Customs Duty is levied on imported goods in terms of the Customs and Excise Act [Chapter 23:02], whilst Excise Duty is levied on certain locally manufactured goods, and other imported goods falling under the Excise Tariff even if they are entered under Trade Agreements. Applicable rates of Customs and Excise Duties are set-out in the Customs Tariff Handbook, which is published in the form of a statutory instrument.
The applicable rates of duty depend on the category of goods.
Value Added Tax (VAT) is another tax levied on imported goods in terms of the Value-Added Tax Act [Chapter 23:12].
A Special Excise Duty is charged on
- The change of ownership of locally registered second-hand motor vehicles at specified rates. For example, a 2014 (2000cc motor vehicle) the excise duty is $500 in terms of the Customs and Excise Act [Chapter 23:02].
- The sale value of airtime at a rate of 10%.
Duty may be reduced or waived where the following circumstances exist:
- Bilateral and multilateral agreements