JCA Outlines Guidelines for Importing Charitable Items

Jamaica Customs Agency (JCA) Deputy Chief Executive Officer (CEO) of Operations, Selina Clarke Graham, says there are several guidelines that must be adhered to by persons seeking to import charitable goods and benefit from tax exemptions on these items once they qualify for this provision.

She outlined these during the 10th Biennial Jamaica Diaspora Conference at the Montego Bay Convention Centre in St. James recently.

Ms. Clarke Graham explained that registration with the Companies Office of Jamaica (COJ) and Department of Cooperatives and Friendly Societies (DCFS) is a prerequisite.

“The first thing that you’re supposed to do, before you can even contemplate importing charitable goods to Jamaica, is that you must be registered with the Companies Office of Jamaica. You must have a tax compliance certificate… your objects and powers must be known prior to registration.

“So, if it is [that] you’re setting up this charitable organisation to relieve poverty, for example, to distribute education aides to children, and so on, to administer to the needs of the less fortunate in the inner-city communities, it must be known and it must be written out in those documents and submitted to the Department of Cooperatives and Friendly Societies which is where you make your application for your charitable certificate,” she said.

Ms. Clarke Graham pointed out that such organisations are established exclusively for charitable purposes and operate specifically for the public benefit. As such, profits should not be benefiting any Board member personally.

“Charitable purposes are, for example, relief of poverty; the advancement of education; the advancement of good citizenship or community development; advancement of health or saving of lives; relief of those in need, for example, those who are disabled [and] those who are experiencing financial difficulties; [and the] advancement of religion,” she stated.

Regarding the requirements for accessing exemptions, the Deputy CEO further informed that organisations must be registered as approved charitable entities with the DCFS.

“You would have obtained a valid certificate of registration of approval from the DCFS and it would have been uploaded to our Customs ASYCUDA system. We will [then] be able to access it every time you import,” she outlined.

“You must also have your Taxpayer Registration Number (TRN) for the approved charitable organisation [and] you must ensure that the imports are aligned with the objects and powers. You must register all imports for charitable purposes in the name of the approved charitable organisations, which means that the consignee’s name and address must reflect that of the approved charity,” Ms. Clarke Graham added.

She informed that there are specifications regarding the cost and clearance of goods valued above and below US$5,000.

“For shipments above US$5,000, the customs broker will clear that item and you must give them a C73, which is the authorisation for them to act on your behalf. Shipments valuing US$5,000 or less may be cleared without the need for a customs broker. You must have a letter of authorisation, which must be signed and stamped by a Justice of the Peace for the clearance,” the Deputy CEO said.

She added that permits and licences are required for certain goods, such as pharmaceuticals and motor vehicles.

Ms. Clarke Graham explained that environmental levy and 50 per cent of customs administration fees are paid for medication, medical equipment, sundry items and educational and school supplies.

“If you’re importing a motor vehicle, what is exempt is the special consumption tax. You must pay the import duty, you must pay the general consumption tax and you must pay 50 per cent of the customs administration fee,” she stated.

The Deputy CEO added that charitable organisations should file tax returns, pointing out that packing lists and invoices must match the shipment so that Jamaica Customs can determine the value of the goods.

She further indicated that the contents of shipments must be in line with the objects and powers approved by the DCFS and urged charities to keep up to date with their documentation and always make truthful declarations.

“Truthful declarations are required to ensure a seamless experience. You are to utilise the charitable goods in accordance with the law [and] charitable organisations must maintain proper records. Charitable organisations are subject to audits by the Jamaica Customs Agency, so you must maintain your records,” Ms. Clarke Graham said, pointing out that misrepresentation of declarations may lead to imprisonment.