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Key Takeaways

  • Goods imported into Bermuda are generally subject to customs duty assessed under a published tariff schedule and nomenclature.
  • Duty is calculated on a valuation basis that reflects CIF and transaction value principles aligned with WTO/GATT rules.
  • Non-resident importers may access duty-free allowances, exemptions and relief schemes covering manufacturing, end-use and temporary importation.
  • Clearing goods requires a customs declaration through the appropriate channel, with wharfage and other charges payable and penalties applying to duty evasion.

Bermuda levies import duty on goods brought into the island, and that duty is the primary domestic revenue-raising instrument. With no income tax, no corporate tax, and no value added tax, the government relies on customs collections for roughly twenty percent of its revenue. The framework sits under the Customs Tariff Act 1970, administered by the Bermuda Customs Department.

This is not a zero-duty jurisdiction, and the average rate applied to imports is among the highest in the world. There is no de minimis threshold, so duty attaches to goods once they exceed the relevant allowance.

This article explains how import duty is charged, how goods are valued and classified, what allowances and reliefs exist, how clearance works at the border, and what happens when the rules are broken. It is written for foreign owners and investors who plan to import goods through a Bermuda entity, and for advisers assessing the cost of bringing equipment, stock, or supplies onto the island.

The governing statute is the Customs Tariff Act 1970, published by the Attorney-General and maintained in consolidated form. Its First Schedule contains the Bermuda Nomenclature together with the import duties; the Second Schedule sets out export duties; later schedules hold the various relief and drawback tables.

The duty-imposition provision in Section 2 has been amended several times since the Act came into force, with changes recorded in 1994, 1995, 2000, 2004, and again effective 1 April 2006. The Eighth Schedule was repealed effective 1 April 2014.

A point of practice for any importer: the tariff document circulated for convenience is not the authoritative text. The binding wording rests in the Revised Laws of Bermuda and the official consolidations, and the working edition of the Customs Tariff Act carries a last-update date of 27 June 2025.

Verify against the official text

Where a duty position carries real cost, confirm the rate against the official consolidated tariff rather than a summary. The convenience document does not override the Revised Laws of Bermuda.

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Duty is charged at the rate set against each class of goods in the First Schedule, calculated by reference to the unit of duty specified for that heading. The average rate applied to imports is 22.5%, assessed on the CIF value of the consignment. Most items that fall outside a specific category attract a rate of around 22.25%.

Rates vary widely by product type. The following figures are drawn from traveller-facing guidance and should be cross-checked against the official 2025 tariff for any commercial import.

Selected import duty rates by category
Category Rate
Medicines and reading materials 0%
Clothing 6.5%
Original artwork 8.5%
Meat, fish, eggs, edible oil, some dairy, honey 5%
Most vegetables, fruit, nuts, tea, coffee 5%
Sauces (ketchup, mustard, soya) 15%
Food products including dietary supplements 15%
Electronic and household goods (not personal use) 25%
Batteries, vehicle parts, tobacco/cigars 33.5%
Most other goods 22.25%
Personal baggage over the allowance 25%

Several lines are charged by quantity rather than value. Spirits attract $11.69 per litre, wine and champagne $3.18 per litre, and cigarettes $44 per carton of 200.

Goods that could fall under more than one heading are subject to a special interpretation rule. If an item might be classified under Chapter XXII or another heading, it goes to heading 98.02 unless the alternative carries a rate of 0% or more than 25%.

Solar and most green goods sit outside duty. The earlier solar rebate scheme was discontinued in 2014, but the duty exclusion for the goods themselves remains.

Bermuda values imported goods using the World Trade Organization's GATT valuation rules. Duty is ordinarily charged on an ad valorem basis, starting from the transaction value of the goods.

Valuation follows the CIF method, so the dutiable figure is the cost of the goods plus insurance and freight. The transaction value is the actual price shown on the commercial invoice, adjusted for the elements listed in Article 8 of the WTO agreement, and it is the first and primary method.

