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  ANNEX 4 – SAINT KITTS AND NEVIS  
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  CONTENTS  
1   ECONOMIC ENVIRONMENT  ................................ ................................ .....................  222  
1.1   Recent economic developments  ................................ ................................ ..............  222 
1.1.1   Real economy  ................................ ................................ ................................ ... 222 
1.1.2   Fiscal policy  ................................ ................................ ................................ ...... 225 
1.1.3   Balance of payments, and monetary and exchange rate policy  ................................ .. 228 
1.2   Trends and patterns in merchandise and services trade  ................................ ..............  229 
2   TRADE AND INVESTMENT P OLICY FRAMEWORK  ................................ .....................  233  
2.1   General framework  ................................ ................................ ...............................  233 
2.2   Trade policy formulation and objectives  ................................ ................................ ... 234 
2.3   Trade agreements and arrangements  ................................ ................................ ...... 234 
2.3.1   WTO ................................ ................................ ................................ ................  234 
2.3.2   Regional trade agreements  ................................ ................................ ..................  236 
2.3.2.1    OECS  ................................ ................................ ................................ ............  236 
2.3.2.2    CARICOM  ................................ ................................ ................................ ....... 236 
2.3.2.3    CARIFORUM -EU EPA  ................................ ................................ ........................  237 
2.3.2.4    CARIFORUM -UK EPA  ................................ ................................ ........................  238 
2.3.2.5    Other agreements  ................................ ................................ ...........................  238 
2.3.2.6    Non-reciprocal agreements  ................................ ................................ ...............  239 
2.4   Investment regime  ................................ ................................ ...............................  239 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ .....................  244  
3.1   Measures directly affecting imports  ................................ ................................ .........  244 
3.1.1   Customs procedures, documentation, and registration  ................................ .............  244 
3.1.2   Customs valuation  ................................ ................................ .............................  246 
3.1.3   Rules of origin  ................................ ................................ ................................ ... 246 
3.1.4   Tariffs and other charges on imports  ................................ ................................ .... 247 
3.1.4.1    MFN applied tariff structure  ................................ ................................ ..............  248 
3.1.4.2    Bound tariffs  ................................ ................................ ................................ .. 251 
3.1.4.3    Tariff and tax concessions  ................................ ................................ ................  251 
3.1.4.4    Tariff preferences  ................................ ................................ ............................  253 
3.1.5   Other levies and charges  ................................ ................................ ....................  253 
3.1.6   Import prohibitions, restrictions, and licensing  ................................ .......................  257 
3.1.7   Contingency measures  ................................ ................................ .......................  258 
3.1.7.1    Anti-dumping and countervailing measures  ................................ .........................  258 
3.1.7.2    Safeguards  ................................ ................................ ................................ .... 260 
3.2   Measures directly affecting exports  ................................ ................................ .........  260 
3.2.1   Documentation, export taxes, and restrictions  ................................ .......................  260 
3.2.2   Export subsidies, financing, support, and promotion  ................................ ...............  261 
3.3   Measures affecting production and trade  ................................ ................................ .. 262 
3.3.1   Incentives and assistance  ................................ ................................ ...................  262 WT/TPR/S/437  • Saint Kitts and Nevis   
 
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  3.3.2   Technical regulations and standards  ................................ ................................ ..... 266 
3.3.3   Sanitary and phytosanitary measures  ................................ ................................ ... 269 
3.3.4   Competition policy and regulatory issues  ................................ ...............................  272 
3.3.4.1    Competition policy  ................................ ................................ ..........................  272 
3.3.4.2    Price controls  ................................ ................................ ................................ . 272 
3.3.5   State -owned enterprises  ................................ ................................ .....................  273 
3.3.6   Government procurement  ................................ ................................ ...................  273 
3.3.7   Intellectual property rights  ................................ ................................ ..................  274 
3.3.7.1    Overview  ................................ ................................ ................................ ....... 274 
3.3.7.2    Trademarks  ................................ ................................ ................................ .... 275 
3.3.7.3    Patents  ................................ ................................ ................................ ..........  276 
3.3.7.4    Geographical indicatio ns ................................ ................................ ..................  276 
3.3.7.5    Copyright  ................................ ................................ ................................ ....... 276 
3.3.7.6    Enforcement of intellectual property rights  ................................ ..........................  277 
4   TRADE POLICIES BY SECTOR  ................................ ................................ ..................  279  
4.1   Agriculture  ................................ ................................ ................................ ..........  279 
4.2   Manufacturing  ................................ ................................ ................................ ...... 281 
4.3   Services  ................................ ................................ ................................ ..............  282 
4.3.1   Main features  ................................ ................................ ................................ .... 282 
4.3.2   Financial services  ................................ ................................ ...............................  282 
4.3.2.1    Onshore banking and insurance  ................................ ................................ ........  284 
4.3.2.1.1    Banking  ................................ ................................ ................................ ...... 284 
4.3.2.1.2    Insurance  ................................ ................................ ................................ .... 286 
4.3.2. 2   Offshore financial services  ................................ ................................ ................  287 
4.3.3   Telecommunications and other electronic communications  ................................ ....... 290 
4.3.4   Air transport and airports  ................................ ................................ ....................  294 
4.3.5   Maritime transport and ports  ................................ ................................ ...............  295 
4.3.6   Tourism  ................................ ................................ ................................ ............  297 
4.3.7   Other offshore services  ................................ ................................ .......................  298 
5   APPENDIX  TABLES  ................................ ................................ ................................ . 299  
 
CHARTS  
 
Chart  1.1 Merchandise trade by SITC section, 2014 and 2021  ................................ ..............  230 
Chart 3.1 Frequency distribution of MFN tariff rates, 2020 ................................ ....................  249 
 
TABLES  
 
Table  1.1 Selected economic indicators, 2014 -21 ................................ ..............................  222 
Table  1.2 Central government fiscal accounts, 2014 -21 ................................ .....................  225 
Table  1.3 Balance of payments, 2014 -21 ................................ ................................ .........  228 WT/TPR/S/437  • Saint Kitts and Nevis   
 
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  Table  1.4 Trade in services, 2014 -21 ................................ ................................ ..............  231 
Table  2.1 WTO notifications 2014 -September 2022  ................................ ...........................  235 
Table  2.2 Saint Kitts and Nevis Category B and C commitments under the Trade Facilitation 
Agreement, and dates of implementation, 2022  ................................ ...............................  236 
Table  3.1 Taxes on international trade a nd transactions, 2014 -21 ................................ ....... 247 
Table  3.2 Structure of the tariff schedule in Saint  Kitts and Nevis, 2013 and 2022  .................  248 
Table  3.3 Saint  Kitts – Lines with specific duties (from Lists  A and C), and duty rates, 2022  ... 249 
Table  3.4 Summary analysis of the Saint  Kitts and Nevis MFN tariff, 2022  ............................  250 
Table  3.5 Foods exempted from VAT since 2015  ................................ ...............................  254 
Table  3.6 Products subject to excise taxes, 2021  ................................ ..............................  255 
Table  3.7 Import prohibition and restrictions as specified in the Fourth Schedule of the  
Customs Act, Sections 103(1) -(2) and  104(1) -(3) ................................ ............................  257 
Table  3.8 Membership in WIPO -administered intellectual property treaties, 2022  ..................  275 
Table  4.1 Telecommunications statistics, 2016 -20 ................................ ............................  292 
Table  4.2 Tourism statistics, 2015 -21 ................................ ................................ .............  297 
 
BOXES  
 
Box 1.1 Support measures implemented to counter the effects of the COVID -19 pandemic  ....... 226 
 
APPENDIX TABLES  
 
Table  A1.1 Merchandise visible exports by SITC section, 2014 -21 ................................ .........  299 
Table  A1.2 Merchandise visible imports by SITC section, 2014 -21 ................................ .........  300 
Table  A1.3 Merchandise exports  and re -exports by SITC section, 2014 -21 .............................  301 
Table  A1.4 Merchandise imports by SITC section, 2014 -21 ................................ ...................  302 
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  1  ECONOMIC ENVIRONMENT  
1.1  Recent  economic developments  
1.1.1   Real economy  
1.1.  Saint Kitts and Nevis is a medium - to high -income economy. GDP per capita peaked at 
USD 22,531 in 2019, before declining due to the sharp recession caused by the COVID -19 pandemic. 
GDP per capita in 2020 was almost USD  18,000.  
1.2.  The economy of the Saint  Kitts and Nevis is highly dependent on services, in particular tourism, 
and financial services, although it also has a small manufac turing sector. Services are the major 
contributor to GDP, accounting for 75% in 2021 at current prices. Construction accounted for some 
17.4% of GDP in the same year, manufacturing for 4.7%, agriculture for 0.7%, and water and 
electricity for 1.2%.1 Tourism is the most important activity in terms of jobs and foreign exchange, 
and direct and indirect contribution to GDP. Other contributing services activities include real estate, 
banking and insurance, wholesale and retail trade, and transportation, as well  as services provided 
by the Government. The share of agriculture remained stable during the period under review 
(including livestock and forestry) (Table  1.1). The sector shrank permanently after the demise of 
the sugar industry; increase in the productio n of other crops has not been sufficient to compensate 
(Section  4.1). 
Table  1.1 Selected economic indicators, 2014 -21 
 
2014  2015  2016  2017  2018  2019a 2020a 2021a 
GDP (current XCD  million)  2,574  2,584  2,721  2,860  2,908  2,991  2,388  2,324  
GDP (current USD  million)  953 957 1,008  1,059  1,077  1,108  884 861 
Real GDP growth (% change)  7.6 0.7 3.9 0.0 2.1 4.0 -14.5 -0.9 
GDP per capita (USD)  19,872  19,863  20,806  21,763  22,020  22,531  17,953  17,531  
GDP by economic activity (% of current GDP)  
Agriculture, livestock and forestry  0.7 0.6 0.6 0.6 0.6 0.6 0.7 0.7 
Crops  0.4 0.3 0.3 0.3 0.3 0.4 0.4 0.4 
Bananas  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Nutmeg  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Sugar  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other crops  0.4 0.3 0.3 0.3 0.3 0.4 0.4 0.4 
Livestock  0.2 0.3 0.3 0.2 0.2 0.2 0.3 0.3 
Forestry  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Fishing  0.4 0.4 0.3 0.5 0.5 0.4 0.8 1.0 
Mining & quarrying  0.1 0.1 0.1 0.1 0.2 0.1 0.2 0.2 
Manufacturing  6.9 6.5 5.7 5.4 5.4 5.5 5.1 4.7 
Sugar  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  6.9 6.5 5.7 5.4 5.4 5.5 5.1 4.7 
Electricity & water  1.1 1.1 1.1 0.9 1.0 1.0 1.2 1.2 
Electricity  0.6 0.7 0.7 0.5 0.6 0.6 0.7 0.7 
Water  0.5 0.5 0.4 0.4 0.4 0.4 0.5 0.5 
Construction  13.3 14.9 17.6 19.8 18.0 18.7 16.7 17.4 
Wholesale & retail trade  6.0 5.9 6.1 5.6 6.0 5.9 5.7 5.7 
Hotels & restaurants  9.1 8.4 8.0 8.1 8.4 8.1 3.7 2.9 
Hotels  8.9 8.2 7.8 7.9 8.2 7.9 3.6 2.9 
Restaurants  0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 
Transport, storage and communications  9.8 10.1 9.4 9.8 10.0 10.3 10.5 8.9 
Transport and storage  6.2 6.0 5.6 6.1 6.3 6.7 5.8 4.2 
Road transport  3.7 3.2 2.9 3.1 3.4 3.7 3.2 2.2 
Sea transport  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Air transport  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Supporting and auxiliary transport 
activities  2.5 2.8 2.5 2.9 2.8 3.0 2.5 1.9 
Communications  3.6 4.1 3.9 3.7 3.7 3.6 4.7 4.8 
Financial intermediation  6.9 7.4 7.2 6.8 6.8 6.6 6.9 7.3 
Banks  5.1 5.6 5.3 4.9 4.9 4.7 5.0 5.3 
Insurance  1.1 1.1 1.0 1.0 1.0 1.0 0.9 0.9 
Activities auxiliary to financial 
intermediation  0.7 0.7 0.8 0.9 0.9 1.0 1.0 1.1 
Real estate, renting and business activities  9.8 10.0 9.1 8.7 8.8 8.8 10.3 10.5 
Owner occupied dwellings  4.5 4.4 4.2 4.0 3.9 3.9 4.9 5.1 
Real estate activities  3.8 3.9 3.0 2.9 3.0 2.9 3.5 3.6 
Renting of machinery and equipment  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 
1 Total shares do not add to 100% since financial intermediation services indirectly measured (FISIM) 
must be subtracted, which includes total property income receivable by financial intermediaries minus their 
total interest payable.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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2014  2015  2016  2017  2018  2019a 2020a 2021a 
Computer and related activities  0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 
Business services  1.3 1.4 1.5 1.4 1.6 1.7 1.6 1.6 
Public administration, defence & 
compulsory social security  7.8 8.1 8.7 8.4 8.5 8.7 10.7 10.9 
Education  11.2 9.6 10.0 10.2 10.4 10.0 11.2 11.7 
Public  2.5 2.3 2.5 2.5 2.4 2.5 3.0 3.1 
Private  8.7 7.2 7.5 7.7 7.9 7.6 8.1 8.6 
Health and social work  2.1 2.1 2.2 2.2 2.3 2.3 2.8 2.9 
Public  1.6 1.5 1.6 1.6 1.6 1.6 2.0 2.1 
Private  0.5 0.5 0.6 0.6 0.7 0.7 0.8 0.8 
Other community, social & personal 
service  1.8 2.0 2.0 1.9 1.9 1.8 2.2 2.3 
Activities of private households as 
employers  0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 
Less: FISIM  1.1 1.0 1.0 0.9 1.0 1.0 1.1 0.8 
GVA in basic prices  86.0 86.5 87.2 88.3 87.9 88.0 87.6 87.9 
Plus: Product taxes  14.0 13.5 12.8 11.7 12.1 12.0 12.4 12.1 
Less: Subsidies  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Labour force (persons)  .. .. 22,146  .. .. .. .. .. 
Labour force participation rate (%)  .. .. 74.9 .. .. .. .. .. 
Employment (persons)  .. .. 21,697  .. .. .. .. .. 
Employment -to-population ratio (%)  .. .. 73.4 .. .. .. .. .. 
Unemployment rate (%)  .. .. 2.0 .. .. .. .. .. 
Employment by industry (%)          
Agriculture, forestry and fishing  .. .. 2.5 .. .. .. .. .. 
Mining and quarrying  .. .. 0.0 .. .. .. .. .. 
Manufacturing  .. .. 7.7 .. .. .. .. .. 
Electricity, gas and water supply  .. .. 1.9 .. .. .. .. .. 
Construction  .. .. 9.7 .. .. .. .. .. 
Wholesale and retail trade, repair of motor 
vehicles and motorcycles  .. .. 11.9 .. .. .. .. .. 
Transport, storage and communications  .. .. 5.3 .. .. .. .. .. 
Accommodation and food service activities  .. .. 10.3 .. .. .. .. .. 
Financial and insurance activities  .. .. 4.3 .. .. .. .. .. 
Real estate, renting and business activities  .. .. 8.5 .. .. .. .. .. 
Public administration and defence; 
compulsory social security  .. .. 15.8 .. .. .. .. .. 
Education  .. .. 11.2 .. .. .. .. .. 
Human health and social work activities  .. .. 4.4 .. .. .. .. .. 
Other community, social and personal 
service activities  .. .. 3.2 .. .. .. .. .. 
Activities of households as employers  .. .. 1.1 .. .. .. .. .. 
Not stated  .. .. 2.3 .. .. .. .. .. 
Prices, money and interest rates  
Inflation (%, end of period)  -0.5 -2.4 0.0 0.8 -0.8 -0.8 -1.2 1.9 
Inflation (%, period average)  0.2 -2.3 -0.7 0.7 -1.0 -0.3 -1.2 1.2 
Money supply (M1) (% growth))  11.7 7.1 -9.0 -0.5 -2.1 14.7 -7.9 -2.2 
Monetary liabilities (M2) (% growth)  14.2 2.7 -4.2 -3.4 -1.7 5.1 -1.3 -2.4 
Deposit interest rate (%)  2.5 2.1 1.9 1.8 1.7 1.7 2.0 1.9 
Lending interest rate (%)  8.6 8.5 8.6 8.4 8.1 7.9 7.0 6.8 
Memorandum:          
Population (persons)  48,011  48,252  48,493  48,735  48,978  49,221  49,319  .. 
Exports of goods and services (% of GDP, 
current prices)  63.9 57.5 51.8 50.7 59.2 61.3 36.7 .. 
Imports of goods and services (% of GDP, 
current prices)  55.1 57.0 57.2 54.4 57.5 59.2 48.0 .. 
Exchange rate (XCD per USD)  2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 
Real effective exchange rate (Index)  99.7 102.3  102.5  101.0  97.0 96.6 93.8 88.5 
.. Not available.  
a Preliminary data.  
Source:  Department of Statistics, Ministry of Sustainable Development of Saint Kitts and Nevis; 
Eastern  Caribbean Central Bank (ECCB); and International Monetary Fund (IMF).  
1.3.  Saint Kitts and Nevis has a small manufacturing sector, which is of economic importance as a 
source of investment and employment. The sector consists mainly of: (i) li ght manufactures 
including beverages (beer, malt, rum, bottled water, and other soft drinks), with production oriented 
towards the domestic and international markets; and (ii) industries that assemble electrical or 
electronic components, and traps for the cable industry, mainly for export to the United  States. The 
manufacturing sector is the major contributor to domestic merchandise exports. Saint  Kitts and 
Nevis continues to be the leading Organisation of Eastern Caribbean States (OECS) exporter of 
electro nics components to the US  market. Manufacturing employs some 7.7% of the employed 
labour force, according to the latest available information (data for 2016). Construction expanded WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  rapidly during the review period, gaining market share as investment in new  hotel facilities, housing, 
and public sector projects increased.  
1.4.  The tourism (hotels and restaurants) sector's estimated share in GDP averaged declined from 
8.1% in 2019 to just 2.9% in 2021, due to the negative effects of the COVID -19 pandemic. The 
tourism sector has been recovering some in 2022, but it is still below its pre -pandemic level. Tourism 
is the largest single private -sector employer, accounting for an estimated 10.3% of the employed 
labour force (2016  data).  
1.5.  After GDP growth of over 7% in 2014 , the economy of Saint  Kitts and Nevis entered a period 
of relatively slower growth between 2015 and 2018, when GDP growth fluctuated between 0.7% 
and 3.9%. In 2019, GDP expanded by some 4.2%, before experiencing a large contraction in 2020, 
estimated by t he Eastern  Caribbean Central Bank (ECCB) in 14.5%. Following the unprecedented 
economic contraction in 2020, activity remained weak in 2021, as COVID -19 and associated 
containment measures continued to weigh on the economy. Estimates by the ECCB point to a  
downturn of 3.9%, reflecting declines in major sectors of the economy. In accordance with ECCB 
estimates, value added in the hotels and restaurants sector is estimated to have contracted by 
23.5% in 2021, reflecting a further decline in visitor arrivals, partially due to travel restrictions and 
containment measures imposed to contain the COVID -19 virus. This development had negative 
effects in supporting sectors including transport, storage, and communication; and wholesale and 
retail, which are estimated to have contracted by  16.0% and 2.7%, respectively.2 
1.6.  The decline in economic activity in 2021 was, however, moderated by positive developments 
in some sectors. More specifically, value added in the fishing; and agriculture, livestock, and forestry 
sectors  are estimated to have increased by 25.0% and 8.3%, respectively, reflecting continued 
government investment. Growth was also recorded in the value added for financial intermediation, 
public administration, and construction , among others.3 
1.7.  Based on the re covery of the tourism and the construction sector, as well as increased 
investment, the Government estimates GDP growth of 10.3% for 2022 and 12.4% in 2023. 
Investment projects may benefit from income tax, VAT, and import duty incentives under the 
Small  Business Act, the (reformed) Fiscal Incentives Act, the Hotel Aids Act, and the Special Resorts 
Development Act. Investment flows also benefit from the investment requirements of the Citizenship 
by Investment (CBI) programme. The IMF projects GDP growth of 1 0% in 2020 and 4.2% in 2023.4 
1.8.  According to the IMF, there is room to strengthen productivity growth, economic 
competitiveness, and human capital. Reforms might boost productivity growth and export 
competitiveness, including using the CBI programme to attract investment beyond the tourism 
sector, upgrading skills through focused training programs, better aligning the education system 
with the needs of the labour market, and facilitating access to credit to small firms, including through 
reforms that facilitate use of non -fixed asset as loan collateral.5 
1.9.  During most of the 2014 -19 period, inflation, as measured by the increase in the Consumer 
Price Index (CPI), was in negative territory. This continued in 2020, when due to the slack in 
demand, the CPI increased by 1.2%. In 2021, however, following international trends, namely 
commodity price increases and supply shortages, inflationary pressures emerged, and the CPI 
increased on average by 1.2%, ending the year 1.9% higher than at the en d of 2020. Inflationary 
pressures were underpinned by an increase in the prices of transport (6.8%); housing, utilities, gas, 
and fuels (0.5%); and food and non -alcoholic beverages (0.1%).6 
 
2 ECCB (2022), 2021 Ann ual Economic and Financial Review: Saint Christopher (St Kitts) and Nevis . 
Viewed at: https://www.eccb -centralbank.org/documents/19# . 
3 ECCB (2022), 2021 Annual Economic and Financial Review: Sa int Christopher (St Kitts) and Nevis . 
Viewed at: https://www.eccb -centralbank.org/documents/19# . 
4 IMF, St Kitts and Nevis . Viewed at: https: //www.imf.org/en/Countries/KNA . 
5 IMF (2021), St Kitts and Nevis: Staff Report for the Article  IV Consultation , IMF Country Report 
No. 21/236. Viewed at: https://www.imf.org/en/Publications/CR/Issues/2021/10/28/St -Kitts-and-Nevis -2021-
Article-IV-Consultation -Press -Release -Staff-Report -and-Statement -by-500804 . 
6 ECCB (2022), 2021 Annual Economic and Financial Review: Saint Christopher (St Kitts) and Nevis . 
Viewed at: https://www.ec cb-centralbank.org/documents/19# . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  1.1.2   Fiscal policy  
1.10.  The Minister of Finance is responsible for fiscal p olicy formulation and implementation in 
Saint Kitts and Nevis. As Saint  Kitts and Nevis does not have an independent monetary policy as a 
consequence of the common currency and the exchange rate peg to the US  dollar, fiscal policy is 
the main domestic inst rument used by the authorities to counter the effects of external shocks and 
to stabilize income. The Nevis Island Assembly has the power to make laws relating to the 
mobilization of loan and grant financing and economic planning and development on Nevis.  
1.11.  Tax revenue accounted for some 18.8% of GDP in 2021. There is still high dependency on 
taxes on foreign trade for revenue; they represented some 5% of GDP in 2021. VAT revenue was 
equivalent to some 5.1% of GDP in the same year. During the period under rev iew, there was a 
sharp increase in non -tax revenues, which in 2021 were the main source of revenue, that was 
equivalent to 27.6% of GDP. The revenue stemming from the CBI programme (Section  2 for a 
description) became the largest source of income in 2021, when it was equivalent to 23.7% of GDP.  
1.12.  During the period under review, Saint  Kitts and Nevis continued making efforts to improve its 
fiscal accounts and showed a current account surplus in every year of the period (Table  1.2). The 
primary and overall acco unts were in surplus every year, except in  2020, due to the economic 
package to face the COVID -19 pandemic recessionary effects (see below).  
Table  1.2 Central government fiscal accounts, 2014 -21 
(% of GDP at m arket prices)   
2014  2015  2016  2017  2018  2019  2020  2021  
Current revenue  34.5 34.3 28.1 26.2 36.6 36.6 33.4 46.3 
Tax revenue  18.4 19.6 18.3 17.4 18.5 18.5 18.8 18.8 
Taxes on goods and services  9.0 8.1 7.4 6.8 6.9 7.1 7.5 7.2 
Of which:  Licences  0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.3 
Stamp duties  1.8 1.6 1.3 0.9 0.8 1.0 1.0 1.1 
Value added tax  6.3 5.5 5.1 5.0 5.1 5.0 5.4 5.1 
Taxes on income and profits  3.9 5.2 4.9 4.9 5.6 5.6 5.4 5.9 
Taxes on property  0.6 0.8 0.6 0.5 0.6 0.5 0.5 0.7 
Taxes on international trade and transactions  4.9 5.5 5.5 5.0 5.4 5.4 5.4 5.0 
Of which:  Customs service charge  1.6 1.7 1.6 1.5 1.6 1.6 1.6 1.5 
Non-tax revenue  16.1 14.7 9.8 8.9 18.1 18.2 14.6 27.6 
Of which:  Citizenship by Investment  12.6 11.3 6.4 5.5 14.3 14.8 11.3 23.7 
Capital revenue  1.3 0.4 0.2 0.3 1.2 0.3 0.5 0.8 
Grants  2.7 2.2 3.3 3.0 2.0 2.1 3.5 3.1 
Current expenditure  24.1 24.7 23.8 22.8 26.4 27.4 32.4 33.1 
Goods and services  6.2 6.5 5.1 5.2 7.5 7.3 8.6 8.5 
Interest payments  3.0 1.8 1.6 1.4 1.3 1.2 1.3 1.2 
Domestic interest payments  2.4 1.3 1.2 1.1 1.0 0.9 1.0 0.9 
External interest payments  0.6 0.6 0.4 0.3 0.4 0.3 0.4 0.3 
Personal emoluments  10.0 10.0 10.8 10.2 10.6 10.7 12.8 13.8 
Transfers and subsidies  4.9 6.4 6.3 6.0 6.9 8.2 9.7 9.5 
Capital expenditure  5.0 5.6 4.1 4.8 10.4 11.1 7.5 9.9 
Capital expenditure and net lending  5.0 6.4 3.3 4.8 10.4 11.1 7.5 9.9 
Current account balance  10.4 9.6 4.3 3.4 10.2 9.2 1.0 13.3 
Primary balance (after grants)  12.4 7.5 6.1 3.2 4.3 1.8 -1.1 8.4 
Overall balance (after grants)  9.4 5.7 4.5 1.8 3.0 0.6 -2.5 7.2 
Total financing  -9.4 -5.7 -4.5 -1.8 -3.0 -0.6 2.5 -7.2 
Domestic financing  -6.2 1.0 -2.6 -0.9 -2.2 -0.1 3.2 -6.7 
Commercial banks  2.7 -31.9 -1.7 1.0 -5.9 1.1 9.9 -7.5 
ECCB  0.8 2.9 -0.9 -0.1 -0.4 1.6 -0.4 1.7 
Other  -9.7 30.0 0.0 -1.8 4.1 -2.8 -6.4 -0.9 
External financing  -3.2 -6.7 -2.0 -0.8 -0.8 -0.4 -0.7 -0.5 
Arrears  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:  Eastern Caribbean Central Bank (ECCB).  
1.13.  A fiscal adjustment programme targeting the achievement of significant primary fiscal 
surpluses has been in place for more than a decade now. Apart from achieving a sustainable fiscal 
position and engaging in debt restructuring, the fiscal reforms aimed to significantly reduce the debt  
service burden and help set the public debt -to-GDP ratio firmly on a downward path towards 
the Eastern Caribbean Currency Union (ECCU) debt target of 60% of GDP by 2020; this target was 
achieved ahead of schedule. However, due to the negative effect of th e pandemic (increased 
expenditure and a sharp GDP contraction), the share of public debt to GDP increased again in 2020 
and 2021. According to IMF estimates, in 2021, it was expected to have been equivalent to 60.8% WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  of GDP.7 This goal was, however, not met as a consequence of the economic contraction and increase 
in expenditure triggered by the pandemic. The target was consequently revised, and now the 
Government is aiming to achieve the 60% goal by  2035.  
1.14.  After several years of surpluses, an overall deficit of XCD  58.9 million or 2.5% of GDP was 
registered in 2020. This deficit reflected both an increase in spending and a decrease in revenue due 
to the recessionary effects of the pandemic and the measures put in place to count er them. Box  1.1 
provides a summary of the measures put in place. Initial measures were applied in 2020 and a new 
package was introduced with the 2021  Budget.8 
1.15.  The Government's fiscal operations returned to its trend of a surplus position in 2021. An 
overall surplus of XCD  168.3  million, or 7.2% of GDP was recorded. Current revenue is estimated to 
have increased by 36.3% to XCD  1,087.6  million (46.3% of GDP), associated with an 85.3% 
expansion in non -tax revenue, mainly driven by a more than doubling of CB I receipts. However, the 
authorities consider that the COVID -19 pandemic continued to constrain tax revenue, which fell by 
1.9% to XCD  440.6  million, remaining well below its pre -pandemic levels. Current expenditure rose 
by only 0.3% to XCD  776.3  million ( 33.1% of GDP). This led to a widening of the current account 
surplus to XCD  311.4  million, or 13.3% of GDP, from XCD  24.3 million (1.0% of GDP) in 2020. 
Capital account expenditure increased by 30% to XCD  233.3  million (9.9% of GDP).9 
Box 1.1 Support measures implemented to counter the effects of the COVID -19 
pandemic  
The authorities of St  Kitts and Nevis implemented a number of support measures to help the population and 
businesses cope with the negative effect s of the pandemic, which included a virtual stop of some of the main 
economic activities, including tourism.  
Some of the main measures put in place by the Ministry of Finance in 2020 included:  
• Provision of income support of up to XCD  1,000 per month for affected workers through the Social 
Security Board.  
• Injection of XCD  10 million to boost production in agriculture and ensure greater food security.  
• Provision of additional funds to support the Poverty Alleviation Programme.  
• Provision of additional res ources to capitalize the Severance Payment Fund.  
• Provision of XCD  30 million in funding through the Development Bank of St  Kitts and Nevis for 
mortgage loans to citizens.  
• Moratorium on payments of mortgages held with the National Housing Corporation (NHC) and the 
Development Bank of St  Kitts and Nevis.  
• Moratorium on payments for electricity services for April to June 2020 by the St  Kitts Electricity 
Company (SKELEC) and the Nevis Electricity Company (NEVLEC).  
• Postponement of the payment of property tax from June to September 2020.  
• Reduction of the Corporate Income Tax rate from 33% to 25% from April to December  2020 for 
businesses that retain at least 75% of their employees.  
• Reduction of the Unincorporated Business Tax rate by 50% (from 4% to 2%) from April to 
December  2020.  
• Waiver of payments for the consumption of water from April to December 2020 for individuals 
affected by COVID -19. 
• Waiver of payments for the consumption of water by farmers for nine months (April to 
December  2020).  
 
