Preferential Market Access
One of the benefits of manufacturing in Barbados is that your ‘made in Barbados’ products will enjoy preferential access to key international markets including the US, Canada and the UK.
Caribbean Basin Initiative (CBI)
Under the provisions of the Caribbean Basin Initiative (CBI), products made in Barbados are given complete duty-free entry into the US market – provided that at least 35% of the products’ appraised value originated in Barbados. This origin requirement can be reduced to 20% if not less than 15% of the product value is represented by US or Puerto Rican content.
Products manufactured or assembled in Barbados can be exported to Canada free of customs duties under the CARIBCAN programme. In this case, at least 60% of the ex-factory price of the product must originate in Barbados or Canada. This means that Barbadian input can be very low and the product still qualifies for duty free entry if the Canadian raw material input is high.
EU-CARIFORUM Economic Partnership Agreement (EPA)
Under the terms of the EU-CARIFORUM Economic Partnership Agreement (EPA), for all products originating in CARIFORUM countries and exported to the EU (other than rice and sugar), the agreement has brought about a duty and quota-free access (DFQF) regime effective January 1, 2008. The EPA also includes a protocol implementing the UNESCO Convention on cultural diversity, and provides CARIFORUM artistes and other culture-related services suppliers with opportunities for the temporary movement of people, and for co-production market access.
Barbados is a founding member of the Caribbean Community (CARICOM). Products which are manufactured in Barbados, and satisfy certain qualifying criteria, can be exported free of customs duties to the markets of the other CARICOM member states. In order to qualify for duty-free access to CARICOM markets, Barbadian made products must achieve a change in customs classification or satisfy the minimum Added Value criterion or can be wholly produced.
Venezuela and Colombia
Barbadian made products can also be exported to Venezuela and Colombia under the Venezuela and Colombia CARICOM Agreements without attracting any customs duties. Select products manufactured in Barbados, can be exported free of duty to Venezuela and Colombia provided that at least 50% of the export value of the product is local value added or the final product is classified under a different tariff heading from any of the material inputs.
CARICOM – Dominican Republic
Under this CARICOM Agreement, Barbados has a comprehensive bilateral trade package with the Dominican Republic (DR). The agreement provides for the elimination or the phasing out of duties on all goods except for those which might be identified as “sensitive”.
CARICOM – Cuba
The CARICOM-Cuba Trade Agreement involves a wide range of products. The rules of origin under the agreement are based on the general principle of substantial transformation characterised by the change of customs classification heading.
CARICOM – Costa Rica
Under this agreement, Costa Rica has established a free trade area with CARICOM countries, designed to stimulate trade expansion with respect to various categories of goods. Originating goods produced in free trade zones within the participating country shall be subject to the most favoured nation treatment when imported into another participating country with some exceptions.