Duty Concessions in Dominica

Duty concessions in Dominica are government-approved exemptions or reductions in import duties and other taxes on specific goods, typically granted to individuals, businesses, or organisations for approved purposes. These concessions serve as a tool to stimulate economic activity, support national development priorities, and alleviate the financial burden on targeted sectors.

Legal and Policy Framework

Duty concessions are primarily regulated under:

• The Customs (Control and Management) Act
• The Value Added Tax Act
• The Fiscal Incentives Act
• Cabinet-approved sector-specific policies and guidelines

Applicants must apply through the Ministry of Finance, which works in consultation with other ministries such as the Ministry of Agriculture, the Ministry of Tourism, and the Ministry of Trade, depending on the nature of the request.

Categories of Duty Concessions

1. Tourism and Hotel Sector

Under the government’s tourism development strategy, hotels and guest houses may be granted exemptions on building materials, furnishings, and equipment. This is especially applicable to new developments or significant upgrades. The Invest Dominica Authority (IDA) plays a key role in facilitating such requests.

2. Agriculture and Fisheries

Farmers and fishers can benefit from concessions on items such as:

• Fertilizers and pesticides
• Greenhouses and irrigation systems
• Outboard engines and fishing gear

This initiative supports food security and promotes modernization in the agricultural sector.

3. Manufacturing and Agro-Processing

Approved manufacturers are allowed concessions on machinery, raw materials, packaging, and other inputs under the Fiscal Incentives Act, often granted for a defined period. This aims to lower production costs and encourage value-added production for both domestic and export markets.

4. Housing and Construction

Individuals constructing homes may qualify for a one-time concession on imported building materials. This is subject to criteria such as proof of land ownership and submission of building plans. The Ministry of Housing and the Ministry of Finance jointly assess these applications.

5. Returning Nationals

Returning residents may apply for concessions on personal and household items, as well as one motor vehicle, provided they meet residency and ownership conditions. These are designed to encourage the Dominican diaspora to reintegrate and invest in the island.

6. Non-Governmental Organizations (NGOs) and Charities

Registered NGOs involved in social services, education, or health may be granted duty-free status on supplies and equipment that support their operations.

Application Process

The general steps to apply for duty concessions include:

1. Submission of an application form to the Ministry of Finance
2. Accompanying documentation (invoices, bill of quantities, business registration, project proposals)
3. Recommendation or clearance from the relevant line Ministry
4. Cabinet or Ministerial approval (depending on value and category)
5. Issuance of concession letter for customs processing

Limitations and Conditions

• Concessions are not automatic and must be justified.
• Goods must be used strictly for the stated purpose.
• Abuse of concession terms can lead to revocation and penalties.
• In some cases, the value of goods or duration of business operation may be capped.

Economic and Development Goals

Duty concessions support Dominica’s broader objectives such as:

• Boosting local production and exports
• Reducing the cost of doing business
• Encouraging diaspora investment
• Promoting climate resilience through green technologies
• Enhancing food and energy security

These incentives reflect the government’s attempt to balance revenue generation with the need to stimulate targeted sectors and social development.