7 IMF (2021), IMF Country Report No.  21/236. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/10/28/St -Kitts-and-Nevis -2021-Article -IV-Consultation -
Press -Release -Staff-Report -and-Statement -by-500804 . 
8 Ministry of Finance (2021), St Christopher and Nevis, Budget Address 2021 . Viewed at: 
https://www.mof.gov.kn/wp -content/uploads/2021/01/2021 -Budget -Address.pdf . 
9 ECCB (2022), 2021 Annual Economic and Financial Review: Saint Christopher (St Kitts) and Nevis . 
Viewed at: https://www.eccb -centralbank.org/documents/19# . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  • Removal of VAT and Import Duty on additional hygiene items such as hand sanitizers, disinfectant 
sprays, rubbing alcohol, and latex gloves, and removal of Import Duty and Customs Service Charge 
on selected food items for nine months.  
• Continuation o f the Fresh Start Programme with an injection of XCD  5 million to provide access to 
capital to fund small and medium -sized business projects.  
• Provision of additional financial resources to the Ministry of Health.  
• Provision of additional financial resourc es to the Ministry of Education.  
• Provision of additional financial resources to the Ministry of National Security.  
The measures introduced or continued for 2021 included:  
• Removal of VAT and Import Duty until June 2021 on additional hygiene items such as hand sanitizers, 
hand sanitizer dispensing machines, disinfecting wipes, rubbing alcohol, gloves, masks, and 
protective gowns.  
• Removal of Import Duty and Customs Service Charge until June  2021 on vegetables, fruits, fruit 
juices, cough and cold pr eparations, and vitamins.  
• Waiver of payments for consumption of water until June 2021 for individuals who have been laid off 
by businesses or experienced a reduction in earnings as a consequence of COVID -19. 
• 24% reduction of the Corporate Income Tax rate  from 33% to 25% until June 2021 for businesses 
that retain at least 75% of their employees.  
• Reduction of the Unincorporated Business Tax rate by 50% from 4% to 2% until June  2021.  
• Injection of an additional XCD  5 million stimulus over two years to boost  production in the agriculture 
sector and ensure greater food security for the Federation. Overall, this would result in a total 
stimulus of XCD  15 million for the agricultural sector.  
• Waiver of payments for the consumption of water by farmers until June  2021.  
• Provision of an additional XCD  3 million above the amount provided in the 2020 Estimates to support 
the Poverty Alleviation Programme.  
• Provision of additional resources in the region of XCD  7 million to further capitalize the Severance 
Payment Fund  in 2021 and facilitate the payment of severance claims as they become due.  
Source:  Government of Saint  Kitts and Nevis, Budget Address 2022 . Viewed at: 
https://www.sknis.gov.kn/wp -content/uploads/2022/01/Budget -Address.pdf . 
1.16.  Analysing the implementation of these measures, according to the authorities, as at 
end-November  2020, the Social Security Board had provided income support in the amount of 
XCD 22.6 million. At the same date, XCD  28.4 million had been provided through the Poverty 
Alleviation Programme (PAP). The Government also spent an additional XCD  14 million on hea lth, 
education, and national security, and XCD  6.5 million was invested in the agriculture sector. The 
Ministry of Finance estimated that taxes waived and the impact of deferred taxes were in excess of 
XCD 26 million. In 2021, the Government extended the p eriod of implementation of certain elements 
of the stimulus package until June  2021. The resources for the PAP were scaled up to address the 
needs of those individuals whose household income had fallen below the monthly XCD  3,000 
threshold as a result of t he COVID -19 pandemic. As at November  2021, the Government had 
expended XCD  86.2 million on the PAP since its inception in December  2018. Some XCD  6.1 million 
was spent in direct support of households that were affected by COVID -19. In 2021, some 
XCD 8 million was paid to beneficiaries of the Income Support Programme.10 
1.17.  The authorities consider that the strategy that the Government deployed to deal with the 
economic effects of the pandemic helped to set the stage for a recovery, and that, by the second  half 
of 2021, there were already signs of a rebound in the domestic economy.11 
1.18.  After increasing in 2020, the total disbursed outstanding public sector debt decreased 
by 2.0% to XCD  1,590.3  million (67.8% of GDP) at the end of December 2021.  
 
10 Government of St  Kitts and Nevis, Budget Address 2022 . Viewed at: https://www.sknis.gov.kn/wp -
content/uploads/2022/01/Budget -Address.pdf . 
11 Government of St  Kitts and Nevis, Budget Address 2022 . Viewed at: https:/ /www.sknis.gov.kn/wp -
content/uploads/2022/01/Budget -Address.pdf . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  1.19.  The IMF has noted th at Saint  Kitts and Nevis entered the COVID -19 pandemic from a position 
of fiscal strength following nearly a decade of budget surpluses. A significant part of the large CBI 
revenues had been saved, reducing public debt below the regional debt target of 60%  of GDP and 
supporting the accumulation of large government deposits. The IMF considers that the response 
measures applied effectively mitigated the pandemic's human cost, but that the impact on the 
economy was severe. The tax waivers, deferrals, incentive s, and unemployment benefits to affected 
insured workers, in parallel with temporary measures, such as loan moratoria, that supported 
liquidity, effectively mitigated the pandemic's financial system impact. Nonetheless, the pandemic 
has resulted in a sharp  decline in GDP, and the general Government's first fiscal deficit since  2010, 
financed by drawing down sizeable deposit buffers.12 
1.1.3   Balance of payments, and monetary and exchange rate policy  
1.20.  Saint Kitts and Nevis' current account of the balance of payments  generally shows a deficit. 
Merchandise imports of goods largely exceed exports, and the surplus in services, although 
considerable, is not enough to cover the difference. Current account deficits, although large (except 
in 2014 when a small surplus was po sted), fluctuated widely during the period under review, ranging 
between 7% and 12.5%. The merchandise trade balance shows a traditional large deficit, as imports 
are almost 10 times the value of exports (Table  1.3). The services balance is largely positiv e, due 
to income from tourism and the CBI programme (Table  1.4). Current account deficits have been 
financed largely by sizeable capital transfers.  
Table  1.3 Balance of payments, 2014 -21 
(USD million)   
2014  2015 2016  2017  2018  2019  2020  2021  
1. Current account  3.0 -79.7 -123.7  -111.8  -59.2 -25.0 -78.5 -61.0 
1.A Goods and services  82.3 4.2 -52.3 -37.1 16.4 -4.0 -49.4 -32.7 
1.A.a Goods  -233.6  -276.2  -310.0  -303.2  -328.5  -315.1  -262.4  -251.6  
Exports  56.7 34.3 24.4 29.2 26.5 34.6 28.4 26.6 
Imports  290.3  310.4  334.3  332.4  355.0  349.8  290.8  278.2  
1.A.b Services  315.9  280.3  257.6  266.2  344.9  311.1  213.0  218.9  
Exports  528.6  496.4  478.9  476.1  571.4  563.7  354.7  381.9  
Imports  212.7  216.1  221.2  209.9  226.5  252.6  141.8  163.0  
1.B Primary income  -67.6 -64.8 -58.7 -48.9 -47.1 -22.5 -13.9 -19.9 
1.B.1 Compensation of 
employees  9.2 9.0 9.5 9.2 10.1 10.4 11.6 10.3 
1.B.2 Investment income  -76.8 -73.8 -68.1 -58.1 -56.9 -32.9 -25.5 -30.3 
1.B.2.1 Direct investment  -80.5 -77.4 -70.9 -63.0 -63.9 -40.3 -29.9 -34.6 
1.B.2.2 Portfolio investment  4.0 7.4 6.2 6.7 7.3 4.4 5.5 5.4 
1.B.2.3 Other investment  -0.2 -3.8 -3.4 -1.9 -0.3 3.0 -1.0 -1.0 
1.B.3 Other primary income  0.0 0.0 0.0 0.0 -0.3 0.0 0.0 0.0 
1.C Secondary income  -11.8 -19.1 -12.7 -25.8 -28.6 1.5 -15.2 -8.3 
1.C.1 General government  5.7 0.0 10.6 -3.0 -4.2 10.4 0.7 0.0 
1.C.2 Financial corporations, 
nonfinancial corporations, 
households, and NPISHs  -17.0 -18.9 -23.1 -22.5 -24.0 -8.4 -15.6 -8.0 
1.C.3 Adjustment for change in 
pension entitlements  -0.4 -0.2 -0.2 -0.3 -0.4 -0.4 -0.3 -0.3 
2. Capital account  80.1 49.9 48.6 44.2 52.8 57.3 42.8 78.3 
2.2 Capital transfers  80.1 49.9 48.6 44.2 52.8 57.3 42.8 78.3 
2.2.1 General government  14.0 3.8 18.6 20.2 19.2 8.0 3.1 5.2 
2.2.2 Financial corporations, 
nonfinancial corporations, 
households, and NPISHs  66.1 46.1 30.0 24.0 33.6 49.3 39.7 73.1 
Net lending (+) / net borrowing 
(-) (balance from current and 
capital account)  83.0 -29.8 -75.1 -67.6 -6.5 32.3 -35.7 17.3 
3. Financial account  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Net lending (+) / net borrowing 
(-) (balance from financial 
account)  61.2 -77.0 -100.2  -61.5 -16.4 50.5 -57.8 2.4 
3.1 Direct investment  -151.3  -133.2  -124.4  -42.1 -11.5 -36.2 -10.0 -43.3 
3.2 Portfolio investment  39.9 63.8 39.6 37.1 10.2 113.5  40.9 -8.1 
 
12 IMF (2021), IMF Country Report No.  21/236. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2021/10/28/St -Kitts-and-Nevis -2021-Article -IV-Consultation -
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2014  2015 2016  2017  2018  2019  2020  2021  
3.3 Financial derivatives (other 
than reserves) and employee 
stock options  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
3.4 Other investment  144.3  30.9 -47.8 -100.5  -13.4 -17.8 -98.1 89.7 
3.4.2 Currency and deposits  90.4 -48.4 -189.5  -101.4  -11.1 -6.8 -86.9 95.5 
3.4.3 Loans  45.0 56.1 33.0 -0.5 2.6 -8.3 0.1 5.4 
3.4.4 Insurance, pension, and 
standardized guarantee 
schemes  0.4 -0.1 0.6 -0.3 -0.6 2.9 2.4 0.0 
3.4.5 Trade credit and advances  -9.3 16.1 3.0 4.0 -3.0 -2.1 7.3 -3.8 
3.4.6 Other accounts 
receivable/payable  17.7 7.2 105.1  -2.3 -1.3 -3.5 -21.0 9.3 
3.4.7 Special drawing rights 
(Net incurrence of liabilities)  0.0 0.0 0.0 0.0 0.0 0.0 0.0 16.8 
3.5 Reserve assets  28.3 -38.5 32.4 44.1 -1.7 -9.1 9.4 -35.9 
3.5.2 Special drawing rights  1.2 -0.5 -1.2 0.0 0.0 0.0 0.0 17.1 
3.5.3 Reserve position in the 
IMF 0.0 0.0 1.2 0.0 0.0 0.0 0.0 0.0 
3.5.4 Other reserve assets  27.1 -38.0 32.4 44.1 -1.6 -9.1 9.4 -53.0 
Net errors and omissions  -21.9 -47.2 -25.1 6.2 -10.0 18.2 -22.2 -14.9 
Memorandum          
Current account as a share of 
GDP (%)  0.3 -8.3 -12.3 -10.5 -5.5 -2.3 -8.9 -7.0 
Source:  ECCB  online statistics. Viewed at: http://www.eccb -centralbank.org . 
1.21.  Saint Kitts and Nevis  does not have an independent monetary policy. Saint  Kitts and Nevis is 
a member of the ECCU. The Monetary Council of the ECCB is responsible for monetary policy for the 
whole OECS, including two territories that are not WTO Members (Anguilla and Montserra t). The 
exchange rate followed by the ECCB is a peg to the US dollar, at a rate of XCD  2.70 per USD  1. 
1.22.  After declining in some of the previous years, broad money liabilities (M2) rose by 8.9% to 
XCD 3,017.1  million at the end of 2021. This reflects an incr ease in deposits in national currency, 
foreign currency deposits, and currency in circulation. Domestic claims (credit) expanded by 2.8% 
to XCD  631.9  million at the end of 2021, more than double the average domestic claims recorded 
over the past five years .13 
1.2  Trends and patterns in merchandise and services trade  
1.23.  Exports of goods are limited and are highly concentrated on a few manufactured goods. 
Products such as switches, relays, fuses, and electrical capacitors (SITC 7) accounted for about 74% 
of total ex ports in 2012; beverages accounted for some 8.5%; and other manufactured products 
for 8.6% (Table  A1.1). Exports of agricultural products accounted for 4% of total exports. 
Some  23.4% of all imports are foodstuff and other agricultural products; imports of  machinery of 
transport equipment accounted for some 28.3% of total imports in 2021, while other manufactured 
goods (SITC  6 and 8) accounted for another 14.2% (Table  A1.2 and Charts  1.1 and 1.2).  
 
13 ECCB (2022), 2021 Annual Economic and Financial Review: Sain t Christopher (St Kitts) and Nevis . 
Viewed at: https://www.eccb -centralbank.org/documents/19# . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  Chart  1.1 Merchandise trade by SITC section, 2014 and 2021  
 
Source:  ECCB online statistics. Viewed at: http://www.eccb -centralbank.org . 
1.24.  Saint Kitts and Nevis' main trading partner continues to be the United  States, which was the 
destination for some 80% of exports in 2021, and the origin of some two  thirds of imports. No exact 
data per trading partner were available for this Review. The second -largest partner is 
Trinidad  and Tobago, followed by the Uni ted Kingdom, Antigua  and Barbuda and other OECS 
countries, Jamaica, and Canada  
1.25.  Saint Kitts and Nevis runs a trade surplus in services, principally on account of tourism 
receipts (travel and transportation), but also of financial services exports (Table  1.4). Due to the 
Chart 1.1
Merchandise trade by main SITC sections, 2014 and 2021
2014 2021
Exports
Total: USD 57 million
Imports
Total: USD 268 million Total: USD 260 million
Source:   WTO Secretariat calculations, based on ECCB statistics.Total: USD 47 millionOther
3.1%Beverages & 
tobacco
5.8%Other
4.9%
Chemical 
products
7.9%Machinery & transport 
equipment
73.9%
Misc. manuf.
19.7%
Machinery & 
transport 
equipment
30.1%Other
1.1%
Chemical 
products
11.3%Misc. manuf.
14.2%
Machinery & 
transport 
equipment
28.3%Other
1.2%
Crude materials 
(except fuels)
2.5%Machinery & transport 
equipment
77.3%Misc. manuf.
10.9%
Manufactured 
goods
16.6%Food & 
live 
animals
2.8%Food & live 
animals
4.0% Beverages & 
tobacco
8.5%Misc. manuf.
8.6%
Food & live 
animals
17.6%Food & live 
animals
23.4%
Beverages & 
tobacco
3.1%
Beverages & 
tobacco
3.1%
Manufactured 
goods
18.1%Crude 
materials 
(except fuels)
1.9%WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  negative effects of COVID -19, exports of services declined sharply in 2020 and 2021, mainly due to 
the strong contraction in travel and transportation, but are expected to increase again starting in 
2022.  
Table  1.4 Trade in services, 2014 -21 
(USD  million)   
2014  2015  2016  2017  2018  2019a 2020a 2021b 
Services trade balance  315.9  280.3  257.6  266.2  344.9  311.1  213.0  218.9  
Export of services  528.6  496.4  478.9  476.1  571.4  563.7  354.7  381.9  
Maintenance and repair services , n.i.e. 0.2 0.2 0.1 0.1 0.0 0.0 0.1 0.1 
Transportation  13.1 16.5 17.7 17.2 18.2 20.7 7.2 7.1 
Sea transport  5.4 7.9 7.6 8.6 8.5 7.9 3.5 3.4 
Passenger  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Freight  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  5.4 7.9 7.6 8.6 8.5 7.9 3.5 3.4 
Air transport  6.3 6.7 6.7 6.4 7.4 10.6 2.4 2.4 
Passenger  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Freight  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  6.3 6.7 6.7 6.4 7.4 10.6 2.4 2.4 
Other transport  0.8 0.8 0.8 0.8 0.8 0.9 0.3 0.3 
Postal and courier services  0.6 1.1 2.5 1.4 1.5 1.3 1.0 1.0 
Travel  342.8  316.8  331.6  351.9  365.6  352.8  98.3 96.4 
Construction services  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Construction abroad  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Construction in the compiling 
economy  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Insurance services  3.1 3.0 3.6 3.8 3.8 3.8 5.0 4.9 
Direct insurance  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Reinsurance  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Auxiliary insurance services  3.1 3.0 3.6 3.8 3.8 3.8 4.9 4.8 
Pension and standardized 
guarantee services  0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 
Financial services  17.5 20.7 19.5 21.6 27.1 9.7 9.9 10.3 
Charges for use of intellectual property  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Telecommunications, computer and 
information services (combined)  6.4 5.1 4.5 4.5 4.0 4.0 3.8 3.8 
Other business services  6.3 8.2 10.5 10.2 8.3 9.1 10.4 10.2 
Professional and management 
consulting services  0.4 0.4 0.4 0.4 0.5 0.6 0.3 0.3 
Technical trade -related and other 
business services  5.9 7.8 10.1 9.8 7.8 8.5 10.0 9.9 
Personal, cultural, and recreational 
services  0.0 0.0 0.0 0.0 0.0 0.0 112.1  35.9 
Government services, n.i.e.  121.2  109.4  65.6 58.8 136.4  155.4  100.9  206.3  
Embassies and consulates  0.7 0.7 0.7 0.7 0.7 0.7 0.6 0.6 
Other government services  120.5  108.7  64.9 58.1 135.7  154.7  100.3  205.8  
Import of services  212.7  216.1  221.2  209.9  226.5  252.6  141.8  163.0  
Maintenance and repair services , n.i.e. 0.1 0.1 0.1 0.0 0.1 0.0 0.0 0.0 
Transportation  45.9 50.4 52.2 50.9 55.7 55.6 39.0 37.5 
Sea transport  33.0 35.3 37.3 36.3 40.3 39.7 33.0 31.6 
Passenger  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Freight  33.0 35.3 37.3 36.3 40.3 39.7 33.0 31.6 
Other  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Air transport  12.7 15.0 14.8 14.5 15.3 15.7 5.8 5.8 
Passenger  12.3 14.5 14.3 14.0 14.7 15.1 5.5 5.5 
Freight  0.2 0.2 0.2 0.2 0.2 0.2 0.0 0.0 
Other  0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 
Other transport  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Postal and courier services  0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Travel  36.6 37.4 37.5 41.5 40.6 52.3 6.7 31.2 
Construction services  1.6 4.0 4.7 1.9 1.9 2.0 1.2 1.2 
Construction abroad  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Construction in the compiling 
economy  1.6 4.0 4.7 1.9 1.9 2.0 1.2 1.2 
Insurance services  13.9 17.5 16.1 16.8 16.7 18.6 17.4 16.9 
Direct insurance  11.7 15.3 13.6 14.8 14.2 16.4 14.1 13.7 
Reinsurance  1.8 1.8 2.0 1.8 2.1 1.5 2.2 2.1 
Auxiliary insurance services  0.2 0.3 0.5 0.1 0.2 0.5 1.0 1.0 
Pension and standardized guarantee 
services  0.2 0.1 0.1 0.1 0.1 0.2 0.1 0.1 
Financial services  3.7 3.9 7.7 3.6 6.4 7.6 8.9 8.7 
Charges for use of intellectual property  3.0 2.6 2.7 1.5 2.0 3.2 2.4 2.4 WT/TPR/S/437  • Saint Kitts and Nevis  
 
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2014  2015  2016  2017  2018  2019a 2020a 2021b 
Telecommunications, computer and 
information services (Combined)  6.1 7.5 7.7 8.0 8.7 7.4 7.9 7.8 
Other business services  97.7 91.8 92.3 85.4 94.3 105.7  57.6 56.6 
Professional and management 
consulting services  23.6 21.7 19.2 17.7 19.1 23.7 20.1 19.7 
Technical trade -related and other 
business services  74.1 70.1 73.1 67.7 75.2 82.1 37.6 36.9 
Personal, cultural, and recreational 
services  3.3 0.1 0.0 0.0 0.0 0.1 0.1 0.1 
Government services, n.i.e.  0.8 0.7 0.2 0.2 0.1 0.1 0.6 0.6 
Embassies and consulates  0.0 0.4 0.2 0.2 0.1 0.1 0.6 0.6 
Other government services  0.8 0.3 0.0 0.0 0.0 0.0 0.0 0.0 
a Preliminary data.  
b Estimates.  
Source:  ECCB and Central Statistical Office.   WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  2  TRADE AND INVESTMENT POLICY FRAMEWORK  
2.1  General framework  
2.1.  The Federation of Saint  Kitts and Nevis has a legal system based on English common law. The 
Constitution is the supreme law, and all other laws must conform to it and are void to the extent of 
any contradiction or inconsistency with the Constitution. Changes to the Constitution require at least 
a two -thirds majority vote in the National Assembly and may also necessitate a referendum, 
depending on the matter.  
2.2.  Saint Kitts and Nevis is a federation; constitutionally it is a single state, but the Constitution 
grants significant autonomy to Nevis, which has a semi -autonomous Island Assembly, an Island 
Administration, and a Premier. The Federation of Saint  Kitts and Nevis has a Westminster -style 
parliamentary system. The English monarch, represented by the Governor General on the island, is 
the Head of State. The exercise of the executive power is vested on the Cabinet of Ministers, which 
is headed by the Prime Minister, appointed by the Governor General after each election. The 
appointed Prime Minister is the elected Member of the National Ass embly who commands the support 
of the majority of elected members. The Cabinet is appointed by the Governor General on the advice 
of the Prime Minister and is collectively accountable to the National Assembly.  
2.3.  The Cabinet of Ministers has the power to conc lude and sign international treaties and trade 
agreements. International agreements to which Saint  Kitts and Nevis is a party must be enacted 
into domestic law to become enforceable. They are not automatically part of domestic law. In this 
respect, only WT O Agreements that have been explicitly incorporated into the laws of 
Saint Kitts and Nevis are part of domestic legislation and may be invoked by private individuals 
before national courts.  
2.4.  Law-making responsibility is shared between the National Assembly in Saint  Kitts and the Nevis 
Island Assembly, depending on the scope and nature of the law. The National Assembly has exclusive 
authority to enact laws of federal concern, including on defence or foreign relations, while the Nevis 
Island Assembly is empowe red to enact ordinances related to a range of specified matters. The Nevis 
Island Assembly is restricted by the Constitution from enacting laws that are inconsistent with the 
general policy of the Government or relating to matters that are of national conc ern, without prior 
approval of the Prime Minister. In the event of inconsistencies between the provisions of laws enacted 
by the National Assembly and those of the Nevis Island Assembly, the provisions of the former 
prevail. The National Assembly is compos ed of 11  elected representatives and 3 senators, 
1 appointed by the Governor General on the advice of the leader of the opposition, and 2  appointed 
on the advice of the Prime Minister. Parliamentary elections are due every five years but may be 
called soon er; the last elections were held in August  2022.  
2.5.  The legislative process at the federal level starts with the introduction of a bill by a Minister in 
the National Assembly, generally after the draft has been approved by the Cabinet of Ministers. Each 
bill goes through three readings; during the second reading the bill is debated by members of the 
National Assembly and, where necessary, amendments are introduced. The bill is put to a vote in 
the third reading. Bills become law after having received the assen t of the Governor General; they 
enter into force after publication in the Gazette . 
2.6.  The judiciary is independent from the Executive and the National Assembly. Minor civil and 
criminal cases are dealt with by Magistrate courts. More serious criminal matters, civil cases involving 
claims above XCD  5,000, and questions of interpretation of the Constitution are dealt with by the 
High Court. The Eastern Caribbean Supreme Court, an itinerant court based in Saint  Lucia, is the 
first level of appeal (Common Report).14 Despite having signed, with other Caribbean Community 
and Common Market ( CARICOM) member States, the Agreement to establish the Caribbean Court 
of Justice (CCJ), which has been functioning since 2005, the final court of appeal for Saint  Kitts an d 
Nevis remains the Judicial Committee of the Privy Council (JCPC), based in London.15 Accession to 
 
