After being prorogued for over three weeks, the Anguilla House of Assembly opened rather prematurely on Tuesday, April 6th for an urgent sitting to pass legislation, namely the Customs Temporary Modification of Valuation of Imports Act 2026. This Act provides for the adjustments to customs duties calculations.
The House had been prorogued on March 11th and was due to reconvene on April 14th, but with strains of geopolitical tensions potentially affecting businesses and households, Government made the decision to open the House urgently to pass a Bill to remove freight and insurance costs when calculating customs duties. The Bill’s first, second and third readings were heard and passed as a matter of urgency in the one sitting.
The Customs Temporary Modification of Valuation of Imports Act 2026 provides that effective April 10th, and for a period of three (3) months thereafter, freight and insurance charges will be excluded from the calculation of customs duties on applicable imports. This initiative forms part of the Government’s broader response to the ongoing developments of the war in the Middle East and its impact on the cost of living.
In line with this measure, customs duties will be calculated based only on the basic cost of goods. Government insists that this relief applies only to goods imported on or after April 10th, 2026. Goods imported prior to this date would not qualify for this benefit, regardless as to whether they have been entered, assessed or cleared after April 10th.
Consumers are advised to carefully review receipts and invoices when purchasing imported goods. It would be important to ensure that freight and insurance charges are not being used to calculate duties for imports during this relief period of three months in the first instance.
Importers must be aware that goods imported prior to April 10, 2026 remain subject to the existing duty calculations formula. Importers must report any concerns or discrepancies to the Customs Department. The Customs Department would be working closely with relevant stakeholders to ensure the smooth implementation of this measure and to safeguard consumer interests.
The Government of Anguilla remains committed to taking targeted and timely action to support economic stability and to ease cost-of-living pressures. Anyone having concerns or who wishes to have further information on this customs relief measure should contact the Customs Department.
By James R. Harrigan
