International and Industry Liaison Unit

The International and Industry Liaison Unit plays a pivotal role within the Jamaica Customs Agency in its thrust to facilitate trade. The unit has oversight responsibility for:

1. Reviewing, implementing and disseminating relevant trade, tax and policy information
2. Maintaining the tariff and trade databases
3. Building capacity through training and sensitization for both internal and external stakeholders.

Free Trade Agreements assist Jamaican importers and exporters by providing improved access for goods and/or services in contracting states, and by reducing trade barriers in those markets. Among other things, FTAs:

1. Grant preferential tariff rates for originating goods traded among contracting parties;
2. Establish the rules by which goods can qualify as originating;
3. Outline Customs procedures for accessing preferential tariff rates;
4. Set out the general principles for customs procedures among the contracting parties of an Agreement

Practical Guidance to Using FTAs:

1. Determine the proper tariff classification for the goods
2. Consult specific FTA to ascertain if products of that tariff heading are eligible for preferential access
3. Consult specific FTA to find out the rules of origin relevant to the specific goods to be traded
4. Ensure that you meet the direct consignment rule
5. Ensure that you have and maintain correct and complete documentation for the goods

In order to benefit under an FTA:

1. The trader must present a valid, original certificate of origin for the goods seeking preferential access when submitting the relevant import declaration;
2. The goods must also have been directly consigned from the relevant exporting contracting party to Jamaica.

Process for Determining Eligibility for Preferential Trade:

1. Classify Commodity – In determining eligibility for preferential market access, the first step should be to properly classify the preference-seeking commodity. Proper tariff classification should be done in accordance with the World Customs Organization’s (WCO) Harmonized Commodity Description and Coding System (HS).
2. Identify the Relevant Trade Agreement – Market access eligibility of a commodity is determined by the specific FTA which covers the trading process. Each agreement is unique as it relates to the commodity in question, so the specific FTA must be consulted in order to make the determination.
3. Determine Tariff Treatment – Once the relevant trade agreement is identified, the classified commodity will be used to determine if preferential market access is covered under the specific agreement. Each FTA is structured uniquely and must be consulted to determine eligibility. Some FTAs may take the approach to list tariff lines that will attract Most Favourable Nations (MFN) rates, while others will list tariff lines that are eligible for duty-free treatment.

Determining Proof of Origin

Determining Proof of Origin is dependent on the applicable rules of origin used in a particular FTA. Each FTA will outline the specific origin criteria that are required to determine the origin of the particular commodity. Proof of Origin is often satisfied through the submission of documentary evidence to Customs in the form of a Certificate of Origin, evidence of direct consignment e.g. Bill of Lading, and all other supporting documents such as the invoice.

Rules of Origin – All FTAs define their general rules of origin and identify their product specific rules of origin which relate to goods comprising non-originating materials. These rules have to be satisfied to fulfill the origin criteria for the specific FTA.

Direct Consignment/Transport – is a condition that has to be satisfied in order to obtain preferential market access. The importer should provide proof that the goods have been directly transported or consigned from the exporting country to the preference granting country. If goods have been transshipped, activities should be limited to the loading and offloading of goods or operations to preserve the condition of the goods, and should remain under Customs Control.

Documentary Evidence – must be presented to Customs when seeking preferential market access and consists of documents which attest to the fulfillment of the origin criteria.

Certificate of Origin – This is a declaration duly signed by the competent authority in the country of export attesting to the origin of the preference-seeking goods. This serves as the proof of origin and validates the origin status of the commodity being traded under the specific FTA. The certificate of origin must be valid, submitted in original and be stamped and signed by the designated authority of the issuing country.

Bill of Lading – shows the movement of goods from exporting country to importing country and can be used as evidence of direct transport/consignment.

CARICOM – CUBA Trade and Economic Cooperation Agreement (TECA)
The CARICOM-Cuba Trade and Economic Cooperation Agreement (TECA) is a reciprocal Agreement which was signed on July 05, 2000, between thirteen (13) CARICOM Member States and the Republic of Cuba.

The Bahamas and Haiti are not signatories to the Agreement. This Agreement was ratified by Jamaica on July 29, 2014 and fully implemented on March 16, 2015.

The TECA is a Partial Scope Agreement, mainly focused on the trade in goods, which committed the Parties to working towards the eventual conclusion of a full Free Trade Agreement in 2001.

