Haiti Import Tax

Haiti, the poorest nation in the Western Hemisphere, is an economy deeply reliant on imports to meet the domestic demand for consumer goods, agricultural products, and industrial inputs. Haiti’s custom tariff system is a critical part of the country’s fiscal policy, as import duties provide substantial government revenue while protecting local industries from foreign competition. The tariff system in Haiti is designed to promote trade liberalization while maintaining some protection for domestic production, particularly in agriculture and manufacturing.

Haiti operates a relatively straightforward tariff system, primarily applying ad valorem duties (tariffs based on a percentage of the value of the goods). It also offers preferential tariffs under certain trade agreements and, in some cases, imposes additional duties to protect local industries or prevent market distortion. As a member of the World Trade Organization (WTO), Haiti’s trade policies are governed by international trade rules, and it participates in trade agreements that grant preferential access to products from specific countries.

Custom Tariff Structure in Haiti

General Tariff Policy in Haiti

Haiti’s tariff structure is regulated by the country’s Customs Code and aligned with international practices under the Harmonized System (HS) of classification. Tariffs are applied based on the value and classification of the goods being imported. Haiti’s customs system prioritizes the following objectives:

• Revenue generation: Customs duties are a key source of government revenue.
• Protection of local industries: Higher tariffs are imposed on goods that compete with domestic production, particularly in agriculture and light manufacturing.
• Encouragement of essential imports: Lower tariffs are applied to essential goods such as food, medicines, and raw materials needed for local industries.
• Promotion of investment: Certain capital goods and machinery used for domestic production benefit from reduced tariffs to encourage industrialization.

Tariffs in Haiti typically range from 0% to 40%, depending on the product category and the economic needs of the country. Some goods, such as basic foodstuffs and medicines, benefit from low or zero tariffs, while luxury goods and finished products face higher tariffs.

Preferential Tariff Agreements

Haiti benefits from several preferential trade agreements that reduce or eliminate tariffs on certain goods imported from specific countries. These agreements promote trade by facilitating access to imported products at lower costs. Some key agreements include:

• Caribbean Community (CARICOM): As a member of CARICOM, Haiti participates in preferential trade with other member states, allowing for reduced tariffs on many goods traded within the region.
• HOPE/HELP Acts: The Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE) and the Haiti Economic Lift Program (HELP) Acts provide duty-free access for Haitian apparel and textiles to the United States, while also benefiting from reduced tariffs on U.S. imports.
• Generalized System of Preferences (GSP): Haiti benefits from the GSP scheme with the European Union, the United States, and Canada, providing reduced tariffs on selected exports and imports.
• Everything But Arms (EBA): As a Least Developed Country (LDC), Haiti benefits from the EU’s EBA initiative, granting duty-free access to EU markets for all products except arms and ammunition.

Special Import Duties and Restrictions

In addition to standard customs tariffs, Haiti may impose special duties and restrictions on certain imports to protect domestic industries or respond to trade practices from specific countries. These special duties include:

• Antidumping duties: Applied to imports that are sold at below-market prices to prevent unfair competition with local products.
• Excise duties: Additional taxes are imposed on specific goods, such as tobacco, alcoholic beverages, and petroleum products, in addition to customs duties.
• Environmental levies: Haiti may impose environmental taxes on goods that are harmful to the environment, such as plastic products or hazardous chemicals.

Product Categories and Corresponding Tariff Rates

Agricultural Products

1. Dairy Products

Dairy products are essential imports for Haiti due to the limited capacity of the domestic dairy industry. Tariffs are applied to protect local dairy production while ensuring access to affordable products for consumers.

• General tariff: Dairy products such as milk, butter, and cheese are subject to tariffs ranging from 5% to 20%.
• Preferential tariffs: Dairy imports from CARICOM countries may benefit from reduced tariffs under the CARICOM agreement.
• Special duties: Antidumping duties may be imposed on dairy products from countries that engage in market dumping, especially if local producers are harmed.

2. Meat and Poultry

Haiti imports a substantial amount of meat and poultry to meet domestic demand, particularly chicken and beef. Tariffs are structured to protect local livestock farmers while keeping meat imports affordable.

• General tariff: Meat products, including beef, pork, and poultry, face tariffs ranging from 10% to 25%. Fresh and frozen meat generally face lower tariffs compared to processed meats.
• Preferential tariffs: Meat imports from CARICOM and the United States (under the HOPE/HELP Acts) may benefit from reduced tariffs.
• Special duties: Import quotas or additional duties may apply to poultry products, particularly frozen chicken, to prevent market flooding and support local poultry farmers.

