European automobiles will be able to be imported duty-free to Jamaica starting this year, according to the Delegation of the European Union (EU). Her Excellency Marianne Van Steen, Ambassador of the EU to Jamaica, announced this during the Delegation’s Europe Day Reception in 2023 and emphasized the EU’s dedication to supporting Jamaica in reaching its development objectives.
Jamaica is a member of the Caribbean Community (CARICOM) and the Caribbean Forum (CARIFORUM) Group of countries. As part of this group, Jamaica signed the CARIFORUM-EU Economic Partnership Agreement (EPA) in 2008. The free-trade agreement has been in force for 15 years, and almost all transitional arrangements have ended. This means that from this year, individuals who enjoy European cars will be able to import them without paying any duties.
Following this announcement, Finance Minister Dr Nigel Clarke clarified that while European vehicles can now be imported duty-free, several other taxes and fees will still apply to such imports. The duty rate on motor vehicles with a cylinder capacity of at least 2000cc has been reduced on a phased basis from 40 per cent, and zero per cent duty came into effect on January 1, 2023.
However, it should be noted that the import duty is not the only applicable tax for these imports. Other charges, including Special Consumption Tax (SCT), General Consumption Tax (GCT), and additional fees, apply to all imported motor vehicles, regardless of origin.