Letter of the Day | Jamaica’s broken import system punishes its people

THE EDITOR, Madam:

There is no polite way to say this anymore: Jamaica’s import-clearing system is hostile to its own people. When the cost to clear an item routinely exceeds the value of the item itself, the problem is not logistics – it is policy failure.

According to international trade benchmarks, port and border compliance costs in developed economies are a fraction of what Jamaicans pay. In OECD countries, border compliance averages US$100–$200 per shipment with processing times measured in hours, not days. In Jamaica, clearing costs – once duties, GCT, stamp duty, port handling, customs processing fees, brokerage, and storage are added – can easily exceed 50–100 per cent of the item’s value, even for basic consumer goods.

The government speaks endlessly about growth, productivity, and entrepreneurship, yet maintains a system that actively discourages trade. Small businesses importing raw materials face upfront costs so high they kill margins before sales begin. E-commerce is suffocated by unpredictable charges. Families importing necessities are blindsided by fees that feel deliberately opaque.

DESIGNED FOR EXTRACTION

Let us be honest: these costs are baked into everything Jamaicans buy. Food, appliances, school supplies, construction materials – all reflect a port system designed less for facilitation and more for extraction. The result is a quiet transfer of wealth from consumers and small operators to an inefficient clearing ecosystem that the state refuses to reform.

What makes this indefensible is that Jamaica already taxes imports heavily through duties and GCT. The problem is the layering – fees stacked on fees, delays that trigger storage charges, and manual processes that belong in another decade. The state then acts surprised when goods sit at ports, when people under-declare, or when informal channels flourish.

Every extra day a container sits at the port generates revenue. Every confusing calculation forces dependence on brokers. Every delay compounds cost. The system rewards inefficiency – and Jamaicans pay for it at the checkout.

Meanwhile, first-world countries move in the opposite direction. Digital pre-clearance. Predictable fee structures. Caps on ancillary charges. The principle is simple: clearing costs should never rival the value of goods. Jamaica violates that principle daily.

ECONOMIC VANDALISM

Here is the uncomfortable truth policymakers avoid: high clearing costs function as a hidden regressive tax. They hit low- and middle-income Jamaicans hardest, while well-capitalised importers absorb or bypass them. This is how inequality is reinforced without a single parliamentary debate.

If the government is serious about reform, the actions are obvious:

• Cap total clearing costs so they cannot exceed a fixed percentage of the goods’ value.

• Eliminate redundant and overlapping fees that add no efficiency.

• Digitize end-to-end customs processing to cut delays and storage penalties.

• Publish a mandatory, transparent cost calculator – no surprises, no discretion.

• Benchmark Jamaica’s import-clearing costs against OECD standards and commit publicly to closing the gap.

Revenue matters. But strangling commerce is not revenue policy – it is economic vandalism. A system that punishes imports punishes consumers, stifles small business, and quietly inflates the cost of living.

When clearing goods costs more than buying them, the system is not just broken — it is indefensible. And the longer the government delays drastic reform, the clearer it becomes who this system truly serves.

DENNIS BLAKE