The Less Developed Countries (LDCs) of CARICOM are not required to extend preferential duty access to Cuban exports.
The TECA has an agreed timetable for negotiating a trade in services regime, and commits the Parties to the adoption of a double taxation agreement, the reciprocal promotion and protection of investment, and the development and adoption of an agreement on Intellectual Property Rights.

ANNEX I – LIST OF EXPORTS FROM CARICOM ON WHICH CUBA WILL GRANT DUTY FREE ACCESS
ANNEX II – LIST OF EXPORTS FROM CUBA ON WHICH CARICOM WILL GRANT DUTY-FREE ACCESS (These items can be imported duty-free)
*Annex III – LIST OF ITEMS ON WHICH CUBA WILL GRANT PHASED REDUCTION OF DUTY TO CARICOM
*Annex IV – LIST OF ITEMS ON WHICH CARICOM WILL GRANT PHASED REDUCTION OF DUTY TO CUBA (These items can now be imported duty-free)
ANNEX V – SCHEDULE FOR LIST OF SELECTED AGRICULTURAL PRODUCTS TO BE SUBJECT TO SPECIAL TRADING ARRANGEMENTS WHEN IMPORTED INTO CARICOM MDC’S FROM CUBA AS APPROVED

1. CARICOM – Costa Rica Agreement

The CARICOM – Costa Rica Free Trade Agreement was signed on March 09, 2004. It covers trade in goods and provides for further negotiations in Competition Policy, Government Procurement, Double Taxation and Services. The FTA is based on reciprocity with the five (5) More Developed Countries of CARICOM namely Barbados, Guyana, Jamaica, Suriname and Trinidad and Tobago. However, the Less Developed Countries (LDCs) of CARICOM are not required to grant preferential treatment to products originating in Costa Rica.

Annex III.04.2 of the FTA, outlines the Tariff Elimination Schedule where products not included in this Annex will benefit from free trade immediately upon the entry into force of the Agreement. I.e. All products not listed in the FTA are eligible for duty-free importation to the CARICOM MDCs, once the origin criteria are met.

The Agreement entered into force for Jamaica on March 16, 2015, following its ratification by the Parliament on July 29, 2014.

Annex III.04.2 distinguishes the products based on the following lists and defines the conditions for importation:

1. SPECIAL TREATMENT FOR SELECTED AGRICULTURAL PRODUCTS
   
   1. Treatment of selected agricultural products imported into CARICOM from Costa Rica
   2. Treatment of selected agricultural products imported into Costa Rica from CARICOM MDCs
2. EXCLUDED PRODUCTS
   
   1. CARICOM LIST
   2. Costa Rican List
3. PRODUCTS SUBJECT TO TARIFF ELIMINATION SCHEDULES
   
   1. CARICOM LIST
   2. Costa Rican List
4. Special List
   
   1. CARICOM LIST
   2. Costa Rican List
5. Special Treatment for Heading 0201 and 0202 Article 03 Special treatment applicable to Oils, Fats and Soaps
   
   1. CARICOM list
   2. Costa Rican List

CARIFORUM – EU EPA

The CARIFORUM – European Union Economic Partnership Agreement (EPA) is a region-to- region trade and development Agreement. Jamaica signed the EPA on October 15, 2008, and the Agreement was provisionally entered into force on December 29, 2008. Although Jamaica has not yet ratified the EPA, the duty-free and phased reduction of duties on the importation of goods from the EU was implemented as of September 14, 2012.

1. The EPA provides for immediate duty-free access to the EU market for all goods coming out of the CARIFORUM region, which comprises the participating members of CARICOM and the Dominican Republic.
2. The EPA excludes arms and ammunition, as well as out-of-quota sugar exports.
3. Certain goods can be imported to CARIFORUM from the EU duty-free, while other goods are subject to a phased reduction of duties based on a gradual liberalization schedule of customs tariffs.
4. The agreement also includes an Exclusions List of CARIFORUM-designated sensitive products that will not be subject to liberalization. The major exclusions are agricultural and processed agricultural products; fisheries products, chemicals, furniture, various industrial goods, spirits and spirituous beverages, aerated beverages and fruit juices.
5. Rules of Origin have been improved to accommodate essential materials originating from third countries required for input for manufacturers to be exported to the EU such as [processed] agricultural products, fisheries, textiles and clothing.

