INSTRUCTION FOR THE APPLICATION OF THE ENVIRONMENTAL TAX ACT AS AMENDED (NO. 34 OF 2001)

The Environmental Tax Act No. 4 of 2001 has been amended by Act No. 34 of 2001, which amendments come into force on the 15th day of September 2001. In this regard the following new administrative instructions now apply and all those previously issued are now void.

1. Goods Declaration (Customs Entry)

Goods Declaration lodged for clearance of goods must in addition to other duties show the amount of Environmental Tax being paid in Box 35 of the Declaration Form.

2. Duty Tax Code:

The abbreviation ET should be used when completing Box 35 along with 09 as the code.

3. Collection of Environmental Tax:

The Environmental Tax will be levied at a rate of 2% of the C.I.F. value of all imported goods, and 5% on Vehicles exceeding 4 cylinders.

4. Calculation of Sales Tax:

The 2% of Environmental Tax is not to be included in the revenue base collection of Sales Tax.

5. Exported and Transit Goods:

No environmental Tax will be levied on goods exported and on goods transiting the Customs territory. Also goods destined to the Commercial Free Zone, Export Processing Zone and Ship Stores will not be subject to the Environmental Tax.

6. Inbond/Warehoused Goods:

Collection of Environmental Tax will be suspended in the case of goods entered for bonding in Private Warehouses. Bonded Goods may be transferred inbond or exported directly from a Bonded Warehouse without payment of Environmental Tax. However, goods cleared from a Bonded Warehouse for home consumption will be subject to the payment of the Tax where applicable.

7. Provisional Entries

Deposits or Sureties accepted for processing of Provisional Entries should include the amount of Environmental Tax payable. Where a Provisional Entry is processed before 1st April 2001 and the adjusting entries lodged after that date, the duties applicable at the time of processing of the Provisional Entry will apply.

8. Temporary Importation Entries:

Deposits or Sureties accepted for the processing of Temporary Importation Entries should include the amount of Environmental Tax payable. Where Temporary Importation Entries have been processed before 1st April 2001, the duties applicable at the time of processing will apply.

9. CARICOM Goods:

Goods originating in a member state of the Caribbean Common Market and which qualify for Common Market Treatment will be subject to Environmental Tax unless listed in the Exemption List.

10. Goods Re-imported:

Goods re-imported after repairs, renovation or improvement will pay Environmental Tax on the cost of repairs, renovation or improvement.

11. Non-Commercial Importation:

Non-Commercial Importations on which Import Duties are levied using the "Flat Rate System" will be subject to payment of Environmental Tax.

12. Exempt Goods:

Environmental Tax will not be levied on :

A. All goods specified in the Environmental Tax Exemption List.

B. Used Household & Personal Effects:

Household and personal effects admitted as such by the Comptroller of Customs which accompany a returning resident or any other person in possession of a Belizean Residency Permit which are for his personal use and are not intended for other persons or for sale and declared to have been in use and possession of the passenger for at least one year.

C. Goods which are made available from funds provided under grant agreements with external donor agencies, or funds borrowed from external financial institutions by the Government of Belize, or under a Government guarantee, to assist in the economic development of Belize.