The government has extended a 15 percent import duty rate on building materials imported to Grand Cayman until Dec. 31, 2017.
Marco Archer, minister for finance and economic development, said, “The construction sector continues to improve and has contributed to strong economic growth in 2015 as well as in the first six months of 2016. But raising the import duty rate at this time may dampen the sector’s recovery.”
The normal rate of duty on construction materials is between 17 percent and 22 percent. The building material import duty concession of 15 percent first took effect on Jan. 1, 2011, and has been extended since then.
Mr. Archer said building materials are defined as: “All physical components and substances, whether solid or liquid, used in the construction, renovation or restoration and forming a permanent part of any building or related structure.”
Furniture, accessories, electronics and appliances are specifically excluded from the 15 percent concessionary duty rate.
Sister Islands concessions
On Cayman Brac and Little Cayman, a 100 percent import duty waiver on building materials will remain in place until Dec. 31 2020.
Also, a 100 percent stamp duty waiver for land purchases on the Brac is in place until Dec. 31, as will an import duty concessionary rate of 12.5 cents per gallon on the importation of motor gasoline to Cayman Brac.