Barbados enhances duty-free retail regulations

Nicole Mezzasalma

Print Article E-Mail Article E-Mail Author

The government plans to implement a new regulatory framework encouraging more duty-free retailing in the country

Barbados’ Ministry of Finance has proposed changes to the current duty-free legislation in the country in the 2008 Budget, phasing out the drawback scheme that refunded duties and taxes post-sale. Effective September 1, new retail operators approved after due-diligence checks will be able to post a bond of 30% of the estimated quarterly duties that the retailer and Customs agree would be payable on the goods to be sold free of duty. The bond would reduce by 5% a year based on “satisfactory reporting” to a minimum of 5% of the duty that would otherwise be payable.

The government said the duty-free rules update aims to make shopping in Barbados more competitive, encouraging famous brands not yet present in the country to open retail outlets and reducing the financial burden for smaller companies.