14 For more information on the Court, see the Eastern Caribbean Supreme Court website. Viewed at: 
http://www.eccourts.org/ . 
15 For more information on the Council, see the JCPC website. Viewed at: 
https://www.jcpc.uk/about/role -of-the-jcpc.html . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  the appellate jurisdiction of the CCJ could involve a constitutional amendment and possibly a 
referendum. Final appeals are currently still made to the JCPC . 
2.2  Trade policy formulation and objectives  
2.7.  The Ministry of International Trade, Industry, Commerce and Consumer Affairs (MITICCA), 
currently dependent on the Office of the Prime Minister, is responsible for overseeing the formulation, 
development, implement ation, and management of trade policies in Saint  Kitts and Nevis. The 
Ministry has responsibility for all WTO, international, and regional trade issues and is in charge of 
matters related to anti -dumping, subsidies, technical barriers to trade, and competi tion policy. Work 
is carried by the Ministry's three departments: the Trade Policy Division; the Saint  Kitts and Nevis 
Bureau of Standards; and the Consumer Affairs Department. The Trade Policy Division is responsible 
for the coordination, management, deve lopment, and implementation of all trade policy issues. The 
Consumer Affairs Department is in charge of ensuring fair trade competition, while the 
Saint Kitts and Nevis Bureau of Standards is responsible for standards, metrology, and conformity 
assessment  services. The Bureau is also the National Codex Contact Point, the enquiry point for the 
WTO TBT Agreement.  
2.8.  Trade policy is developed in the context of Saint  Kitts and Nevis' participation in the OECS and 
in CARICOM, with the involvement of the private sec tor and labour. The main agencies that 
participate in the formulation of trade policy are the MITICCA; the Ministries of Finance, Sustainable 
Development, and Information Technology; the Customs and Excise Department; the Ministry of 
Foreign Affairs; the M inistry of Legal and Justice; the Ministry of Agriculture and Marine Resources; 
the Saint  Kitts Investment Promotion Agency; the Ministry of National Security; and the Chamber 
of Industry and Commerce. The Customs and Excise Department is responsible for t ariffs and 
customs valuation and participates in the formulation of policy relating to services and to foreign 
direct investment.  
2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.9.  Saint Kitts and Nevis has been a WTO Member since 21  February  1996 and grants at least M FN 
treatment to all of its trading partners. Preferential market access is granted to imports from other 
CARICOM countries and to a number of products from the European  Union under the Economic 
Partnership Agreement (EPA). As there is no umbrella law to en act the Uruguay Round Act, the 
WTO Agreements are only part of domestic legislation insofar as specific laws for their 
implementation have been put in place. Private individuals may invoke WTO provisions before 
national courts only to the extent that the A greements are incorporated into national legislation.  
2.10.  Under the GATS, Saint  Kitts and Nevis made specific commitments on tourism, recreational, 
communications, financial, and maritime transport services. It did not participate in the extended 
WTO negotiati ons on telecommunications or on financial services.  
2.11.  Saint Kitts and Nevis does not have a national representation to the WTO in Geneva; however, 
it is represented by the Permanent Delegation of the Organisation of Eastern Caribbean States to 
the United Nat ions Office and other international organizations in Geneva. Saint  Kitts and Nevis is 
member of the following groups in the Doha Development Agenda (DDA) negotiations: G -90 (ACP 
+ least -developed countries); small, vulnerable economies (SVEs) -non-agricultu ral market access 
(NAMA); G -33, also called Friends of Special Products, in agriculture (coalition of developing 
countries pressing for flexibility for developing countries to undertake limited market opening in 
agriculture); W52 sponsors (sponsors of TN/C /W/52, a proposal for "modalities" in negotiations on 
geographical indications). It also participates in the micro, small, and medium -sized enterprises 
(MSME) initiative.  
2.12.  Saint Kitts and Nevis is not a party to the Information Technology Agreement (ITA). I t did not 
participate or present offers in the WTO extended negotiations on telecommunications, nor in the 
extended negotiations on financial services.  
2.13.  During the period under review, Saint  Kitts and Nevis notified to the WTO its intellectual 
property legi slation and submitted responses to the Checklist of Issues on (intellectual property WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  rights) Enforcement. It also made a new and full notification pursuant to Article  XVI:1 of the 
GATT  1994 and Article  25 of the Subsidies and Countervailing Measures Agreem ent 
(SCM  Agreement), as well as its acceptance of the Agreement on Trade Facilitation (TFA) 
(Table  2.1). There were no notifications in other areas; according to the authorities, this is due to 
the absence of specialized staff to deal with the issue or to institutional shortcomings, such as the 
lack of legislation or regulations. To date, Saint  Kitts and Nevis has not made any notifications to 
the TBT and SPS  Committees, nor has it notified support measures in agriculture.  
Table  2.1 WTO notifications 2014 -September 20 22 
WTO  Agreement  Description  Document symbol of most 
recent notification  
SCM Agreement 
Article  25 and 
GATT  XVI.1  New and full notification pursuant to 
Article  XVI:I  of the GATT  1994 and Article  25 of 
the SCM  Agreement  G/SCM/N/284/KNA, 
G/SCM/N/290/KNA, 
G/SCM/N/299/KNA, 
G/SCM/N/315/KNA, 13  July 2018 
Article  18.5 of the 
Agreement on 
Implementation of 
Article  VI of the 
GATT  1994 and 
Article  32.6 of the 
SCM Agreement  Notification of Laws and Regulations under 
Articles 18.5 and 32.6 of the Agreements  G/ADP/N/1/KNA/1,  
G/SCM/N/1/KNA/1, 4 March  2021 
SCM Agreement, 
Articles  25.11 and 25.12  No action taken  G/SCM/N/202/KNA, 
14 January  2010 
Article  22 of the 
Agreement on 
Implementation of 
Article  VII of the 
GATT  1994 Notification of laws and regulations under 
Article  22 of the Agreement on Implementation 
of Article  VII of the GATT  1994 G/VAL/N/1/KNA/1, 
25 February  2021 
TRIPS  Agreement 
Article  63.2 Notification of laws and regulations  IP/N/1/KNA/1, IP/N/1/KNA/C/1, 
2 December  2016 
TRIPS  Agreement 
Article  63.2 Notification of laws and regulations  IP/N/1/KNA/2, IP/N/1/KNA/T/1, 
2 December  2016 
TRIPS  Agreement 
Article  63.2 Notification of laws and regulations  IP/N/1/KNA/3, IP/N/1/KNA/P/1, 
2 December  2016 
TRIPS  Agreement 
Article  63.2 Notification of laws and regulations  IP/N/1/KNA/4, IP/N /1/KNA/L/1, 
2 December  2016 
TRIPS  Agreement  Checklist of Issues on Enforcement. Responses 
from Saint Kitts and Nevis  IP/N/6/KNA/1, 2  December  2016 
Preparatory Committee 
on Trade Facilitation  Notification of Category A Commitments under 
the Agreement on Trade Facilitation  WT/PCTF/N/KNA/1, 2  June 2015 
Trade Facilitation 
Agreement  Notification of Category Commitments under 
the Agreement on Trade Facilitation  G/TFA/N/KNA/1, 17  August  2017 
Trade Facilitation 
Agreement  Notification of Category C ommitments under 
the Agreement on Trade Facilitation. Addendum  G/TFA/N/KNA/1/Add.1, 
8 October  2020 
Trade Facilitation 
Agreement  Notification under Article  22.3 of the 
Agreement on Trade Facilitation (contact point)  G/TFA/N/KNA/2, 1  April 2019 
Trade Facilitation 
Agreement  Notifications under Articles 1.4, 10.6.2 and 
12.2.2 of the Agreement on Trade Facilitation  G/TFA/N/KNA/3, 1  April 2019 
Source:  Compiled by the WTO Secretariat based on WTO documents.  
2.14.  Saint Kitts and Nevis accepted the 2005 Protocol Amending the TRIPS  Agreement on 
27 July 2015, and the 2014 Protocol concerning the Trade Facilitation Agreement on 17  June 2016. 
On 2 June 2015, Saint  Kitts and Nevis submitted its Notification of Category A Commitments under 
the TFA. In August  2017, it su bmitted its category A, B, and C commitments. In October 2020, 
Saint Kitts and Nevis notified that, due the COVID -19 pandemic, it was postponing the 
implementation of commitments in categories B and C (Table  2.2). By June  2021, Saint  Kitts and 
Nevis' rate of commitment implementation stood at 69.7%, with a time -frame spanning from 
February  2017 to December  2024. Saint  Kitts and Nevis has requested technical assistance with 
respect to eight measures.16 
 
16 WTO Trade Facilitation database. Viewed at: https://tfadatabase.org/membe rs/saint -kitts-and-nevis. WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  Table  2.2 Saint Kitts and Nevis Category B and C commitments under the Trade 
Facilitation Agreement, and dates of implementation, 2022  
Provision  Heading/ 
description  Category  Previously notified 
definitive date for 
implementation  New def initive date for 
implementation 
requested  Reasons for 
extension  
Article  1.1 Publication  B 31 December  2021 31 December  2022 COVID -19 
mitigation 
measures  
Article  1.3.2 Enquiry Points  B 31 December  2021 31 December  2021 n.a. 
Article  3  Advance Ruling  C 31 December  2021 31 December  2021 n.a. 
Article  5.3 Test Procedures  C 31 December  2021 31 December  2023 COVID -19 
mitigation 
measures  
Article  6.2 Specific Disciplines 
on Fees and 
Charges for 
Customs Processing 
Imposed on or in 
Connection with 
Importation and 
Exportation  C 31 December  2023 31 December  2024 COVID -19 
mitigation 
measures  
Article  7.2 Electronic Payment  C 31 December  2021 31 December  2021  
Article  7.4 Risk Management  C 31 December  2021 31 December  2022 COVID -19 
mitigation 
measures  
Article  7.6 Average Release 
Time B 31 December  2021 31 December  2021  
Article  7.7 Trade Facilitation 
measures for 
Authorized 
Operators  C 31 December  2021 31 December  2023 COVID -19 
mitigation 
measures  
Article  10.4 Single Window  C 31 December  2021 31 December  2023 n.a. 
Article  12.7 Customs 
Cooperation  C 31 December  2021 31 December  2021 n.a. 
Article  12.8 Customs 
Cooperation  B 31 December  2021 31 December  2021 n.a. 
Article  12.9 Customs 
Cooperation  C 31 December  2021 31 December  2021 n.a. 
n.a. Not applicable.  
Source:  WTO document G/TFA/N/KNA/1/Add.1, 8  October  2020; and WTO TFA database. Viewed at: 
https://tfadatabase.org/members/saint -kitts-and-nevis/breakdown -by-measure/article -12. 
2.15.  Saint Kitts and Nevis has not been a complainant or a defendant in an y case before the DSB. 
It has been a third party in three cases, all prior to the review period.  
2.3.2   Regional trade agreements  
2.3.2.1   OECS  
2.16.  Saint Kitts and Nevis has been a member of the Organisation of Eastern Caribbean States 
(OECS) since its creation by the Treaty of Basseterre in 1981. The OECS reinforced its integration 
process through the signature of the Revised Treaty of Basseterre Establishing the OECS Economic 
Union (RTB) in June  2010, which established new institutional arrangements, and created a sin gle 
financial and economic space within which goods, services, people, and capital move freely, and 
monetary and fiscal policies are harmonized. The RTB, which entered into force on 21  January  2011, 
transferred power from national parliaments to the OECS A uthority and the Council of Ministers on 
certain issues, in particular those dealing with the common market and customs union, monetary 
policy, trade policy, maritime jurisdiction and maritime boundaries, and civil aviation. The main 
organs of the Economic  Union are: (i)  the OECS Authority of Heads of Government of the member 
States; (ii)  the Council of Ministers; (iii)  the OECS Assembly; (iv)  the Economic Affairs Council; and 
(v) the OECS Commission.  
2.3.2.2   CARICOM  
2.17.  Saint Kitts and Nevis also participates in other  regional agreements and arrangements: it has 
been a member of CARICOM since 1974 and is a participant in the Caribbean Single Market and 
Economy (CSME), created as a consequence of the revision of the Treaty of Chaguaramas in 1989. 
CARICOM has 15  particip ants: Antigua and Barbuda; the Bahamas; Barbados; Belize; Dominica; WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  Grenada; Guyana; Haiti; Jamaica; Montserrat; Saint  Kitts and Nevis; Saint  Lucia; Saint  Vincent and 
the Grenadines; Suriname; and Trinidad and Tobago. The Bahamas is a full member of CARICO M 
but not of the CSME; Turks and Caicos Islands, the British Virgin Islands, and Bermuda are associate 
members. The more developed countries (MDCs) of CARICOM are the Bahamas, Barbados, Guyana, 
Jamaica, Suriname, and Trinidad  and Tobago. All OECS member St ates together with Belize and 
Haiti make up the less developed countries (LDCs) within CARICOM.17 
2.18.  As a CARICOM member State, Saint  Kitts and Nevis applies CARICOM's Common External 
Tariff (CET), with the exceptions allowed, which are included in List A and  List C for all countries. 
These lists are national: for each country, the rates applied for products may vary. As at end -2022, 
tariff schedules across CARICOM members still differed considerably. The Revised Treaty of 
Chaguaramas contains safeguard provis ions that allow, in case of serious balance of payments and 
external financial difficulties, the adoption, on a non -discriminatory basis and for a maximum of 
six months, of quantitative restrictions on imports, and of restrictions to the right of establish ment, 
the provision of services and the movement of capital.  
2.19.  Saint Kitts and Nevis also participates in the CARICOM Regional Organization for Standards 
and Quality (CROSQ) and the Caribbean Health and Food Safety Agency (CAHFSA), established in 
Suriname in  2011, and which is mandated to coordinate the establishment of a regional sanitary and 
phytosanitary (SPS) regime.18 CAHFSA operates in the areas of animal health, plant health, and food 
safety.  
2.20.  Saint Kitts and Nevis has signed, through its participation in CARICOM, bilateral trade 
agreements with the Bolivarian Republic of Venezuela, Colombia, Costa  Rica, Cuba, and the 
Dominican  Republic. The OECS was established in 1981 through the Treaty of Basseterre, with 
Antigua  and Barbuda, Dominica, Grenada, Montse rrat, Saint  Kitts and Nevis, Saint  Lucia, and 
Saint Vincent and the Grenadines as members, and Anguilla and the British Virgin Islands are 
associate members. Saint  Kitts and Nevis, together with the other OECS countries is a member of 
the Association of Ca ribbean States (ACS), a forum for economic and trade policy coordination at 
the regional level, comprising 25 Caribbean Basin countries.  
2.3.2.3   CARIFORUM -EU EPA  
2.21.  Saint Kitts and Nevis, through its participation in CARIFORUM (a negotiating group involving 
CARICOM a nd the Dominican  Republic) signed an EPA with the European  Union in  2008 
(Common  Report). The EPA, although in force, is still in the process of full implementation on the 
part of Saint  Kitts and Nevis and other OECS countries, as a number of legal and ins titutional changes 
are required. To facilitate the implementation of the EPA, in July  2012, the Government established 
the EPA Unit within the MITICCA. The EPA Unit became permanent in  2018.  
2.22.  The EPA is based on the principle of asymmetric reciprocity: the European  Union guaranteed 
CARIFORUM countries MFN treatment with respect to any more favourable concession or 
improvement or relaxation of rules of origin offered to any third  country in trade in goods, but 
CARIFORUM countries must only provide MFN treatme nt to EU products in cases of FTAs signed with 
major trading economies.19 The European  Union removed at the outset all tariffs and quotas on 
CARIFORUM exports except for arms and ammunition, sugar, and rice. CARIFORUM States 
committed to more gradual tarif f reductions over a period of up to 25  years, excluding certain 
sensitive products. The main exclusions and lengthier implementation periods apply to sensitive 
products, including poultry and other meat; dairy products; certain fruits and vegetables; fishe ry 
products; sauces; ice cream; syrup; beverages; ethanol; rum; vegetable oils; paints and varnishes; 
perfumes; cosmetics; soaps; shoe polish; glass or metal polishes; candles; disinfectants; furniture 
and parts; and some apparel, such as cotton pullovers/ jerseys/cardigans.  
2.23.  According to information by the European  Union, Saint  Kitts and Nevis had provisionally 
implemented (there was no statutory provision) all the tariff reductions it had committed to by  2019: 
 
17 St Kitts and Nevis, as a CARICOM LDC, may invoke Chapter  7 of the Revised Treaty of Chaguaramas, 
in particular Article  150 (Safeguard Measures), which allows a country classified as an LDC to limit imports of 
goods from other CA RICOM members, for up to three  years.  
18 CAHFSA. Viewed at: https://www.cahfsa.org/14 -mission/1 -mission . 
19 Under the EPA, a major trading economy is defined as a country or group of countries with a share of 
world merchandise trade exceeding 1% or 1.5%, respectively.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  tariff liberalization planned for 1  January  2011, implemented in  2013; liberalization planned for 
1 January  2013 in  2014; and the liberalizations for 1  January  2015, 2017, 2018, and 2019 in the 
corresponding year.20 Some 5.6% of Saint  Kitts and Nevis' tariff lines were duty -free on an MFN 
basis in  2010. Following the Agreement's provisional application, Saint Kitts and Nevis liberalized an 
additional 17.5% of tariff lines. At the end of 10 years of implementation in 2019, 57.9% of 
Saint Kitts and Nevis' tariff lines were expected to be duty -free for imp orts from the European  Union. 
Tariff liberalization continues until 2033, at which point 86.6% of Saint  Kitts and Nevis' tariff lines 
will be duty -free.21 The authorities confirmed this information and noted that the tariff reductions 
had been incorporated  into the ASYCUDA system. The reductions are applied administratively 
through a decision by the Minister of Finance, since no legislation has been introduced to this end.  
2.24.  The EPA provides for a standstill of other duties and charges applied on imports, lea ding to a 
phase -out starting 7 years after signature with a complete elimination within 10 years. This has, 
however, not occurred. Saint  Kitts and Nevis continues to apply its Customs Service Charge (CSC) 
on imports.  
2.25.  The EPA also covers trade in services, public procurement, intellectual property rights, and 
environmental protection. Saint  Kitts and Nevis made partial commitments in professional services, 
computer services, research and development services, rental/leasing services without operators, 
and ot her business services. In some subsectors of rental/leasing without operators, enterprises 
with initial investment of less than USD  1 million may be reserved for nationals. With respect to 
communication services, it made full commitment in modes  1 to 3 of courier services and a number 
of new commitments in telecommunications services. Saint  Kitts and Nevis also undertook 
commitments in construction and related engineering services and in environmental services. In 
financial services, it undertook limited co mmitments, including partial commitment in reinsurance 
and retrocession services; no commitments were undertaken in banking services except registration 
of offshore financial companies and trusts (excluding insurance companies and banks) to do offshore 
business. Further areas where some commitments were undertaken include health and related social 
services; tourism and travel related services; recreational, cultural, and sporting services; maritime 
transport; internal waterways; air transport; and rail tran sport.22 
2.3.2.4   CARIFORUM -UK EPA  
2.26.  Following the departure of the United  Kingdom from the European  Union, Saint  Kitts and 
Nevis and other CARIFORUM countries subscribed a preferential trading relationship agreement with 
the United  Kingdom, which was governed previo usly by the EPA. The CARIFORUM -UK EPA covers 
trade in goods, including rules of origin, preferential tariffs, and quotas, as well as investment and 
trade in services. This agreement was notified to the WTO on 31  December  2020 and entered into 
force on 1  January  2021.23 However, it was decided that trade between the United  Kingdom with 
Saint Kitts and Nevis would continue on preferential terms on the basis of Memoranda of 
Understanding pending completion of domestic procedures for provisional application or ratification.  
2.3.2.5   Other agreements  
2.27.  Through its membership of CARICOM, Saint  Kitts and Nevis has bilateral trade agreements 
with Colombia, Costa  Rica, Cuba, the Dominican  Republic, and the Bolivarian  Republic of Venezuela.  
2.28.  The CARICOM -Colombia Agreement on Trad e, Economic and Technical Cooperation, signed 
in 1994 and re -negotiated in 1997 is reciprocal only for CARICOM MDCs. Saint  Kitts and Nevis and 
other OECS countries benefit from unilateral preferences, and the scope of the agreement remains 
limited. The CAR ICOM Free Trade Area agreement with Costa  Rica, which entered into force on 
1 March  2004, is also reciprocal only with respect to CARICOM MDCs, and grants unilateral to all 
OECS members. Under the agreement, tariffs on 95% of products have been phased out.  Duty 
 
20 European  Commission, Directorate -General for Trade (2021), Ex-post Evaluation of the EPA between 
the EU and its Member States and the CARIFORUM Member States: Implementation Report . Viewed at: 
https://trade.ec.europa.eu/doclib/docs/2021/january/tradoc_159354.pdf . 
21 WTO document WT/REG255/1, 31  May 2018.  
22 European  Commission, Directorate -General for T rade (2021), Ex-post Evaluation of the EPA between 
the EU and its Member States and the CARIFORUM Member States: Implementation Report . Viewed at: 
https://trade.ec.europa .eu/doclib/docs/2021/january/tradoc_159354.pdf . 
23 WTO document WT/REG420/N/1, 7  January  2021.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  continues to apply for CARICOM, on meat, dairy products, fruit, and vegetables, and a few 
manufactured goods, such as furniture, some paints, bottles, and candles. The CARICOM -Cuba Trade 
and Economic Agreement , which entered into force in 2006, provi des for duty -free access for a list 
of goods agreed by both sides. However, OECS members do not grant preferences to Cuba under 
this agreement. The CARICOM -Dominican  Republic Free Trade Agreement, which entered into force 
in 1999, has granted bilateral dut y-free access for a number of products since 1  January  2004. Tariff 
concessions under the agreement are reciprocal between CARICOM MDCs and the 
Dominican  Republic, but OECS countries benefit from unilateral preferences. The 
CARICOM -Venezuela Agreement on T rade and Investment, which entered into force on 
1 January  1993, is a one -way preferential agreement through which most CARICOM exports to the 
Bolivarian Republic of Venezuela are granted preferential or duty -free access. Tariffs were eliminated 
on 22% of products (mostly fresh produce, confectionery, cosmetics, jams and jellies, medicines, 
wooden furniture, horticultural products, spices, processed foods, and toilet preparations), while 
67% of products benefit from tariff reductions.  
2.29.  Saint Kitts and Nevis joined the Brazil -Guyana Partial Scope Agreement (PSA) in May  2012. 
Administrative procedures are being put in place to effect the agreement for Saint  Kitts and Nevis. 
The agreement is of particular importance for Saint  Kitts and Nevis' expanding electroni c 
components industry due to the country's rules of origin, which allow for regional cumulation.  
2.3.2.6   Non-reciprocal agreements  
2.30.  Saint Kitts and Nevis and other OECS members also benefit from the US Caribbean Basin 
Initiative, and from the Caribbean -Canada Trade  Agreement (CARIBCAN), both of which are 
non-reciprocal and unilateral.  
2.31.  Under the Caribbean Basin Initiative, in effect since 1984 as part of the Caribbean Basin 
Economic Recovery Act (CBERA) and with no expiration date, all OECS countries are eligible for 
duty-free access to the US  market subject to rules of origin. To meet the Initiative's eligibility 
standards, products must contain at least 35% local value added, of which US materials must 
comprise 15% of the value of the finished product. A rticles assembled from 100% US components, 
with certain exceptions, are also given duty -free treatment.  
2.32.  Under CARIBCAN, implemented in 1986, exports originating in the OECS and other CARICOM 
countries are granted duty -free treatment by Canada: the eligible  products exclude textiles, clothing, 
footwear, luggage and other leather goods, lubricating oils, and methanol. To qualify for duty -free 
access, 60% of the ex -factory price of eligible products must originate in a beneficiary country or in 
Canada.  
2.33.  Saint Kitts and Nevis and other OECS members are also eligible for the Generalized System 
of Preferences (GSP) schemes of Armenia (since  2016), Australia, Japan, Kazakhstan (since  2016), 
New Zealand, Norway, the Russian  Federation, Switzerland, and the United  States. 
2.4  Investment regime  
2.34.  Each of the islands comprising the Federation of Saint  Kitts and Nevis has its own investment 
regime and agencies. In Saint  Kitts, investment, including foreign investment, is regulated by the 
Companies Act No.  22 of 1996, which gove rns the incorporation and registration of companies in 
Saint Kitts. In Nevis, company incorporation and registration are regulated by the Nevis Island 
Business Corporation Ordinance No.  3 of 1984. In both islands, enterprises must register in the 
respectiv e Companies Registry. All registered companies must have a registered office in the 
Federation. National treatment is applied to foreigners with respect to incorporation and registration 
of a company: once a company is registered in the Federation, it is c onsidered national, no matter 
where its capital or shareholders originate. There are no nationality restrictions for directors in a 
company, and foreign investors are allowed to own 100% of the capital of a company.  
2.35.  Because Saint  Kitts and Nevis is a small , open economy, highly dependent on tourism, 
taxation relies to a large extent on indirect taxes. With respect to direct taxes, Saint  Kitts and Nevis' 
main provisions regarding direct taxation are contained in the Income Tax Act, Cap  20.22 (Income 
Tax Act,  No. 17 of 1966 as amended). Income tax is applied only to companies: corporate tax is 
33% of net profits. Corporate income tax is not levied on trusts, limited partnerships, and exempt WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  companies, or on enterprises that have been granted a tax concession. There is no personal income 
tax. There is a social security contribution of 5% of an employee's earnings paid by the employer 
and a 1% levy for employment injury benefits. The ceiling on wages for social security contributions 
is XCD  6,500  per month. The m aximum contribution on behalf of any single employee in any month 
is XCD  715 for an employee between the ages of 16 to 63  years. The employer also pays 1% of an 
employee's wage for severance payments. A Housing and Social Development Levy is payable on all  
wages above XCD  1,083.33 per month. The employer's contribution to the levy is 3% of the wage.24 
Profits or gains derived from a sale of assets located in Saint  Kitts and Nevis are subject to a capital 
gains tax of 20% if the sale takes place within one y ear of acquisition. Land property tax rates 
depend on the size and nature of the land concerned.  
2.36.  In accordance with  Section  35 of the Income Tax Act, Cap  20.22, a  withholding tax of 15% is 
applied on remittances of certain categories of income abroad, incl uding profits; administration, 
management, or head office expenses; technical services fees; accounting and audit expenses; 
royalties; non -life insurance premiums; and rent. Withholding tax does not apply to profits of an 
approved enterprise enjoying benef its under the Fiscal Incentives Act (see below), nor to exempt 
trusts, limited partnerships, companies, or foundations.  
2.37.  Value Added Tax (VAT) is charged on the value of imports and on the value added (mark -up) 
on goods and services supplied by one business  to another or to the final consumer. The standard 
VAT rate is 17%. A special rate of 10% is extended to hotels, restaurants, and tour operators.  
2.38.  In accordance with the Unincorporated Business Act (Act  No. 5 of 2010), businesses that are 
not registered und er the Companies Act, including any business, profession, trade, venture, or 
undertaking, must pay a tax of 4% of the tax base relating to the supply of goods and services.25 
2.39.  Offshore companies may open bank accounts onshore and may hold shares in onshore or 
offshore companies incorporated in Saint  Kitts and Nevis. In Saint  Kitts, offshore companies are 
regulated by the Companies Act, the same legislation than for domestically based companies. In 
Nevis, however, special provisions applied until 2018 (the Ne vis Island Business Corporation 
Ordinance).  
2.40.  Nevis legislation allows offshore companies to be incorporated in Nevis as an International 
Business Company (IBC), a limited liability company ((LLC), generally for professional services), or 
a trust.  Traditiona l benefits from incorporating as an IBC or an LLC, provided all income was 
generated abroad, include (i) exemption from corporate tax, income tax, withholding tax, stamp 
tax, asset tax, exchange controls, or other fees or taxes based upon or measured by as sets or 
income originating outside of Saint  Kitts and Nevis or in connection with other activities outside of 
Saint Kitts and Nevis or with matters of corporate administration that may occur in Saint  Kitts and 
Nevis; and (ii)  exemption from withholding tax  for dividends paid to its shareholders by a corporation 
that does not carry on business in Saint  Kitts and Nevis.26 
2.41.  Amendments to offshore company legislation were introduced in Nevis during the review 
period. New legislation with respect to IBCs and LLCs  was introduced in Nevis in 2017, and 
amendments to it in 2018 and 2019.27 The new laws repealed previous legislation and set a time 
 
24 Invest St  Kitts, Social Security . Viewed at: https://investstkitts.kn/social -security/ . 
25 The tax base is defined in the Act as the gross takings derived from the supply of goods for the 
month, reduced (but not below zero) by XCD  12,500, or the gross takings derived from th e supply of services 
for the month, reduced (but not below zero) by XCD  2,000.  
26 According to Nevis legislation, no corporation shall be considered to be carrying on business in Nevis 
solely because it engages in one or more of the following activities: (i ) maintaining bank accounts in Nevis; 
(ii) holding meetings of directors or shareholders in Nevis; (iii) maintaining corporate or financial books and 
records in Nevis; (iv) maintaining an administrative office in Nevis with respect to assets, business, or activities 
done outside of Nevis; (v) maintaining a registered agent in Nevis; (vi) investing in shares of a Nevis company, 
IBC, or LLC, or being a beneficiary of an international trust or a qualified foreign trust; or (vii) acquiring 
property in a local, industrial, or tourist facility situated in a project or development approved and authorized 
by the Nevis Island Administration.  
27 Nevis Island Act  No. 1 of 2017, Nevis Business Corporation Ordinance, 2017; Act  No. 2 of 2017, Nevis 
Limited Liability Compan y Ordinance  2017, Nevis Island Act  No. 2017, SRO  No. 2 of 2017, Nevis Business 
Corporation (Forms and Fees) Regulations  2017; SRO  No. 3 of 2017, Nevis Limited Liability Company (Forms 
and Fees) Regulations  2017; Act  No. 6 of 2018, Nevis Business Corporatio n (Amendment) Ordinance, 2018; 
Act No. 7 of 2018, Nevis Limited Liability Company (Amendment) Ordinance 2018; Act  No. 6 of 2019, Nevis WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  limit to the benefits previously enjoyed by IBCs and LLCs. In 2018, a limit was set for any corporation 
wishing to carry on  business as an IBC or LLC: they could do so only if incorporated in Nevis on or 
before 31  December  2018. However, trusts continue to be exempt from taxes, and their 
beneficiaries are exempt from property taxes. The legislation introduced in 2019 put an en d to the 
tax exemptions for IBCs and LLCs as of 30  June 2021. Trusts, however, continue to benefit from tax 
exemptions.  
2.42.  Foreign investors seeking to purchase property for residential or commercial purposes must 
obtain an Alien Landholders Licence at a cost  of 10% of the value of the land or of the interest in 
the real estate to be purchased. Licences are granted only after submission to the Cabinet for 
consideration and payment of the licence fees. Foreign investors do not need to pay a fee for a 
landholdin g licence for the purchase of land in certain parts of the island, such as Frigate Bay or the 
South east Peninsula. OECS nationals are exempted from fees.  
2.43.  There are two investment promotion agencies in Saint  Kitts and Nevis, one on each island. 
Investment p olicy, including foreign investment, and investment promotion are the responsibility of 
the Saint  Kitts Investment Promotion Agency (SKIPA) and the Nevis Investment Promotion Agency 
(NIPA) with input from the MITICCA, the Ministry of Finance, and the Minis try of Sustainable 
Development.  
2.44.  The Government offers a range of incentives to potential investors, particularly in the areas 
of tourism and hotel accommodation, and manufacturing. Fiscal incentives for foreign investment 
are granted under the Fiscal Incen tives Act of 1974, the Fiscal (Amendments) Act of 2019, the Hotel 
Aids Act, as amended (the latest in 2019, Section  3.3.1), and under different investment laws in the 
tourism sector. Beneficiaries of the Hotel Aids Act may be exempted from the 15% withhold ing tax 
applied to remittances to persons or entities abroad.  
2.45.  For several years, Saint  Kitts and Nevis has been running a Citizen by Investment (CBI) 
programme, which has its legal basis in Section  3 of the Citizenship Act of 1984. The CBI grants the 
right of citizenship, by investment, but without voting rights. The Citizenship by Investment Unit 
(CIU) in the Office of the Prime Minister is in charge of managing the programme through appointed 
authorized persons, who must be approached by the applicant.28 Applicants must provide 
comprehensive personal information, a full medical certificate, and evidence of the source of funds. 
The authorities note that due diligence is conducted on all applicants.  
2.46.  Effective 1  January  2017, the Government approved the use o f registered International 
Marketing Agents, which are global entities authorized to market and distribute promotional 
information about CBI. International Marketing Agents are required to renew annually their 
authorization and are further required to list  their subagents and their websites. Applications to 
benefit from CBI generated by International Marketing Agents must be submitted to the CIU through 
an authorized person.  
2.47.  There are currently three options for foreign individuals wishing to obtain citizen ship through 
CBI: (i) the real estate option; (ii) investment in the Sustainable Growth Fund, which replaced Sugar 
Industry Diversification Foundation (SIDF); and (iii)  the Alternative Investment Option (AIO),  under 
the CBI programme, which was introduced in 2021. Until March  2018, investors could also invest in 
the Hurricane Relief Fund.  
2.48.  To qualify for citizenship under the real estate option, applicants must invest in a 
pre-approved real estate project, which may include hotel shares, villas, and condomin ium units. 
A list of approved real estate developments is published under by the CIU. The minimum real estate 
investment required by law is USD  200,000 (resalable after seven years) or USD  400,000 (resalable 
 
