The government says it’s seeking a revision of the Council for Trade and Economic Development, COTED’s, decision not to extend the suspension of the Common External Tariff on Jamaica’s importation of lithium-ion batteries from outside the Caribbean.
COTED is the organisation responsible for the promotion of trade and economic development within CARICOM.
At a meeting held by COTED in November last year, the Ministry of Science and Energy requested that the suspension of the tariff on Jamaica’s importation of nine renewable and energy efficient technologies be extended until December 2025.
Among the technologies listed were lithium-ion batteries.
The previous two-year suspension ended December 31 last year.
However, according to the ministry, COTED decided not to grant the extension as a result of the Barbadian government indicating that a company located in the eastern country was able to supply the quantity of lithium-ion batteries being requested for tax exemption.
The ministry says following an assessment of the company, it was determined that the lithium-ion batteries on Jamaica’s priority list were different from those supplied by the Barbadian company.
It noted that the company’s existing production capacity amounted to only 1.5 per cent of the lithium-ion battery imports, particularly for use in renewable energy systems.
According to the ministry, the decision not to suspend the tax on the batteries did not sufficiently consider the rules of origin under the Revised Treaty of Chaguaramas and the production and export capabilities of the Barbadian company.
The ministry says it requested a revision of the council’s decision in mid-January.
While acknowledging the importance of COTED’s decision to Jamaica’s renewable energy sector, the ministry says it’s committed to working closely with its partner Ministries to have the decision reconsidered.
Abigail Bartley reports.