KINGSTON, Jamaica — Lower costs, better access to discounts and a diversified shopping experience are some of the benefits cited by consumers as Jamaicans revel in the new duty free threshold for the shipping of personal items which came into effect April 1.

Finance Minister Dr Nigel Clarke announced the doubling of the threshold from US$50 to US$100 in his 2024/2025 Budget Debate presentation last month.

READ: Spend more, pay less

Speaking with Observer Online, frequent shopper Shari-Ann Johnson expressed her delight over the increase.

“I’m able to access better coupons because my purchase value has increased. It impacts the type of goods I buy because I can now afford to ship other types of goods such as household items. The only downside is that it will affect the weight and you will have to pay an increase in weight with shipping companies but it still doesn’t pose a disadvantage so I’m very happy for the increase,” Johnson, who often ships three times monthly, said.

Her sentiments were shared by another active shopper, Ashley Daley.

“I’m able to buy more items in one shipment without worrying about having to pay customs twice the amount I paid for it and I’m able to have access to better rates, deals and discounts. I also save shipping costs cause I don’t have to break up a package in two anymore and pay more shipping for it,” Daley said.

She added that, “US$100 is still low when you consider the fact that there are so many items we don’t manufacture that we need but still cannot ship because of the ridiculous taxes and duties. But baby steps I guess.”

For Nora Blair, it’s the free shipping that comes with the higher spend limit that is most appealing.

“I’m really excited for the free shipping. Shipping costs can be so much. I haven’t bought anything as yet, but it would also mean that I wouldn’t have to split my orders as much and get the maximum discount and more items with the more I’m allowed to buy. So essentially I would spend less and save more in cash back and discounts,” Blair added.

However, while consumers revel, local retailers are not so thrilled with the adjustment.

For Kemar Williams, principal of Uptop Exclusive Fashion, a clothing and shoes store in downtown Kingston, the increase in the threshold was another blow to the struggling retail industry which he said is already being negatively impacted by the high crime environment.

“I think they should have left it at the (US$50) where it was before because some people basically nuh sell nothing sometimes,” said Williams, who estimated the impact of the measure on his business as “50/50”.

“Based on how downtown set with the escalation of crime and violence sometimes, nuff stores nuh always sell,” he added.

But Managing Director of Lloyd’s Department Store in Montego Bay, Anthony Pearson does not expect any significant impact from the threshold increase.

“Even when it was US$50, I think the system was being manipulated to some extent — I have no proof of that — but to my observation the invoices were doctored to show that whatever you bought was US$50. So the impact, raising it to US$100 dollars, I don’t think is going to be very significant because persons were already bringing in stuff that was over US$50,” Pearson shared while speaking with Observer Online.

On the impact to his business, Pearson noted that online shopping has been a challenge.

“It has been doing so from day one. The whole online experience because it is just so easy and convenient and fast, it has impacted us from even when it was US$50… The truth is that everything is a click away now,” he said, adding that “the only thing we can do is try and get creative, and try and combat it because it’s just the way of the world.”

“It’s a challenge, believe me it’s a challenge. I really wish I had a solution for it but unfortunately I don’t but everybody in the brick and mortar is feeling the impact for sure. The increase, as I said, it’s there but the impact already has hit us hard so the increase I doubt is going to be significantly additional impact but we’ll see how it goes,” Pearson said.

Jamaica Customs issues clarity on duty calculations (US$100)

Last week, the Jamaica Customs Agency sought to remind overzealous shoppers that all imports exceeding the threshold of US$100 will be subject to duty charges based on the full declared value of the shipment.

It means that a US$101 shipment would incur duty on the total amount, not just the $1 excess.

This news was not well received by some shoppers, including Daley.

“Rubbish,” Daley said, “The duty should be assessed on the extra amount because the US$100 is duty free. It should operate just like the income tax.”