Business Corporation (Amendment) Ordinance, 2019; and Act  No. 7 of 2019, Nevis Limited Liability Company 
(Amendment) Ordi nance 2019. Viewed at: https://www.nevisfsrc.com/services/ . 
28 Authorized person means a person licensed by the Financial Services Regulatory Commission (FSRC) 
of St Kitts and Nevis licensed to conduct cor porate or trust services in St  Kitts and Nevis. Authorized persons 
must be appointed by a main applicant by way of Limited Power of Attorney to act on their behalf in relation to 
all matters regarding their CBI application. The authorized person engages th e CIU and acts a point of contact 
for all matters surrounding the application. Authorized persons are required to renew annually both their FSRC 
and CBI authorizations. There were 45  authorized agents as at June  2021. CIU, Authorised Persons . Viewed at: 
https://www.ciu.gov.kn/agents/authorized -persons/ . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  after five  years) for each main applicant. Upon submission of an application, non -refundable due 
diligence and processing fees must also be paid. These fees amount to USD  7,500 for the main 
applicant, and USD  4,000 for each dependent of the main applicant who is over the age of 16  years. 
Additionally, o n approval in principle of an application made through a real estate investment, a 
government fee must be paid: USD  35,050 for the main applicant; USD  20,050 for the spouse of 
the main applicant; and USD  10,050 for any other qualified dependent of the main  applicant 
regardless of age. In addition to these fees, there are purchase costs, including compulsory 
insurance fund contributions and conveyance fees. A fee of USD  25,000 usually applies if an 
International Marketing Agent is used.  
2.49.  The second option is through the Sustainable Growth Fund (SGF), which was introduced in 
March  2018 as a replacement for the SIDF.29 It has been identified by the Government as the most 
secure and straightforward route to second citizenship in Saint  Kitts and Nevis.30 To obtain 
citizenship, the applicant must make a contribution to the SGF; family members including spouse, 
children, pa rents and grandparents can be included in the application. In the case of a single 
applicant, a non -refundable contribution of USD  150,000 is required. In the case of a family, 
consisting of a main applicant with up to three  dependents (for example, a spou se and two children), 
a non -refundable contribution of USD  195,000 is required. For any additional dependents, regardless 
of age, a contribution of USD  10,000 is required. Upon submission of an application, non -refundable 
due diligence and processing fees must be also paid. These fees amount to USD  7,500 for the main 
applicant, and USD  4,000 for each dependent of the main applicant who is over the age of 16  years.  
2.50.  The SGF continued to review applications in  2021 during the COVID -19 pandemic, through 
online procedures by authorized persons. To facilitate procedures, in  2020 the authorities 
temporarily reduced by USD  45,000 the required contribution for a family of up to three dependents, 
setting it at USD  150,000, the same contribution as for an indivi dual alone. In March  2021, they 
decided to maintain this temporary reduction.  
2.51.  The SGF, managed by the Ministry of Finance, is funded by CBI proceeds and any other 
contributions that the Government may decide. The SGF can be used to finance education 
expend iture, infrastructure projects (in particular, port facilities), promote economic growth and 
competitiveness, finance SMEs, support sectoral development (agriculture, fisheries, export -oriented 
manufacturing, financial services, technology development, etc .), develop medical facilities, promote 
tourism, and preserve culture and heritage.31 
2.52.  Prior to the SGF, the second option for the acquisition of citizenship was investment in the 
SIDF. This option required a contribution to the SIDF, of a minimum total of USD 250,000 for a 
single applicant, USD  300,000 for an applicant with up to three  dependents, USD  350,000 for an 
applicant with up to five  dependents, and USD  450,000 for an applicant with up to 
seven  dependents. Due diligence fees of USD  7,500 were charge d for the main applicant and of 
USD 4,000 for each dependent over the age of 16  years.  
2.53.  A third option under the Citizenship by Investment Programme was introduced in 2021: the 
AIO. The AIO is geared to provide the Government with the means of achieving its  capital 
investments goals without having to take on additional debt. Potential projects under the AIO are 
identified and listed by the Government or can be brought forward by private individuals with access 
to financing who approach the Government with pr ojects that are not included in the Government's 
infrastructure list.  The asset resulting from completion of the project may be operated by the 
investor for a reasonable period of time to allow for a reasonable return on investment but must be 
eventually t urned over to the Government, which maintains ownership. When evaluating projects 
on the Government's infrastructure list, the Government will seek to take into account the 
maximization of local employment and the transfer of technology and capacity -buildi ng. There are 
two categories of AIO: (i) a Public Good Project Developer (PGPD), where the State owns the asset 
at the end of an agreement; these projects are fully funded by the PGPD and locked in "up front" 
 
29 Saint Christopher and Nevis Citizenship by Investment (Amendment) (No.  2) Regulations, SRO  No. 7 
of 2018. Official Gazette  (2018), No.  18, 29 March  2018. Viewed at: https://www.ciu.gov.kn/wp -
content/uploads/2017/01/SRO_No._7_of_2018 -Sustainable -Growth -Fund.pdf . 
30 CIU, Sustainable Gr owth Fund (SGF) . Viewed at: https://www.ciu.gov.kn/the -sustainable -growth -
fund/ . 
31 Saint Christopher and Nevis Citizenship by Investment (Amendment) (No.  2) Regulations, SRO  No. 7 
of 2018.  Official Gazette  (2018), No.  18, 29  March. Viewed at: https://www.ciu.gov.kn/wp -
content/uploads/2017/01/SRO_No._7_of_2018 -Sustainable -Growth -Fund.pdf . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  and require a minimum unit of investment is of USD 175,000; and (ii) a Private Enterprise Developer 
(PED), where the built or funded asset is privately owned. In this option, the minimum unit of 
investment is USD  200,000 and standard real estate government fees will apply.32 
2.54.  The application processing time through each one of the routes is about 3 or 4 months. To 
shorten this, in October  2016, the Government approved an Accelerated Application Process (AAP), 
which allows applications with the CIU to be accelerated to a 60 -day processing period.33 Invest ors 
who wish to make use of the AAP are subject to the payment of AAP Process Fees (inclusive of Due 
Diligence Fees), of USD  25,000 for the main applicant, and of USD  20,000 for each dependent older 
than 16. In addition to the processing fees, an additiona l fee of USD  500 per person is applicable for 
the processing of the Saint  Kitts and Nevis passport for any dependents under the age of 16.  
2.55.  Saint Kitts and Nevis has not signed any bilateral investment agreements. It has double 
taxation agreements with Cana da, Denmark, Monaco, New  Zealand, Norway, San Marino, Sweden, 
Switzerland, the United  Kingdom, and the United  States.34 
 
32 CIU, Alternative Investment Option . Viewed at: https://www.ciu.kn/investment -options/alternative -
investment/ . 
33 CIU, 60-Day Accelerated Pass . Viewed at: https://www.ciu.gov.kn/60 -day-accelerated -process/ . 
34 Ministry of Finance, Double Taxation Conventions (DTCs) . Viewed at: 
https://w ww.mof.gov.kn/double -taxation -conventions -dtcs/. WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Customs procedures, documentation, and registrati on 
3.1.  Saint Kitts and Nevis' customs legislation was modernized during the period under review. This 
legislation is contained in the Customs Act,  Cap 20.04, Act No. 19 of 2014 , last revised  in 2017. 
Saint Kitts and Nevis uses ASYCUDA World for electronic customs clearance. Saint  Kitts and Nevis 
is not a member of the World Customs Organization (WCO). However, through membership in the 
Caribbean Customs Law Enforcement Council it may receive WCO capacity -building.  
3.2.  Goods imported into Saint  Kitts and Nevis are subject to control by two agencies: Customs and 
the Port Authority. If importation is done via air transport, aircraft must submit the cargo manifest 
to Customs and the Port Authority 15  minutes after departure of the aircraft from origin as part of 
the general declaration. In the case of maritime transport of the imported goods, notice must be 
given to Customs and the Port Authority at least 24  hours prior to the arrival of vessels, along  with 
an advance copy of the cargo manifest.  Vessels are boarded upon arrival by Customs officials and a 
Vessel Report (including a cargo manifest) is submitted to Customs before the discharge of cargo. 
Cargo consignments transferred between Saint  Kitts an d Nevis remain under customs control if duty 
has not been paid.35 
3.3.  A Customs entry or declaration is required for all consignments imported into 
Saint Kitts and Nevis. Hard copies of declarations are no longer required: invoices, air waybill/bill of 
lading,  and a worksheet on the classification and value of the goods can be uploaded electronically. 
An importer's declaration form may be required if the invoice is unsigned or deemed insufficient by 
Customs. A Bill of Sight may also be used in instances where i nvoices are unavailable, and the 
Comptroller permits the goods to be inspected and valued for duty purposes.  
3.4.  The use of a customs broker is not mandatory. Customs entries and the supporting documents 
attached to the declaration are verified electronically to ensure that the items are properly classified, 
the value for duty purposes is correct, the relevant duties and taxes are accurately calculated, and 
that any other regulatory requirement is complied with. The entry is then finalized by Customs and 
an Ass essment Notice is generated with the details of the customs duty to be paid. The Assessment 
Notice and Customs entries are collected by the importer or broker and taken to the Customs Cashier 
for payment of the Customs duty. The charges due to the Port Aut hority must also be paid to the 
Port Cashier and a receipt is issued. Following payment of the corresponding import duties and of 
the charges due to the Port Authority, Customs issues a document authorizing the release of the 
goods.36 
3.5.  Since the introductio n of a risk assessment system via ASYCUDA World, commercial cargo is 
no longer systematically inspected by a Customs Officer to ensure conformity with the Customs 
entry and the attached invoices. To decide on inspection, Customs classifies shipments accord ing to 
risk: operations undertaken by importers with an import history in Saint  Kitts and Nevis and arriving 
from countries not considered to pose risks are generally deemed low -risk and subject to a lower 
rate of inspection. Shipments to new importers and /or from countries deemed to pose higher risks 
are generally subject to physical inspection. If there are no discrepancies, the Customs Officer signs 
the release order to authorize the Port Authority to deliver the consignment to the importer or 
broker. N on-commercial cargo is inspected and valued for duty purposes before the Customs entry 
is completed. If inspection is required, c argo imported in full container loads (FCL) may be released 
from the port under customs control for inspection at the importer's  premises; the inspection is done 
within 24  hours.  
3.6.  Saint Kitts and Nevis legislation allows for provisional admission , whereby an importer unable 
to present a proper entry form immediately may expedite the clearance of goods by filing a 
provisional entry, prior the payment of a deposit. The importer provides an estimate of the duty to 
be paid and Customs makes its own provisional estimate. If the duty provisionally estimated by 
 
35 In this case, a Customs entry using suspense regime along with an Application for Relief of Duty and 
Taxes form (C101) must be presented to the Administration Section  of Customs for approval.  
36 St Kitts an d Nevis Customs Department (2012), Import & Export Procedures Manual . Viewed at: 
https://skncustoms.com/pdfs/SKB%20Import%20Procedures%20%20Final.pdf . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  Customs exceeds the duty calculated by the importer, the difference must be depo sited with 
Customs in addition to the duty assessed by the importer. The final entry form must be presented 
within three  months from importation, after which the final customs value and customs duty are 
estimated and the refund of any sum in excess of the duty payable is refunded.  
3.7.  The customs entry for a consignment to be cleared under a concession must be accompanied 
by an application for relief of duty and taxes (C101) form. The Customs and Excise Department 
currently using HS17 for the application of cus toms duties.  
3.8.  Two special facilities exist dedicated to the clearance of courier or express parcels imported 
into or exported from Saint  Kitts and Nevis. Couriers clear all goods on behalf of the customer. A 
clearing list must be submitted up to three  hours  before the flight lands.  
3.9.  The usual time to clear Customs is one or two days. However, Customs may pre -release imports 
of perishables, inventory for factories, and some goods imported for government purposes, 
particularly health -related goods or urgent sup plies. Other requests are dealt with on a case -by-case 
basis at the discretion of the Comptroller. Pre -releases are administered through the ASYCUDA World 
system. An ASYCUDA Pre -Release Module (APRM), available at the Customs website, must be filled 
in. Th e customs entry in respect of the transaction must be finalized within one week of the date of 
the release.  
3.10.  Saint Kitts and Nevis does not have a preshipment inspection system.  
3.11.  Customs does not have a Single Window for imports; in the TFA negotiations, Saint  Kitts and 
Nevis committed to implement one by 31  December  2023. However, the Port Authority runs a Port 
Community System that facilitates the clearance of vessels coming in w ith cargo and passengers, 
although the system does not apply to the clearance of merchandise.  
3.12.  As noted above, Customs has an operational risk management system; in the TFA, it 
committed to implement one by 31  December  2022, but due to COVID -19, implementat ion was 
postponed to 31  December  2023. There is currently no authorized economic operators' scheme in 
place: Saint  Kitts and Nevis is currently committed to implement such a scheme by 
31 December  2023.37 
3.13.  In the TFA negotiations, Saint  Kitts and Nevis inclu ded the following in its Category  A 
commitments, to be implemented in 2017 or 2018: Information Available Through Internet; Enquiry 
Points; Opportunity to Comment and Information before Entry into Force; Consultations; Procedures 
for Appeal or Review; Dete ntion; General Disciplines on Fees and Charges Imposed on or in 
Connection with Importation and Exportation and Penalties; Penalty Disciplines; Pre -arrival 
Processing; Separation of Release from Final Determination of Customs; Duties, Taxes, Fees and 
Charg es; Expedited Shipments; Perishable Goods; Border Agency Cooperation; Movement of Goods 
intended for Import under Customs Control; Formalities and Documentation Requirements; 
Acceptance of Copies; Use of International Standards; Preshipment Inspection; Use  of Customs 
Brokers; Common Border Procedures and Uniform Documentation; Requirements; Rejected Goods; 
Temporary Admission of Goods and Inward and Outward; Processing; Freedom of Transit; Measures 
Promoting Compliance and Cooperation; Exchange of Informati on; Verification; Protection and 
Confidentiality; Provision of Information; Limitations; Unauthorized Use or Disclosure; Bilateral and 
Regional Agreements.38 
3.14.  Saint Kitts and Nevis postponed the implementation of five of its Categories  B and C 
Commitments d ue to the COVID -19 pandemic: from 31  December  2021 to 31  December  2022 for 
Publication and for Risk Management, and to 31  December  2023 for Test Procedures and for Trade 
Facilitation Measures for Authorized Operators; and from 31  December  2023 to 31  Decemb er 2024 
for the implementation of commitments with respect to Specific Disciplines on Fees and Charges for 
Customs Processing Imposed on or in Connection with Importation and Exportation (Table  2.2). 
 
37 WTO Trade Facilita tion database. Viewed at: https://tfadatabase.org/members/saint -kitts-and-
nevis/breakdown -by-measure/article -12. 
38 WTO document WT/PCTF/N/KNA/1, 2  June 2015. WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  3.1.2   Customs valuation  
3.15.  Customs valuation is regulated by the Second  Schedule of the Customs Act,  Cap 20.04. 
Valuation under the Act is based on the WTO Customs Valuation Agreement (CVA). Consequently, 
in accordance with the Act, the customs value of imports must be the transaction value. If Customs 
cannot determine the transaction value or if the buyer and seller are related, then the other methods 
set out in the CVA are to be used. That is, according to the Customs Act, (i) the transaction value of 
identical goods sold for export to Saint  Kitts and Nevis and exporte d at or about the same time as 
the goods being valued; (ii) the transaction value of similar goods sold for export to Saint  Kitts and 
Nevis and exported at or about the same time as the goods being valued; (iii) the unit price at which 
the imported goods o r identical or similar imported goods are sold in Saint  Kitts and Nevis in the 
greatest aggregate quantity, at or about the time of the importation; and (iv) a computed value 
consisting of: (a)  the sum of the cost or value of materials and fabrication or o ther processing 
employed in producing the imported goods; (b)  an amount for profit and general expenses; and 
(c) costs including commissions, brokerage, the cost of containers, and the cost of packing, among 
others.  
3.16.  The Customs Act prohibits the use of min imum customs values for custom valuation purposes. 
Also prohibited are the use for valuation purposes of (i)  the selling price in Saint  Kitts and Nevis of 
similar locally produced goods; (ii)  a system that provides for the acceptance for customs purposes 
of the higher of two alternative values; (iii)  the price in the domestic market of the country of 
exportation; (iv)  the price for export in a country other than Saint  Kitts and Nevis; (v)  the cost of 
production, other than computed values that have been det ermined for identical or similar goods in 
accordance with the  CVA; or (vi)  arbitrary or fictitious values. Price guidelines based on international 
price information are used for imports of used vehicles.  
3.17.  Decisions taken by Customs regarding the valuation o f goods may be appealed at the 
administrative and court levels. In the case of administrative appeals, there are two instances: 
appeal to the Comptroller of Customs and appeal to the Customs Appeal Board. The Customs Appeal 
Commission deals with appeals re garding decisions on valuation, duties, and other customs issues. 
Before lodging an appeal at the administrative level, the importer must pay the amount in dispute 
under protest.  An importer who disputes the amount of duty assessed, a valuation decision, o r any 
decision of the Comptroller, may, within three months from the date of payment, file a written 
protest in respect of that entry requesting the Comptroller to reconsider the disputed decision. The 
appeal must be well documented. After investigating th e matter, the Comptroller must make a 
decision to confirm the original assessment or substitute a new assessment for the original 
assessment may, within 90  days of the date of the original assessment. A person who is dissatisfied 
with a decision of the Com ptroller may appeal against that decision to the Commission of Customs 
Appeals within 30  days of the date of the decision, but the Commission may extend the time for the 
appeal. Every appeal to the Commission is by way of a hearing de novo . If the appellan t is not 
satisfied with the Commission's decision, the case may be taken to a high court or to the 
Eastern  Caribbean Court of Appeal.  
3.18.  Saint Kitts and Nevis notified to the WTO its customs valuation regime in February  2021.39 
The notification included a cop y of the relevant sections and schedules of the Customs Act  2014.40 
The authorities note that the sections and schedules therein will bring the valuation of goods in line 
with the provisions of the CVA.  
3.1.3   Rules of origin  
3.19.  Saint Kitts and Nevis, like other OECS -WTO Members, applies the rules of origin of CARICOM's 
Revised Treaty of Chaguaramas. Duty -free treatment is accorded only to goods shipped between 
member States that satisfy CARICOM rules of origin, which were revised during the period under 
review to take into account the transposition of the CET to HS17.  
3.20.  In accordance with CARICOM rules of origin,  goods moving f rom one member State to another 
are treated as being of CARICOM origin, where the goods: (i) have been wholly produced within 
CARICOM; or (ii) have been produced within CARICOM wholly or partly from materials imported 
 
39 WTO document G/VAL/N/1/KNA/1, 25  February  2021.  
40 Customs and Excise Department. Viewed at: 
https://skncustoms.com/Customs%20Act%202014/Schedules.pdf . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  from outside CARICOM or from materials of undetermined origin by a process that effects a 
substantial transformation characterized by a change of tariff heading, or being su bject to specific 
conditions as set in the List in Schedule  I to the CARICOM Treaty.  
3.21.  Goods that have been consigned from one member State to another one for repair, renovation 
or improvement are, on their return to the member State from which they were exp orted, treated 
for the purposes of re -importation, in like manner as goods that are of CARICOM origin. For this, 
they must be reconsigned directly to the member State from which they were exported and the 
value of materials imported from outside CARICOM us ed in the process of repair, renovation, or 
improvement must not exceed: (i) 65% if the process took place in a CARICOM More Developed 
Country; or (ii) 80% for a CARICOM Less Developed Country.  
3.22.  The EPA with the European  Union contains specific rules of ori gin (Common Report).  
3.23.  Saint Kitts and Nevis has not notified preferential or non -preferential rules of origin to the 
WTO.  
3.1.4   Tariffs and other charges on imports  
3.24.  Imports into Saint  Kitts and Nevis are subject to tariffs, a customs service charge (CSC), and 
VAT. Some imports are also subject to excise duties and an environmental levy. During the period 
under review, and despite the pandemic, international trade taxes, particularly on imports, continued 
to be a major source of fiscal revenue for Saint  Kitts and N evis. Taxes on international transactions 
raised XCD  158.28  million in 2020, and were estimated at XCD  192.75  million in 2021, accounting 
for 43.7% of the Government's tax revenue, and were equal to  some 6.5% of GDP. The main 
components of these internatio nal taxes were the VAT on imports (14.8% of total tax revenue in 
2021); import duties (14.2%); and the CSC (7.8%), which together provided 36.8% of government 
tax revenue (Table  3.1). 
Table  3.1 Taxes on intern ational trade and transactions, 2014 -21 
(XCD '000)  
International 
trade/  
transactions 
taxes  2014  2015  2016  2017  2018  2019  2020a 2021  2021  
(% of 
total tax 
revenue)  
Total 173,712  176,237  178,429  172,151  187,669  193,631  158,278  192,753  43.7 
Taxes on all imports  
Import duty  46,200  48,457  57,033  53,419  61,004  61,396  53,855  62,790  14.2 
Customs 
service charge  33,671  36,246  36,643  33,866  36,679  36,604  30,701  34,502  7.8 
VAT 71,311  58,250  57,411  56,677  59,855  62,056  53,649  65,184  14.8 
Taxes on selected imports  
Environmental 
levy 2,749  5,089  6,813  5,969  5,450  6,169  5,453  6,255  1.4 
Excise tax  11,906  18,686  13,016  13,467  13,376  13,259  10,084  14,902  3.4 
Consumption 
tax 641 580 524 555 552 732 559 593 0.1 
Other taxes           
Travel tax  2,669  3,260  2,942  2,832  4,206  6,868  1,540  2,382  0.5 
Export/excise 
duty 0.0 102 --  -- -- --  0.0 
Non-
refundable 
duty-free store 
levy 4,413  5,524  4,007  2,248  6,383  6,545  2,229  6,145  1.4 
Duty-free shop 
tax 152 43 40 117 2 3 209 - 0.0 
a Approved.  
Source:  Saint Kitts and Nevis Government, Estimates for the Year , several issues (2016, 2017, 2018, 2019, 
2020, 2021, 2022), Vol.  1. Viewed at: https://www.mof.gov.kn/pub lications/#1544727947138 -
0f68685b -2c92. WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  3.1.4.1   MFN applied tariff structure  
3.25.  Saint Kitts and Nevis' 2022 applied tariff is based on the HS17. It comprises 6,690  tariff lines 
at the seven -digit level. This is an increase of 399  lines compared to 2013. Saint Kitts and Nevis 
applies the CARICOM Common External Tariff (CET) with the exceptions allowed under CARICOM 
rules. Tariff rates in the CET Schedule range from  0 to 20% for industrial products, and up to 40% 
for agricultural products. Exceptions to the  CET may exceed these rates.  
3.26.  CET rates depend on how a product is categorized. The CET categorizes products as: (i)  inputs 
into the production of other products (primary and intermediate products and capital goods); or 
(ii) final goods. Within each categor y, products are classified as competing or non -competing. 
Imports are deemed to be competing goods where regional production or regional production 
potential from existing capacity amounts is in excess of 70% of regional demand for a particular 
product. Im ports are categorized as non -competing if the level of regional production does not satisfy 
the 70% minimum. Apart from that, some products have been identified as sensitive, for which 
national exceptions to the CET may be granted; these include a group of  agricultural and 
agro-industrial goods; goods with potential competitiveness, and others. Exceptions are classified 
under three  lists of products, with rates in each list differing from the CET: List  A, containing items 
on which suspension of the CET has been granted for an indefinite period subject to review, with the 
rates determined by member States; List  C, containing items in respect of which minimum rates 
have been agreed showing the actual rates to be applied by individual member  States; and List  D, 
containing two  parts – Part I, listing products of tariff headings ex  73.21, ex  84.18, and ex  85.16, 
for which suspension of the CET has been granted to Belize for an unspecified period; and Part  II, 
containing products of tariff headings ex  30.03 and ex  30.04 (medicaments), for which suspension 
of the CET has been granted to Saint  Kitts and Nevis, other OECS Member States, and Belize.  
3.27.  Products included in List  A of the CET exceptions, mainly agricultural products, packaging 
material, ceramics, washing mac hines and dryers, and sanitary fixtures, may be subject to a 
maximum customs duty of 40%; Saint  Kitts and Nevis applies rates generally below the CET. 
Products included in List  C, which contains mainly alcoholic beverages, tobacco, oil products, 
jewellery,  electrical appliances, and motor vehicles, generally face rates above the CET.  
3.28.  Saint Kitts and Nevis' average tariff in 2022 was 11.1%, up from 10.1% in 2013. One of the 
reasons for the higher rate is the increase in the number of tariff lines (399) due t o the change in 
HS version, most of which were subject to rates above 10%. Agricultural products (WTO definition) 
faced a higher average tariff, of 17.4% in 2022, up from 15.0% in 2013, than non -agricultural 
products (WTO definition), which faced an averag e MFN tariff of 9.9% in 2022 (9.2% in 2013). Some 
22.7% of tariff lines were granted duty -free treatment, compared to 24% in 2013. Some 64.3% of 
all tariff lines were subject to rates between 0 and 10% in 2020; 61.2% of lines were subject to 
tariffs betwee n 0 and  5% (Chart 3.1) . Some 29.7% of tariff lines are subject to international peaks, 
up from 24.8% in 2013, while 9% of lines were subject to domestic peaks, compared to 3.7% in 
2013 (Table  3.2). 
Table  3.2 Structure of the tariff schedule in Saint  Kitts and Nevis, 2013 and 2022  
 
