EPA

The Bahamas signed the EPA in October 2008. The EU and the signatory CARIFORUM States (including The Bahamas) have been provisionally applying the Agreement since 29th December 2008; however, it came into effect on 1st July, 2013.

Under the EPA, importers can take advantage of preferential tariff rates on product originating out of the EU, and CARIFORUM countries. The implementation of an EPA tariff was specifically designed to reduce tariffs progressively over a period extending to 25 years, at which time duties are expected to be completely eliminated.

Traders wishing to take advantage of the reduced rates, must have their goods accompanied by the certificate of origin/EUR.1 form

Economic Partnership Agreement (EPA)

1. The Economic Partnership Agreement (EPA) entered into between the CARIFORUM States and the European Union (EU) and its member States provides, inter alia, for a trade partnership between the Signatory States aimed at the expansion of their trade and, from the particular standpoint of the CARIFORUM States, promoting the economic development of these States. The Agreement recognizes the on-going commitment of the CARIFORUM States to the furtherance of their development through the regional and sub-regional integration initiatives upon which they are embarked. These initiatives are an essential link in the strategy, to be enhanced by the EPA, toward their greater participation in world trade.
2. The EPA creates a reciprocal preferential trade arrangement tailored to the emerging trade relations of the CARIFORUM States and the EU Member States. The market access arrangement provide for the immediate duty-free and quota free entry into the markets of the EU member States of goods originating in CARIFORUM States.  Reflecting the unequal levels of development of the Member States of the EU on the one hand and the CARIFORUM States on the other, the Agreement prescribes an asymmetrical and more measured rate of liberalization of access “goods originating”  refers to products which meet the qualifying criteria set down in the rules of origin prescribed under the Agreement. The EPA rules of origin, which are to be found in Protocol 1, which is an integral part of the Agreement, are examined in a separate publication.
3. This publication explains the nature and scope of the tariff liberalization provisions of the Agreement governing trade in goods between the CARIFORUM states and the Member States of the EU. It describes the market liberalization obligations of the Signatory States, with particular emphasis on the provision for the phased reduction by the CARIFORUM States of customs duties applicable to imports of goods originating in the Member States of the EU.
4. The CARIFORUM-EU EPA which was signed in October 2008 by fourteen CARIFORUM States and by the fifteenth CARIFORUM State, Haiti, in December 2009 has been provisionally applied since 29th December 2008.
5. Some goods are entirely excluded from the trade liberalization regime. Among the excluded goods are a range of products of the agriculture sector, examples of which are mean and fish products, tomatoes and cucumbers, bananas and plantains, mangoes, pineapples, citrus fruit, fruit juices, tomato ketchup; and aerated and alcoholic beverages.  Other products excluded from market access liberalization include non-electric water heaters (other than gas-operated), refrigerators and freezers, and gold jewelry.   For some goods, CARIFORUM States have agreed to apply zero rates.  In many cases, zero rates apply to gods from all sources, but for some additional goods zero rates are also applied where those goods are traded under the EPA.
6. The Customs duties on all other goods imported by CARIFORUM States the EPA will be subject to phased reduction.
7. The EPA defines customs duty as any duty or charge of any kind, including any form of surtax or surcharge, imposed in connection with importation or exportation of goods. This definition, which effectively captures all border taxes, excludes the following –
   1. Internal taxes or other internal charges where these are also applied on like domestic products and are not in excess of those taxes or charges applied to domestic products;
   2. Fees or other charges imposed for services rendered that are commensurate with the cost of such services; and
   3. Anti-dumping and countervailing duties and tariff-based safeguard measures implemented in the special circumstances of trade defense action.

(Excerpt taken from CARIFOM EPA Brouchure)