License Fee Coming November 1; goes from $0 to $125,000

By Deandrea Hamilton | Editor

From no Customs fee for an import permit to as much as $125,000 a year for businesses importing both alcohol and tobacco — that is the dramatic change facing some Turks and Caicos merchants under a new licensing regime coming November 1, and the PDM is taking issue with it.

Government announced September 1 that commercial importers will require separate annual licences costing $75,000 for alcohol and $50,000 for tobacco, plus a $150 non-refundable application fee.

For businesses importing both commodities, that means $125,000 annually.

PDM’s Ezra Taylor questioned who ultimately benefits if smaller businesses cannot afford to continue importing directly.

“Who is this policy decision for?” Taylor asked during a September 3 press conference, arguing that by “pricing small and medium-sized operators out of the market,” Government risks concentrating importing among a smaller group of wholesalers.

Taylor also warned of another possible consequence.

“The exorbitant cost of getting these licences is simply going to force importers who want to trade in these products to create an underground market,” he said, noting existing border-security pressures involving guns, narcotics and illegal migration.

Taylor also challenged the consultation process and asked how Government determined the fees “if no one was consulted.”

Government says the regime will strengthen border controls, regulatory oversight and compliance while improving trade statistics.

Deputy Premier Jamell Robinson said it would “support legitimate trade and ensure a fair and transparent system for all commercial importers.”

The licences take effect November 1, although the first payment will be prorated through March 31, 2027. The regular licensing year then runs April 1 to March 31.

Taylor maintains the squeeze could ultimately reach both small merchants and consumers through reduced sourcing options, tighter margins and higher prices.