2013  2022  
Total number of tariff lines  6,291  6,690  
Non-ad valorem  tariffs (% of all tariff lines)  0.3 0.4 
Non-ad valorem  with no AVEs  (% of all tariff lines)  0.3 0.4 
Lines subject to tariff quotas (% of all tariff lines)  0.0 0.0 
Duty-free tariff lines (% of all tariff lines)  24.0 22.7 
Dutiable lines tariff average rate (%)  13.3 14.4 
Simple average tariff (%)  10.1 11.1 
WTO agriculture (%)  15.0 17.4 
WTO non -agriculture (incl. petroleum) (%)  9.2 9.9 
Domestic tariff "peaks" (% of all tariff lines)a 3.7 9.0 
International tariff "peaks" (% of all tariff lines)b 24.8 29.7 
Overall standard deviation  11.0 12.1 
Bound tariff lines (% of all tariff lines)  97.3 95.7 
a Domestic tariff peaks are defined as those exceeding three  times the overall average applied rate.  
b International tariff peaks are defined as those exceeding 15%.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  Chart  3.1 Frequency distribution of MFN tariff rates, 2020  
 
a The total number of lines is 6,690.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.29.  Saint Kitts and Nevis does not make use of seasonal tariffs. In 2022, some 99.6% of all tariff 
rates applied were ad valorem . Specific duties are applied on 25  tariff headings, accounting for 
some  0.4% of all tariff lines (all agricultural products); with the exception of one line, all of these 
products are included in Saint  Kitts and Nevis' List  C of CET Exceptions (Table  3.3). Tariff rate quotas 
are not used. The tariff is available online at Saint  Kitts and Nevis's Custo ms website.41 
Table  3.3 Saint  Kitts – Lines with specific duties (from Lists  A and C), and duty rates, 
2022  
HS code  Description  MFN duty  Duty source  
17019990  - - - Other  XCD 6.60 per 100  kg List A  
22030020  - - - Stout  XCD 11.00 per liquid 
gallon  List C  
22030010  - - - Beer XCD 11.00 per liquid 
gallon  List C  
22030090  - - - Other  XCD 11.00 per liquid 
gallon  List C  
24021000  - Cigars, cheroots and cigarillos, containing tobacco  XCD 18.00 per kg  List C  
24022000  - Cigarettes containing tobacco  XCD 18.00 per kg  List C  
24029000  - Other  XCD 18.00 per kg  List C  
24031100  - - Water pipe tobacco specified in Subheading 
Note 1 to this Chapter  XCD 18.00 per kg  List C  
24031900  - - Other  XCD 18.00 per kg  List C  
24039100  - - "Homogenised" or "reconstituted" tobacco  XCD 18.00 per kg  List C  
24039910  - - - Snuff  XCD 18.00 per kg  List C  
24039990  - - - Other  XCD 18.00 per kg  List C  
22082010  - - - Brandy, in bottles of a strength not exceeding 
46% vol  XCD 28.00 per liquid 
gallon  List C  
22082090  - - - Other  XCD 28.00 per liquid 
gallon  List C  
22083010  - - - In bottles of a strength not exceeding 46% vol  XCD 28.00 per liquid 
gallon  List C  
22083090  - - - Other  XCD 28.00 per liquid 
gallon  List C  
 
41 Customs and Excise Department, Common External Tariff 2017 . Viewed at: 
https://skncustoms.com/Show -Page.aspx?PageID=398 . 
(22.6%)(38.6%)
(3.1%)(5.7%)(18.0%)
(1.4%)(10.2%)
(0.4%)
0102030405060708090100
05001,0001,5002,0002,5003,000
Duty free >0-5 >5-10 >10-15 >15-20 >20-25 >25 Specific dutyNumber of lines (% of total)
Cumulative %Chart 3.1
Frequency distribution of MFN tariff rates, 2020
(Number of tariff linesa) (%)
a   The total number of lines is 6,690.
Source: WTO Secretariat calculations, based on data provided by the authorities.WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  HS code  Description  MFN duty  Duty source  
22084090  - - - Other  XCD 28.00 per liquid 
gallon  List C  
22085010  - - - In bottles of a strength not exceeding 46% vol  XCD 28.00 per liquid 
gallon  List C  
22085090  - - - Other  XCD 28.00 per liquid 
gallon  List C  
22084010  - - - In bottles of a strength not exceeding 46% vol  XCD 28.00 per liquid 
gallon  List C  
22071010  - - - Bioethanol  XCD 5.00 per liquid 
gallon  List C  
22071090  - - - Other  XCD 5.00 per liquid 
gallon  List C  
22072010  - - - Bioethanol  XCD 5.00 per liquid 
gallon  List C  
22072090  - - - Other  XCD 5.00 per liquid 
gallon  List C  
22086000  - Vodka  XCD 9.00 per liquid 
gallon  List C  
Source:  CET, Revised Common External Tariff of the Caribbean Community . Viewed at: 
https://caricom.org/documents/16273 -
revised_cet_of_caricom_hs_2017_revised_11_april_2018_(for_link).pdf . 
3.30.  Tariff rates range from 0 to 70%.  The highest average rates by WTO category are on sugar 
and confectionery (24.3%), fruit and vegetables (22.8%), and beverages and spirits (22.7%) 
(Table  3.4). Other products facing higher tariffs than average include animal and animal products 
(17.5%); ce reals and preparations (14.8%); and oil seeds, fats, and oils and their products (14.7%). 
The highest tariff rate is applied only on arms and ammunition (70%), followed by motor vehicles 
(45%), which are included in List  C. The lower tariff rates, by WTO c ategory, are applied on cotton, 
non-electric machinery, chemicals, dairy products, metals and minerals, and petroleum. In general 
terms, in terms of products, imports of machinery goods in primary forms, machinery and parts, 
raw materials, textile fabric, chemicals, office equipment, and hand tools are subject to the lowest 
rates, between 0% to 10%. Clothing and shoes attract a rate of 25%, the same rate as some 
domestic appliances, such as refrigerators, stoves, freezers, and microwave ovens. Computers and  
accessories may be imported with a rate of 0% but are still subject to the 6% CSC (see below). 
Tobacco products are subject to a 20% tariff but are subject to excise duty (see below).  
Table  3.4 Summary analys is of the Saint  Kitts and Nevis MFN tariff, 2022  
Description  No. of lines  Average 
(%) Range  
(%) Coefficient 
of variation 
(CV) Bound 
tariff 
rangea  
(%) 
Total  6,690  11.1 0-70 1.1 10-250 
HS 01 -24 1,370  21.3 0-40 0.8 10-250 
HS 25 -97 5,320  8.6 0-70 1.1 70-170 
By WTO category       
WTO agriculture  1,127  17.4 0-40 0.9 10-250 
- Animals and products thereof  177 17.5 0-40 0.9 50-100 
- Dairy products  25 7.6 0-20 0.7 75-100 
- Fruit, vegetables and plants  332 22.8 0-40 0.7 50-250 
- Coffee and tea  29 16.6 0-40 0.9 75-100 
- Cereals and preparations  139 14.8 0-40 0.8 10-150 
- Oil seeds, fats and oils and their 
Products  109 14.7 0-40 1.2 10-175 
- Sugars and confectionery  24 24.3 5-40 0.6 100-130 
- Beverages, spirits and tobacco  122 22.7 5-40 0.5 50-192 
- Cotton  6 0.0 0 n.a. 100-100 
- Other agricultural products  164 8.8 0-40 1.5 10-182 
WTO non -agriculture (incl. petroleum)  5,563  9.9 0-70 1.1 70-170 
- WTO non -agriculture (excl. petroleum)  5,531  9.9 0-70 1.1 70-170 
- - Fish and fishery products  321 30.3 0-40 0.5 100 
- - Minerals and metals  1,105  7.1 0-30 1.0 70 
- - Chemicals and photographic supplies  1,089  6.2 0-40 1.0 70-111.5  
- - Wood, pulp, paper and furniture  356 9.9 0-25 0.7 70-170 
- - Textiles  636 6.3 0-25 1.0 70-87 
- - Clothing  281 19.9 5-20 0.1 70-93 
- - Leather, rubber, footwear and travel 
goods  174 9.1 0-35 1.0 70 
- - Non-electric machinery  601 5.1 0-30 1.4 70-93 
- - Electric machinery  265 10.5 0-30 0.8 70 
- - Transport equipment  228 15.3 0-45 1.2 70 WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  Description  No. of lines  Average 
(%) Range  
(%) Coefficient 
of variation 
(CV) Bound 
tariff 
rangea  
(%) 
- - Non-agriculture articles n.e.s.  475 13.4 0-70 0.9 70-123 
- Petroleum  32 7.3 0-25 1.1 70-150 
By ISIC sectorb      
Agriculture and fisheries  542 22.1 0-40 0.9 10-250 
Mining  106 2.6 0-30 2.8 70 
Manufacturing  6,041  10.3 0-70 1.0 10-192 
By HS section       
 01 Live animals & prod.  494 25.3 0-40 0.7 50-130 
 02 Vegetable products  438 19.6 0-40 0.9 10-250 
 03 Fats & oils  54 25.6 0-40 0.7 10-175 
 04 Prepared food , etc. 384 17.3 0-40 0.6 50-192 
 05 Minerals  191 3.7 0-25 1.6 70-150 
 06 Chemical & prod.  1,018  6.1 0-40 1.0 70-115 
 07 Plastics & rubber  241 7.1 0-35 1.1 70 
 08 Hides & skins  80 8.0 0-20 1.2 70-100 
 09 Wood & articles  156 10.9 0-20 0.5 70-81.5 
 10 Pulp, paper , etc. 165 7.0 0-20 1.0 70 
 11 Textile & articles  906 10.0 0-20 0.8 70-100 
 12 Footwear, headgear  59 16.3 0-20 0.4 70 
 13 Articles of stone  181 10.7 0-25 0.7 70 
 14 Precious stones, etc.  62 17.4 0-30 0.7 70 
 15 Base metals & prod.  708 6.7 0-25 0.9 70 
 16 Machinery  881 6.9 0-30 1.1 70-93 
 17 Transport equipment  239 14.8 0-45 1.2 70 
 18 Precision equipment  225 9.9 0-30 0.9 70 
 19 Arms and ammunition  22 39.8 0-70 0.7 70-123 
 20 Miscellaneous manufactures  178 15.3 0-25 0.4 70-170 
 21 Works of art, etc.  8 20.0 20-20 0.0 70 
By stage of processing       
First stage of processing  972 18.2 0-40 1.0 10-250 
Semi-processed products  1,968  5.3 0-40 1.2 70-130 
Fully processed products  3,750  12.4 0-70 0.9 10-192 
n.a. Not applicable.  
a ISIC (Rev.2) classification, excluding electricity (1  line). 
Source:  WTO Secretariat estimates, based on data provided by the authorities of Saint  Kitts and Nevis.  
3.1.4.2   Bound tariffs  
3.31.  At the time of the Uruguay Round, Saint  Kitts and Nevis bound most of its tariff lines, the 
main exception being fish products. In 2022, some 95.7% of all tariff lines were bound, less than 
the 97.3% shown in 2014. The reason for this may be found in the change in tariff nomenclature 
(HS12 to HS17), the increase in the number of tariff lines (in particular the additi on of new 
subheadings under categories that were not originally bound), and problems of concordance in the 
transposition of tariff schedules.  
3.32.  Agricultural products (WTO definition) are bound at a ceiling level of 100% for the majority 
of products. Products  not subject to the ceiling bindings were bound at rates ranging between 10% 
and 250% . In the case of non-agricultural products (WTO definition), most tariff lines were bound 
at a ceiling rate of  70% with a number of exceptions, such as cement, petroleum p roducts, some 
textiles, and industrial goods subject to import restrictions under Article  56 of the CARICOM Treaty 
(Article  164 of the revised Treaty), which were bound at rates between 87% and 150%. The average 
bound tariff in 2022 was 77.4%, the same as in 2013 and almost seven times the applied rate; in 
2022, the bound rates were 109.8% (108.9% in 2013) for agricultural products (WTO definition), 
and 71.4% (71% in 2013) for non -agricultural goods.  
3.33.  Unlike other OECS WTO  Members, Saint  Kitts and Nevis incl uded other duties and charges 
applied on imports in its WTO tariff schedule of bindings. Other duties and charges are bound for all 
tariff lines at a general rate of 18% with a number of exceptions subject to lower rates or to specific 
rates.  
3.1.4.3   Tariff and tax concessions  
3.34.  In accordance with CARICOM rules, member States may apply tariff rates lower than the CET 
for a number of goods included in the List of Conditional Duty Exemptions, for the purposes specified WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  in the List.  Saint Kitts and Nevis, as well as a ll other OECS member States, as a less developed 
country within CARICOM, may import products in the List duty -free. Saint  Kitts and Nevis makes 
use of this concession for the majority of imported inputs, which are brought into the country 
duty-free instead  of at a 5% rate.  
3.35.  Saint Kitts and Nevis also grants tariff concessions and exemptions under incentives schemes 
for goods to be used in approved industries. Under the Fiscal Incentives Act of 1974 and the Fiscal 
Incentives (Amendment) Act of 2019, import du ty relief is provided on raw materials and inputs, 
tools, plant, machinery, and building materials. The Hotel Aids Act, as amended by the Hotel Aids 
(Amendment) Act (1998), grants duty -free treatment on imports of building materials and articles 
of hotel e quipment for the construction or equipment of hotels. There are also tariff concessions for 
the agriculture and fisheries industries. Farmers are allowed to import vehicles and machinery to be 
used in agriculture duty -free. The Small Business Development A ct, Cap  20.61, also contains tariff 
concessions for small businesses.  
3.36.  Saint Kitts and Nevis also imports free of tariffs a list of products for specified uses or specific 
industries. The products are listed in Statutory Rules and Orders (SRO)  No. 22 of 197 4, and include 
(i) air navigation companies authorized by the Government: motor and in general petrol spirits, 
lubricating oil, machinery and parts and accessories for their airplanes; scientific instruments, 
appliances, tools, and apparatus for use in the  repair of airplanes; and wireless apparatus for use in 
communications; (ii)  fruit and vegetable industry: cord, twine, rope, and wire to be used growing 
any fruit or vegetable for exportation; barrels, boxes, bottles, crates, and all packages or container s 
and materials for making packages or containers to be used for packing fruit or vegetables and their 
products for exportation; machinery of all kinds, and parts thereof used in manufacturing or 
preserving fruit or vegetables; (iii)  fishing industry: fish ing gear, including seine twine, gillnet twine, 
fishing lines, and galvanized mesh wire, other than for sport fishing; (iv) apiculture: bees, beehives, 
and bee -keeping apparatus; (v)  chemical industry: sulphuric acid for the manufacture of citric acid; 
and (vi) textiles and clothing industry: dyeing materials.  
3.37.  In addition to the concessions granted to the above -mentioned activities, tariff exemptions 
are also granted on, inter alia, imports of arms and ammunition for the armed forces; artificial limbs, 
invalid carriages, and wheelchairs; books; bullion and coins; trophies; articles imported solely for 
installation as fixtures or for the decoration, construction, and repair of churches; vaccines; drugs 
and appliances, vaccine lymph, medical/serums, and radium  imported with the approval of the 
Governor General for the relief and control of any diseases; educational, scientific, and cultural 
materials; articles for the official use of any foreign Consulate; gift parcels; articles for government 
or public institu tion use; orthopaedic appliances; re -imports; salt; scientific apparatus for academic 
research; and surgical equipment.  
3.38.  On 26  March  2020, due to the outbreak of the COVID -19 pandemic, the Government 
announced the removal of import duty and VAT for a period  of six  months on the following hygiene 
items: hand sanitizer (HS  3401.30.00); hand sanitizer dispensing machines (8424.89.00); rubbing 
alcohol (2905); disinfecting wipes (4818.20.00); gloves (3926.20.00, 4015.19.00); and masks 
(6307.90.90, 9020.00.00). Th e Customs Service Charge (CSC) remained applicable. The 
Government also announced the removal of all applicable Customs duties and taxes (including the 
CSC) for six  months on the following items: vegetables (HS  0701 to 0714); fruits (0801 to 0814); 
fruit j uices (2009); cough and cold preparations (3003.90.40, 3003.90.50, 3003.90.70, 3004.90.20, 
3004.90.30, 3004.90.50); and vitamins (2106.90.99.10, 3003.90.20, 3003.90.30, 3004.50.10, 
3004.50.90).42 
3.39.  The Customs Act also allows a relief from import duty for go ods imported for temporary use 
as approved by the Comptroller, goods warehoused on importation, goods entered for transhipment 
to be removed for that purpose, and goods re -imported for home use.  
3.40.  Goods included in CARICOM's List of Items Ineligible for Duty  Exemption may not be 
exempted in part or in whole from tariffs or imported at a reduced rate under some incentives 
programmes. This list is mostly composed of goods produced in the CARICOM region in quantities 
considered adequate to meet regional needs.  
 
42 Customs  and Excise Department, Memorandum from the Comptroller's Office, 26  March  2020. Viewed 
at: https://www.skncustoms.com/pdf1/COVID19TAXES.pdf . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  3.1.4.4   Tariff preferences  
3.41.  Imports from other CARICOM countries are granted duty -free access, provided they meet the 
CARICOM rules of origin criteria.  
3.42.  Under the EPA with the European  Union, Saint  Kitts and Nevis grants preferential access to 
most EU products; gradu al implementation began on 1  January  2013 and is expected to be 
completed by 1  January  2033. By that date, products originating in the European  Union, except for 
exempted products (mostly agricultural and agr o-industry products) are expected to be granted 
duty-free access to Saint  Kitts and Nevis and other OECS member States (Common Report). In the 
case of Saint  Kitts and Nevis, it is estimated that 86.6% of all tariff lines will be duty -free by that 
date (Section  2). 
3.1.5   Other levies and charges  
3.43.  As shown above , Saint  Kitts and Nevis, like other OECS WTO Members, relies heavily on 
indirect taxes on imports as a source of fiscal revenue. In the case of Saint  Kitts and Nevis, this is 
particularly important, as there is no personal income tax, and a considerable pa rt of the goods 
consumed are imported. As part of its Uruguay Round Schedule of Tariff Concessions, Saint  Kitts 
and Nevis bound combined other duties and charges including the CSC, the consumption tax, and 
any other applicable tax, at a general rate of 18% . This has put a cap on rates for taxes that have 
been introduced since then, like the VAT (see below).  
3.44.  Saint Kitts and Nevis continues to apply a CSC of 6% on all imports, including those from 
other OECS member States and from CARICOM countries. The CSC i s applied at a rate of 12% of 
the value of goods inclusive of cost, insurance, and freight (c.i.f.) for goods exempt from tariffs for 
specific purposes, but this does not apply to zero -rated tariffs. The CSC's legal basis is Act  No. 6 of 
2005 (Customs Tari ff (Amendment)). In accordance with the Act, the CSC is applied on the c.i.f. 
value of the customs declaration. Exemptions from the CSC are granted to imports by governmental 
institutions and enclave manufacturers, as well as to imports of foodstuffs in pa ckages of less 
than 30 kg. Manufacturing enterprises that paid the CSC on imported inputs and subsequently 
exported the processed goods may benefit from a drawback scheme. In its schedule of tariff 
concessions, Saint  Kitts and Nevis has bound this drawback  and other import charges, in the  WTO, 
at a rate of 18%.  
3.45.  Saint Kitts and Nevis applies a VAT on imports and domestic products. VAT is charged on all 
domestic supplies and imports; in the case of imports it is collected at the point of entry (see below). 
The general rate is 17% for both domestically produced and imported goods and services. A lower 
10% rate is applied on hotel bills.  
3.46.  The VAT was introduced in 2010 through the Value Added Tax Act, 2010 (Act  No. 3 of 2010).43 
The regulations are contained in t he SRO No.  38 of 2011 (Value Added Tax Regulations, 2011) and 
the Value Added Tax (Amendment) Regulations, 2015, SRO  No. 12 of 2015. The Customs (Control 
and Management) Act, Cap  20.04 is applied for the purpose of collecting and enforcing the payment 
of the VAT. The Comptroller of Customs collects the VAT and any other tax due at the time of 
importation of any goods.  
3.47.  The VAT is applied on the "fair market value" of imports, understood as the value of the goods 
for the purposes of customs duty under the Cus toms Act plus the cost of insurance and freight, any 
customs duty, excise tax, environmental surcharge, or any other fiscal charge, other than tax, 
payable on the importation of such goods; and the CSC. If the fair market value cannot be 
determined in this  way, then it will be defined as the monetary value of a similar supplied or imported 
good, imported or offered in similar circumstances. If it is not possible to determine fair market 
value using this method, the Comptroller of Customs may approve the use  of any method that can 
provide a sufficiently objective approximation of the monetary value of the supplied or imported 
good.  
 
43 "An Act to make provision for the imposition an d collection of value added tax; and to provide for 
related or incidental matters". Published on 24  August  2010 in the Extra -Ordinary Gazette  No. 41 of 2010.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  3.48.  Exports of goods and services, goods used in repair and maintenance, goods under the 
temporary admission regime, and services eng aged by the Ports Authority are zero -rated. 
Additionally a number of products are zero -rated, including white and brown rice (except packaged 
cooked rice, and microwaveable rice meals, HS  1006.20, 1006.30, and 1006.40); brown and white 
sugar (HS  1701.11 an d 1701.999); diapers (HS  4818.402 and 4818.40910); locally produced white 
whole wheat and whole grain bread (imported bread is taxable); white and whole wheat flour 
(HS 1101); infant formula (HS  1901.10); certain types of milk (except condensed or flavoure d milk, 
HS 0401,0402.10, 0402.20, 0402.21,0402.29, and  0402.91); raw, unprocessed uncooked oats 
(HS 1004.00); gasoline (HS  2710.10); kerosene and other medium oils (except gas oils, 
HS 2710.20); gas oils, including diesel (HS  2710.30); fuel oils not elsewh ere specified or included 
(HS 2710.40); and petroleum gases and other gaseous hydrocarbons (including LPG, HS  2711.10).  
3.49.  The First Schedule of the Value Added Tax Act contains a list of Exempt Import Goods, which 
include locally grown fruits and vegetables and animal products; imports of exported domestically 
produced or imported goods, including packing containers, brought back to Saint  Kitts and Nevis 
without having been subjected to any process of manufacture or adaptation and without a permanent 
change o f ownership; gifts of food that do not exceed 45  kg; passenger allowance of 1.5  litres of 
spirits or wine and 250  grams of manufactured tobacco or 200  cigarettes or 100  cigarillos or 
50 cigars; goods conveyed for transhipment to any other country; goods im ported by Saint  Kitts 
and Nevis nationals returning home for permanent residence; containers (HS  8609.00) temporarily 
imported, and goods temporarily imported for processing or repair, cleaning or reconditioning. 
Equipment temporarily admitted for specific  economic development purposes is also exempt 
from VAT, but the Comptroller of Customs may demand a deposit of half of the value of the 
equipment upon importation as security to guarantee that the equipment will be exported upon 
completion of the project. Imports of approved goods by an importer qualified as a licensed duty -free 
operator are also exempt from the VAT.  
3.50.  In 2015, VAT regulations were amended, and the coverage of VAT modified. The principal 
regulations were amended by adding three new regulation s (43, Exemption of VAT on Food; 
44, Exemption of VAT on Medicines; and 45, Exemption of VAT on Funeral Expenses) and two  new 
schedules: Schedule  4 (Foods Exempt from Tax) and Schedule 5 (Funeral Expenses Exempt from 
Tax). Regulation  43, which refers to th e exemption of VAT on food specified in Schedule  4 
(Table  3.5), defines the concept of food for the purposes of this Regulation, as not including: 
(i) prepared food or meals supplied by a restaurant, cafeteria, snackette, deli, or place of public 
entertain ment or other similar establishment; (ii) live animals (HS chapter 1); (iii)  live trees and 
other plants, bulbs, roots and the like, cut flowers and ornamental foliage (HS chapter 6); (iv)  lac, 
gums, resins and other vegetable saps and extracts (HS chapter  13); and (v)  vegetable plaiting 
materials (HS chapter 14).44 Medicines exempted from VAT include those classified under 
HS subheadings 2106.90.30, 2106.90.90.10, 3002.10.00 to 3002.90.00, 3003.10.10 to 
3003.90.90, and 3004.10.10 to 3004.90.90.  
Table  3.5 Foods exempted from VAT since 2015  
Tariff heading  Description  
Headings 0201 to 0210  Fresh, chilled, frozen, salted in brine, dried or smoked meat of swine, poultry, 
bovine, sheep and goat, etc.  
Headings 0302 to 0307  Fresh, chilled, frozen, salted in brine, dried or cooked, whether or not shellfish, 
crustaceans  
Headings 0401 to 0410  Milk, cream, yogurt, milk products, butter, dairy spread, cheese, curd, bird eggs, 
natural honey and edible product s of animal origin not elsewhere specified or 
included  
Heading 0504  Gut, bladders and stomachs of animals  
Headings 0701 to 0714  Edible vegetables and certain roots and tubers  
Headings 0801 to 0814  Edible fruits and nuts, peel of citrus fruits or melons  
Headings 0901 to 0910  Coffee, tea, mate and spices  
Headings 1001 to 1008  Wheat, maslin, rye, barley, oats, maize, rice, grain sorghum, buckwheat, millet, 
canary seeds and other cereals  
Headings 1101 to 1109  Flour, groats, meal, pellets, grains, f lakes, inulin, malt, powder, granules, starch, 
flour of legumes, vegetables, wheat, potatoes, cassava, arrowroot, sago, banana, 
plantain, corn, peas, beans, Jerusalem artichokes, salep, rice, oats and other tubers 
and similar roots  
Headings 1201 to 1214  Seeds, nuts, fruit, spores, hop cones, plants, parts of plants, seaweed  
 
44 Value Added Tax (Amendment) Regulations, 2015, SRO  No. 12 of 2015, Extra -Ordinary Gazette  
(2015), No.  18, 7 April.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  Tariff heading  Description  
Headings 1501 to 1518  Poultry, bovine, ovine, fish, other mammals and vegetables fats and oils, soya bean 
oil, ground oil nuts, olive oil, palm oils, sunflower oil, safflower oil, coconut oil, 
babassu oil, rape oil, mustard oil, colza oil, jojoba oil, margarine, imitation lard and 
shortening  
Headings 1601 to 1605  Sausages, prepared or preserved meats, extract and juices of meat, fish and 
crustaceans, prepared or preserved fish, caviar and caviar substitute and molluscs  
Headings 1701 to 1704  Sugar, molasses, sugar syrup, sugar, chewing gum, confectionery  
Headings 1801 to 1806  Cocoa and cocoa preparations  
Headings 1901 to 1905  Malt extract, food preparations, pasta, tapioc a, corn flakes, corn curls, cereals, 
bread, pastry, cakes, biscuits, wafers, communion wafers, rice paper and empty 
cachets for pharmaceutical use  
Headings 2001 to 2009  Prepared or preserved vegetables, nuts, fruit and other edible parts of plants, 
tomato es, mushrooms, jam, jellies, marmalade, nuts paste, fruit juices  
Headings 2102 to 2106  Extracts, yeast, sauces, condiments, seasoning, mayonnaise, tomatoes paste, 
ketchup, soups, broths, ice cream, popsicles, icicles, pepper sauce and other food 
preparati on not elsewhere specified  
Headings 2201, 2202, 
2208.90.10, 2208.90.20 and 
2209.00  Waters, aerated waters, drinks and non -alcoholic beverages  
Heading 2302  Bran 
Subheadings 2501.00.10, 
2501.00.20, and 2501.00.30  Salt 
Subheading 2940.00.00  Artificial sweeteners  
Source:  Value Added Tax (Amendment) Regulations, 2015, SRO  No. 12 of 2015, Schedule  4. 
3.51.  Goods imported by a taxable person qualifying for incentives as an Enclave Industry under 
section  2 of the Fiscal Incentives Act, Cap  20.14 (Secti on 3.2.2) are VAT -exempt. The goods must 
be consigned directly to the person and must be used in a taxable activity.  
3.52.  A very short temporary reduction to the VAT was introduced in December 2018 and 
December  2019 to promote seasonal shopping.45 On two  days o f December of those years, a special 
VAT rate of 5% was applied on all sales of vatable goods of eligible VAT registered products (upon 
application to the Inland Revenue Department). The sale or supply of alcoholic beverages, cigarettes, 
and other tobacco products was not eligible for the special rate of VAT reduction. For the sale or 
supply of vehicles, the first XCD  70,000 of the value were exempted from VAT; the 17% rate was 
applied on the remaining balance.  
3.53.  Excise tax is applied on a range of products, including aerated beverages (generally taxed 
at 5%), beer and stout (15%), wine and other alcoholic beverages (25%), cigars and 
cigarettes  (20%), motorcycles (8%), weapons (6%), and some petroleum products (15% or specific 
duties) (Table  3.6). The applicat ion of excise duties is regulated by the Excise Tax Act of 2010 
(Act No. 4 of 2010).46 Excise tax is not applied on the transaction value of imports, but on the "fair 
market value", defined as the price the imported product would generally fetch if importe d freely in 
similar circumstances at that date by persons who are not related.  
Table  3.6 Products subject to excise taxes, 2021  
HS Code  Description  Tax rate  
2202.10.10  Aerated beverages  5% 
2202.10.90  Other  5% 
2202.90.10  Beverages containing cocoa  5% 
2202.90.20  Malt beverages  5% 
2202.90.90  Other  5% 
2203.00.10  Beer 15% 
2203.00.20  Stout  15% 
2203.00.90  Other  15% 
2204.10.00  Sparkling wine  25% 
2204.21.00  Other wine; in containers holding 2  litres or less  25% 
2204.29.10  Grape must with fermentation prevented or arrested by the addition of alcohol 
with plants or aromatic substances  25% 
2204.29.90  Other  25% 
2204.30.00  Other grape must  25% 
 