Where an invoice is denominated in a foreign currency, conversion to Bermuda dollars is mandatory and must use the exchange rates published by the customs authority for the relevant week. Importers may not substitute their own rates.

Two surcharges can layer onto the duty calculation. A surcharge of 3.75% applies to goods released out of bond from a bonded warehouse, and a further 2% of the duty applies to packages of unknown contents entered under section 18 of the Revenue Act 1898.

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Classification rests on the Harmonized Commodity Description and Coding System 2012, applied through the Bermuda Nomenclature in the First Schedule. The importer carries the legal responsibility for getting the classification right, and that responsibility does not pass to a customs agent acting on the importer's behalf.

Six General Rules for the Interpretation of the Nomenclature govern the process, and they must be applied from the outset in sequential order. Most goods resolve under Rules 1, 5, and 6, which deal with the legal terms of the headings and subheadings, the relevant section and chapter notes, and the nature of the packaging.

Getting it wrong carries consequences. An incorrect classification can lead to penalties, arrears of duty, and delay or seizure of the goods.

Allowances depend on who is importing and how. They do not extend to business goods or to anything that is not the importer's personal property, so a foreign-owned entity importing stock or equipment cannot rely on them.

For arriving individuals, the personal allowances are as follows:

  • A person entitled to reside in Bermuda has a $300 duty-free allowance on personal goods accompanying them by air.
  • A visitor has a $50 duty-free allowance on accompanying personal goods.
  • Every person aged 18 or over may bring 1 litre of spirits, 1 litre of wine, 0.5 kg of tobacco, 50 cigars, and 200 cigarettes.
  • Bona fide gifts up to $30 per postal packet or per courier package are duty free.

Beyond these everyday allowances sit a set of concessions for changes of circumstance. The Transfer of Residence Allowance lets a first-time resident, or a former resident returning after more than a year abroad, bring in personal, professional, and household effects free of duty.

The Transfer of Residence Allowance covers clothing, furniture, household appliances, personal computers, and portable tools of trade that have been in use for at least six months. The goods must arrive within 90 days before or after the person's arrival on the island.

Other targeted concessions exist for goods awarded overseas for achievement and for inherited personal effects. A range of staple food items also carries no duty, among them breakfast cereals, rice, flour, sugar, infant formula, and milk and cream.

No de minimis

There is no minimum value below which duty is waived. Once goods exceed the applicable allowance, duty applies on the excess.

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For a business importing into Bermuda, the reliefs in the later schedules matter far more than the personal allowances. Each is conditional, and each carries its own compliance obligations.

End-use relief allows eligible persons to import or ex-bond certain goods at a reduced or zero rate, where the goods support an approved activity, industry, or trade. The Fifth Schedule holds the table of end-use reliefs, and each relief is identified by a unique Customs Procedure Code.

To qualify, the applicant must be eligible, the goods must be put to the prescribed use, and the holder must observe the conditions, restrictions, controls, and diversion rules attached to the relief. Under the Minister of Finance's policy guidelines, the goods must be capital goods rather than inventory or operating supplies, and construction equipment, marine equipment, and vehicles are excluded.

Approval turns on benefit to the wider economy. The Minister approves a business and its goods only where satisfied that the undertaking is of sufficient benefit to the general economy.

Temporary importation relief covers goods brought in for a limited period, with qualifying categories listed in the Sixth Schedule. Short-term imports such as tools of trade require a monetary security to be lodged with Customs before release, and any goods that stay on the island become liable to duty at the appropriate rate.

A few practical features are worth holding in mind:

  • No customs declaration is needed for temporary imports of vessels, aircraft, and transport containers.
  • Goods re-imported after repair are dutiable on the cost of the repair or replacement, but warranty repairs are exempt with proof of warranty.
  • Disaster relief goods may be released duty free on presentation of the cargo manifest, with no declaration or security required.
  • Importers may apply to defer duty payment on goods imported for business purposes.