CARICOM – Venezuela Agreement

The Agreement on Trade, Economic and Technical Cooperation between the Caribbean Community (CARICOM) and the Government of the Republic of Venezuela is a Partial Scope Agreement, primarily focused on trade in goods, but it also provides a framework for parties to work together for the promotion of services and investment, and double taxation agreements. It was signed in October 1992, and entered into force on January 01, 2000. A range of goods are allowed to enter Venezuela duty-free. This preferential access, however, is not extended to certain products which are mainly beef, milk, coffee, rice, flour, cooking oils and related products, cocoa beans, cement and related products, orange juice, mineral fuels, mineral oils and related products, medicaments, paints and varnishes, insecticides, disinfectants, plastics, glass products, iron products, and television sets.

Venezuela agrees to grant products originating in CARICOM, free and unilateral access to its market by means of the implementation of programmes of tariff reduction and the elimination of non-tariff barriers.

The Annexes to the Agreement outlines certain goods originating in CARICOM that will receive duty-free access to the Venezuelan market.

ANNEX 1– PRODUCTS FROM THE CARICOM EXPORTABLE OFFER WITH DUTY FREE ACCESS TO THE VENEZUELAN MARKET (These items can be exported to Venezuela duty-free)

ANNEX II – PRODUCTS FROM THE CARICOM EXPORTABLE OFFER SUBJECT TO PHASED REDUCTION (These items can now be exported to Venezuela duty-free)

ANNEX III – PRODUCTS FROM THE CARICOM EXPORTABLE OFFER TO BE INCLUDED IN THE EXCEPTIONS LIST (These items cannot be exported to Venezuela duty-free)

The Petro Caribe Agreement between CARICOM and Venezuela – allows market access of certain petroleum products to CARICOM.

CARICOM – Colombia Agreement
The Agreement on Trade, Economic and Technical Cooperation between the Caribbean Community (CARICOM) and the Government of the Republic of Colombia is a Partial Scope Agreement, which is focused on trade in goods, while providing a framework for future collaboration among contracting parties in the areas of services and investment. This Agreement was signed on July 24, 1994 and entered into force on June 01, 1995. This Agreement has also not been very active.

1. In promoting trade liberalization, this Agreement recognizes the difference in the levels of development between Colombia and CARICOM, particularly the Less Developed Countries (LDCs) of CARICOM.
2. This FTA is based on reciprocity between Colombia and the More Developed Members of CARICOM, namely Barbados, Guyana, Jamaica and Trinidad and Tobago.
3. The CARICOM LDCs shall not be required to grant tariff concessions to exports of Colombia into their territories.

The tariff liberalization schedule is annexed to the Agreement and relates to the treatment of goods originating from both CARICOM and Colombia.

Annex I – Products for which immediate duty-free concessions will be offered by Colombia on imports originating in CARICOM member states participating in the Agreement from June 01, 1998.
Eg. Jamaican originating products listed in Annex I will get duty-free treatment when exported to Colombia.

Annex II – Products for which immediate duty-free concessions will be offered on imports originating in Colombia into the MDCs of CARICOM participating in the Agreement from June 01, 1998
Eg. Colombian originating products listed in Annex II will get duty-free treatment when imported into Jamaica.

*Annex IV – Products to be accorded duty reduction in the markets of CARICOM MDCs participating in the Agreement on imports originating in Colombia from January 01, 1999
Eg. Colombian originating products listed in Annex IV will get duty-free treatment when imported into Jamaica.

CARICOM- Dominican Republic Free Trade Agreement

The CARICOM – Dominican Republic Free Trade Agreement was signed on August 22, 1998 and was provisionally entered into force in December 2001, following the signing of the Protocol implementing the Agreement on April 28, 2000. While the Agreement is focused on the trade in goods, it also provides an agreed time-table for negotiating a trade in services regime and commits the Parties to doing the same for reciprocal promotion and protection of investment and for government procurement.

1. The FTA is based on reciprocity with the five (5) More Developed Countries (MDCs) of CARICOM and non-reciprocity for CARICOM’s Less Developed Countries (LDCs). The Agreement was implemented on March 16, 2015, following its ratification by Parliament on July 29, 2014, which completed the legislative process necessary to give formal effect to the FTA.
2. Annex I to the Agreement covers trade in goods, where each Party agrees to grant market access to each other under specific arrangements.