45 Value Added Tax (Special VAT Reduction) Order, 2018, SRO No.  26 of 2018, and Value Added Tax 
(Special VAT Reduction) Order, 2019, SRO  No. 32 of 2019.  
46 The Act may be viewed at: 
https://skncustoms.com/pdfs/Excise%20Tax%20Act%20No4%20of%202010.pdf . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  HS Code  Description  Tax rate  
2205.10.00  Vermouth and other wine of fresh grapes flavoured in containers holding 
2 litres or less  25% 
2205.90.00  Other  25% 
2208.20.10  Brandy, in bottles of a strength not exceeding 46%  25% 
2208.20.90  Other  25% 
2208.30.10  Whiskies in bottles of a strength not exceeding 46%  25% 
2208.30.90  Other  25% 
2208.40.10  2208.40.00 Rum and other spirits obtained by distilling fermented sugarcane 
products in bottles of a strength not exceeding 46%  25% 
2208.40.90  Other  25% 
2208.50.10  Gin and Geneva in bottles of a strength not exceeding 46%  25% 
2208.50.90  Other  25% 
2208.60.00  Vodka  25% 
2208.70.00  Liqueurs and cordials  25% 
2402.10.00  Cigars, cheroots and cigarillos, containing tobacco  20% 
2402.20.00  Cigarettes containing tobacco  20% 
2402.90.00  Other  20% 
24.03  Other manufactured tobacco and manufactured tobacco substitutes; 
"homogenized" or "reconstituted" tobacco; tobacco extracts and essences  20% 
87.11  Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with 
or without side -cars; side -cars 8% 
93.01  Military weapons, other than revolvers, pistols and the arms of heading 
9307.00  6% 
93.02  Revolvers and pistols, other than those of heading 93.03 or 9304  6% 
93.03  Other firearms and similar devices which operate by the firing of an explosive 
charge  6% 
9304.00.00  Other arms, excluding those of heading 9307.00.00  6% 
2710.10.00  Motor Spirit (Gasoline) and other light oils and preparations  XCD 2.25/g  
2710.19.10  Kerosene type jet fuel  XCD 0.28/g  
2710.19.20  Illuminating kerosene  XCD 0.28/g  
2710.19.30  Vaporizing oil or white spirit  XCD 0.28/g  
2710.19.40  Diesel oil  15% 
2710.19.50  Gas oils (other than diesel oil)  15% 
2710.19.60  Bunker "C" grade fuel oil  15% 
2710.19.70  Partly refined petroleum, including topped crudes  15% 
27.11  Petroleum gases and other gaseous hydrocarbons (including LPG)  XCD 0.03/lb  
Source:  Excise Act No.  4 of 2010.  
3.54.  Exemptions to the excise tax are included in the second schedule of Excise Act No.  4 of 2010, 
which contains the list of Exempt Goods. These include: (i)  alcohol and spirits classified under 
HS heading 2207; (ii)  aromatic bitters (2208.90.10 and  2208.90.20); (iii)  lubricating oils and 
greases (2710.90); (iv)  passenger allowance of 1.5  litres of spirits or wine or proportionate mixes 
and 250  grams of manufactured tobacco or 200  cigarettes or 100  cigarillos or 50  cigars; and 
(v) imports by a department approved by the Ministry of National Security of goods classified under 
tariff headings 93.01, 93.02, 93.03, and 93.04.  
3.55.  An environmental levy is charged on imports of vehicles.47 In 2022, the Vehicle Environmental 
Levy (VEL) levy rates were XCD  1,000 for vehicles imported less than two  years after the date of 
manufacture; XCD  3,500 for vehicles imported between two and four  years after the date of 
manufacture; and XCD  5,000 for used vehicles imported four years or more after the date of 
manufacture.48 
3.56.  A deposit levy of XCD  0.30 per container is charged on imported beer, stout, malt, ale, and 
aerated drinks in non -returnable bottles.49 The deposit levy is levied on the entry of the product into 
Saint Kitts and Nevis or at the point of prod uction and shall be payable to, and is collected by, the 
Comptroller of Customs. The levy is refunded on re -export disposal of the bottles or if arrangements 
acceptable to the relevant authorities are made within six  months of payment of the deposit.  
 
47 Environmental Levy (Used Motor Vehicles) (Amendment of Sche dule), Order No.  12 of 2005. An 
amendment introduced in 2010 (SRO  No. 17 of 2010) extended the levy to new vehicles and to vehicles of up 
to two  years old, at a rate of XCD  1,000.  
48 Environmental Levy Act, Cap  20.10. Viewed at: 
https://aglcskn.info/documents/Act17TOC/Ch%2020.10%20Environmental%20Levy%20Act.pdf . 
49 Trade (Bottle and Can Deposit Levy) Act, Cap  20.35 (Act  No. 1 of 2002). Viewed at: 
https://aglcskn.info/documents/Act02and09TOC/Ch%2020.45%20Trade%20%28Bottles%20and%20Cans%20
Deposit%20Levy%29%20Act.pdf . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  3.1.6   Impor t prohibitions, restrictions, and licensing  
3.57.  Saint Kitts and Nevis maintains a list of import prohibitions and restrictions. They are 
contained in the Fourth Schedule of the Customs Act. In most cases, prohibitions relate mainly to 
counterfeited, indecent, or obscene goods, or goods that are considered a health or safety hazard. 
Restricted goods, include, inter alia, firearms and ammunition, transmitting equipment, and rare or 
threatened species of animals or plants (Table  3.7). 
Table  3.7 Import prohibition and restrictions as specified in the Fourth Schedule of the 
Customs Act, Sections 103(1) -(2) and 104(1) -(3) 
Prohibitions and restrictions  
Part I – Prohibited imports  
1. Base or counterfeit coins or currency notes from any country.  
2. Coin or currency notes legally current in Saint Christopher and Nevis or any money purporting to be such, not 
being of the established standard in weight and fineness.  
3. Articles or food intended for human consumption  declared by the competent public health authority to be unfit 
for such purpose.  
4. Indecent or obscene prints, paintings, photographs, books, cards, lithographic or other engravings, phonograph 
records, videos or any other indecent articles or matter.  
5. Matches which contain white or yellow phosphorus.  
6. Prepared opium and pipes or other utensils for use in connection with the smoking of opium or other narcotic 
drugs.  
7. Preparations of opium or other narcotic drugs for smoking.  
8. Any pistol or other apparatus in the form of a stylographic pen or pencil capable of firing any kind of shot or 
cartridge whatsoever or any cartridge containing tear gas.  
9. Fictitious stamps or any die, plate, instrument or materials capable of making any such stamps.  
10. Flick knives, gravity knives, black jack, bludgeon, switch knives and blades, night sticks, ratchet knives and 
other similar knives with flying blades, dagger or any sword, knife or any instrument having a blade ending up in a 
sharp point, which is n ot primarily designed for use in a profession, craft or business or for domestic use.  
11. All publications, articles or other matter associated with black magic, secret magic, obeah, witchcraft or other 
magical arts and occultism.  
12. Seditious publicati ons, articles, prints, phonograph records or video.  
13. Goods, the importation of which is prohibited by any other enactment.  
Part II – Restricted imports  
1. Firearms and ammunition including any lethal barrelled weapon from which any shot, bullet or o ther missile can 
be discharged or noxious fumes or liquid can be emitted or any accessory, component part of any such weapon or 
any accessory to such weapon designed or adapted to diminish the noise or other flash caused by firing such 
weapon unless with t he written permission of the Commissioner of Police.  
2. Shock baton, stun guns, pepper spray and mace, unless with the written permission of the Commissioner of 
Police.  
3. Explosives, unless with the written permission of the Commissioner of Police.  
4. Handcuff of any type unless with the written permission of the Commissioner of Police.  
5. Radio and television transmitting equipment, including walkie talkies unless under licence from the Minister of 
Communications.  
6. Cannabis sativa, including parts of the plant, cannabis Indica, choras, ganja or any preparation or mixture of 
cannabis, choras or ganja, unless under licence from the Chief Medical Officer.  
7. Narcotic drugs and psychotropic substances including contr olled drugs unless under licence from the Chief 
Medical Officer.  
8. Goods which bear a design in imitation of any currency or bank notes or coin in common use in Saint Christopher 
and Nevis or elsewhere unless with the approval of the Comptroller of Custo ms. 
9. Tear gas or any ingredient which may produce what is commonly known as tear gas or tear smoke unless with 
the written authority of the Minister responsible for National Security.  
10. Laser pointers.  
11. Goods which bear the Coat of Arms or the Fl ag of Saint Christopher and Nevis or any facsimile imitation or 
representation thereof, unless with the approval of the Minister responsible for National Security.  
12. All goods which if sold would be liable to forfeiture under the Marks, Collective Marks  and Trade Names Act, 
Cap 18.22, and also all goods of foreign manufacture bearing any name or trade mark or purporting to bear the 
name or trade mark of any manufacturer, dealer or trader in Saint Christopher and Nevis, unless such trade name 
or trade mar k is accompanied by a specific indication of the country in which the goods were made or produced.  
13. Rare or threatened species of animals or plants, (including whales, elephants, flamingos, parrots, turtles, 
tortoises, black coral, tree ferns and orchi ds), their products and derivatives, (including ivory necklaces, carvings 
and rings, fur coat of protected species, turtles shell combs, necklaces, bracelets and black coral jewellery), whose 
international trade is regulated by the Convention on Internatio nal Trade in Endangered Species of wild Fauna and 
Flora (CITES) unless such goods are accompanied by the appropriate permits signed by the CITES authorities in the 
country of exportation or importation.  
14. Night scope binoculars and similar night vision instruments or apparatus of a kind generally used by the Armed 
Forces, Para Military and other law enforcement agencies, unless with the written permission of the Minister 
responsible for National Security.  
15. Uniforms or clothing including camouflage clothing used by the St  Kitts and Nevis Defence Force or the Royal 
St Kitts and Nevis Police Force or closely resembling the uniform or clothing used by the Police or the Defence 
Force, unless with the written permission of the Commissioner of P olice.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  Prohibitions and restrictions  
16. Ozone Depleting Substances to be restricted under the Montreal Protocol on Substances that Deplete the Ozone 
Layer, 1987 and specified under Annexes A to E, unless under licence from the Minister responsible for the 
Environment.  
Source:  Customs Act, Cap  20.04.  
3.58.  Saint Kitts and Nevis notified its import licensing regime to the WTO in 199850, and responded 
to the questionnaire on import licensing procedures in 2009.51 No revised notification has been 
submitted since then. Saint  Kitts and Nev is stated that the import licence system is designed to 
control the quantities of specific imported goods, to assist in reducing the importation of 
trans-boundary diseases, and to provide statistical data on the importation of specific imported 
goods. Any amendments or repeal of the different instruments must be legislated. Saint  Kitts and 
Nevis operates two licensing systems, one for imports and one for exports. The first  regime applies 
to the importation of "general goods". A separate licensing regime app lies for the importation of 
plants, animals, meat and meat products, and live animals. For animals and meat and meat 
products, applications must be submitted by the importer to the Veterinary Division of the Agriculture 
Department. The exporting country mu st provide a health certificate for the goods. Import licences 
for plants and plant products have the aim of ensuring that the exporting country and the products 
do not appear on the schedule of restricted or prohibited goods.52 
3.59.  The Importation of Restrict ed Goods Licensing Regime described in SRO  No. 19 of 1975, 
No. 14 of 1992, and No.  31 of 1976, and section  11 of the External Trade Order, Chapter  338, govern 
the import licensing regime. Licences are required for all imports of the products listed in SRO  No. 14 
of 1992. The list of products that require an import licence is substantial, and ranges from 
vegetables, eggs, meat, and canned fish, to beer, toothpaste, motor vehicles, and agricultural 
machinery. Except for eggs and some agricultural products pro duced in commercial quantities, 
licensing is automatic. There is no provision for administrative discretion as to the list of goods that 
appear in the SRO's different schedules. No tariff classification is provided for the goods subject to 
import licensing . 
3.60.  Applications for import licences for general goods are processed immediately and for plants, 
animals, and meat and meat products processing takes from two  days to a month. Import licences 
are granted at least one month prior to the importation of goods. Licences are valid for one shipment, 
for up to three months, and their duration cannot be extended. They are transferable.  
3.61.  Permits are required for imports of any live animals, poultry, or birds or carcasses and parts 
thereof, plants, planting materials, a nd pesticides, as well as ozone -depleting substances. The 
importation of arms and ammunition requires a licence from the Commissioner of Police under the 
Firearms Act  No. 23 of 1967.  
3.1.7   Contingency measures  
3.1.7.1   Anti-dumping and countervailing measures  
3.62.  Saint Kitts and Nevis notified to the WTO in 2021 its domestic legislation on anti -dumping and 
countervailing duties.53 This legislation predates the WTO  Agreements and follows to some extent 
the GATT  1947, but does not seem to be fully in compliance with the Anti -Dumping Agreement. 
Since there is no umbrella legislation to enact overall the Uruguay Round Act into domestic law, the 
provisions of the Anti -Dumping Agreement are not part of domestic legislation and hence cannot be 
invoked in Court.  
3.63.  The current relevant n ational legislation on anti -dumping and countervailing duties is the 
Customs Duties (Dumping and Subsidies) Act,  Cap 20.05, Act  No. 30 of 1958, in force since 
 
50 WTO documen t G/LIC/N/1/KNA/1, 31  July 1998.  
51 WTO document G/LIC/N/3/KNA/1, 8  December  2009.  
52 WTO document G/LIC/N/3/KNA/1, 8  December  2009.  
53 WTO document G/ADP/N/1/KNA/1, G/SCM/N/1/KNA/1, 4  March  2021.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  15 August  1959, amended by Act  No. 6 of 1976; Act  No. 7 of 1976; Act  No. 9 of 1986; and 
Act No. 10 of 1997.54 
3.64.  The Customs Duties (Dumping and Subsidies) Act allows the Minister of Finance to impose 
anti-dumping or countervailing duties in cases where goods are regarded as having been dumped 
or subsidized and have caused or threaten to cause material damage to the domestic industry. The 
Act calls the Minister not to exercise that power if not satisfied that the effect of the dumping or of 
the giving of the subsidy is such as to cause or threaten material injury to an established industry 
or to slow down materially the establishment of an industry, and if doing so may conflict with the 
provisions of the GATT  1947.  
3.65.  The Act contains a definition of dumping. Imported goods shall be regarded as having been 
dumped: (i)  if the export price from the co untry in which the goods originated is less than the fair 
market price of the goods in that country; or (ii)  in a case where the country from which the goods 
were exported is different from the country in which they originated: (a)  if the export price from  the 
country in which the goods originated is less than the fair market price of those goods in that country; 
or (b)  if the export price from the country from which the goods were so exported is less than the 
fair market price of those goods in that countr y. 
3.66.  The Act defines subsidy as giving, directly or indirectly, a bounty or subsidy on the production 
or export of goods (whether by grant, loan, tax relief, or in any other way and whether related 
directly to the goods themselves or to materials of the good s or to something else). The definition 
of subsidy also includes: (i)  subsidizing the transport of a particular product; and (ii)  providing 
preferential foreign currency access or exchange rate conditions having the effect of reducing the 
prices of goods o ffered for export expressed in foreign currency. The Act does not contain a definition 
of margin of dumping or subsidy, or of methods to calculate it, and makes no reference of a 
de minimis  clause or of the possibility of applying provisional measures. It does not spell out 
investigation procedures or timing and duration.  
3.67.  The Act allows the Minister of Finance to issue an Order to impose customs duties on goods 
of a description specified in the Order at a rate specified in it; the rate of duty made by appli ed by 
reference to value or weight or other measure of quantity. The Order may be limited to the particular 
persons or organizations by whom the goods were produced or who were concerned with the 
production of the goods in some specified manner. The Act do es not specify the duration of the 
duties. It allows the Minister to charge duty "for any period or periods whether continuous or not, 
or without any limit of period, or at different rates for different periods or parts of periods" 
(Section  4(3)(c)).  
3.68.  The A ct contains provisions for the determination of export price. If buyer and seller are not 
related, export price is defined as the price on a particular sale subject to a deduction for the cost 
of insurance and freight from the port or place of export to th e port or place of import, and for any 
other costs, charges, or expenses incurred in respect of the goods after they left the port or place 
of export, except if costs are assumed by the purchaser. If buyer and seller are related, the Minister 
may determine  the export price by reference to a sale of the goods (or of any goods in which the 
first mentioned goods were incorporated) as he/she may select with any adjustments as may appear 
to be proper. The Act also presents a definition of fair market price, as t he price at which identical 
or comparable goods are being sold in the ordinary course of trade in country for consumption or 
use there, but subject to any necessary adjustments for differences in conditions and terms of sale, 
and for differences in taxatio n. If this is not possible, the Minister of Finance may determine the fair 
market price by reference to any price obtained for goods of that description when exported from 
the country.55 
3.69.  Following the notification by Saint  Kitts and Nevis, questions were r aised by the United  States 
with respect to the existence of an administering authority in place to implement this law; the 
existence of separate regulations in place regarding the initiation and conduct of investigations to 
determine the existence of dumpi ng or subsidization, determination of dumping and injury, definition 
of the domestic industry, and public notice and explanation of the determination from the 
 
54 The law may be viewed at: 
www.skncustoms.com/pdfs/Customs%20Duties%20(Dumping%20and%20Subsidies)%20Act%20 -
%20Chap%2020.05.pdf . 
55 WTO document G/ADP/N/1/KNA/1, G/SCM/N/1/KNA/1, 4  March  2021.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  investigation; the factual basis for the determination of dumping or subsidization; and considera tions 
to make a determination with respect to duty relief.56 
3.70.  Saint Kitts and Nevis notified to the WTO in December 2009 that it had not established an 
authority competent to initiate and conduct an investigation within the meaning of Article  16.5 of 
the An ti-Dumping  Agreement. Hence, it had not taken any anti -dumping actions within the meaning 
of Article  16.4 of the Agreement and did not anticipate taking any for the foreseeable future.57 
3.71.  Article  133 of the Treaty of Chaguaramas contains provisions for the imposition of 
anti-dumping measures among CARICOM members. The Council of Trade and Economic 
Development (COTED) must consider the available evidence. If COTED is satisfied of the existence 
of dumped imports, injury caused by dumped imports, or the threat of serious injury from dumped 
imports, it may authorize the member State aggrieved to take anti -dumping action: (i)  if the parties 
alleged to be responsible for dumped imports refuse to cooperate within the time specified so as to 
frustrate or otherwise im pede an investigation; or (ii)  if there is a serious threat of injury or if injury 
has resulted. In authorizing the imposition of anti -dumping measures, COTED shall set the date, 
duration, and conditions for the imposition of the measures as the case may r equire. Anti -dumping 
duties imposed may not exceed the calculated margin of dumping. In the imposition of anti -dumping 
duties, the member States imposing the measure may not discriminate among the sources of all 
dumped imports based on country of origin or  nationality of the exporters. An exporter whose 
exports are the subject of anti -dumping duties may request at any time the member State imposing 
the duties to review the application of the duties. If the importing member States have not given 
adequate con sideration to the request for review within 30  days of the receipt of the request, the 
applicant may refer the request to COTED. There are provisions for the application of provisional 
duties, retroactive imposition of duties, reimbursement of excess dutie s paid, and compensation for 
losses caused by provisional duties applied in cases no injury is shown. A member State may accept 
a voluntary price guarantee from an exporter who is believed to be exporting dumped products.58 
3.1.7.2   Safeguards  
3.72.  Saint Kitts and Nevis  does not have national legislation with respect to safeguards. However, 
as a member of CARICOM, it may invoke regional rules for the application of safeguards, under 
CARICOM rules. As a less developed CARICOM member, Saint  Kitts and Nevis may invoke the s pecial 
provisions in Chapter  7 of the Revised Treaty of Chaguaramas, in particular Article  150 
(Safeguard  Measures). Under this Article, it may limit imports of goods from other CARICOM 
members for up to three  years and take such other measures as COTED ma y authorize. Members 
may not apply safeguard measures against the products of a disadvantaged country where such 
products do not exceed 20% of the market of the importing member.  
3.73.  Saint Kitts and Nevis did not implement any safeguard measures during the per iod under 
review.  
3.74.  Saint Kitts and Nevis did not make use of the safeguard provisions included in the 
Uruguay  Round Agreement on Agriculture.  
3.2  Measures directly affecting exports  
3.2.1   Documentation, export taxes, and restrictions  
3.75.  Exports are exempt from internal taxes and zero -rated for VAT purposes. There are no 
registration requirements for exporters. Prior to exportation, they must submit electronically an 
export declaration in ASYCUDA World to which an invoice, a packing list, and if and when required, 
a phyto sanitary or CITES certificate, or, for preferential trade, a certificate of origin, are attached.  
3.76.  Requirements for the exportation of plants and animal and by -products depend on the 
importer. For instance, exports of vegetables may require a phytosanitary certificate, and exports 
of live animals may require an Export Health Certificate, while exports of animal meat (fresh or 
 
56 WTO document G/ADP/Q1/KNA/1, G/SCM/Q1/KNA/1, 1  April 2021.  
57 WTO document G/ADP/N/193/KNA, 12  January  2010.  
58 Revised Treaty of Chaguaramas, Article  133. Viewed at: https://treaty.caricom.org/article -133-
imposition -of-anti-dumping -measures/ . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  frozen) may require an export certificate provided by a Government Veterinary or an authorized 
veterinary. The exportation of several types of seafood (conchs, crustaceans, fish, and lobsters) 
requires a permit, a certificate, and a completed customs declaration. The permit must be obtained 
from the Department of Marine Resources, and the sanitary certificate from a Government 
Veterinary . 
3.77.  There is no export promotion agency as such in Saint  Kitts and Nevis, although the Saint  Kitts 
Investment Promotion Agency (SKIPA) and the Nevis Investment Promotion Agency (NIPA) are 
tasked with promoting investments, and economic activities including e xports. Each agency 
concentrates in the promotion of investment and exports of the respective island.  
3.78.  Export restrictions are generally applied for safety and health purposes. The legislation 
governing export restrictions and licensing is the External Trad e Act No. 32 of 1958, in force since 
10 December  1958, as amended by Act  No. 24 of 1968; Act  No. 6 of 1976; Act  No. 7 of 1976; 
Act No. 27 of 1976; and Act  No. 9 of 1986; the External Trade (Open General Licence) Order – 
Sections  3 and 5 -10, SRO  No. 41/1961 , as amended; and the External Trade (Restriction of Exports) 
Order SRO  No. 25/1973. Exports of wild birds are forbidden, in accordance with the CITES, and 
exports of narcotic drugs and psychotropic substances, as well as goods bearing the coat of arms or 
flag of Saint  Kitts and Nevis are restricted.  
3.2.2   Export subsidies, financing, support, and promotion  
3.79.  Saint Kitts and Nevis has made no notification to the WTO Committee on Agriculture whether 
it provides export subsidies to agricultural products. However, the  authorities have stated that 
Saint Kitts and Nevis does not provide such export subsidies.  
3.80.  Saint Kitts and Nevis has notified the Fiscal Incentives Act  No. 17 of 1974 to the Committee 
on Subsidies and Countervailing Measures (SCM ), as providing export subsidies, requesting an 
extension as per Article  27(4) of the SCM  Agreement, mostly recently in 2018.59 Since then, 
however, the Fiscal Incentives Act amended, through the Fiscal Incentives (Amendment) 
Act of 2019, which eliminates the export subsidy component present in the 1974  Act (see below). 
This new Act has not, however, been notified to the WTO.  
3.81.  Under the Fiscal Incentives Act  No. 17 of 1974, Saint  Kitts and Nevis, like other OECS 
countries, granted fiscal benefits that were c ontingent upon exportation, especially those available 
after the end of the 15 -year tax holiday granted to some enterprises. Under the 1974  Fiscal 
Incentives Act concessions in the form of tax credits were granted, which provided for corporate 
income tax r elief on the profits accruing from a company's exports. The benefit was contingent on 
the enterprise exporting and was not granted while enjoying a tax holiday and duty -free imports of 
raw materials and capital goods. Enclave enterprises, understood as tho se exporting their entire 
production, could receive the maximum tax -holiday period, 15  years. The concept of enclave 
industry was modified in 2019 (see below). The authorities did not provide estimates of revenue 
forgone under the Fiscal Incentives Act in their 2018  notification.60 The authorities noted that all of 
these benefits have been terminated.  
3.82.  Saint Kitts and Nevis does not have legislation providing for the establishment of free zones. 
It has, however, legislation providing for a  duty-free regime. Under the Duty Free Shops (Licensing 
and Taxation) Act  No. 6 of 2010, two types of approved duty -free licences may be obtained, one for 
alcohol and tobacco (Class "B" Licence) and the other for a specific list of goods (Class "A" Licence).61 
 
59 WTO document G/SCM/N/315/KNA, 13  July 2018.  
60 WTO document G/SCM/N/315/KNA, 13  July 2018. 
61 Goods under a Class "A" Licence include portable electronic devices excluding cell phones; bags, 
cases, wallets, belts and similar accessories made from leather or a mixture of leather; any Kipling, Tommy 
Bahama, Tori Richards, Nat Nast, Pineapple Moo n, Quick Silver, Roxy Sportswear, Line Two, Weekend Traffic, 
Line Up for Sport, Traffic Jammies, Weekend Clothes Line, Pepe and LAND brand products; shoes of a 
minimum FOB value of USD  50; chinaware, stoneware and porcelain; clothing of linen and silk incl uding 
accessories, containing not less than 80% linen and/or silk; cologne, body fragrances, eau de toilette and 
perfumes of a minimum FOB value of USD  5; fragrance items including hand milled soaps and lotions; skincare 
products (gift packaged in boxes or  bags); articles of crystal; costume jewellery (gift packaged in boxes or 
bags) of a minimum FOB value of USD  10; jewellery of precious metals including platinum, gold, silver, 
silver -plated and gold -plated, with or without gemstones or semi -precious stone s; table linen of linen, cotton or 
mixture of both whose linen content must be at least 75%; beach wear; watches of a minimum FOB value of WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  There is a dut y-free operator licence fee of XCD  10,000 per year. Under the duty -free treatment 
regime, locals are subject to the VAT, and non -residents are zero -rated. Locals pay a non -refundable 
duty-free store levy of 6%, excluding CSC and import and excise duties. T he duty -free zones must 
comprise the following areas: Basseterre; Charlestown; the Sands Complex; Robert Llewellyn 
Bradshaw International Airport; Vance Amory International Airport; Romney Manor; Brimstone Hill; 
Frigate Bay; the South east Peninsula; and th e White Gate Development Area. Where different 
duty-free shops are kept in the name of one person or company, a separate licence is needed for 
each shop. Licences are not transferable.  
3.83.  The OECS Export Development Unit (EDU) offers export promotion support,  with assistance 
from the Caribbean Export Development Agency.  
3.3  Measures affecting production and trade  
3.3.1   Incentives and assistance  
3.84.  The Saint  Kitts Investment Promotion Agency (SKIPA) and the NIPA are in charge of devising 
and implementing incentives schemes to attract investment, introduce new policies to assist and 
facilitate business in specific sectors, encourage new employment opportunities, and promote 
diversification of the economy. The incentives available generally take the form of income and profit 
tax holidays and import duty exemptions.  
3.85.  Saint Kitts and Nevis notified to the SCM  Committee the Fiscal Incentives Act  No. 17 of 1974 
as granted export subsidies and other incentives, and was granted an extension for its modification 
or elimination until en d-2015, under the decision relating to Article  27.4 of the SCM  Agreement.62 
The Act was amended in 2019 to remove the export subsidy component and redefine "enclave 
industries". Under the Fiscal Incentives Act of 1974, incentives in the form of a tax holid ay of up to 
15 years may be granted for the manufacture of approved products by approved enterprises. The 
length of the tax holiday depends on the local value added generated or on whether the company 
engages in exporting all of its production. Under the A ct, companies are classified as: (i)  Group  1 
enterprises, with local value of 50% or more of sales, which may be granted a tax holiday of up to 
15 years; (ii)  Group  2 enterprises, with local value of between 25% and 50% of sales, which may 
be granted conce ssions for up to 12  years; (iii)  Group  3 enterprises, with local value of between 
10% and 25% of sales, which may benefit from a tax holiday of up to 10  years; and (iv)  enclave 
enterprises, where production is exclusively for export, which may be granted a  tax holiday of up to 
15 years. Additionally, businesses benefiting from a tax holiday under the Fiscal Incentives Act 
of 1974 may import duty -free machinery, equipment, spare parts, building materials, raw and 
packaging materials, and other inputs, as app ropriate, to be used in eligible enterprises.  
3.86.  The 1974  Act also provides for the concession of additional benefits at the termination of the 
tax holiday period, in the form of income tax rebates. These rebates are based on the company's 
share of export pro fits in its total profits; they are of 25% when export profits are between 10% and 
20% of total profits; 35% for profits between 21% and 40%; 45% when they are between 41% and 
60%; and 50% when export profits exceed 60% of total profits. These rebates were  eliminated 
in 2019 with final effect 1  January  2023.  
3.87.  The Fiscal Incentives (Amendment) Act, 2019 – 13 (published on 30  December  2019, 
Extra -Ordinary Gazette No.  67 of 2019) amended the Fiscal Incentives Act, Cap  20.14 to comply 
with the requirements of Ar ticle 27:4 of the SCM  Agreement. The three main amendments to the 
Act are: (i)  amending the definition of "enclave enterprise" in Section  2 of the Act to lift the 
requirement to "produce exclusively for export"; (ii)  repealing the export allowance in Secti on 16 
and the Second  Schedule of the Act; and (iii)  inserting a provision to declare that the rules of profit 
 