The Fourth Schedule sets out drawback entitlements for locally manufactured goods, and the Seventh Schedule holds a table of miscellaneous reliefs.

The Bermuda Customs Declaration is the principal entry form for goods moving into and out of the island. Which declaration applies depends on the nature of the goods, the method of import, and the customs procedure in use.

Commercial shipments generally require three documents: a bill of lading or air waybill, a commercial invoice, and the Bermuda Customs Declaration form. Where goods arrive by courier, the courier service makes the declaration on the importer's behalf.

Business goods stand apart from the personal allowances. They must be declared separately on a Bermuda Customs Declaration, and the duty-free thresholds do not reach them.

Air travellers complete a Customs Traveller Declaration only when carrying goods above their allowance, in line with the Revenue (Customs Traveller Declaration) Notice 2010. Crew use a separate form, the Crew Declaration.

The airport runs a dual-channel system. The red channel is mandatory for anyone carrying goods over the allowance, goods for business use, prohibited or restricted goods, or $10,000 or more in cash.

Duty must be settled before passing through the red channel. Payment can be made at the HSBC or Butterfield terminals or at the cashier's desk in the baggage claim area, and more generally Customs accepts payment in person, by post, or electronically.

Officers operate from the main office in Hamilton and at the ports of St. George, L.F. Wade International Airport, and Dockyard, processing declarations for both air and ocean freight.

Wharfage is a separate charge from duty, assessed at 1.25% of the customs value of imported goods. Customs assesses and collects it, while the Corporations of Hamilton and St. George's levy it on goods landed at their respective ports and the airport.

Not everything attracts wharfage. The main exemptions are:

  • Accompanied personal goods.
  • Goods imported by post (though a $5.00 processing fee applies on delivery of each dutiable postal packet).
  • Cash and negotiable instruments.
  • Goods imported under any of the Sixth Schedule temporary importation reliefs.
  • Goods imported under a complete remission order made under the Customs Duty (Special Remission) Act 1951.

Two surcharges can also apply at import. Goods released out of bond carry a 3.75% surcharge, and packages of unknown contents entered under section 18 of the Revenue Act 1898 attract a 2% surcharge on the duty.

Some goods cannot enter the island at all, while others enter only with the right licence or permit. The controls exist to protect public safety, animal and public health, and the environment.

Prohibited goods include:

  • Illegal drugs such as heroin, cocaine, amphetamines, LSD, and cannabis.
  • Offensive weapons, among them flick and gravity knives, push daggers, throwing stars, swordsticks, knuckledusters, and spring-loaded batons.
  • Self-defence sprays and incapacitating weapons such as stun guns.
  • Carrots, sweet potatoes, North American yams, corn, and soil; plant growing media and sand are regulated and need prior approval.
  • Obscene and pornographic material, fireworks, gaming machines, counterfeit money and goods, hazardous materials, historical artefacts, and certain protected species including marine turtles and Atlantic Pearl Oysters.

Restricted goods require a permit or licence before they can be imported legally:

  • Firearms and ammunition, which need a valid firearm licence from the Commissioner of Police.
  • Plants, which must carry phytosanitary documents and an import permit from the Department of Environment and Natural Resources; all fruit, vegetables, and plant products must be declared on arrival.
  • CB and VHF radios, which require a valid permit.
  • Certain dairy products, including raw, pasteurised, and ultra-heat treated milk, which need prior approval from the Ministry of Agriculture.

Counterfeit, pirated, and patent-infringing items may be detained, and the importer can be prosecuted by the intellectual property holder. Full detail sits in the official guidance on prohibited and restricted goods.

Evasion most often arises where a traveller undervalues goods or fails to declare them. The Principal Customs Officer on duty at the airport will normally impose an on-the-spot monetary penalty in such cases.

