Understanding Vehicle Import Duty In Belize: A Guide To Calculating Costs

If you're looking to import a vehicle to Belize, there are a few things you should know. Firstly, customs duties and taxes are calculated based on the transaction value, which is derived from the value stated on the invoice, receipt, or other proof of purchase. This value must be converted to Belize Currency (BZD) at the rate of $2.0175 BZD to $1.00 USD. Secondly, import duties for vehicles range from 0% to 45%, with an average rate of 20%. However, certain automobiles may be subject to a higher duty of 45%. It's important to note that duties are calculated using the CIF method, which includes the cost, insurance, and freight value of the goods. Additionally, there may be other taxes and fees applicable, such as the General Sales Tax (GST) and Environmental Tax. When importing a vehicle, it's recommended to use a duty calculator or consult official government sources to estimate the total cost accurately.

Import Duty and Taxes are calculated on the CIF value of goods

When importing a vehicle to Belize, the import duty and taxes are calculated based on the CIF value of the goods. CIF stands for Cost, Insurance, and Freight, and it is an international shipping agreement that outlines the responsibilities of both the buyer and the seller. In a CIF arrangement, the seller is responsible for the costs of moving the shipment to the buyer's destination port, including fees for shipping, export customs clearance, duty, and taxes. The buyer, on the other hand, is responsible for any costs associated with importing and delivering the goods to their final location, such as unloading, transportation, inspection, licensing, and import duty charges.

The CIF value is calculated by adding the cost of the goods, insurance expenses, and freight charges. The cost of the goods refers to the actual price of the goods being bought or sold, including any additional costs associated with production, acquisition, or preparation for shipment. Insurance expenses protect the goods against potential risks such as damage or loss during transit, and the cost is typically calculated as a percentage of the total value of the goods. Freight charges refer to the fees for transporting the goods from the seller's location to the buyer's destination, including the transportation mode, route, and any associated handling charges.

It is important to note that import duties are levied by the government of the importing country and are not included in the CIF price. In Belize, import duties range from zero to 120%, with an average rate of 20% applied to commodities. Certain automobiles may be subject to a 45% import duty. Additionally, there may be other taxes and charges applicable to the import, such as the General Sales Tax (GST) and Environmental Tax. The GST is applied at a rate of 12.5% based on the aggregate of the customs value and other duties, while the Environmental Tax is charged at a rate of 3% on all imports, with certain exceptions.

To calculate the total cost of importing a vehicle to Belize, one must consider the CIF value, which includes the cost of the vehicle, insurance, and freight charges, as well as the applicable import duties and taxes levied by the Belizean government. Using an online duty calculator can help estimate the total cost by taking into account the specific details of the vehicle being imported.

Taxes on imports include General Sales Tax (GST)

General Sales Tax (GST) is applied at a flat rate of 12.5% on all imports. This is based on the aggregate of the customs value and other duties. The customs value is based on the transaction value, which is derived from the value stated on the invoice, receipt, or other proof of purchase. The dollar value must be converted from the foreign currency stated on the proof of purchase document to Belize Currency (BZD). The Belize dollar is tied to the US dollar at $2.0175 BZD to $1.00 USD.

In addition to the GST, other taxes on imports include the Environmental Tax. This is charged at a rate of 3% on all imports, excluding some medicines and food items. Automobiles, however, are charged at a rate of 2-5% depending on the type of vehicle.

The Belize dollar is tied to the US dollar

To calculate the duty on your vehicle in Belize, you must first understand the country's import tax and customs fees. Belize calculates these fees using the CIF method, which means that the import duty and taxes are calculated based on the value of the imported goods, shipping costs, and other factors. The import duty on certain automobiles and other goods in Belize is typically 45%. However, it's important to note that the duty rate can vary depending on the category of goods, and the taxable value may include other amounts besides the value of the goods.

Additionally, when importing goods to Belize, you may also be charged a customs brokerage fee by the import customs broker for filing the necessary documents with the local customs authorities.

