Under
Section 19 of the Customs Act, "a duty
of Customs is chargeable on the value of the
imported goods at the time of importation. This
duty is charged on the CIF (Cost, Insurance
and Freight) value of the goods, when converted
into Jamaican currency." For example, if
CIF=US$100 (US$1 to J$33) then total CIF=J$3,300.
Cost,
Insurance and Freight (CIF)
- Cost
This is the total cost of the goods
abroad including ex-factory price, commission,
mark-up and inland freight but excluding
sales tax and interest. The cost of the
goods is sometimes expressed as FOB (Free
on Board) or FOA (Free on Air).
- Insurance
This is the insurance charge which is
payable in order to ensure that some compensation
will be available to you in the event of
the loss or damage of the goods. If you
have not paid any insurance charges when
sending your goods to Jamaica, an insurance
charge is still applicable for valuation
purposes. For goods arriving by boat, the
insurance charge is 1.5% of the total paid
or payable for the Cost and Freight (C&F),
that is, if the goods cost US$100 + US$50
= US$150. 1.5% of US$150, i.e., 150x3/200
= US$2.25
For shipments coming by air the insurance
applicable is 1% of the total of the Cost
and Freight.
- Freight
This is the amount of money paid or
payable as freight to the shipping agent
or the airlines for the goods to be shipped
or transported to Jamaica.
Total
CIF therefore is $100 + $50 + $2.25 = US$152.25.
Jamaica
Customs Department
P.O. Box 466
Marcus Garvey Drive, Newport East
Kingston 16
Jamaica, W.I.
(876) 922-5140-9
