Purpose
Concessions Granted
Scope of the Incentive
Targeted Beneficiaries
Classes of Items/Articles Covered by Policy
Eligibility Criteria
Application Procedure
Approval Procedure
Special Vehicle Registration Procedure
Register on Sale or Transfer
Revocation of Duty Free Concessions

Purpose

The reasons for agriculture duty concessions are two-fold:

"The General Objective is to increase output, including food production, jobs and incomes in the agricultural sector through increased agricultural investment"

"The specific objective is the minimization of costs and associated risks confronting agricultural operators and support institutions, both public and private in their efforts to promote economic activity in agriculture"

[Top]

Concessions Granted

The concessions include:

  1. A waiver of the Import duty and excise tax are two-wheel and four wheel pickups, trucks and jeeps for qualifying farmers.
  2. A waiver of import duty on seeds, agricultural tools, machinery and equipment, planting materials, fertilizer and agricultural chemicals (pesticides, herbicides and other treatments approved for agricultural use). Some of these are zero rated for VAT.
  3. A waiver of the import duty on meat processing equipment, animal health supplies and animal feeds.

Concessions on agricultural vehicles are crucial to current efforts to increase productivity and competiveness of agriculture in direct response to escalating competitive pressure resulting from market liberalization on domestic, regional and international arenas and thus to the success of all the on-going and proposed programs and projects for agriculture."

[Top]

Scope of the Incentive

Crop Production:

  • Land preparation
  • Planting
  • Weeding
  • Fertilizer application
  • Harvesting and processing
  • Crop Marketing including promotions, packaging. Storage transportation

Livestock Production

  • Nutrition
  • Housing
  • Animal Health
  • Meat Processing

Fisheries

  • Fishing
  • Boat and Gear
  • Technology
  • Fish Storage
  • Fish Processing

Forestry

  • Forestry cultivation
  • Forestry Harvesting
  • Timber Storage and Marketing

Agribusiness and Eco-Tourism

  • Production
  • Research
  • Marketing and Promotion
  • Facilities
  • Supplies and services

[Top]

Targeted Beneficiaries

The beneficiaries targeted by this policy are:

Entrepreneurs involved in research, development to support the service activities related to commercial agriculture.

Specific beneficiaries include but are not restricted to:

  • Farmers
  • Livestock operators/producers
  • Fishermen
  • Agro-processors
  • Lumber producers
  • Agricultural exports
  • Hucksters
  • Vendors
  • Truckers
  • Agri-Business owners and operators
  • Aircraft operators and owners involved in movement of agricultural commodities
  • Agriculture service providers such as mechanics, builders etc.
  • Agricultural research establishments

The applicant must be a full time agricultural producer or operator or he/she must have employed a competent full time supervisor or operator.

[Top]

Classes of Items/Articles Covered by Policy

  • Feed
  • Live animals
  • Fertilizer and other agricultural chemicals used in commercial production
  • Seeds
  • Tools
  • Planting materials of all kinds connected with commercial production
  • Transport (vehicle) motors, pumps
  • Machinery and equipment of all kinds
  • Construction material of all kinds
  • Animal health supplies such as antibiotics and veterinary supplies
  • Supplies connected with road construction of agriculture structures of all kinds
  • Any agricultural products or marketing supplies or inputs not stipulated above connected with 3&4

[Top]

Eligibility Criteria

To be eligible for consideration applicants must satisfy the following criteria:

  • Full time agricultural producer or operator or he/she must have employed a competent full time supervisor or operator
  • If embarking in agriculture, present a plan showing the net cash flow projection for the investment and firm marketing arrangement or if applicant is already is already in the agriculture industry: certification of sales giving market contacts, sales volumes, prices
  • Resources for undertaking the investment including facilities land, labour, capital facilities, technical support
  • Technical competence as evidenced by skills in relevant field of investment or access to that skill such as through training
  • Farm Access – the farm must be accessible by road
  • Legal Status - in the case of an individual, he/she must be a bonafide producer and in the case of a company must be legally registered
  • In the case of farmers, proof of ownership of land being farmed or letter of authorization from the owners signed by a justice of the peace or an affidavit granting permission (from lawyers’ office). Where land belongs to deceased of applicant, a probate must be presented.
  • Recommendation of agricultural extension officer after a visit to the farm after the completion of the application form
  • In the case of application for a vehicle, evidence of funds to purchases the vehicle as evidenced by a letter of commitment from a financial institution where the applicant own capital is not involved. Where the applicants own capital is to be used a bank statement would be required.

[Top]

Application Procedure

Persons or firms seeking exemption on articles other than vehicles should complete a set of duty free forms (in triplicate)

These can be obtained from the Ministry of Finance and Social Security.

After completion forms should be submitted to the Permanent Secretary of the Ministry of Agriculture for recommendation to the Ministry of Finance and Social Security.

Persons seeking duty-free exemption on vehicles shall follow the following procedure:

  • Contact the Division of Agriculture
  • Complete the application form
  • Obtain the recommendation of the relevant agricultural extension officer ( the officer will pay a visit to the farm and prepare a report which will accompany the application from)
  • Provide the information indicated in the section captioned "Eligibility Conditions"
  • Submit the application and all documents to the Division of Agriculture

[Top]

Approval Procedure

After submission to the Division of Agriculture, the application form and supporting documents receives the attention of a Duty Free committee. The committee appraises all applications for duty free concessions on vehicles with a view to recommendation for the endorsement of the Permanent Secretary of the Ministry of Agriculture and the approval of the Ministry of Finance.

[Top]

Special Vehicle Registration Procedure

Recipients of duty free concessions on vehicles will be exempted to comply with a special registration procedure.

[Top]

Register on Sale or Transfer

Where a recipient of duty free concessions on a vehicle or vehicles or vehicles desires to sell or otherwise dispose of the vehicle, permission to do so shall be sought from the Comptroller of Customs.

Vehicles can be disposed of without the payment of duties after five years from the approval of duty free concessions. Duty will be paid pro-rata if disposed of before five years.

[Top]

Revocation of Duty Free Concessions

Where the Minister of Finance is satisfied that:

  1. The information furnished in the application form for the granting of duty free concession was false; or
  2. The vehicle is not being used for the purposes and in accordance to the information and conditions of the application form and associated documents; the Minister may revoke the grant of duty free concessions on grounds of false declaration.

Where and when a grant of duty free concession is revoked:

Notice to the recipient of the grant and the individual, enterprise or establishment shall be liable to refund the full amount of the concession to the Comptroller of Customs or the vehicle shall be seized.

Pursuant to Sections 98, 116, and 120 sub-sections (1), (2), (3), (4), (5) of the customs (Control) Act, Chapter 69.1 of the Laws of the Commonwealth of Dominica, recipients of the duty free concessions on vehicles shall be exempted to sign a declaration recognizing the powers of the Comptroller of Customs to seize and auction off the vehicles in the event that the recipient is in violation of the violation of the conditions of the application.

For more information, contact:

Ministry of Finance
5th Floor, Financial Centre
Kennedy Avenue
Roseau
Dominica
Tel: (767) 266 3340
Fax: (767) 448 0054
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.