Productive Inputs Relief (PIR) Fiscal Incentive Regime for Manufacturing
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Productive Inputs Relief (PIR) Fiscal Incentive Regime for Manufacturing
Who Can Benefit?
To be eligible for the Productive Inputs Relief (PIR) in Manufacturing, companies must first be approved for Manufacturing Status. This approval requires that the company’s production process meets the definition of manufacturing as outlined in the Customs Act Amendment (2013).
Definition of “Manufacture of Goods”:
The term “manufacture of goods” is defined, among other criteria, as the production of goods in Jamaica through a process that transforms raw materials or intermediate goods into new and distinct products.
This transformation must result in a significant change, creating goods that are uniquely different from the original inputs used in the production process.
Regulatory Entities
The process of determining if a company qualifies for Manufactuing Status fiscal incentives is based on a joint assessment conducted by the following government entities:
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Ministry of Industry, Investment and Commerce (MIIC)
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Jamaica Customs Agency (JCA)
Manufacturing Status Fiscal Incentives
Companies approved for Manufacturing Status can benefit from the following incentives:
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Import Customs Duty (ICD) Exemption
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Additional Stamp Duty (ASD) Exemptio
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Standard Compliance Fee (SCF) Exemption
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General Consumption Tax (GCT) Exemption
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50% Discount on Customs Administrative Fee (CAF)
Companies may also benefit from the Employment Tax Credit and the revised Capital Allowance and Loss Carry Forward Schemes.
Categories for Fiscal Incentives
The Customs Tariff (Revision) (Amendment) Resolution, 2013, outlines and defines the following five (5) categories under the PIR system, to which the aforementioned Manufacturing Status fiscal incentives are applicable. These are:
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Raw material
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Intermediate goods
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Packaging material
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Consumables
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Capital Equipment (& Spare Parts)