ATACHMENT I – GOODS WHICH SHALL BE SUBJECT TO PHASED REDUCTION OF MOST FAVOURED NATION RATE OF DUTY (These goods can now be imported duty-free)

ATTACHMENT II – GOODS WHICH SHALL BE SUBJECT TO MOST FAVOURED NATION RATE OF DUTY (These items are dutiable)

ATTACHMENT III – SPECIFIC CRITERIA UNDER RULES OF ORIGIN

ATTACHMENT IV– LIST AND SCHEDULES OF SELECTED AGRICULTURAL PRODUCTS WHICH SHALL BE SUBJECT TO SPECIAL TRADE ARRANGEMENTS (These items may be imported duty-free at certain times of the year as specified)

Caribbean-Canada Trade Agreement (CARIBCAN)

The Caribbean-Canada Trade Agreement (CARIBCAN) is a non-reciprocal preferential trade agreement established between the Commonwealth countries of the Caribbean and Canada.

1. This agreement grants unilateral duty-free access to eligible goods from the beneficiary countries of the English-speaking Caribbean (Commonwealth) until December 2013.
2. The Agreement, and the subsequent waiver granted by the WTO to extend trade arrangements between the Commonwealth and Canada has since expired. However, qualifying exports of the Commonwealth are still allowed preferential access to Canada.
3. CARIBCAN is a preferential arrangement guaranteeing duty-free access to Canada for a wide range of products excluding textiles and apparel, footwear, luggage and handbags, leather garments, lubricating oils and methanol.
4. Other items are eligible for duty-free status if they can be certified as being grown, manufactured or produced within the Commonwealth-Caribbean or Canada.
5. Strict Rules of Origin apply to most goods to be exported from Jamaica to Canada.

Caribbean Basin Initiative (CBI)

The CBI comprises the Caribbean Basin Economic Recovery Act of 1983 (CBERA) and the Caribbean Basin Trade Partnership Act of 2000 (CBPTA).

1. Under the CBTPA, apparel manufactured in eligible CBI countries from U.S. yarns and fabric, as well as non-textile products excluded from earlier CBI legislation, will enter the United States free of quota and duty.
2. The CBI Act was established by the US in 1984 to provide economic aid to Jamaica (and 23 other countries in the Caribbean and Central America) through the waiver of tariff benefits.
3. Most products manufactured or grown in CBI beneficiary countries are eligible for duty-free entry into the United States.

Some of the most successful CBI eligible products that have been developed for export by both U.S. and Caribbean Basin companies include:

1. Electronic and electro-mechanical assembly
2. Handicrafts, giftware, and decorative accessories
3. Wood products, including furniture and building materials
4. Recreational items, such as sporting goods and toys
5. Fresh and frozen seafood
6. Tropical fruit products and winter vegetables
7. Ethnic and specialty foods, such as sauces, spices, liqueurs, jams, and confectionery items
8. Ornamental horticulture
9. Medical and surgical supplies

The Revised Treaty of Chaguaramas (RTC) between Members of the Caribbean Community (CARICOM)

The Treaty of Chaguaramas, established the Caribbean Community (CARICOM) and the Common Market in 1973, in hopes of achieving regional integration among the Members of the Community. It rests on four (4) main pillars: economic integration, foreign policy coordination; human and social development and security.

The Treaty was later revised in 2001, creating the Revised Treaty of Chaguaramas (RTC) which saw the birth of the CARICOM Single Market and Economy (CSME). The CSME is at the heart of CARICOM’s economic integration which seeks to create a single economic space for the production of competitive goods and services, to ensure the region’s growth and development. This is supported by its five regimes: free movement of goods, people, services, capital and the right of establishment of business.

1. The Goods Regime of the CSME promotes the free movement of goods throughout CARICOM and establishes a customs union which is supported by the Common External Tariff (CET). The CET is a rate of duty applied by all Members of the Common Market to a product imported from a third country.
2. Countries outside of CARICOM are referred to as third countries, and are therefore required to pay import duties on their exports to CARICOM.
3. Members that participate in the goods regime are not required to pay import duties, other duties and charges (ODCs) and additional stamp duty on goods originating in the Common Market.