Understanding Exemptions 2024 PDF

UNDERSTANDING EXEMPTIONS CUSTOMS BROKERS GOVERNMENT AGENCIES EXEMPTIONS  OBJECTIVES  At the end of the session participants should be able to:  1. Identify all Government Agencies responsible for granting exemptions. ...

UNDERSTANDING EXEMPTIONS CUSTOMS BROKERS GOVERNMENT AGENCIES EXEMPTIONS  OBJECTIVES  At the end of the session participants should be able to:  1. Identify all Government Agencies responsible for granting exemptions.  2. Distinguish between exemptions granted for economic development, NGO and Government departments, Organizations with diplomatic status and others.  3. Understand the scope of exemptions issued by each OGA and Ministry.  4. Properly advise on the exemptions for the importation of personal effects.  5. Properly construct the appropriate certificates for the different exemptions. TYPES OF EXEMPTIONS  Government issued exemptions – MOF and National Agreement  Fiscal Incentives - BELTRAIDE  Tariff issued conditional duty exemptions  HS Codes Exemptions  Ministry of Tourism – Diaspora and QRP  Embassies, Consulates and International Organizations MINISTRY OF FINANCE  Ministry of Finance  grants exemptions to persons (returning Belizean) or non-profit organization etc.  Exemptions can be full import duty, full duties, full duties and GST but not the environmental tax  Import duties can be full or partial e.g 25%, 40%, 50%, 60% or 75%  Exemptions are valid for 6 months from the date of letter.  Goods having exemptions can be transferred if importer is different from the owner of the exemption.  Clearance is done by the Ministry of Finance in ASYCUDA World. Ministry of Finance exemptions code starts with an F. e.g. FIG, FRE, FIR,FIX,FRG,FRR,FXO,FXG,FET, FGS,F00,F25,F40,F50,F60,F75 CERTIFICATE FOR EXEMPTION  CPC 4000 – Entry for home  imported in somebody else name requires transfer of ownership and use acceptance certificate.  CPC 4070 – Entry for home  Imported in the exemption recipient name requires only the exemption use from a warehouse certificate  CPC 4600 – Entry for home  Letter number use recovery of duties  Entry number previously exempted  Owner of exemption  Line item  Signature and company stamp  Loss to revenue certificate with loss to revenue amount. BELIZE TRADE AND INVESTMENT DEVELOPMENT SERVICES (BELTRAIDE)  BELTRAIDE  Grant exemptions or concessions to companies that provide jobs such as hotels, manufacturing companies, car rentals etc  Exemptions are valid for only 2 months  Invoices for exemption are stamped by the BELTRAIDE  Goods having exemptions can be transferred if importer is different from the owner of the exemption.  Approval for exemption is done in ASYCUDA World by the competent authority.  Broker’s responsibility to inform BELTRAIDE for clearance.  BELTRAIDE exemption code starts with a B. e.g. BDC, BIG, BXD  Those falling under the fiscal incentives may have an N code – N31 Blair Athol CERTIFICATE FOR EXEMPTION  CPC 4000 – Entry for  Exemptions home use  imported in somebody else name requires transfer of ownership  CPC 4070 – Entry for certificate. home use from a private  Imported in the exemption recipient warehouse name requires only the exemption certificate  CPC 4600 – Entry for  Letter number home use recovery of  Entry number duties previously  Owner of exemption signature and company stamp exempted  Line item  Loss to revenue certificate with loss to revenue amount. MINISTRY OF HEALTH – CHIEF PHARMACIST  Invoice for all pharmaceuticals must be submitted to the chief pharmacist for approval prior to importation – over the counter (OTC), prescription, and controlled drugs  Import duty exemption is based on a pre-approved pharmaceutical list.  Chief pharmacist is also responsible for the medications attracting exemption from general sales tax and environmental tax. Check your exemption list to make sure that the exemption code provided covers those taxes as well All exemption codes for Chief Pharmacist starts with a C. e.g. CEG, CIE, CIG, ETC. Exemption is lock in the system and have administrative clearance by the chief pharmacist. Brokers to inform chief pharmacist for clearance. BTB – RETIRED QUALIFIED PERSON INCENTIVE (QRP)  Qualified Retired Person Incentive Program  This exemption is for retired citizens from another country that has been approved under the program. (not for Belizeans)  They are allowed to bring in personal and household effects as defined by Customs, (1) motor vehicle,(1) boat and (1) aircraft free of duties and taxes. Transportation can only be imported once with the exception of the motor vehicle which can be imported every 3 years.  Approval for this exemption is cleared by the Assistant or Deputy Comptroller of Customs at the Port of entry.  Submission of the original letter to Customs before SAD is assessed.  Owners must present a valid Identification.  SAD utilizing this exemption must to be in the name of the person approved by the letter and cannot be transferred by the use of a certificate unless purchase is done from a private warehouse for vehicle.  Definition of personal effects by Customs  Household effects refers to moveable furniture and appliances only. Does not includes fixtures (any item affix to the building) or tools.  Quantity of household effects must reflect the amount of persons in the family  Exemption is valid for a year for multiple importation, however, does not extend to supplies or any item previously imported.  Personal effects refers to clothing, toiletries etc.  