CARICOM (Caribbean Community and Common Market) is an organization of 15 Caribbean nations and dependencies whose main objective is to promote economic integration and cooperation. For US heavy equipment exporters, CARICOM represents a unified but complex market.
Rather than dealing with 15 separate sets of trade rules, CARICOM attempts to standardize the playing field, creating a Single Market and Economy (CSME). The member states include major markets like Jamaica, Trinidad and Tobago, Guyana, and Barbados.
Heavy Equipment Context
The Caribbean is a massive importer of US machinery. Why?
- Tourism: Continuous construction of hotels and resorts requires cranes, backhoes, and concrete mixers.
- Mining & energy: Guyana and Suriname are currently undergoing massive oil and gas and mining booms, creating a spike in demand for excavators, bulldozers, and off-road trucks.
- Agriculture: Tractors and harvesters are needed for the sugar and banana industries. Because these island nations generally do not manufacture heavy yellow iron themselves, they rely almost entirely on imports, with the US being the dominant supplier due to proximity.
Common External Tariff (CET)
The most significant feature for exporters is the Common External Tariff (CET). This is a standardized duty rate that CARICOM members agree to apply to goods coming from outside the region (like from the US). This is designed to protect local industry, but since there is no local heavy machinery manufacturing, member states often apply for suspensions or exemptions to the CET for industrial equipment.
If you are shipping machinery to a CARICOM nation for a government project or a registered development zone, the importer may be able to waive the CET. Always ask your buyer if they have a duty-free concession letter from their government before you ship.
Invoices and Standards
CARICOM nations are strict about documentation. They require the CARICOM Invoice, a specific format similar to the commercial invoice but with required fields for transport costs and origin details. Even though the US is not a CARICOM member, using the standard layout helps your buyer clear customs faster.
Additionally, used machinery entering CARICOM is subject to pre-shipment inspections to ensure it isn’t garbage being dumped on the islands. Countries like Suriname or Jamaica may demand a certificate stating the equipment is in good working order before it leaves the US.
Logistics Challenges
Shipping to CARICOM isn’t like shipping to Europe. It involves smaller ports with limited lift capacity.
- Crane capacity: Not every Caribbean port can handle a 50-ton lift. You must verify that the destination port has a crane capable of offloading your specific piece of breakbulk machinery.
Inter-island transport: Sometimes cargo is shipped to a hub like Kingston, Jamaica, or Freeport, Bahamas, and then barged to smaller islands. This transshipment adds time and risk of damage. Proper lashing and marine insurance are non-negotiable here.