Now, regarding the Belize dollar, it's important to understand that it is tied to the US dollar at a fixed exchange rate. This means that the value of the Belize dollar is officially set at BZ$2 for every US$1. This rate is recognised by the Central Bank of Belize, which was established in 1982 and manages the nation's foreign reserves and currency issuance.

The history of the Belize dollar's peg to the US dollar dates back to the 19th century. In 1885, British Honduras, as Belize was then known, introduced a new currency based on the US dollar, bringing it in line with Canada. This was due to the influence of most imports coming from New Orleans in the United States, as well as the fact that the Canadian dollar was on the gold standard and equal to the US dollar at the time.

Over time, the Belizean currency has maintained its attachment to the US dollar, even as the country gained independence in 1981. In 1978, the link to the British pound was abandoned, and the Belize dollar was once again pegged to the US dollar at a fixed rate of BZ$2 to US$1, which continues to this day. This rate reflects a devaluation of 50% in relation to the original parity with the US dollar in 1885, which last applied in 1949.

The fixed exchange rate between the Belize dollar and the US dollar has implications for travellers and businesses. Travellers with US dollars may not need to exchange their currency, as US dollars are widely accepted in Belize. However, it is important to note that there are restrictions on the amount of US currency that can be brought into the country, and proper customs declaration is required for amounts exceeding US$5,000.

For businesses, the exchange rate can impact their operations. In the past, financial institutions in Belize offered slightly lower exchange rates for US cash currency, which led to businesses being reluctant to accept US currency. However, as of May 2023, the Belize Central Bank instructed banks and financial institutions to accept US cash at the official rate of BZ$2 for US$1.

Import duties on industrial products average at 20%

How to Calculate Duty on Your Vehicle in Belize

Importing goods into Belize comes with a range of considerations, including import duties, taxes, and the necessary documentation. Belize's customs tariff is based on the Caribbean Community's (CARICOM) Common External Tariff (CET), which ranges from 5% to 45%. The two main duties applied to imported goods are the Import Duty and the Revenue Replacement Duty (RRD).

Import duties on industrial products, on average, are set at 20%. However, this rate may increase for products deemed of national interest or those protected for Belizean investment. These duties are calculated based on the CIF (Cost, Insurance, and Freight) value of the goods. This means that the import duty and taxes are determined by the value of the imported goods, shipping costs, and other amounts depending on the valuation method of the country.

It is important to note that the import duty percentages vary across different categories of goods. For instance, certain automobiles and goods like fresh peppers, pepper sauces, live animals, and boats are subject to a 45% import duty. On the other hand, various food items and medicines are exempt from import duties.

When importing a vehicle to Belize, it is crucial to be aware of the applicable duty rates and calculations. The duty rate for vehicles can vary depending on their type and specifications. Additionally, there may be other taxes and charges, such as the General Sales Tax (GST) and the Environmental Tax, which is typically charged at a rate of 3% for vehicles.

To ensure compliance with Belize's customs regulations, it is recommended to use an online duty calculator or consult official sources, such as the Belize Customs and Excise Department, to determine the specific duty rates and calculations for your vehicle.

Some vehicles are eligible for duty discounts

The duty rates on vehicles brought into Belize differ according to type, gross vehicle weight, etc. There are some discounts or allowances on certain types of vehicles if they can be considered work or farm vehicles. For example, larger pickup trucks that are diesel and can tow a lot for hauling horses or equipment.

If you are a Qualified Retired Person (QRP), there are some rules about the age of the vehicle you can bring into Belize. I have read conflicting information about this. One source says that, under the QRP, you will not be allowed to bring in a vehicle older than three years duty-free. Another source says that, under the QRP, you will not be allowed to bring in a vehicle that is not fully owned by you.

If you are not a Belizean national or resident, you will have to pay a substantial duty on your vehicle.

Frequently asked questions