Items can be new or use, new items requires invoice(s).  Exemption code is now locked in the system. EXEMPTION CERTIFICATE  CPC 4000 – Entry for home use  Ownership of exemption certificate  CPC 4070 – Entry for home use from a warehouse  Signature of owner of exemption  CPC 4600 – Entry for home use  From a private warehouse or recovery of duties previously other source, a transfer of exempted ownership and acceptance certificate is required. MINISTRY OF TOURISM – DIASPORA RELATIONS  Diaspora  This exemption is for Belizean residing outside of Belize for a minimum of 10 years and wishes to move back to the country.  This exemption covers personal effects up to a value of $20,000 USD, tools of trade and personal transportation within 5 years of current year but requires the person to pay the environmental tax. Exemption granted only once for vehicle.  MOF issue the exemption letter on behalf of the Ministry of Tourism.  Approval for this exemption is lock in the system and has to be approved by the Ministry of Finance.  Requires proof of identity and original letter of exemption from the Ministry of Finance. EXEMPTION CERTIFICATE  CPC 4000 – Entry for home use  Imported in the exemption recipient name requires only the exemption certificate  Letter number  Entry number  Owner of exemption signature  Loss to revenue certificate with loss to revenue amount NATIONAL AGREEMENTS  This exemption is for statutory bodies and any organization that the Government of Belize enters into an Agreement with. Authorized by a National Legislation or a statutory instrument and the Act indicate what duties and taxes are exempted and what the company can import under the exemption.  BEL  BWS  Central Bank  DOE  KHMH  BECOL  These national agreements all have exemption codes starting with N. e.g N03, N06  This agreement is lock in the system and has to be cleared by the proper Customs Officer in the system.  A green, yellow or blue selectivity does not exempt the Importer from getting the proper clearance. Legislation indicating the scope of the exemption can be found at the attorney general website under the substantive laws of Belize. This legislation is also accompanied by an SI.  CPC 4000 – Entry for home use  Imported in the Company’s name requires only the exemption certificate  CPC 4070 – Entry for home use  Entry number from a warehouse  Owner of exemption  CPC 4600 – Entry for home use  Signature of proper personnel recovery of duties previously  Line item exempted  Loss to revenue certificate with loss to revenue amount  imported in somebody else name requires transfer of ownership and acceptance certificate along with ownership certificate. EMBASSIES, CONSULATES AND INTERNATIONAL ORGANIZATION  CHAPTER 22 of the Substantive Laws of Belize – Embassies and Consulates  Exemption is extended to the family of the diplomat and staff of the embassy or consulate.  Importation must be done in the name of the Embassy and not in the individual name to use N07  Restriction and prohibitions on imports are not applicable to Embassies.  Extended code – applicable N code  Personal importation for a diplomat – DPA  Must attach a copy of the person diplomatic ID  Chapter 23 of the Substantive Laws of Belize – International Organizations  Exemption is extended to the staff and all items imported must be for the use of the office  Restriction and prohibitions on imports are not applicable to these organizations.  Extended code – 005 or applicable N code  For personal importation of a diplomatic – code DPA CERTIFICATE FOR EXEMPTION  CPC 4000 – Entry for home use  Ownership certificate must be signed by the proper personnel  CPC 4070 – Entry for home use designed by the Embassy, from a warehouse Consulate or International  CPC 4600 – Entry for home use Organizational recovery of duties previously  For personal importation under exempted DPA ownership certificate must be signed by the diplomat and a copy of the white ID must be attached. SALE OF VEHICLE BY EMBASSY, CONSULATE OR INTERNATIONAL ORGANIZATION  A transfer must be effected from the embassy et.al. to the personnel of the organization using a letter of exemption (approval for sale) from the Ministry of Finance using a SAD.  Once the vehicle is officially under the ownership of the personnel and they wish to sell to someone living in Belize another SAD will be created for the payment of duties and taxes.  If the third owner hold an exemption or is another personnel of the organization they can utilize that exemption on a SAD to effect the transfer. PREFERENTIAL RATES PROVIDED BY TRADE AGREEMENTS CARICOM  Goods originating from any CARICOM member state with a certificate of origin enjoys a preferential tariff rate of 0% as schedule in the Customs tariff and environmental tax except for those rates establish for MDC (goods of heading 22).  The exemption code is CCM as is approved in ASYCUDA by the proper Customs Officer at the Port of entry.  CARICOM certificate and CARICOM invoice must be attached to the SAD in the system.  CARICOM has 15 member state: Antigua & Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Monstserrat, Saint Lucia, St Kitts & Nevis, St. Vincent & the Grenadines, Suriname and Trinidad & Tobago.  Newest member is Haiti. ECONOMIC PARTNERSHIP AGREEMENT(EPA)  This Trade Agreement was made between the European Union (EU) and African, Caribbean and Pacific partners (ACP).  The goods originating out of the 28 EU member countries enjoys a preferential tariff rate as scheduled in the Customs Tariff.  