SERZ Extension Recap - Kerry Sullivan Real Estate & Travel Blog

Last Updated December 2021

**Exemption Extensions in the SERZ* (Special Economic Recovery Zone) until December 2022**

The MP for Central and South Abaco, Hon. John Pinder is very pleased to inform the public of the recent extension to the Special Economic Recovery Zone (SERZ) Order.

This extension will allow for exemption of Duty and VAT for the importation of construction materials and replacement vehicles to Abaco and Grand Bahama until December 31st, 2022.

This extension of the Amendment to the SERZ Order applies to local and international purchases of the following:

Building Materials

Plumbing Fixtures and Materials

Electrical Fixtures and Materials

Household Furniture, Furnishings

Household Appliances

Hardware Supplies

Replacement Vehicles

The Davis Administration is committed to helping the people of Abaco and Grand Bahama with the ongoing restoration and rebuilding of homes and businesses, which were damaged or destroyed by Hurricane Dorian.

The Full SERZ Order will be posted soon.

Importation of Tax Free Goods

Under the SERZ Order, hurricane relief supplies can also be imported directly to the specified islands tax-free based on the conditions outlined in the Order. Unlike in previous orders, these benefits will not be available to businesses outside of the recovery areas or for cargo imported into ports of entry outside of the recovery areas. Pre-approval from the Ministry of Finance/Department of Inland Revenue is required to benefit from these tax concessions.

Process for Direct Cargo Imports into the Zone:

Complete the Tax Relief Consolidated Form (SERZ)
In Abaco, submit to Hurricane Dorian One Stop Shop at the Government Complex
In Grand Bahama, submit to the Department of Inland Revenue at the Regency Centre
Expect approximately two working days for the approval process after submission
Forms can be emailed to patricialewisdeane@bahamas.gov.bs or medinataylor@bahamas.gov.bs
Approved forms will be emailed directly to clients or they can be collected from the office where form was submitted.
Approved forms must be uploaded with your Customs Declaration.

When filing a Customs Declaration, clients should list items under the normal Customs Classification Codes. However, there will be a unique concession code assigned to Grand Bahama and Abaco to waive all taxes.

Direct Import of Goods as Accompanied Baggage

Complete the Tax Relief Consolidated Form and submit upon entry.
Once submitted, form will be approved on site by a Customs Officer.

Notes

There is an an aggregate value of $5,000 per trip.
This is not for business/ commercial shipments.

All qualifying items outside of this are to go through the established pre-approval process.

OTHER UPDATES (May 2021)

The Prime Minister also announced the following concessions for the country as a whole:

Elimination of VAT on baby and adult diapers, as well as sanitary pads and tampons for women.
Elimination of duty on disinfectants.
Elimination of duty, by application, for construction and repairs to churches and other buildings used for religious gatherings.
Elimination of duty on a range of sporting equipment and apparatus.
Elimination of duty on a number of IT related hardware and cabling.
Reduction in duty on a number of building supplies to 20 percent and 25 percent, respectively. This includes the reduction in duty on electrical wire to 20 percent.

In addition, every Bahamian small business and entrepreneur will be able to apply for and obtain duty free concessions on all items needed to start and expand their business, including their first stock of inventory.

*SERZ includes the islands of Abaco, the Abaco Cays, Grand Bahama, Sweetings Cay, Deep Water Cay and Water Cay.

Sources: Department of Inland Revenue & James Pinder, M.P. Central & South Abaco