Customs & Import Duties in Grenada | Brokers & HS Codes

Understanding Customs & Import Duties in GrenadaCopy link to section

Customs and import duties in Grenada are levied in full. This is not a duty-free territory, and tariffs on imported goods remain a principal source of public revenue for the state.

The framework follows the CARICOM Common External Tariff (CET), a harmonised schedule applied across the regional bloc to goods arriving from outside it. For a foreign-owned business importing equipment, stock, or vehicles, duty is one of several charges that together form the landed cost.

This article explains how duty is assessed, what additional border levies apply, which exemptions exist, and how goods move through clearance. Reported trade data underscores the relevance: in 2024 the country imported USD 793.1M in goods against a trade deficit of USD 739.3M, a strong dependence on inbound supply chains. You can confirm tariff specifics through the Customs Division.

The material here is most relevant to foreign investors, importers, and their advisers planning to bring goods into the island or supply a locally incorporated entity.

The Legal Basis: Grenada's Customs Act and the CARICOM Common External Tariff (CET)Copy link to section

The principal domestic statute is the Customs Duties Act, Chapter 75C of the Laws of Grenada. It sets the procedures for importing and exporting goods, applying for tariff exemptions, certifying origin, and licensing special commodities.

Regional tariff rates were given domestic force by the CARICOM Common External Tariff Order 2014 (S.R.O. 13 of 2014). The country has belonged to CARICOM since the bloc's founding under the Treaty of Chaguaramas in 1973, a 15-member arrangement built to advance economic integration.

Duty exemptions are codified separately under the Customs Duties Exemptions Order (S.R.O. 33 of 2016). That 2016 incentives reform brought discipline to the system: new exemptions must be written into law, discretionary grants are restricted, and beneficiaries are required to file returns and meet their tax obligations.

Computerised clearance rests on the Customs Regulations 2018 (S.R.O. 13 of 2018), which govern the ASYCUDA World platform. The legal architecture is built to be consistent with World Trade Organization rules, membership of which dates to 1996, and with the Economic Partnership Agreement between the EU and CARIFORUM. The governing legislation is published in full by the Parliament.

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Import Duty Rates and Tariff Classification by HS CodeCopy link to section

Every imported item carries a 10-digit Harmonised System (HS) code, and that code determines the duty rate. Classification is the single most important step in predicting your cost.

Rates under the CET run from 0% on essential goods to 40% at the upper band for luxury items. Most goods sourced outside the regional bloc fall in the 5% to 40% range, applied as an ad valorem charge on value.

Heavier duties typically attach to motor vehicles, clothing, and electronics. The official tariff schedule sets out heading numbers, goods descriptions, the duty rate, the environmental levy, and the customs service charge in parallel columns, which lets you build a full landed-cost estimate per line.

Classification is not static. The 2025 HS revisions added refined subheadings for lithium-ion batteries (HS 8507) and greater specificity for wireless devices (HS 8517), with national adjustments for e-commerce continuing. No major change to the underlying nomenclature is expected before 2027.

Customs Valuation: How the CIF Method Determines Dutiable ValueCopy link to section

Duty is calculated on the CIF value, not the bare purchase price. CIF stands for Cost, Insurance, and Freight, so the figure that drives your duty includes shipping and insurance, not just the invoice cost of the goods.

The sequence matters. Duty is applied to the CIF value first; VAT is then applied to the CIF value plus the duty already added.

The declarant must state the true CIF value and the correct 10-digit HS code on the declaration. This valuation approach follows the WTO Agreement on Customs Valuation, with transaction value as the primary basis.

Under-declaring value to reduce duty is treated as evasion and is unlawful. Accurate figures protect you from penalties that can far exceed the duty saved.

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The Customs Service Charge and Other Border Levies on ImportsCopy link to section

Duty is rarely the only charge. Several levies stack on top, and a realistic landed cost must account for all of them.

The Customs Service Charge (CSC) is a flat 6% of CIF value, applied to almost all merchandise. It is charged even on preferential imports, including goods of regional origin that escape duty itself.

Excise tax applies to a narrow set of goods, mainly alcohol, tobacco, and some motor vehicles, with rates on tobacco and alcohol reaching roughly 50% to 100%. The Environmental Levy funds national waste management and attaches to vehicles and white goods, set at 2% of CIF for new vehicles and those up to four years old.

One area to check directly with the Inland Revenue Division: sources differ on whether a 25% General Consumption Tax applies alongside or instead of the 15% VAT on certain imports. Confirm the operative consumption charge before pricing a shipment, because the difference is material.

Brokerage and port fees round out the cost. Expect a broker flat fee of EC$50 to EC$200, document processing of 1% to 2% of CIF, and storage at EC$10 per day after five free days.

Exemptions, Concessions, and Preferential Tariff TreatmentCopy link to section

Relief exists, but it is rule-based rather than discretionary. The 2016 reform requires every concession to be codified, and beneficiaries must still file returns and meet compliance conditions.

Approved investment projects can secure relief on imported equipment and materials, subject to approval from the government investment department. This is the route most relevant to a foreign-owned entity bringing in plant or machinery.

