The following is a statement from the Prime Minister Andrew Holness administration, through the ministries of investment and energy, on the Barbadian objection raised for Jamaica’s exemption from CET on lithium-ion batteries:

“At the recent Council for Trade and Economic Development (COTED) meeting in November 2023, the Jamaican Government requested that the suspension of a tax on Jamaica’s importation of nine renewable and energy efficient technologies, including lithium-ion batteries from outside the region, be kept in place for another two years, from January 1, 2024 – December 31, 2025. The current two-year suspension of CET is due to end December 31. 

However, a Barbados-based company has objected to the Government of Jamaica’s application of the suspension of Common External Tariff (CET) on lithium-ion batteries, indicating through the Barbados government, that they produce the type of lithium-ion batteries being requested for CET suspension.   

The Ministry of Industry, Investment, and Commerce (MIIC) in collaboration with the Ministry of Science, Energy, Telecommunications and Transport (MSETT) is therefore conducting the necessary due diligence to assess the Barbadian company’s Certificate of Origin, as well as their ability to meet the specifications and provide the quantities required by Jamaica’s renewable energy sector.  

The company from Barbados has since been requested to furnish a copy of their Certificate of Origin and other pertinent details related to its battery specifications and production capacity by no later than Friday, January 5, 2024, to allow for the preparation of the GOJ’s response to COTED. 

Due to the objection raised by the Barbadian company, a 20 per cent CET will be applicable to the importation of lithium-ion batteries from outside the region as of January 1, 2024.

While the country’s renewable energy stakeholders should remain guided by the Jamaica Customs Agency, it should be noted that only lithium-ion batteries imported for use in solar applications will be exempt from GCT.  

The CET is applied by all participating countries on select products. It effectively raises the price of imports from outside of the region, giving internally manufactured products a competitive advantage. 

The Ministry of Science, Energy, Telecommunications and Transport continues to monitor the situation and work with partners to arrive at the best possible outcome.”