In the Caribbean region, a free trade zone called the Caribbean Common Market exists. This free trade zone basically creates one common market for all countries that are considered members of the CARICOM. Grenada is one of the members of the CARICOM.
The importation of goods from outside the Caribbean region and the application of customs duties is one of the most significant sources of revenue generation for Grenada. Discussions are on-going with Canada and the United States to become part of a Free Trade Area of the Americas (FTAA) and while progress continues in this direction, there is much concern over the full and fair opening of these markets to international competition.
Programmes have been put in place to assist the manufacturing industry in becoming globally competitive, but there is little doubt that the FTAA will result in business closures across the region. The loss of revenue generated through this mechanism will create a vulnerable situation for all of the countries, including the more developed countries, such as Barbados.
The import documents required by customs are: CARISAD (declaration); invoice; bill of lading/airway bill; insurance certificate; certificate of origin (for goods imported under CARICOM); and value declaration (for imports of a c.i.f. value exceeding EC$500). Shipments involving agricultural or health-related items are required for some additional forms.
Grenada is not a member of the World Customs Organization. The carrying out of customs clearance is not confined to customs brokers. Commercial importers must be registered with the Inland Revenue Department, but have no registration requirements in addition to those for non-importing businesses. They are identified in the Inland Revenue Department and in Customs by the same Trade Identification Number.
Taxes and Tariffs
Grenada's Customs Tariff is based on the Common External Tariff (CET) of the Caribbean Common Market. It uses a seven-digit nomenclature based on the Harmonized Commodity Description and Coding System (H.S).
Grenada's customs duty rates range from 0-5% to 20%-25%. As for the main agricultural products, they carry a rate of 40%.
Import prohibitions include the following: coin legally current in the colony or any money supposed to be such, not being of the established standard in weight and fineness; base or counterfeit coins of any country; food intended for human consumption announced by the sanitary authority to be unfit for such purpose; indecent or obscene photographs, books, cards or other engravings or any other indecent or obscene articles; infected cattle, sheep or other animals, or carcasses thereof, and skins, horns, hoofs or any other part of cattle or other animals, which may be prohibited; matches containing white (yellow) phosphorus; prepared opium and pipes or other utensils for the smoking of opium or the preparation of opium for smoking; fictitious stamps and any die, plate, instrument or materials capable of making such stamps; goods the importation of which is prohibited by any other law. | 
