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Country Commercial Guides for FY 2000: The Bahamas Report prepared by U.S. Embassy Nassau, released July 1999 Note*

VI. TRADE REGULATIONS AND STANDARDS

Tariffs and Import Taxes: The Bahamian Government raises approximately 60 percent of its total revenue from import tariffs, which, as a result, tend to be high. The basic ad valorem tariff for imported goods is 35 percent, but a long list of items have separate tariff rates. Among these are:

-- clothing: 25 percent
-- fine cut tobacco: 210 percent
-- chewing tobacco: duty free
-- cigars: 200 percent
-- cigarettes: 210 percent and 7 percent stamp tax
-- bottled water: 70 percent
-- pool tables: 100 percent
-- room air conditioners: 35 percent
-- automobiles: 45 to 75 percent, based on the book value of the car
-- automobile parts and accessories: 35 - 50 percent
-- personal computers: 15 percent plus 7 percent stamp tax
-- business computers: 15 percent plus 7 percent stamp tax
-- stereo units: 25 percent
-- satellite receivers and accessories: 35 percent
-- video tapes: 10 percent
-- cheese: 15 percent
-- pasta: 10 percent
-- water heaters: 35 percent
-- televisions: 25 percent
-- plumbing supplies: 25 percent
-- wooden doors: 25 percent
-- concrete tiles: 35 percent
-- cement: duty free
-- lumber: duty free, 7 percent stamp tax

All tariff rates are subject to change. In the 1996 budget, for example, the Bahamian Government lifted customs duties on a variety of imported goods, ranging from construction materials (nails, cement, sheetrock, plywood, etc.) to computers and computer parts, musical instruments and consumer electronic appliances. In the 1999-2000 Budget, tariff rates fell on certain types of seasoned poultry and prerecorded video tapes, but rose for automobiles. Bahamians shopping in Florida (and elsewhere abroad) are permitted to import $300 worth of goods, duty free, per year.

In addition to duties, The Bahamas charges a 7 percent "stamp tax" on most imports. Higher stamp taxes are charged on some duty free goods, including tourist items such as china, crystal, wristwatches, clocks, jewelry, table linens, leather goods, perfume, wine and liquor. On average, The Bahamas charges an export stamp tax of 4 percent on most exports from the country.

In an effort to protect domestic agricultural producers, the Government requires that a permit be granted to import more than 50 pounds of whole chickens or chicken parts, lamb or mutton, or pork legs, shoulders, or hams into The Bahamas. Permits are also required to import plants, fruits - particularly bananas, vegetables, and cut flowers. Permit applications have occasionally been denied when the Government determined that a surplus existed in locally grown products in the same category.

Customs Valuation: Most imported goods are valued based on their actual cost as evidenced by an invoice. The Customs Department only honors discounts of up to three percent (3%) given by U.S. exporters. Customs officials determine the value of automobiles with reference to standard valuation guides. Freight and shipping charges are included in the value assessed.

Import Licenses: Permits are required for imports of certain items. Applications for permits should be made to the Ministry indicated, as follows:

Poultry, meats, vegetables, fruits, live plants and animals: Ministry of Agriculture;

Medicines: Ministry of Health;

Slot machines, trailers and caravans for living (temporary use only): Ministry of Finance;

Firearms, fireworks, underwater guns other than Hawaiian sling: Commissioner of Police.

Precursor and essential chemicals: Customs Department

Import/Export Documentation Requirements: Entry forms are required by Bahamian Customs for goods coming by sea, air or post. A genuine invoice (original or copy) is required. Goods may be cleared through Customs without a proper invoice if the importer leaves a deposit (usually double the estimated duty) and agrees to present an invoice at a later time.

Temporary Entry: Certain goods may be imported conditionally on a temporary basis against a security bond or a deposit that is refundable on the re-exportation. These include fine jewelry, goods for business meetings or conventions, traveling salesmen equipment, and equipment or tools for repair work.

Copies of current import regulations may be obtained from:

Government Publications Office
East Bay Street
P.O. Box N-7147
Nassau, Bahamas
Tel: 322-2410

Free Trade Zones: The City of Freeport on the island of Grand Bahama is a major free trade zone. See section VII (E) below.

Membership In Free Trade Arrangements: The Bahamas is a beneficiary of the U.S. Caribbean Basin Initiative (CBI), Canada's CARIBCAN Program, and the European Union's LOME IV Agreement. Although The Bahamas participates in the political aspects of the Caribbean Community (Caricom), it has not entered any joint economic initiatives with other Caribbean states. The Bahamas is not a member of the World Trade Organization.