The Drawback Scheme
The drawback scheme is designed to allow licensed operators, who have been operating for less than a year, to sell duty-paid goods at duty-free prices to bona fide tourists, and apply for a refund of the duties and taxes paid after the items have been taken out of the island by the passenger.
The In-Bond Scheme
The in-bond scheme is a system where licensed operators who have been operating under the drawback scheme for at least one year, are permitted to take delivery of goods, which they will be offering for sale to tourists, without paying the relevant duties and taxes up front.
Any retailer who passes the due diligence checks of the Ministry of Finance to become a retailer of goods free of import duties and excises to visitors with their passport, a second form of identification and their ticket, on the retailer posting a bond for 30% of the estimate of quarterly duty that the retailer and customs agree would most likely be otherwise payable on the goods to be sold free of duty. This bond would reduce by 5 % points per year on satisfactory reporting and reconciling of duty free sales to rest at a bond of 5% of duty that would otherwise be payable.
Effective September 1, 2008 new market entrants will, upon application to the Comptroller of Customs and the provision of the appropriate bond coverage, be permitted to take delivery of imported goods which they are offering for sale duty-free to tourists, without the payment of the relevant duties and taxes.