Question
A local company imports a shipment, the companys Chief Executive Officer is importing a Cross-Wagon motor vehicle he claims for personal use, which exceeds 1500cc
A local company imports a shipment, the company’s Chief Executive Officer is importing a Cross-Wagon motor vehicle he claims for personal use, which exceeds 1500cc but does not exceed 2000cc. The vehicle sold in Jamaica would sell for approximately $35,000 USD equivalent, having cost $10,500 USD. After much negotiation with the seller, the terms of the shipment are Free on Board. Your services as a customs broker have been requested by the client to effect the clearance of the shipments. The used motor vehicle will arrive at Kingston Freeport Terminal Limited in a 20-ft container (ZCSU7890234). The broker informed the client that for this type of vehicle, the Import Duty (ID) rate is 20%, and the Special Consumption Tax Advalorem (SCTA) is 20%. Since the imported vehicle was used, the declaration was subjected to valuation scrutiny by Customs. It was decided by Customs to add an additional $3,500.00 USD to the invoice cost.
It was also observed that the motor vehicle was on an invoice addressed to the local company. Even though the importer disagreed he opted to pay the required duties based on Customs re-evaluation. To clear a motor vehicle cost $65,000 JMD for the Customs Administration Fee (CAF) is levied. A part of the shipment is a tanker container that arrived at the Sufferance Wharf of the company of unleaded gasoline. The tanker container contains 800,000,000 milliliters of unleaded gasoline 87. The Import Duty (ID) rate is 10% and similarly, the Special Consumption Tax Advalorem (SCTA) rate is 10%. The Special Consumption Tax Specific (SCTS) is $38.1492 JMD per liter. The marine freight for both the motor vehicle and gasoline was $12,500.00 USD.
Given that:
- The General Consumption Tax (GCT) rate is 15% or 20% depending on the purpose of importation
- Environmental Levy (ENVL) rate is 0.5%
- The standard Compliance Fee (SCF) rate is 0.3%
- Stamp Duty is $100.00JMD per shipment
- Exchange Rate is 1USD: 150JMD
- Customs Administration Fee (CAF) is a rate of $3.50 JMD per liter for gasoline
- The invoice cost for gasoline is $750,000.00 USD, FOB delivery terms
- All items were delineated on the said Bill of Lading
Calculate all duties and taxes payable and the total sum payable for the shipments by the local company to the Jamaica Customs Agency for this shipment. SHOW ALL WORKING.
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ANS WER Import Duty ID on motor vehicle 20 x 10 500 2 100 Special Consumption Tax Ad val orem S CT ...Get Instant Access to Expert-Tailored Solutions
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