The Bahamas is presently in the process of transitioning from its traditional tax base of a Duty based economy, to an alternative tax such as V.A.T. Presently, the Customs is the primary agency of collecting duty and taxes at importation and exportation. Additionally, Customs is tasked with the collection of statistical data on imports and exports, policing the borders and collecting the relevant taxes upon importation.
The primary requirements of importing into or exporting from the Bahamas are proof of authorization for processing, proof of value of the goods (Invoices or receipts)and proof of freight charges (Bill of Lading or Freight Invoice) along with the relevant Customs documentations for declarations, depending on the purpose of the importation.
All imported goods shall be entered either for:
- Home consumption;
- Warehousing in a bonded warehouse;
- Temporary admission; or
- For transshipment.
Goods being entered into the territory shall be entered in writing by the owner of the goods or an authorized agent:
- In an electronic format
- Within five days, exclusive of Sundays and public holidays of the commencement of discharge, or within such further time as the Comptroller may allow.
The owner of the goods or the authorized agent shall provide the Customs authority with full particulars supported by documentary evidence of the goods referred to in the entry. All entries must be signed by either the owner of the goods or an authorized agent and the use of electronic signature is authorized for the purpose of making an entry under the Act. The person entering goods shall:
- Answer any question asked by the Customs officer with respect to the goods: and
- On, request of the Customs officer, present the goods to the officer, remove any covering from the goods, unload any conveyance or open any part of it, or open and unpack any package or container that the officer wishes to examine.
Commercial
The determination of Commercial goods, for the purpose of the Customs is based on the goods being imported into Bahamas for sale or for any industrial, occupational, commercial, institutional or other like use. Commercial in this context is not limited to remuneration or resale, but also includes business transactions for charitable uses.
Free Zone
At present, the only Free Zone in the Bahamas is Freeport which is outlined in the Hawksbill Creek Agreement. There are, however provisions for further development of free zones in the Customs Management Act.
The 1955 Hawksbill Creek Agreement allows for duty free importation to the Hawksbill Creek area, specified in the agreement, for ninety nine years in Chapter 261 of the Statue Laws of The Bahamas. It is a privately operated agreement, owned and operated by the Grand Bahama Port Authority (GBPA). An application for the benefits to the Hawksbill Creek Agreement may be obtained by institution of a CB9 Bond of a minimum of $5000 and a license from the Port Authority. The bond amount sets a limit to the transactions in the bond environment.
Other Freezones that are provided for by the Act are for the encouragement of Agriculture, manufacturing and industry. Similar to the Hawksbill creek agreement, these are facilities which can be negotiated with The Government and will require bonds and the setting up of bonded facilities. All Freezones are facilitated with bonds.
Personal/Non-Commercial
- Goods may, subject to any regulations, be imported in the Customs Territory exempt of duties and taxes where:-
- They are contained in the personal baggage of the passengers, or members of the crew, of any aircraft or vessel arriving from a point outside of the Customs territory;
- They are of a non-commercial nature within the limits of the duty-free allowance; and
- There are non-material indications to suggest the goods are a part of the commercial traffic.
- Goods which are the bona fide belongings of the passengers, or members of the crew, of any aircraft or vessel arriving from a point outside of the Customs territory may, subject to any regulations, be imported in the Customs territory exempt of duties and taxes.
- Prohibited and restricted goods are not provided for under these provisions under any law from the time being in force in The Bahamas.
Goods purchased during travel and imported from another territory into the Customs territory are not considered as personal/non-commercial goods until they are duly cleared into the territory.
Motor Vehicles
The Importation of vehicles is restricted to vehicles less than ten years old. This means that for any vehicle to be imported above ten years old (From the date of manufacture) special permission must be granted by the Ministry of Finance in advance of the importation.
For vehicles to be processed and duly entered in The Bahamas it is required that there are:
- Documentations of the condition, in the form of a Conditional Report
- Proof of purchase/ownership in the form of Invoice and Title
- Proof of importation in the form of Bill of Lading and Freight Invoice
All other supporting documents could only facilitate the smooth processing of the vehicle.
VALUATION OF GOODS
A concern for most persons is the valuation of the vehicle upon arrival. The Bahamas Customs and Excise Department valuation all goods based on the following principle:
- Transactional value or the Price Actually Paid or Payable (PAPP) is the first tier of valuation. This is the price where there is no interference. The price that is unconditional to a relationship between the buyer and seller. Duty is charged primarily on this value and is not adjustable once it can be proven that the value is the authentic valued paid to the vendor;
- If there is not a clear case of PAPP in a purchase, the officer may move to the principal of Transactional Value of Identical Goods. This may entail research in determining what the market price is for goods of an identical nature, meaning exact in every way, name brand, size and description etc. The Value of identical good may be applied in law for the processing in the absence of PAPP;
- If there is no way of finding a value of an identical good, or if the item is an original, then Customs may move to determine the value based on the Transaction Value of Similar Goods. In this research, it may be determined that the name brand or size may not be the exact as the one being imported, but there is some value that may be able to be derived from the value of similar goods.
- If the Transactional Value of Similar goods cannot be determined, then the Deductive Value must be derived. Deductive value is based on the value per unit rather than the value of the complete shipment.
- Computed Value is used when a Deductive Value cannot be determined. It I the calculating of costs, charges and expenses incurred in respect of, or the value of materials, production, any other services or production or any profit involved in manufacturing the goods.
All goods being exported are required to have an invoice, and a Notice from the Shipper. The bill of Lading will be created once the Entries are processed and paid to the Customs.
Commercial
The exportation of goods that are wholly obtained in the Bahamas requires a certificate of Origin which can be applied for from the Customs. While duty is not applied to exported goods, Wholly Obtained goods may attract royalties and processing fees of 1% (Min. $10 and Max $500). Any other commercial exports which may be re-exportations within themselves may be exported without any restriction with the exception of restricted goods, such as copper, or any prohibited goods, whose exportation must be carefully monitored.
Personal/Non/Commercial
- Goods may, subject to any regulations, be exported from the Customs territory exempt of duties and taxes where:
- They are contained in the personal baggage of the passengers, or members of the crew, of any aircraft or vessel departing from the Customs territory to a point outside of the Customs territory;
- They are of a con-commercial nature within the limits of the duty free allowance; and
- There are no material indications to suggest the goods are a part of commercial traffic.
- Goods which are the bona fide belongings of the passengers, or members of the crew, of any aircraft or vessel departing from the Customs territory may, subject to any regulations, be imported in the Customs territory exempt of duties and taxes.
- Prohibited and restricted goods are not provided for under these provisions under any law from the time being in force in The Bahamas
