.31 * US$575.70= J$61,202.67 Now let us calculate the total Duties: ID => 20% X J$61,202.67 = J$12,240.53 SCF=> 0.3% X J$61,202.67 = J$183.61 CAF=> J$2,500.00 ENVL=> 0.5% X J$61,202.67 = J$306.01 GCT => To calculate GCT, the ID, SCF, CAF & ENVL is first added back to the CIF (J$12,240.53 + J$183.61 + J$2,500.00 + J$306.01 + J$61,202.67 = J$76,432.82) GCT => 16.5% X J$76,432.82 = J$12,611.42 Stamp Duty=> $100

Step #4

The Total Duties would be the sum of all of the above (ID+SCF+CAF+ENVL+GCT+STAMP DUTY) = J$27,941.57 The Total Aggregate rate of Duty in this case is approx. 42%