These rates are reduced yearly and may or may not change from year to year depending on the EPA schedule.  The goods also requires a certificate of origin that has to be approved in ASYCUDA by the proper Customs Officers for preferential tariff to be used.  Code used is EPA in box 36.  EPA/EU Cariforum  EPA/UK Cariforum REPUBLIC OF CHINA (TAIWAN) BILATERAL TRADE AGREEMENT  This trade agreement was entered into force 20 September 2020.  Provides imports from this country with preferential rates as scheduled in Belize’s national tariff.  Preferential rates are afforded with the submission of a certificate of origin similar to CARICOM and EPA  Code TW is locked in the system and approval is done by the proper officer at each port of entry. BELIZE/GUATEMALA PARTIAL SCOPE AGREEMENT  This trade agreement was the first bilateral agreement for Belize and was entered into force in 2010.  This agreement provides importers with preferential rates on negotiated products produced and imported from Guatemala.  Preferential rates is granted with the submission of the certificate of origin and cleared in the system by the proper officer at the port of entry.  The phase down rate is yearly and will appear in the ASYCUDA System and may not mirror the present rate in the national tariff. EXEMPTION PROVIDED BY THE NATIONAL TARIFF NATIONAL TARIFF  001- Advertising material of non-marketable nature  Approval by the Comptroller  002- arms, ammunition etc., for Volunteer Force, Cadet force, or Rifle association  Certified by Ministry of Defense and approved by Ministry of Finance  004 – beehives and bee keeping apparatus  Certified by the Ministry of Agriculture and Approve by the Comptroller  005 – international organization in agreement with the GOB  Approved by the Comptroller  006 – packing or packaging for produce or manufacture of the country  Approved by the Ministry of Finance or MSME under BELTRAIDE  007- goods for Belize City Council and Town Board  Approved by Ministry of Finance  010 – films, filmstrip etc. of an educational character  Approved by the Comptroller  012- medicines, drugs and appliances for established organization for distribution to indigenous people.  Approve by Ministry of Finance  013- goods imported for Meteorological observation  Approved by Ministry of Finance  014- goods imported by red cross society  Certified by the Director, admitted by Comptroller  017 – patterns and sample, cut, mutilated  Approved by the Comptroller  018 –cups, medals, shields etc. to bestow honorary distinction  Approved by the comptroller  019 – uniforms and equipment for boy scouts etc.  Approved by Ministry of Finance  020 – goods imported by BATSUB, Her majesty naval etc  Approved by Comptroller  021 – sports and cultural materials  Approved by MOF on recommendation from Ministry of sports and culture  022 – blank audio cd  Approved by MOF on the recommendation of Ministry of Culture  #8 – equipment ambulances etc. and construction materials utilize codes DE 081, 082, 083, 084.  approved by cabinet and admitted by the Comptroller.  Goods catering to the need of mentally etc.  approved by Ministry of Finance on recommendation of Ministry of Health.  #9 – articles for educational bodies utilize codes DE 09A, 09B, 09C and are  approved by the Comptroller of Customs.  #15 goods re-imported within one year of exportation, produce of Belize and after repair – utilize DE 15A, 15B, 15C  Approved by the Comptroller of Customs  #16 – goods for places of worship, bread and wine, candles and frankincense, and offertory envelopes utilize DE 16A, 16B, 16C, 16D, 16E  approved by the Comptroller of Customs  011- Goods for Government Department  Certified by relevant Head, approved by Ministry of Finance (requires two certificates with signatures  Exemption is only for equipment and not for consumables or supplies 3. PERSONAL AND HOUSEHOLD EFFECTS  Returning Belizean  Returning Citizens or residents or holding a residency permit returning with used personal and household effects to have been in possession for at least a year. Requires proof of having lived abroad for at a least year and proof of ownership of use personal effects. DE 3BO  Belizean family or Citizen returning to reside in Belize having resided outside the country for more than three years is entitled to new personal effects of not more than $20,000 BZ CIF and not intended for resale. Requires proof of citizenship (Belize Passport), receipt for new personal effects. DE 3CO. Pays GST and ET  Baggage and household effects imported within 3 months before or after the arrival of the passenger. Met criteria at A&B. DE 3DO.  Use implements or tools of trade of persons being a CARICOM Citizen. DE 3EO. First approval by the Ministry of Finance and admitted by the Comptroller.  Use personal effects of a deceased citizen of Belize. DE 3FO. Approval by the Comptroller.  Used personal and household effects of a CARICOM Citizen provided they have been granted an indefinite stay by the Immigration department. DE 3GO OTHER FORM OF EXEMPTION  The Department of General Sales Tax has a list of zero rated commodities.  The Environmental Tax also has a list of zero rated items. EXEMPTION BY HS CODE  3808.91.10 – insecticides for use in agriculture as approved by the Competent Authority, whether or not put up in forms or packing for retail sale.  Competent authority is Pesticide Control Board. Requires stamp and signature by PCB.  Vegetables under 07.10 requires approval for “use in industry”  Comptroller of Customs Thank you!! Questions?