Describe the

Caricom Cet

The CARICOM Common External Tariff (CET) is a unified tariff system established by the Caribbean Community (CARICOM) to regulate imports into the region from non-member countries.

The CET is designed to protect local industries, promote regional integration, and ensure equitable trade practices across CARICOM member states.

Benefits of the Caricom Cet

Economic Stability By protecting local industries, the CET contributes to economic stability and job creation within the region.

Market Access The CET ensures that CARICOM-produced goods have preferential access to regional markets, fostering economic growth.

Simplified Trade A unified tariff system reduces complexity in trade negotiations and facilitates easier movement of goods across member states.

Purpose

And Objectives

Protection of Local Industries

The CET provides a structured approach to shielding domestic industries from external competition.

By imposing uniform tariff rates on imported goods, the CET helps maintain competitive pricing for locally produced goods.

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Regional Economic Integration

The CET fosters deeper economic ties among CARICOM member states.

It encourages intra-regional trade by establishing a common framework for external trade policies.

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Harmonized Trade Policies

The CET ensures that all member states apply consistent tariff rates on imports from outside the region.

It simplifies trade negotiations and agreements with external partners.

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How the

CARICOM CET Works

Tariff Classifications

  • Goods are categorized under specific tariff headings, each with a corresponding duty rate.

    Tariff rates vary based on the type of product, with higher rates typically applied to goods that compete directly with local industries.

Exemptions and Suspensions

  • Certain goods may qualify for tariff exemptions or reductions under specific conditions, such as raw materials or goods critical to public health and safety.

    Member states can apply for temporary suspensions of the CET on certain imports to address supply shortages or other economic challenges.

Revenue Collection

  • Tariffs collected under the CET contribute to national revenue and support public sector development.

    Customs authorities in each member state are responsible for enforcing and collecting CET tariffs on imported goods.