USD 30; handcrafted items made of natural material; golf clubs, balls and gloves; souvenirs of 
Saint Kitts and Nevis;  sweaters and similar knitwear of a minimum FOB value of USD  20; music CDs produced 
in the Caribbean and by or of Caribbean artists; national flags, banners, patches, stickers and maps, items 
made from hand processed fabrics, hand embroidered, hand painted , screen printed, batik and tie dye, and 
tropical island style shirts, pictures, postcards, wall hangings – batik, bearing Caribbean scenes; and store 
packaging material bearing the name of the store and location in St  Kitts and Nevis. Duty Free Shops Lice nsing 
and Taxation Act, 2010 – 6. 
62 Most recently through WTO document G/SCM/N/315/KNA, 13  July 2018.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  attribution, which are expressed in sections 4A and 4B of the Income Tax Act apply equally to the 
Act. 
3.88.  The Fiscal Incentives (Amendment) Act,  2019 amended section 2, subsection (1) of the 1974 
Act by replacing the definition of enclave enterprise. Under the 2019  Act, "enclave enterprise" means 
an enterprise specifically authorized to operate a factory or other relevant industry: (i)  in the 
business park located at the Paul Southwell Industrial Park or at Bourke's Project, Sandy Point; or 
(ii) in any other location within Saint  Kitts and Nevis as the Governor General may by Order 
prescribe. All reference of benefits depending upon exportation was thus  eliminated. Now enclave 
enterprises are permitted to sell goods within the Common CARICOM market and in the local market. 
Section  6 of the Act eliminated the provisions on "export allowance" as of 1  January  2020 and 
provided for grandfathering of the old provisions until 31  December  2022. In fact, the provisions of 
those subsections of the 1974  Act in relation to the claiming of an export allowance by a company, 
cease to have effect after 31  December  2022. If, prior to 31  December  2022, a company acquires,  
holds, owns, or deals with any new assets or engages in any new business activity that would 
generate related income, the export allowance will not apply to that related income.63 
3.89.  The 1974 Act was amended to revise the criteria to grant a company the stat us of approved 
enterprise (company that may benefit from the provisions of the Act) to include the location or 
proposed location of the industry or factory in which the enterprise is manufacturing or intends to 
manufacture an approved product.64 
3.90.  The 1974  Act was also amended by inserting a new section  2A, which applies the provisions 
of section  4A of the Income Tax Act to the businesses operating under the Fiscal Incentives Act. This 
section deals with Transactions and Arrangements Between Related Persons a nd Associates. This 
provision permits the Comptroller of Inland Revenue to adjust the chargeable income or tax payable 
in respect of transactions or arrangements between related taxpayers, as is necessary to reflect the 
chargeable income or tax payable tha t would have arisen for them if the arrangement had been 
conducted at arm's length terms.65 This has been considered to reflect internationally accepted 
standards.66 
3.91.  In addition, there are sector -specific incentives for tourism, as included in the Income T ax 
Act, Cap  20.22 (Act  No. 17 of 1966) and the Hotel Aids (Amendment) Act (Cap  18.17, as amended 
by Act  No. 19 of 1998) (Section  4.3.6). Tax incentives are also granted to investors on a 
case-by-case basis by Cabinet for infrastructure projects, with prefe rence given to the construction 
 
63 For the purposes of the Act, "related income" means income that would be assessable for export 
allowance and would therefore be eligible for relief from  income tax; "new assets" means those assets acquired 
or created after 1  January  2020; and "new business activity" means any new business activity undertaken after 
1 January  2020.  
64 In the 1974  Act, only two  factors were mentioned for consideration in dete rmining whether an Order 
should be made to declare a company an approved enterprise: (i)  the number of enterprises already 
manufacturing or about to manufacture an approved product; and (ii) the output or anticipated output of the 
enterprise product. An ap proved product under the Act is a product for manufacture by an approved 
enterprise.  
65 For the purposes of the Act, a company is associated with another company in a tax year if, at any 
time in the year: (i)  one of the companies controls, directly or indir ectly in any manner, the other; (ii)  both of 
the companies are controlled, directly or indirectly in any manner, by the same person or group of persons; 
(iii) each of the companies is controlled, directly or indirectly in any manner, by a person and the pe rson who 
so controlled one of the companies is related to the person who controls the other, and either of those persons 
owns, in respect of each company, not less than 25% of the issued shares of any class of the capital stock 
thereof; (iv)  one of the com panies is controlled, directly or indirectly in any manner, by a person and that 
person is related to each member of a group of persons that so controls the other company, and that person 
owns, in respect of the other company, not less than 25% of the issu ed shares of any class of capital stock 
thereof; or (v)  each of the companies is controlled, directly or indirectly in any manner, by a related group and 
each of the members of one of the related groups is related to all of the members of the other related  group, 
and one or more persons who are members of both related groups, either alone or together, owns, in respect 
of each company, not less than 25% of the issued shares of capital stock thereof.  
66 For a more detailed analysis of the changes introduced to  the Fiscal Incentives Act and their 
compatibility with internationally accepted standards, see: Council of the European  Union (2020), Saint Kitts 
and Nevis' Fiscal Incentives Act Regime (KN002) ‒ Final Description and Assessment, 30  April 2020. Viewed at:  
https://data.consilium.europa.eu/doc/document/ST -7425-2020-INIT/en/pdf . In a previous assessment, 
in 2018, the Code of Conduct Group (business taxation) in the Secretar iat of the Council had found some 
aspects of the Act very harmful. With the amendments, no aspects of the Act are now considered very harmful.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  of hotels, casinos, and villas; these ad hoc  incentives do not require approval by the National 
Assembly.  
3.92.  The Small Business Development Act  of 2009, Cap  20.61 provides a regulatory framework 
and incentives to facilitate the growth and development of small businesses. To be classified as a 
small business under the Act, a company must: (i)  not have more than 25  employees; (ii)  have an 
annual turnover not exceeding XCD  2 million; (iii)  have net assets or paid -up capital not exceeding 
XCD 1 million; (iv)  be locally owned; (v)  not be more than 25% owned or controlled by a company 
whose annual turnover and net assets or paid -up capital exceed the limit previously mentioned; 
(vi) not have a board of directors controlle d by a company whose annual turnover and net assets 
exceed the annual turnover and net assets mentioned above; and (vii)  have no agreement for the 
purposes of fees on a continuing basis for managerial or other services to persons who are not 
nationals of S aint Kitts and Nevis or other CARICOM states and who are not resident in 
Saint Kitts and Nevis, where those services do not form part of the normal business operations of 
the enterprise.  
3.93.  To receive the benefits under the Small Business Development Act, a c ompany must be 
declared as an "approved small business" by the Minister of Trade, Industry and Consumer Affairs. 
Applications for this status must be accompanied by a certificate of incorporation issued pursuant to 
the Companies Act,  1996 or a business lic ence issued pursuant to the Licences on Businesses and 
Occupations Act,  1972. If the application is successful, the company is granted the status of 
approved small business.  
3.94.  Approved small businesses benefit from: (i)  a reduction on income tax for a minimu m of the 
first three and a maximum of the first  five years of establishment or reconstruction of the small 
business; (ii)  an allowable deduction from income tax on any money borrowed from any financial 
institution; (iii)  export incentives for research and development and export promotion activities; 
(iv) a rebate on corporate tax; (v)  an exemption from or reduction in customs duty on inputs 
imported for use in the small business; (vi)  an exemption from or reduction in customs duty on any 
plant, machinery, e quipment or motor vehicle imported for use in the small business; and (vii) a 
reduction of property tax of up to 75% in respect of any land and building used in the operation of 
the approved small business. To be able to receive these incentives, the busin ess must show that it 
has met at least five of the following criteria: (i)  it has produced a strategic plan or business plan 
and financial projections for the next 24  months; (ii)  it has adopted industry standards and 
compliance methods relevant to that in dustry; (iii)  it has shown equity capital improvements; (iv)  it 
has in the immediate preceding year made serious efforts to become more efficient, in terms of 
financial ratio indicators; (v)  it has achieved significant growth in the last two years of its o peration 
measured by production levels, revenue performance, increase in market share, and other growth 
performance indicators; (vi)  it has combined or intends to combine with another small business to 
share relevant services or with respect to the bulk im portation of raw materials or other goods; 
(vii) it has created additional employment within the small business; (viii)  it has utilized or intends 
to utilize new skills and technologies; and (ix)  it has demonstrated a strong likelihood to generate 
new inve stment, products, processes, employment, or production capacity.  
3.95.  The First Schedule of the Act stipulates the priority sectors for the establishment of small 
businesses. These include: (i)  tourism -related services (excluding hotels and restaurants); 
(ii) transport and storage; (iii)  information, communication, and technology activities; 
(iv) agriculture, forestry, and related service activities; (v)  arts and cultural activities; 
(vi) construction services; (vii)  entertainment services; (viii)  fishing and ma riculture; 
(ix) manufacturing; (x)  personal care services; (xi)  repair of personal and household goods and 
vehicles; (xii)  sanitation, sewage, and refuse disposal services; (xiii)  sporting and recreational 
services; and (xiv)  financial services (excluding qualified entities providing services to non -residents 
only).  
3.96.  The wholly government -owned Development Bank of Saint  Kitts and Nevis (DBSKN ), 
established by Act  No. 1 of 1981, as amended in 1983, provides credit for agriculture, tourism, 
agro-industry, manufacturing, and mortgage financing, as well as to small businesses. The DBSKN 
has full operational autonomy under the direct responsibility  of the Minister of Finance. To be 
qualified under the DBSKN's Small Business/Micro Sector Program, the applicant must be registered 
as a business and managed by the owner. It must employ fewer than 25  persons, or occupy a 
manufacturing area of less than 4 ,000 sq. ft, have investment in equipment of less than 
XCD 135,000, or have total annual sales of less than XCD  337,500. The applicant company must WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  have a business plan prepared by a qualified independent party. The funds from the Small Business 
loans may be utilized for all aspects of business including working capital. Financing may be used 
for start -up activities or expansion of existing operations. It may be used for, but not limited to, the 
purchase of machinery and equipment, the purchase of stock, th e purchase of vehicles related to 
the business not including busses and taxis, working capital, and any other purpose as determined 
by the Management Committee. Loans may be granted for the following activities: 
agriculture/fishing; tools, equipment, and w orking capital loans to small contractors; agri -business; 
information technology services; support for cruise ship jobs; light manufacturing; tourism 
(including water taxis); retail trade; and support services to the productive sector. Business loans 
are limited to XCD  40,000 per loan, and an interest rate of 3% for agro -processing, fisheries, and 
the agricultural sector, and 6% for all other sectors. The repayment period is a maximum of 
10 years, with a grace period not exceeding 1  year for principal and 3  months for interest.  As far as 
possible, all loans should be secured, for instance, by a legal mortgage, Bill of Sale (on machine, 
equipment, appliances), a guarantee, or insurance.67 In 2021, the Government made available 
XCD 5 million  to assist SMEs.68 
3.97.  The Sugar Industry Diversification Foundation of Saint  Kitts & Nevis (SIDF) provides 
assistance to the different sectors of the economy. The SIDF was founded in September  2006 by the 
National Bank Trust Company; it is one of three approved options for obta ining citizenship through 
the Citizenship by Investment (CBI) Programme, along with real estate and investments. The 
Foundation has been designated a specially approved project for the purposes of CBI. Contributions 
to the Foundation of at least USD  250,00 0 qualify foreign nationals, subject to due diligence checks, 
to apply for CBI in Saint  Kitts and Nevis. Applications are made to and processed by the CBI Unit of 
the Government.  
3.98.  The SIDF was created with the primary goal of assisting the Government in the  transition 
from sugar as the main industry to a more diversified economy by researching and funding the 
development of alternative industries. The activities of the Foundation are all geared towards its key 
objective of providing a sustainable holistic pl atform for future growth and development. Since its 
inception, the SIDF's aim has been broadened to include providing support to the Government in its 
efforts to diversify the national economy and maintain economic stability, and to support, finance, 
or un dertake the development of new and existing industries, projects, or enterprises. Since 2012, 
when the SIDF office was opened, a management team has conducted analyses of proposed projects 
and investments in order to determine their viability and value to the economy, monitor the 
administration of loans and implementation of projects, and create greater awareness of its 
activities. Currently, the SIDF provides grants, loans, budget support, debt forgiveness, or assistance 
of any kind to the Government or to  persons or institutions that qualify for such assistance under its 
policies.69 The SIDF provides support for projects that create employment opportunities for all 
nationals, including displaced sugar workers; encourages enterprise development and the grow th of 
indigenous businesses; and invests in projects that are vital to the stability and transformation of 
the economy and society. Beneficiaries must be Saint  Kitts and Nevis nationals. The Foundation 
provides some assistance to the Saint  Kitts Tourism Au thority to help it ensure that major tourist 
markets are adequately serviced. This assistance is in the form of contributions to the Marketing 
Fund or to the guarantee that some airlines are required to regularly service Saint  Kitts and Nevis. 
According to  SIDF information, up to 2022, the SIDF had invested over USD  55 million in the 
development of Saint  Kitts and Nevis by way of grants, loans, and shareholdings.70 Capisterre Farm 
is one example of a project that received funding, and the St  Christopher Nat ional Trust was the 
beneficiary of a grant. Money was provided to the Development Bank of Saint  Kitts and Nevis to 
establish several funds including the Agricultural Fund, the Small Hotel and Restaurant Modernization 
Fund (SHARM), and the recently introduc ed Fund for the Realization of Economic Empowerment 
through Subsidized Housing (FREESH). The SIDF has also invested in Kittitian Hill, a five -star luxury 
resort under construction, and the Saint  Kitts Tourism Authority has received financing for the airlif t 
support programme. SIDF funds have been destined to the Government for budgetary purposes. 
A number of agricultural projects have been financed with SIDF resources (Section  4.1). 
 
67 SKNDB, Business Loans . Viewed at: https://skndb.com/business -loans/ . 
68 SKNDB. Viewed at: https://skndb.com/government -to-make -available -5-million -to-smes-through -
development -bank/ . 
69 SIDF, Overview . Viewed at: https://sknsidf.org/sidf -overview/ . 
70 SIDF, Frequently Asked Questions . Viewed at: https://sknsidf.org/faqs/ . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  3.99.  Saint Kitts and Nevis's businesses and those from other CARICOM countries m ay receive 
concessionary credits funded or guaranteed by the Caribbean Development Bank (CDB) for projects 
of between USD  750,000 and USD  5 million. Between 2016 and 2021, Saint  Kitts and Nevis receives 
loans of around USD  11.5 million from the CDB.71 
3.100.   The Saint Kitts Investment Promotion Agency (SKIPA) promotes  investment in Saint  Kitts at 
international, regional, and local levels. SKIPA proactively markets Saint  Kitts, internationally, 
regionally, and locally, as an investment. The investment promotion eff orts of the Agency are geared 
towards attracting the right type of investor that will positively contribute to the long -term 
development of Saint  Kitts.72 SKIPA also seeks to attract investments that will diversify the economic 
base of Saint  Kitts. SKIPA a lso undertakes investment facilitation, which includes providing 
information, assisting in finding business opportunities, and acting as the point of contact for 
procedures to be taken to establish a business, for l ocal and foreign investors . SKIPA facilit ates 
investments in all economic activities but concentrates its marketing efforts on priority sectors 
(agriculture, tourism, financial services, international education, light manufacturing, and 
information technology). SKIPA also provides support for bus iness expansion. SKIPA has also carried 
on work to facilitate investment by streamlining procedures, and reforming the investment 
environment, project size, or years in operation.73 SKIPA does not provide financing for investments 
and does not charge any f ees for its services.  
3.101.   The NIPA is a government agency that serves as a first point of contact for investors. NIPA 
identifies and promotes new investment opportunities, provides general and investor sector -specific 
information, facilitates meetings with key  government officials and governing departments, 
organizes site visits, assists with filming locations, negotiates partnership opportunities with existing 
projects, and facilitates after -care services. NIPA's mandate is to promote key sectors for 
investmen ts, disseminate general and sector -specific information, assist in business start -up 
facilitation, facilitate meetings with key government ministries, and provide support to the investor 
after the investment takes place.74 NIPA facilitates investors' proce dures through the NIPA Digital 
Platform that enables investors to check incentives, calculate project cost, and submit applications 
to respective government departments electronically. The Platform captures investor information 
once and then enables fast p rocessing of applications starting from incorporation of a company to 
obtaining work permits.75 Like SKIPA, NIPA does not provide financial support.  
3.3.2   Technical regulations and standards  
3.102.   Saint Kitts and Nevis made no notifications to the TBT Committee during  the period 2014 -22. 
3.103.   The Saint  Kitts and Nevis Bureau of Standards (SKNBS), established in 1999, has been the 
main government agency responsible for developing and implementing standards, metrology, and 
conformity assessment services since its establishmen t in 2000. Technical regulations are also 
developed by the SKNBS, which functions under the umbrella of the Ministry of International Trade, 
Industry, Commerce and Consumer Affairs (MITICCA).  
3.104.   The SKNBS' activities include increased participation at the reg ional level in the 
harmonization of standards, measurements, and conformity assessment regimes for regional 
integration. The SKNBS houses Saint  Kitts and Nevis' national multipurpose laboratory, which 
provides the following services: (i)  chemistry: analysi s of elements in food, liquids, and soil nutrients 
and constituents; (ii)  metrology: provision of accurate measurements through calibration and 
verification of scales, balances, and fuel pumps; (iii)  microbiology in food and water; and (iv)  air 
quality: mo nitoring of mould and gases and particular matter indoors.  
3.105.   The MITICCA  is the designated Notification Point for the WTO  Agreement on Technical 
Barriers to Trade (TBT  Agreement). The SKNBS is the National Enquiry Point (NEP) regarding the 
TBT Agreement. As such, it is in charge of receiving and disseminating TBT notifications from the 
 
71 Caribbean Development Bank, Saint Kitts and Nevis . Viewed at: https://www.caribank.org/countries -
and-members/borrowing -members/saint -kitts-and-nevis. 
72 SKIPA, What We Do . Viewed at: https://investstkitts.kn/aboutus/what -we-do/. 
73 SKIPA. Viewed at: https://investstkitts.kn/aboutus/what -we-do/. 
74 NIPA, Who We Are . Viewed at: https://www.investnevis.org/en/about -nipa/who -we-are. 
75 NIPA, NIA Digital Platform . Viewed at: https://www.i nvestnevis.org/en/Our -services/nia -digital -
platform . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  WTO Secretariat to stakeholders in Saint  Kitts and Nevis; sending notifications of proposed technical 
regulations and conformity procedures to the WTO TBT Secretariat; respondi ng to requests for 
information from WTO Members regarding any national standards, technical regulations, and 
conformity assessment procedures; and responding to requests for information from the private 
sector in Saint  Kitts and Nevis on regional and inter national standards, technical regulations, and 
conformity assessment procedures. The SKNBS is also the official contact point for the Stockholm 
Convention on Persistent Organic Pollutants; Codex Alimentarius; the International Food Safety 
Authorities Netwo rk (INFOSAN) (emergency contact); the Pan American Standards Commission 
(COPANT); the Minimata Convention on mercury (since 24  May 2017); the Strategic Approach to 
International Chemicals Management (SAICM); the CARICOM Regional Organisation for Standards 
and Quality (CROSQ); the FAO GM Foods Platform; the American Society for Testing and Materials 
(ASTM); Environmental Molecular Sciences Laboratory (EMSL); and the Underwriters Laboratories.76 
The SKNBS is also an Affiliate Member of the International Elect ro-Technical Commission (IEC) 
Country Programme.  
3.106.   New legislation with regards to standards and technical regulations was introduced in 2021. 
The Bureau of Standards and Quality Act, 2021, Act  No. 19 of 2021, of 2  December  2021, published 
on 30  December  2021, provides for the preparation, promotion, and implementation of standards 
and standards -related activities in relation to commodities, goods, services, processes, and practices 
and to ensure quality through compliance with technical regulations where rel evant, by the 
establishment and operation of a Bureau of Standards. The Act mandates that the SKNBS, for the 
purpose of discharging its functions shall: (i)  develop, adopt, prepare, adapt, amend, reaffirm, 
revise, and publish standards, technical regulatio ns, and conformity assessment procedures, in 
relation to any class, category, or type of product or service; (ii)  promote the adoption and 
implementation of standards relating to structures, goods, materials, processes, practices, 
operations, and other mat ters, on a national and international level; (iii)  coordinate, monitor, and 
promote standardization and related activities at the various corporate, national, regional, and 
international levels and to supply or ensure the existence of adequate supporting r elated services; 
(iv) cooperate with national, regional, or other international bodies in the field of standardization 
and exchange information with such bodies generally, and in particular to such extent as may be 
provided for in any international obligat ion entered into by Saint  Kitts and Nevis or as may be 
prescribed; (v)  and promote research, conformity assessment, and market surveillance as the 
Bureau considers appropriate in relation to standards, technical specifications, or technical 
regulations.  
3.107.   The SKNBS acts as the technical authority for the National Metrology Service, established by 
the Metrology Act No.  30 of 2012. It is also the certification and conformity assessment body for 
products, commodities, and processes with respect to national stand ards. In accordance with the 
new Act, the SKNBS may provide for the inspection and testing of goods, services, processes; and 
practices; certify goods, services, processes, and practices that conform to national, regional, or 
international standards; and e stablish and declare standards and technical regulations for the 
improvement of goods produced in Saint  Kitts and Nevis and keep the standards and technical 
regulations under review. It may also institute a National Quality Infrastructure and establish, 
administer, and operate schemes of standardization and certification of goods including 
administering the certification of such goods. Additionally, the SKNBS is also allowed by law to assess 
quality systems and administer the certification of systems thus a ssessed; assess the competence 
of quality practitioners offering consultancy, training, and other services; and establish and 
designate laboratories and testing facilities.  
3.108.   The new Act provides that, if is impracticable for the SKNBS to formulate a technic al 
specification in respect of any goods, it may adopt or adapt an international standard or technical 
specification formulated outside Saint  Kitts and Nevis to be a standard. In fact, regarding its 
statutory function of preparing standards, the SKNBS reli es to a large extent on regional or 
international standards. The Bureau also has the mandate to prepare, frame, modify, or amend 
specifications and codes of practice, and to maintain testing facilities; carry out testing, calibration, 
and certification; an d publish standards marks. The SKNBS may not declare, substitute, vary, or 
revoke a standard unless it is satisfied that any person who may be affected thereby has had an 
opportunity to consider the intended decision to declare, substitute, vary, or revoke  the standard 
and comment on the standard. If it intends to vary or revoke a standard, the SKNBS must publish 
in the Gazette a notice of its intention to vary or revoke the standard requesting persons to consider 
 
76 SKNBS, What We Do . Viewed at: https://sknbs.org/about -bureau/what -we-do/. WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  the standard to be varied or revoked and to  submit comments on the standard; and may vary or 
revoke the standard at any time after 60  days from the date of publication of the notice in the 
Gazette.  
3.109.   Technical committees established by the Standards Department in the SKNBS are in charge 
of drafting, adopting, or adapting standards. They must reach consensus on the technical content of 
the draft standard, which is then circulated to stakeholders for feedback and comments, for a period 
of 60 days. Upon receipt of the comments and after the 60 -day commen t period, the final draft is 
prepared for approval. The final draft contains adjustments made in accordance with the comments 
submitted and is subject to new comments. In case of non -acceptance of the comments, justification 
must be provided. If the standa rd is expected to become the basis for a technical regulation, the 
draft is sent to the legal draftsman for vetting and comment. Technical regulations may be part of a 
standard and must also be sent for comments. International standards and CARICOM standar ds 
adopted/adapted by the SKNBS as National Standards may be declared mandatory (technical 
regulations) to protect health and safety, ensure quality in goods for export, prevent fraud from 
misleading advertising, and give information to consumers. The fina l draft standard, approved by 
the SKNBS and a letter seeking approval for the draft, are sent to the Minister responsible for the 
Bureau. If the draft standard is intended to become a technical regulation, this is stated in the letter, 
and the comments of the legal drafters are included. When the Minister approves the draft, it is 
declared a Saint  Kitts and Nevis National Standard; it is printed and gazetted, and copies are sent 
for notification to the relevant bodies regionally and internationally. The Bur eau is also responsible 
for facilitating the development and implementation of regulations on labelling; on the sale, import, 
or export of goods for which mandatory standard specifications have been declared; and for granting 
licences for use of a standard  mark.  
3.110.   Non-conformity with technical regulations (mandatory standards) is punishable by a fine of 
up to XCD  10,000, and in the case of a continuing offence, an additional penalty of up to XCD  1,000 
for every day during which the offence continues or up to two years of imprisonment. Conformity 
with a national or regional standard may be verified at the border in the case of imports, and through 
internal checks in the case of domestic products. Where an owner of any establishment fails to 
comply with the dire ctions of an inspector, the SKNBS may direct that the owner of the establishment 
to cease immediately the manufacture, preparation, or processing of any prescribed goods.  
3.111.   The 2021  Act also regulates the declaration and publication of technical regulations by the 
SKNBS. The Minister in charge of the SKNBS is responsible for issuing technical regulations. The 
need to develop or adopt standards and technical regulations is ide ntified by a government agency, 
manufacturers, consumers, or the SKNBS. The power conferred on the Minister to adopt or adapt 
technical regulations includes the power, exercisable in like manner, to repeal or amend any such 
technical regulations. Technical  regulations may also be developed by other governmental and 
regulatory bodies. The main ministries involved in the development of technical regulations are the 
Ministries of Health; ICT, Entertainment, Entrepreneurship and Talent Development; Agriculture,  
Fisheries and Marine Resources; Environment and Cooperatives; Energy; and Public Infrastructure, 
Utilities, Posts, and Urban Development.  
3.112.   The issuance of technical regulations does not in general require the recommendation of the 
SKNBS. The exception are those regulations that come under the purview of the SKNBS. Where the 
Minister (in charge of the SKNBS) intends to issue any technical regulation, a Notice must be 
published in the Gazette, giving not less than 60  days' notice of his or her intention to de clare the 
technical regulations; and in the Notice, indicate the date on which the technical regulations shall 
come into effect. The SKNBS must make the appropriate notification to the WTO. The Minister in 
charge may adopt or adapt any technical regulation s formulated outside Saint  Kitts and Nevis in 
respect of any goods or commodity if this serves the national interest.  
3.113.   Where the Minister declares a technical regulation, every person concerned at any stage of 
the manufacture, production, processing, treatment, or distribution of the commodity in respect of 
which the declaration is made must ensure compliance with that tec hnical regulation. The 2021  Act 
allows the SKNBS to authorize a member of its staff to examine goods manufactured outside 
Saint Kitts and Nevis and any custom entries relating to such goods, where a technical regulation is 
declared for the goods.  
3.114.   To date, the SKNBS has adopted seven national standards, based on international or regional 
standards: SKNNS  001 – (CRS 1) Specification for Packaged Water; SKNNS  002 – (CRS 5) Labelling WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  of Pre packaged Food; SKNNS  003 – (CRS 55–1) Labelling of goods – Part 1: Gener al requirements; 
SKNNS  004 – (CRS 55–2) Labelling of goods – Part 2: Specific Requirements for Prepackaged 
Goods; SKNNS  005 – CARICOM Regional Energy Efficiency Building Code (CREEBC); SKNNS  006 – 
(ISO 13009) Tourism and Related Services – Requirements and  Recommendations for Beach 
Operations; and SKNNS  007 – (ISO 14001) Environmental Management System.77 The authorities 
stated in the course of this Review that an updated list of the technical regulations adopted during 
2007-13 was not available. The SKNBS has also prepared a Draft Food Labelling Regulation in 2019, 
as well as two other regulations. The SKNBS has prepared a list of 211  standards for adoption in the 
2022-27 period; they are all based on ISO, ASTM, or Codex standards.78 
3.115.   There are no national a ccreditation bodies in Saint  Kitts and Nevis. The SKNBS houses the 
National Accreditation Focal Point (NAFP) for Saint  Kitts and Nevis, which participates in the 
Caribbean Cooperation for Accreditation (CCA) Scheme, established in April  2013 through the 
signing of a Memorandum of Understanding between the CROSQ Secretariat and the NAFPs, and the 
CROSQ Secretariat and the National Accreditation Bodies (NABs). The main objectives of CCA are to 
ensure that internationally recognized accreditation services are economical, affordable, convenient, 
and readily accessible for the clients of the region through the NAFPs, and that opportunities are 
afforded for market expansion and new product development, assisting the growth and development 
of NABs.79 
3.3.3   Sanitary and p hytosanitary measures  
3.116.   The Department of Agriculture in the Agriculture, Fisheries and Marine Resources is the 
enquiry point under the WTO  Agreement on the Application of Sanitary and Phytosanitary Measures 
(SPS Agreement). Saint  Kitts and Nevis is a contra cting party to the International Plant Protection 
Convention (IPPC) but is not a member of the Codex Alimentarius Commission or the World 
Organisation for Animal Health (OIE). To be applied on a permanent basis, SPS measures must stem 
from the enactment of  legislation by Parliament. However, emergency measures expected to have 
a limited duration may be implemented the Minister of Agriculture without parliamentary approval.  
3.117.   Up to September  2022, Saint  Kitts and Nevis had not made any notification to the WTO 
SPS Committee. Although Saint  Kitts and Nevis maintains a number of SPS measures, an exhaustive 
and up -to-date list is not available. Saint  Kitts and Nevis has legislation on SPS, but it lacks the 
infrastructure necessary to conduct testing of plants and a nimals. There is a food and water testing 
facility and the services of the SKNBS's Microbiology Department can be counted upon to identify 
pathogen agents that affect food. There is also a laboratory that tests pesticide residues and soil. 
Although there a re currently no laboratory facilities in place to test plant pathogens, the authorities 
indicate that equipment is currently being put in place to this end. Moreover, the facilities of regional 
and international laboratories may be used when and if necessa ry. These facilities have been used, 
for instance, to test for pests in bananas and citrus fruit. The authorities indicate that virtual analysis 
is also conducted through laboratories in foreign countries. Despite that, control continues to rely 
substantia lly on inspection of imports and examination of documentation issued in the exporting 
country, such as sanitary or phytosanitary certificates. Test results are accepted from countries that 
implement Codex and OIE standards.  
3.118.   Quarantines are regulated by the  Quarantine Act, Cap  9.23, which makes provision for the 
imposition of quarantine measures in order to protect public health. This Act sets forth provisions on 
the establishment of a Quarantine Authority and its powers and duties for the protection of publ ic 
health by imposing quarantine measures in cases of emergency. The Governor General may, acting 
in accordance with the recommendation of the Public Service Commission, appoint Health Officers, 
Visiting Officers, quarantine guards and such other employees  and servants as may be necessary 
for the purposes of this Act. The Minister may make regulations, including the ports and coastal 
waters, for preventing danger to public health from ships or aircraft and the spread of infection, by 
means of any ship or ai rcraft.  
 