Where a false declaration is made, the penalty is normally three times the duty evaded. The officer issues a Civil Penalty Notice setting out the penalty and any outstanding duty, and goods are restored once both are paid.

If an importer cannot pay at once, the goods are held and a numbered Bond Tag is issued. Where the rules are broken more broadly, Customs may seize the goods and impose a civil penalty, giving the person details of what was seized and why.

The consequences sharpen for the most serious cases. Banned goods and items imported without a required licence are illegal; smuggled goods are seized and the offender may face prosecution and imprisonment. Temporarily imported goods sold or disposed of without authorisation from the Collector of Customs are liable to forfeiture, with a monetary penalty of up to $12,000.

An importer may appeal a duty or penalty decision within 30 days of the date of the Civil Penalty Notice, but any outstanding duty must be paid before Customs reviews the case.

Customs duty is not a footnote for a foreign business owner importing into Bermuda; it is a primary cost line that attaches to almost every physical good entering the island, calculated on a valuation method that leaves little room for ambiguity. The relief schemes and exemptions exist, but they require deliberate structuring before goods arrive, not after.

The single question worth resolving before any shipment or incorporation decision is whether the goods your business will import qualify for an exemption or concession under the tariff schedule, because that determination shapes landed cost more than almost any other variable in the Bermuda operating model.

Expanship advises foreign-owned entities on the duty cost of importing goods into Bermuda, from working out the likely rate and CIF-based value to identifying whether end-use or temporary importation relief applies. The same team supports the wider set of obligations a non-resident business carries on the island, so import planning sits alongside the rest of your compliance work rather than apart from it.

  • Company formation and structuring for a Bermuda entity
  • Registered agent and registered office services
  • Tax and customs registration and filing support
  • Ongoing compliance management and annual obligations
  • Accounting and bookkeeping
  • Introductions to local banking

To discuss importing into Bermuda or setting up an entity there, contact Expanship Bermuda.

Yes. Import duty applies to goods brought into the island, with an average rate of 22.5% on the CIF value and many specific lines reaching 25% or 33.5%. There is no de minimis threshold, so duty attaches once goods exceed any applicable allowance, and personal allowances do not cover business goods.

Bermuda uses the WTO/GATT rules on a CIF basis, so the value is the cost of the goods plus insurance and freight. The starting point is the transaction value shown on the commercial invoice, adjusted for the elements in Article 8, and foreign-currency invoices must be converted using the weekly exchange rates published by Customs.

The importer carries the legal responsibility for correct tariff classification, even when a customs agent handles the entry. Classification follows the Harmonized System 2012 and the six General Rules of Interpretation, and an error can trigger penalties, arrears, and delay or seizure of the goods.

It can, where it qualifies for end-use relief under the Fifth Schedule and the goods serve an approved activity. The goods must be capital goods rather than inventory or operating supplies, construction equipment and vehicles are excluded, and the Minister of Finance approves a business only where the undertaking benefits the wider economy.

Wharfage is charged at 1.25% of the customs value, collected by Customs for the relevant port authority, though accompanied personal goods, postal imports, and goods under temporary importation relief are exempt. A 3.75% surcharge applies to goods released out of bond, and a $5.00 processing fee applies to each dutiable postal packet.

The Principal Customs Officer can impose an on-the-spot penalty, normally three times the duty evaded where a false declaration is made, and may seize the goods. An importer can appeal within 30 days of the Civil Penalty Notice, but any outstanding duty must be paid before the case is reviewed.

Legal Disclaimer

The information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change, and the application of laws can vary widely based on specific facts and circumstances.

Readers should not act upon this information without seeking professional counsel tailored to their individual situation. Expanship and its authors disclaim any liability for actions taken or not taken based on the content of this article.

For specific advice regarding your business setup, compliance requirements, or any legal matters, please consult with qualified legal and tax professionals in the relevant jurisdiction.