Industries Encouragement Act
The Bahamas offers a wide range of incentives to local and international businesses in various sectors of The Bahamian economy including agriculture, fisheries, manufacturing and tourism in an effort to stimulate and diversify the economy.
The incentives are laid down in several incentive-based Acts and Agreements.
The Ministry is responsible for the administration of the Industries Encouragement Act (IEA). The IEA was enacted in 1970 to provide incentives to manufacturers who produce “approved products”. The Minister may declare, by Order, a product to be an “approved product” if satisfied that it is in the public interest, that the product would benefit The Bahamas, that it does not or will not entail any substantial detriment to The Bahamas and, as a matter of policy, is environmentally sustainable.
Manufacturers that receive a designation of an “approved manufacturer” are entitled to exemptions on customs duties for raw materials, machinery and equipment, export taxes, income taxes and real property taxes.
- No customs duties (machinery, equipment, raw materials and construction materials)
- No export taxes (exports of the product manufactured)
- No income taxes (manufacturer’s profits)
- No real property taxes (factory premises)
Duration of concessions
- Customs duties (on machinery, equipment and construction materials): once only, at time of registration, subject to limited exceptions
- Customs duties on raw materials: as long as manufacturer remains an “Approved Manufacturer”
- Export taxes: 15 years
- Import taxes: 15 years
- Real property taxes: 15 years
- Customs Bond
***Please note that subsequent to the launch of the Customs Department’s Electronic Single Window (ESW), tentatively scheduled for mid-2018, all IEA applications will be need to be completed online and submitted through the ESW.
To find more details about the various incentives and the different Acts and Agreements offered by the Government of The Bahamas to promote industry, visit this page on the Bahamas Trade & Information Service Portal.