Regional and trade-agreement preferences can remove duty entirely. Goods meeting the CARICOM Rules of Origin enter duty-free across member states, and the country applies the CET to extra-regional goods while benefiting from preferential access under the CARIFORUM-EU EPA.

Further preferential arrangements widen the field:

• Caribbean-Canada Trade Agreement (CARIBCAN)
• CARICOM free trade agreements with Costa Rica, the Dominican Republic, and Venezuela
• CARICOM-Cuba Cooperation Agreement
• Caribbean Basin Initiative (CBI), providing United States tariff benefits

A separate concession exists for Grenadian nationals resettling under the Welcome Home Programme, administered through a one-stop bureau at the Ministry of Finance. A qualifying returning resident may import one motor vehicle free of duty, VAT, and excise tax, provided it comes from the country where the applicant lived continuously for the prior seven years.

That concession carries conditions worth knowing. The 6% Customs Service Charge still applies, the exemption runs for three years, vehicle Environmental Levy is reduced by 50%, and an XCD 75,000 allowance covers household and personal effects. The vehicle may be sold after three years without paying residual duty. Full eligibility rules sit on the returning nationals page.

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The Import Clearance Process: ASYCUDA World, the SAD, and Release LanesCopy link to section

Clearance runs through ASYCUDA World, the electronic platform used by the Customs and Excise Division. The system was introduced to cut cargo dwell time and standardise examination at the main ports.

Declarations are filed using the Single Administrative Document or its simplified version (SAD/SSAD), the standard customs entry form, with limited exceptions for some passenger baggage and postal parcels. Filing is electronic, done either by the importer if registered as a declarant or through a licensed broker, with duties and taxes assessed automatically from the entered codes and values.

After assessment, payment follows before release. Settlement is made through the online portal of participating banks or at the Customs Cashier desk by cash, manager's cheque, or card; personal cheques need prior authorisation from the Comptroller.

Goods are then routed by risk:

• Green Lane: immediate release with no physical examination
• Red Lane: physical inspection of the consignment required

Port charges are paid to the relevant Port Authority once customs clears the goods, and only then is delivery released. With correct documents and accurate classification, clearance generally takes one to five days.

Required Documentation and the Role of Licensed Customs BrokersCopy link to section

Documentation drives both speed and cost. Incomplete or inconsistent paperwork is the most common cause of delay and inspection.

Standard documents include:

• Commercial invoice showing the CIF value
• Bill of lading or airway bill
• Certificate of origin, where claiming preferential treatment under CARICOM or the EPA
• CARICOM Certificate of Value and Origin, plus a packing list
• Import licences or permits for restricted goods such as agricultural products or firearms

You may appoint a broker to prepare and file the SAD on your behalf. Responsibility for the accuracy of the declaration nonetheless stays with the importer, so the broker's involvement does not transfer your legal exposure.

Broker charges sit on top of duty and import VAT, typically a flat fee of EC$50 to EC$200 plus document processing at 1% to 2% of CIF. Returning nationals, returning diplomats, and expatriates on work permits must attend an eligibility interview before a concession declaration is lodged. Note too that funds of US$10,000 or more must be declared to customs.

Prohibited and Restricted Goods, Import Licences, and PenaltiesCopy link to section

Some goods cannot enter, and others require permission first. Treating both categories carefully avoids seizure and fines.

Prohibited items, in the personal and traveller context, include illegal drugs, fruit and vegetables, animal and poultry feed other than dog or cat food, weapons and ammunition without permission, pets and animals without permission, counterfeit goods and money, and pornographic material. Commercial prohibitions may differ, so verify before shipping.

A separate set of goods needs an import licence obtained ahead of arrival:

• Apply for any required licence before importation, not after the goods land.

That list covers pasta products, wheat or meslin flour, eggs, aerated beverages, beers, stouts, malts, soaps, aerated water, prepared poultry, cattle and pig feed, wooden furniture and upholstery, carbon dioxide, and oxygen. Live animals carry their own conditions: dogs and cats need a permit from the Ministry of Agriculture with health and rabies certificates, while plants and plant products require a permit from the Pest Management Unit.

Penalties are severe and exist to deter under-valuation. Fines reach up to 300% of the evaded duty, and goods or vehicles may be seized; the Comptroller can hold a vehicle as liable to forfeiture pending full payment where a concession agreement is breached.

ConclusionCopy link to section

Getting HS code classification right is the single most consequential decision a foreign business owner will make in this process, because every duty rate, every concession eligibility, and every potential penalty flows directly from how a product is classified on entry. Before committing to an import strategy, the priority is confirming that classification with a licensed customs broker who works within the ASYCUDA World system, not assuming a code carries over from another jurisdiction.

How Expanship Can Help Your Business in GrenadaCopy link to section

Expanship supports foreign-owned businesses with the practical side of customs and import duty work, from HS classification and landed-cost estimates to documentation and broker coordination, and extends that support across the wider obligations of running an entity on the island.

• Company formation and structuring for foreign owners
• Registered agent and registered office services
• Tax registration and return filing
• Ongoing compliance management and statutory deadlines
• Accounting and bookkeeping
• Introductions to local banking partners

To discuss your import plans or a new incorporation, contact Expanship Grenada.

Frequently Asked QuestionsCopy link to section