BELMOPAN, Belize– The government of Belize says as of January 1 this year, the import duty on condensed milk imported into CARICOM from all non-CARICOM sources has been increased to 30 percent after Jamaica gave the commitment to supply the region with the product.
The Ministry of Foreign Affairs, Foreign Trade and Immigration said the recent policy change applies to all CARICOM countries that participate in the CARICOM Single Market and Economy (CSME) that allows for the free movement of goods, services, labor and skills across the15-member grouping.
The ministry said under the Revised Treaty of Chaguaramas (RTC), which established the CSME, if a particular product, such as condensed milk, is being produced in a CARICOM state, then such producer is entitled to protection in the regional market through the Common External Tariff (CET) through the application of high protective rates of import duties.
“In cases where the production capacity can supply up to 75 percent of the annual total regional consumption of a particular product, then the Council for Trade and Economic Development (COTED), a primary organ of the Community, is empowered to ensure import duty protection by placing the commodity on the List of Commodities Ineligible for Conditional Duty Exemption. This is the standing trade policy under the RTC.”
Belize said that Jamaica has been producing condensed milk for some time and has recently increased production to meet the threshold of 75 percent of CARICOM’s demand.
“It was in this context that Jamaica requested the full protection of the CET from the COTED. The COTED, approved the placement of condensed milk on the List of Ineligibles – that is, no government can grant import duty exemptions without prior authorization by the COTED -, and an increase in the applicable rate of import duty to 30 percent”.
The ministry said COTED also agreed that the 30 percent rate of import duty should be implemented with effect from January 1, 2022, by all member states.
“Belize has delayed implementation to coincide with introduction of the Revised CET based on the 2022 version of the Harmonized Commodity Description and Coding System, which is the basis of Belize’s Customs Tariff Schedule. Therefore, the revised rate of 30 percent is now in force.
“Stakeholders are reminded that Belize is obligated to apply the 30 percent import duty as a COTED decision, and also relies on this policy to ensure similar protection for its own products, in particular sugar and frozen concentrated orange and grapefruit juices, when exported to CARICOM states. “
The ministry said given Jamaica’s ability to supply the CARICOM region with condensed milk on a duty-free basis, the effect on price is anticipated to be negligible.