3. Fruits and Vegetables

Haiti’s climate allows for the domestic production of many fruits and vegetables, but the country still imports a wide range of produce, particularly during off-seasons.

• General tariff: Fresh fruits and vegetables typically face tariffs ranging from 5% to 15%.
• Preferential tariffs: Reduced tariffs or duty-free access applies to imports from CARICOM countries under regional trade agreements.
• Special duties: Seasonal tariffs may be applied to protect local producers during the harvest season for specific fruits and vegetables.

Industrial Goods

1. Automobiles and Auto Parts

The importation of vehicles and auto parts is a major category for Haiti, with tariffs designed to regulate the market and encourage local repair and assembly industries.

• General tariff: Imported vehicles face tariffs ranging from 10% to 40%, depending on the type and age of the vehicle. Newer vehicles generally face lower tariffs, while older and luxury vehicles face higher rates. Auto parts face tariffs of 5% to 20%.
• Preferential tariffs: Vehicles and auto parts imported from CARICOM countries benefit from reduced tariffs.
• Special duties: Additional excise duties may apply to luxury vehicles and vehicles with large engines, while environmental levies may be imposed on high-emission vehicles.

2. Electronics and Consumer Goods

Consumer electronics are widely imported into Haiti, and tariffs on these products vary depending on the type of product and its value.

• General tariff: Electronics face tariffs ranging from 5% to 20%, with higher rates applied to luxury electronics such as smartphones, laptops, and home entertainment systems.
• Preferential tariffs: Electronics imported from the United States under the HOPE/HELP Acts or from CARICOM countries may benefit from reduced tariffs or duty-free access.
• Special duties: Environmental levies may be applied to electronics with high energy consumption or hazardous materials, particularly those that are difficult to recycle.

Textiles and Clothing

1. Apparel

Haiti is both a major exporter of textiles under the HOPE/HELP Acts and a significant importer of apparel. Tariffs on imported clothing are structured to protect domestic textile production while allowing affordable access to garments.

• General tariff: Apparel imports are subject to tariffs ranging from 5% to 20%.
• Preferential tariffs: Under the HOPE/HELP Acts, apparel imported from the United States benefits from reduced tariffs, while clothing from CARICOM countries may qualify for duty-free access.
• Special duties: Antidumping duties may be imposed on low-cost apparel imports from countries that engage in unfair pricing practices, particularly if they harm the local textile industry.

2. Footwear

Footwear imports are important for the Haitian retail market, and tariffs are designed to protect local producers while ensuring consumer access to a variety of products.

• General tariff: Footwear imports face tariffs ranging from 10% to 30%, depending on the type and material of the shoe.
• Preferential tariffs: Reduced tariffs or duty-free access apply to footwear imports from CARICOM and the United States under trade agreements.
• Special duties: Additional duties may be imposed on low-cost footwear from countries involved in dumping or underpricing practices.

Raw Materials and Chemicals

1. Metal Products

Metal products are essential imports for Haiti’s construction and manufacturing sectors, with tariffs structured to balance access to materials and protection for local industries.

• General tariff: Metal products such as steel, aluminum, and copper face tariffs of 5% to 15%.
• Preferential tariffs: Metal products imported from CARICOM countries benefit from reduced tariffs or duty-free access under regional trade agreements.
• Special duties: Antidumping duties may be imposed on metal products from countries where market distortion practices occur, particularly in the case of subsidized exports.

2. Chemical Products

Chemical products are critical for industrial and agricultural activities in Haiti. Tariffs on these products vary based on their classification and purpose.

• General tariff: Chemical products, including fertilizers, industrial chemicals, and cleaning agents, face tariffs ranging from 5% to 20%.
• Preferential tariffs: Reduced tariffs or duty-free access apply to chemicals imported from CARICOM member states.
• Special duties: Hazardous chemicals may be subject to additional restrictions or environmental levies due to their impact on public health and the environment.

Machinery and Equipment

1. Industrial Machinery

Haiti imports significant amounts of industrial machinery to support its growing industrial and agricultural sectors. Tariffs on machinery are kept relatively low to promote investment and local production.

• General tariff: Industrial machinery imports typically face tariffs of 0% to 10%, depending on the type of machinery and its intended use.
• Preferential tariffs: Reduced tariffs apply to machinery imported from CARICOM countries and the United States under the HOPE/HELP Acts.
• Special duties: Additional duties may be imposed on machinery that does not meet local safety or environmental standards.

