NEW VEHICLE IMPORT FEES TAKE EFFECT

Revised environmental taxes are now being applied to all imported vehicles, regardless of whether they are gas-powered, hybrid, or electric. The new fees came into force on October 1st under the Customs Tariff (Amendment of Schedules) Order, 2025.

There’s now a fee of KYD1,000 for any vehicle with a cost, insurance, and freight (CIF) value of KYD79,999 or less. The previous fee was CI$1,000 for vehicles valued at KYD12,000 or less. For vehicles with a CIF value of KYD80,000 or more, a new fee of KYD2,000 is now payable. Previously there was no fee for vehicles in this category.

A statement from Customs and Border Control (CBC) alerts vehicle importers that “unless otherwise specified, application fees prescribed under the Act are non-refundable.”

It also points out that “as an important transitional measure, vehicles that have already begun the importation process prior to 1st October 2025 will be exempted from the newly increased environmental tax only, provided that the necessary evidence is submitted to CBC. Vehicles purchased or under a purchase agreement before 1 October 2025 for import into the Cayman Islands, but not yet arrived by that date, will be subject to the previous environmental tax rates, as if the new amendment had not yet taken effect.

The CBC is also urging the public, especially persons importing vehicles, to familiarise themselves with the details of the changes, including the Customs Tariff (Amendment of Schedules) Order, 2025 which sets out new import duty rates applicable to Hybrid and Electric Motor Vehicles.

Director of CBC, Bruce D. Smith, commented, “We remain committed to providing courteous and professional services while enforcing the new measures. As the agency responsible for administering these changes, the CBC has taken steps to ensure a smooth transition for the public. Our officers and customer service representatives are fully briefed, and if members of the public have questions, they may contact our Customer Support Centre at 649-4579 (press 0 for options).”