2. Medical Equipment

Medical equipment is essential for Haiti’s healthcare system, and tariffs on these products are kept low to ensure access to affordable healthcare supplies.

• General tariff: Medical equipment, such as diagnostic tools, hospital supplies, and surgical instruments, generally faces tariffs of between 0% and 10%.
• Preferential tariffs: Medical equipment from CARICOM countries benefits from reduced tariffs or duty-free access under regional trade agreements.
• Special duties: In times of health crises, such as during the COVID-19 pandemic, Haiti may waive tariffs on critical medical supplies to ensure sufficient availability.

Special Import Duties Based on Country of Origin

Import Duties on Products from Specific Countries

Haiti may impose additional duties or restrictions on imports from specific countries based on trade practices or geopolitical considerations.

• China: Haiti may impose antidumping duties on products such as textiles, electronics, and metals from China if they are found to be underpriced or subsidized, distorting the local market.
• United States: Under the HOPE/HELP Acts, Haiti benefits from duty-free access for many exports to the United States, while some U.S. imports into Haiti also enjoy reduced tariffs.
• CARICOM Countries: Goods originating from CARICOM countries generally enter Haiti duty-free or at reduced tariffs under the CARICOM trade agreement, provided they meet the rules of origin.

Tariff Preferences for Developing Countries

As a Least Developed Country (LDC), Haiti enjoys preferential access to markets through various global trade agreements. These include:

• Everything But Arms (EBA): Haiti benefits from the EU’s EBA initiative, granting duty-free and quota-free access to EU markets for all products except arms and ammunition.
• Generalized System of Preferences (GSP): Haiti benefits from reduced or zero tariffs on specific products exported to and imported from developed countries such as the United States, Canada, and Japan.

Essential Country Facts About Haiti

• Formal Name: Republic of Haiti
• Capital City: Port-au-Prince
• Largest Cities:
  1. Port-au-Prince
  2. Carrefour
  3. Delmas
• Per Capita Income: USD 1,200 (as of 2023)
• Population: Approximately 11.5 million
• Official Language: French and Haitian Creole
• Currency: Haitian Gourde (HTG)
• Location: Located on the western portion of the island of Hispaniola in the Caribbean, sharing the island with the Dominican Republic.

Geography, Economy, and Major Industries of Haiti

Geography of Haiti

Haiti occupies the western third of the island of Hispaniola, with the Dominican Republic occupying the eastern two-thirds. The country is characterized by mountainous terrain, coastal plains, and valleys. Haiti’s tropical climate, with a rainy season from May to November, makes it prone to hurricanes and natural disasters such as earthquakes and flooding. The country has a coastline along both the Caribbean Sea and the Atlantic Ocean, providing access to important maritime trade routes.

Economy of Haiti

Haiti has a small, developing economy that faces significant challenges, including political instability, environmental degradation, and limited infrastructure. The economy is highly dependent on agriculture, remittances from abroad, and foreign aid. Key exports include agricultural products such as coffee, mangoes, and cocoa, as well as apparel and textiles. The country has a nascent tourism sector, but it has struggled to attract international visitors due to security concerns and natural disasters.

Despite its challenges, Haiti has made efforts to diversify its economy, focusing on developing its manufacturing sector, particularly in textiles and garments, which benefit from preferential access to the U.S. market under the HOPE/HELP Acts. The government continues to seek foreign investment in infrastructure, energy, and tourism to promote economic growth and job creation.

Major Industries in Haiti

1. Agriculture

Agriculture remains the backbone of Haiti’s economy, employing nearly half of the population. Key crops include coffee, cocoa, mangoes, rice, corn, and sugarcane. However, the sector faces numerous challenges, including soil degradation, deforestation, and vulnerability to natural disasters.

2. Apparel and Textiles

The apparel and textiles industry is a major driver of Haiti’s export economy, benefiting from duty-free access to the United States under the HOPE/HELP Acts. The sector provides jobs for thousands of Haitians, particularly in the garment assembly industry, which exports clothing to major international markets.

3. Tourism

Haiti’s potential for tourism is significant, thanks to its rich history, vibrant culture, and beautiful landscapes. Key tourist attractions include historic sites such as the Citadelle Laferrière and the Sans-Souci Palace, as well as its pristine beaches and mountains. However, political instability and infrastructure challenges continue to hinder the full development of the tourism sector.

4. Mining

Haiti has significant untapped mineral resources, including gold, copper, and bauxite. Although mining activity is currently limited, the sector has the potential to become an important contributor to the economy with the right investments in exploration and extraction.