77 SKNBS, Standards Adopted . Viewed at: https://sknbs.org/technical -regulations/standards -under -
development/ . 
78 SKNBS, Five (5) Year Standards Work Plan – 2022-2027. Viewed at: https://sknbs.org/five -5-year-
standards -work-plan-2022-2027-2/. 
79 SKNBS, Accreditation . Viewed at: https://sknbs.org/qi -services/accreditation/ . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  3.119.   The Department of Agriculture's two quarantine units have responsibility for preventing the 
entry, establishment, and spread of agricultural pests and diseases. This task is carried on through 
inspection, certification, prohibition of entry, treatm ent, or destruction. The Plant Quarantine Unit 
conducts pest and disease surveillance and monitoring activities, and pest and import risk analysis; 
it enforces international import/export regulations and ensures that international SPS standards are 
met. Pl ant quarantine officers inspect agricultural and horticultural containers to ensure that pests 
and diseases requiring quarantine are not present. The Animal Quarantine Units are in charge of 
supervising and regulating imports and exports of animal and anim al parts (including meat and 
poultry). Its regulatory responsibilities include pest and disease surveillance, import risk analysis, 
and the maintenance of animal health. The Chief Veterinary Officer  is the Head of the Veterinary 
Authority, and is responsib le for the inspection and certification of animals; animal products; genetic 
material, including semen and embryos; livestock feeds; veterinary biologicals; and veterinary drugs 
imported into or exported from Saint  Kitts and Nevis. The Veterinary Authority  also provides 
certificates and documentation for the exportation of any animal or animal -related item from 
Saint Kitts and Nevis, and monitors, evaluates, and establishes areas free of, or with low prevalence 
of, animal pests and diseases.  
3.120.   The Plant Prote ction Act, Cap  14.09, sets up the phytosanitary conditions for imports of 
plants. All  plants, plant products, live beneficial organisms, and soils imported into Saint  Kitts and 
Nevis must be accompanied by a phytosanitary certificate issued by the appropri ate agricultural 
authority of the exporting country, when required.  Plants, planting materials, plant products, and 
soil also require an import licence from the Ministry of Agriculture and Marine Resources. A draft 
OECS Plant Protection Act is currently be ing reviewed.  
3.121.   A Phytosanitary Certificate is required for exporters and importers of agricultural produce. 
Agricultural products must be free of soil, insects, and pathogens. Live plants for export may require 
to be treated with the appropriate chemicals i f required by the importing country. Medicinal plants 
and herbs must be dried. It is prohibited to import mangoes from the following countries: Grenada, 
Saint Lucia, Dominica, Saint  Vincent and the Grenadines, Barbados, Montserrat, French Guiana, 
Martiniqu e, Guadeloupe, and Trinidad and Tobago.80 The importation of banana plants (musa spp.) 
and heliconias (flowers) is restricted from countries that have Black Sigatoka, Yellow Sigatoka, 
Fusarium Wilt Tropical Race  4, Banana Bunchy Top Virus, and Moko disease . Imports of musa spp. 
and heliconias are prohibited from countries that have Fusarium Wilt Tropical Race  4, which is a 
quarantine pest for Saint  Kitts and Nevis. Solonaceous crops are restricted from countries that have 
Tuta absoluta (Tomato leaf miner), which is a quarantine pest for Saint  Kitts and Nevis.81 The 
importation of citrus plants is restricted due to the Huanlongbing disease, citrus canker, and the 
citrus Tristeza virus; a certificate showing the plants are free from the disease must be present ed. 
The entry of palms from countries that have Lethal Yellowing, Lethal Bronzing, and Ganoderma Butt 
Rot is restricted.  
3.122.   The importation of animals is regulated by the Animals (National and International Movement 
and Prescribed Diseases Prevention) Act, 20 12 (Act  No. 7 of 2012). The Act provides for the control 
of the movement of animals and animal -related items into and within Saint  Kitts and Nevis. The Act 
contains provisions to prevent the introduction and spread of prescribed animal diseases within 
Saint Kitts and Nevis and to ensure the safe and humane movement of animals to and from 
Saint Kitts and Nevis. The Act is administered by the Chief Veterinary Officer and establishes the 
Veterinary Authority.  
3.123.   In accordance with the 2012  Act, the importation of  an animal or an animal -related item 
requires an import permit issued by the Veterinary Authority and an international veterinary 
certificate from the relevant authority of the exporting country. In considering an application for an 
import permit, the Auth ority may take into consideration only those scientifically justified conditions, 
or any conditions established in accordance with international standards. The Minister shall, by 
Order, on the recommendation of the Authority, specify the countries from whi ch a person may 
import animals or animal -related items. The Minister, on the recommendation of the Authority, may 
prohibit the importation of any animal or animal -related item where the importation would result in 
the introduction or spread of any vector, disease or toxic substance, or is not done in accordance 
 
80 FAO information. Viewed at: https://www.ippc.int/en/countries/saint -kitts-and-
nevis/reportingobligation/2012/12/phytosanitary -restrictions/ . 
81 FAO information. Viewed at: https://www.ippc.int/en/countries/saint -kitts-and-
nevis/reportingobligation/2020/08/legislati on-phytosanitary -requirements -restrictionsprohibitions/ . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  with established international standards and guidelines issued by the WTO and other international 
organizations.  
3.124.   Upon importation, animals, animal -related items, and other regulated articles are subj ect to 
inspection at the port of entry. All imported  animals, on being landed, may be required by the 
Veterinary Authority to be placed in quarantine for such period and subject to such conditions as 
may be prescribed. In practice, the majority of animal i mports are subject to quarantine, usually for 
at least one month, depending on the species of the animal and on where it comes from; this 
requirement does not apply to animals imported from other Caribbean countries, which supply about 
one tenth of these i mports. The large majority of animal imports are from the United  States, Canada, 
and Barbados. Any person who imports an animal, animal -related item, or other regulated article 
and who has not obtained an import permit or contravenes any term or condition contained in an 
import permit commits an offence and is liable on conviction to a fine of XCD  10,000 or to 
imprisonment for one  year. Any imported material may be seized by an inspector and, on the 
conviction of any person who may be charged with that offe nce, may be forfeited and retained, 
destroyed, or otherwise disposed of as the Minister may direct.  Upon application by the importer 
and payment of the prescribed fee, and where the container has been sealed and marked as 
prescribed, certain animals, anima l-related items, and other regulated articles may be inspected by 
an inspector at the final destination.  
3.125.   Another piece of legislation of importance is the Pesticides and Toxic Chemicals Control Act 
of 1999, as amended by Act  No. 22 of 2006, which provides for the regulation and control of the 
importation, storage, manufacture, sale, transportation, disposal, and use of pesticides and toxic 
chemicals. The Act is implemented by the Pesticides and Toxic Chemicals Control Board, which is 
the competent authority  charged with regulation and control of importation, storage, manufacture, 
sale, transportation, disposal, and use of pesticides and toxic chemicals in the Federation, and 
comprises 10 members from the Government and non -governmental organizations. The Boa rd 
comprises 12  members and evaluates applications submitted for registration, to obtain or cancel a 
licence or a research permit. The Board also monitors the implementation of the Pesticides (Labelling 
and Storage of Containers) Regulations – Section  55 50, SRO  No. 18/1975. Imports of pesticides 
require a licence from the Pesticide Board, under the Pesticides and Toxic Chemicals Control Act.  
3.126.   The authorities have noted that a holistic review of the Pesticides and Toxic Chemicals 
Control Act was conducted at  the regional level and subsequently at the national level with a view 
to creating a comprehensive Integrated Pesticides and Chemicals Management Act, policy brief, and 
road map and take into consideration Saint  Kitts and Nevis' obligations under several m ultilateral 
environmental agreements including the Minamata, Rotterdam, and Stockholm Conventions. The 
review was undertaken and completed in the third quarter of 2022 through a legal consultancy. As 
at October  2022, the draft policy brief, road map, and d raft Pesticides and Chemicals Management 
Act were awaiting a final review by government for implementation.  
3.127.   SPS measures are usually harmonized regionally. The authorities indicated that regulations 
on specific measure are drafted based on a review of the risks involved, both in scientific and 
economic terms, of not taking any action. SPS measures implemented are guided by pest risk 
analyses. As was the case in the previous Review, there is no formal mechanism to inform national 
stakeholders and trading par tners prior to the adoption of the measures. This is the case for both 
emergency and permanent measures. However, the authorities have noted that stakeholders are 
generally consulted. The authorities have also noted that Saint  Kitts and Nevis is guided by the 
principles of international standards for phytosanitary measures and where any restrictions or 
prohibitions are implemented, they are communicated to stakeholders locally and to any affected 
trading partners. Formal notification to stakeholders takes p lace after the implementation of a 
measure through its publication in the Gazette . Import and export guidelines for plants and related 
materials are available to stakeholders electronically as well as information about prohibitions and 
restrictions. Measur es are also advertised through the media, postings at the airports and seaports, 
and in meetings of the Caribbean Veterinary Association.  
3.128.   Act No. 14 of 2012, known as the Biosafety Act, 2012 regulates the registration and licensing 
of genetically modified organisms (GMOs). There are licences for intentional introduction of GMOs in 
the environment, for domestic use, for contained use, for imports, and for exports. A Biosafety Board 
was established to implement the provisions of the Act.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  3.3.4   Competition policy an d regulatory issues  
3.3.4.1   Competition policy  
3.129.   Saint Kitts and Nevis does not have a competition law, but has legislation that protects the 
consumer, the Consumer Protection Act, Cap  18.38 (Act  No. 9 of 2003). Amendments are being 
drafted to update the legislation. In this respect, the authorities noted that Saint  Kitts and Nevis is 
in the process of adopting the CARICOM Consumer Protection Code; they expect it to be adopted by 
mid-2023. On doing this, the 2003  Act will be repealed. They also indicated t hat the Act drafted by 
Saint Kitts and Nevis introduces only minor modifications to the CARICOM Code.  
3.130.   The provisions of the Consumer Protection Act of 2003, currently in place, protect consumers 
from misleading and deceptive practices in promotion, supply,  and sale of goods and services. The 
Act also addresses fair contract terms individually negotiated between suppliers and consumers. This 
Act applies to: (i)  persons acting in trade or commerce; and (ii)  statutory corporations and 
Government bodies.  
3.131.   At the  regional level, Chapter  VIII of the revised CARICOM Treaty covers competition policy 
and provides for the enactment and harmonization of legislation in CARICOM member States. The 
CARICOM Competition Commission established in January  2008 and headquartered  in Paramaribo, 
Suriname, is in charge of competition issues and enforcement in the CSME (Common  Report). The 
EPAs with the European  Union and with the United  Kingdom contain provisions with respect to 
competition policy.  
3.132.   The Department of Consumer Affairs  of the MITICCA enforces the Consumer Protection Act. 
The Department is also in charge of liaising with the CARICOM Secretariat. The Price Control Order 
of 2007, SRO  No. 41 of 2007, gives the Department of Consumer Affairs the legislative authority to 
enforce prescribed margins on a list of goods (see below). The Department receives input from the 
Ministries of Agriculture and Health, and from financial institutions.  
3.3.4.2   Price controls  
3.133.   Price controls on basic consumer items are allowed under national legislatio n. They have 
their legal foundation in the Distribution of Goods and Price Control Act  No. 7 of 1968, Cap  18.09. 
The controls are focused on goods and services that are particularly influential on the cost of living 
and on the quality of life of lower inco me families. Under the Act's provisions, the Minister may, by 
Order, provide for: (i)  regulating the distribution, purchase, or sale of goods or of any class or 
description of goods under the Act; (ii)  controlling the prices at which goods or any class or 
description of goods may be sold, whether by wholesale or retail either throughout the State or in 
any part or parts thereof; and (iii)  the terms and conditions on which any class or description of 
goods specified in the First Schedule to this Act shall be  hired and the maximum rates of hiring that 
may be charged in respect of such class or description of goods. An Order made under the provisions 
of the Act may direct that the maximum price of any goods shall not exceed a specified sum or may 
direct the man ner in which the maximum price shall be ascertained and may: (i)  fix different 
maximum prices for the same class of goods having regard to the terms upon which and the 
circumstances in which the goods are manufactured, imported, or sold, and the part of th e State in 
which such goods are sold to the consumers; and (ii)  fix alternate methods by which the maximum 
price may be ascertained for the same or different classes of goods.  
3.134.   The Act identifies special districts, which encompass the island of Nevis, and a reas of 
Saint Kitts outside the boundaries of the town of Basseterre, for which prices may be fixed. The 
Government's rationale for the controls is that, in small island States with only a few suppliers of a 
number of important products, competitive forces  may sometimes be bridled.82 
3.135.   The previous Price Control Order (SRO  No. 15 of 1999) fixed maximum wholesale and retail 
prices for a large number of goods, including, cement, milk, and cooking gas. This SRO was repealed 
and replaced by the Price Control Order of 2007, SRO  No. 41 of 2007. The new Order does not fix 
maximum wholesale or retail prices. Instead, it allows the wholesaler to make a 20% mark -up on 
 
82 Government of Saint Kitts and Nevis (2006), Prime Minister's Budget Address for 2007 . Viewed at: 
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  the landed cost of goods, while the retailer is allowed to make an additional 20% mark -up on the 
wholesale price of goods, or an add itional 25% on frozen items. The landed cost of the goods is 
calculated at the c.i.f. level adding duties and taxes as well as handling and portage charges. Under 
SRO No. 41 of 2007, prices are monitored for the following goods: chicken wings, leg quarters , 
drumsticks, backs, thighs, and necks; turkey wings; salt fish; mackerel; king fish; marlin; mutton; 
pig snout; pig tail; elbow; processed pasta; spaghetti; margarine; butter; processed cheese; 
sardines; corned beef; Vienna sausage; tuna; honey; cereal; r ice; detergent; and diapers. The 
Department of Consumer Affairs has the responsibility of monitoring prices and ensuring the correct 
landed cost is used before adding the mark -up. Areas identified as special districts under the 
Distribution of Goods and Pr ice Control Act may apply the maximum price system set out for special 
districts in SRO  No. 60 of 2011.  
3.136.   Currently, subsidies apply to liquified petroleum gas (LPG), cooking gas, and electricity.  The 
price of fuels is subject to maximum profit margins for d ealers and retailers; this is handled by the 
Ministry of Finance. The importation, distribution, and pricing of LPG and cooking gas in Saint  Kitts 
and Nevis is governed by the Distribution of Goods and Price Control Act, Cap  18.09. The Act gives 
the Govern ment control over the pricing and the supply of certain basic and important commodities 
to protect consumers from "arbitrary and market -driven pricing schemes". The price of cooking gas 
has remained stable since 2005 as a result of the application of the P rice of Goods Act, fixed at 
XCD 30 for a 20  lb tank and at XCD  140 for a 100  lb tank. The difference is subsidized by the 
Government.  
3.3.5   State -owned enterprises  
3.137.   Saint Kitts and Nevis has not notified any state trading enterprises to the WTO.  
3.138.   Until January  2013, the Supply Office had an import monopoly on wheat flour in bulk 
(packages bigger than 5  lb), rice in bulk (packages bigger than 10  lb), and evaporated milk. The 
monopoly did not extend to imports in retail -size packages. There are three  other major publ ic 
enterprises (the Air and Seaport Authority, the Development Bank of Saint  Kitts and Nevis, and the 
Frigate Bay Development Corporation), but they do not engage in trading activities.  
3.3.6   Government procurement  
3.139.   No official statistics are available regarding the value of government procurement in 
Saint Kitts and Nevis. Public sector current expenditure on goods and services represented some 
8.5% of GDP in 2021, while capital expenditure accounted for some 9.9% of GDP.  
3.140.   Saint Kitts and Nevis is not a party to th e WTO plurilateral Agreement on Government 
Procurement (GPA). During the review period, the authorities stated that Saint  Kitts and Nevis has 
no immediate plans regarding joining the GPA or participating as an observer. The CARIFORUM -EU 
EPA contains public  procurement conditions that require transparency in all government 
procurement above a threshold of approximately EUR  164,000 (Common Report). Similar provisions 
are contained in the CARIFORUM -UK EPA. The Framework Regional Integration Policy on Public 
Procurement (FRIP) contains elements of procurement legislation at a CARICOM basis. It contains 
transparency thresholds and procurement thresholds.  
3.141.   The Ministry of Finance is the entity responsible for government procurement in Saint  Kitts 
and Nevis, as mand ated by the Finance Administration Act of 1990, Cap  20.13. The Central 
Purchasing Unit (CPU), under the Ministry of Finance, procures stationery, furniture, and equipment 
for all sectors of the Government. All other supplies are procured at ministry or pub lic 
agency/enterprise level. For the procurement of supplies, local purchase orders are usually used; 
quotations from three local suppliers are obtained, and the supplier is chosen on the basis of lowest 
price. Tendering for small local public works projec ts is decentralized, while procurement for large 
projects for governmental agencies is centralized, and tenders must be submitted to the 
Government's Tenders Board. Tender notices are published in the Government Gazette . 
3.142.   The main law currently regulating p rocurement is the Procurement and Contract 
(Administration) Act  2012, Act No.  28 of 2012, enacted on 14  September  2012, and amended by 
Act No. 14 of 2013. The 2012  Act regulates procurement, establishes competition conditions in the 
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  contracts, and sets conditions for the use of the various procurement methods. The Act also contains 
principles to guide the selection among bids, the periods involved in the procurement proc ess, 
publication and other transparency requirements, appeal and review procedures, and sanctions. The 
Act covers procurement by all government agencies. Procurement made under a cooperative 
procurement agreement is exempted from the Act, as well as procur ement of funding, or part of 
funding, that is furnished to the Government by an international or regional agency. To date (2022), 
no regulations have been issued for the implementation of the Act.  
3.143.   The stated purposes of this Act and the regulations are to simplify, clarify, modernize, and 
make transparent procurement by the Government and more particularly to: (i)  require public 
competition in the procurement process except to the extent that the circumstances or size of the 
procurement make it impracticabl e; (ii)  foster and encourage broad participation in the procurement 
process by persons in Saint  Kitts and Nevis and, when required under international agreement, to 
persons outside the Federation; (iii)  provide for increased public confidence in the Govern ment 
procurement process by maintaining safeguards to ensure its integrity, fairness, accountability, 
transparency, and good governance; (iv)  ensure fair and equitable treatment of all persons who 
participate in the procurement process; and (v)  provide inc reased economy in procurement activities 
and to maximize to the fullest extent practicable the purchasing value of the money of the 
Government.  
3.144.   The Act states that procurements of works, goods, and services shall be made by the 
accounting officer of the re spective ministry, department, or entity, and made the Director of Public 
Works the procurement officer for works, heavy equipment and tools, and architectural, engineering, 
and land -surveying services. Additionally, the Act appointed the Manager of Procur ement in the 
Ministry of Finance as the procurement officer for all goods, other than: (i)  food; 
(ii) pharmaceuticals; (iii)  vehicles; (iv)  explosives; (v)  firearms; (vi) petroleum products; (vii) water 
equipment, fixtures and fittings; (viii) restricted g oods pursuant to the Customs (Control and 
Management) Act, Cap  20.04; and (ix)  such other goods as the Minister may by Order prescribe. 
The Act established the Procurement Board, headed by the Financial Secretary, which has the 
authority to determine when sole source or emergency procurement may take place and grant or 
refuse contract awards based on its satisfaction with the procurement procedures.  
3.145.   Procurement must be made using one of the following methods: (i)  competitive tender, 
under either sealed bids  or sealed proposals; (ii)  sole source procurement; (iii)  emergency 
procurement; and (iv)  competitive quotations. Tenders are mandatory above a threshold to be 
determined in the implementing regulations. Below that threshold, procurement can take place 
through competitive quotations. Sole -sourced procurement may be used when the goods, services, 
or works required can only be procured from one source; if it is above the threshold for mandatory 
tendering, it must be approved by the Procurement Board. The thre sholds have not yet been defined.  
3.146.   Procurement contracts by tendering procedures must be awarded to the qualified bidder who 
submits the best responsive evaluated tender with respect to quality, availability, capability, and 
price.  
3.147.   Imports for government co nsumption are not subject to customs duties or consumption tax, 
but they are subject to the CSC.  
3.148.   The Government of Saint  Kitts and Nevis, as part of its process to strengthen and boost the 
procurement regime has partnered with the CDB as an active particip ant in the Public Procurement 
Reform of the Eastern Caribbean States (PPRECS) Project. As part of the ongoing work under this 
Initiative, Saint  Kitts and Nevis, with the support of the CDB, accessed technical assistance (TA) 
commencing in January  2020 and is currently revising the Procurement and Contract Administration 
Act (2012) and drafting supporting Regulations.  
3.3.7   Intellectual property rights  
3.3.7.1   Overview  
3.149.   The Intellectual Property Office in the Ministry of Justice and Legal Affairs is responsible for 
the drafting and administration of intellectual property legislation. The Office was created by WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  section  3 of the Patents Act, Cap  18.25. The registration of pa tents, trademarks, and service marks 
is done in the Intellectual Property Registry in the Intellectual Property Office.  
3.150.   The operations and activities of the Intellectual Property Office and all related matters 
involve giving effect to the provisions of int ellectual property rights (IPR) legislation, including the 
Patents Act, Cap  18.25; the Copyright Act, Cap  18.08; the Marks, Collective Marks and Trade Names 
Act, Cap  18.22; the Geographical Indications Act, Cap  18.39; and the Copyright (Specified 
Countries ) Order, No.  6 of 2018.83 
3.151.   Legislation on trademarks, patents, and copyright was updated in 2000 to make it 
compatible with the TRIPS  Agreement. Three such laws were passed by Parliament in that year and 
entered into force in 2002. Later, in 2007, the Geogr aphical Indications Act No.  6 of 2007, 
Cap 18.39, was passed, but it did not enter into force until 2016. The Protection of Layout Designs 
Act was also passed in 2007 and entered into force that year. However, enabling regulations are still 
either in draft  form for trademarks or do not exist for patents. Regulations for copyright were 
implemented in 2018 (see below). There is no legislation for the protection of undisclosed 
information in Saint  Kitts and Nevis.  
3.152.   Saint Kitts and Nevis notified all its IPR leg islation to the TRIPS Council in December  2016.84 
Saint Kitts and Nevis is a member of the World Intellectual Property Organization (WIPO) and a 
signatory to five WIPO -administered treaties (Table  3.8). Saint  Kitts and Nevis did not adhere to any 
new WIPO treaties during the period under review.  
Table  3.8 Membership in WIPO -administered intellectual property treaties, 2022  
Convention/Agreement  Accession  
Convention Establishing the World Intellectual Property Organization (1970)  9 April 1995 
Paris Convention for the Protection of Industrial Property, Stockholm Text (1883)  9 April 1995 
Berne Convention for the Protection of Literary and Artistic Works, Paris Text (1886)  9 April 1995 
Patent Cooperation Treaty (1970)  27 October  2005 
Nice Agreement Concerning the International Classification of Goods and Services for the 
Purposes of the Registration of Marks (1957)  27 October  2005 
Source:  WIPO, WIPO -Administered Treaties . Viewed at: https://www.wipo.int/treaties/en/index.html . 
3.153.   Saint Kitts and Nevis is a member of various other IP -related treaties, such as the IPPC 
(ratified on 2  October  2005); the Cartagena Protocol on Biosafety to the Convention on Biological 
Diversity (11  September  2003); and the Convention concerning the Protection of the World Cultural 
and Natural Heritage (10  October  1986).  
3.154.   Since its last Review in 2014, Saint  Kitts and Nevis has passed or amended a number of 
IPR-related laws and regulations, including the Companies Amendment Act (Act  No. 7 of 2019) , 
which contains text on enforcement of IP and rela ted laws; the St  Christopher and Nevis Copyright 
(Specified Countries) Order, 2018 , SRO  No. 6 of 2018, which deals with copyright and related rights, 
in particular neighbouring rights; a  2017 amendment to the  Companies Act, Cap  21.03, Act  No. 22 
of 1996 , on issues dealing with industrial designs, trade names, and enforcement of IP and related 
laws; a 2017 amendment to t he Customs Act, Cap.  20.04, Act  No. 19 of 2014 , dealing with patents 
(inventions), trademarks, copyright and related rights (neighbouring rights), and enforcement of IP 
and related laws;  a 2017 amendment to the  Electronic Transactions Act, Cap  18.44, Act  No. 9 of 
2011, relating to enforcement; the entry into force of the Geographical Indications Act, Cap  18.39 ; 
and a 2017 amendment to the Income Tax Act, Cap  20.22, Act  No. 17 of 1966 , related to IP.  
3.3.7.2   Trademarks  
3.155.   The main law with respe ct to Trademarks is the Marks, Collective Marks and Trade Names 
Act, Cap  18.22 (Act No.  10 of 2000 as amended), which entered into force in 2002 and is known as 
the Trademarks Act. The Trademarks Act grants protection to all visible signs capable of 
distin guishing goods (trademarks) or services (service marks), as well as collective marks and trade 
 
83 Intellectual Property Office, Who We Are . Viewed at: https://www.legal.gov.kn/intellectual -property -
office/ . 
84 WTO d ocuments IP/N/1/KNA/1, IP/N/1/KNA/C/1; IP/N/1/KNA/2, IP/N/1/KNA/T/1; IP/N/1/KNA/3, 
IP/N/1/KNA/P/1; and IP/N/1/KNA/4, IP/N/1/KNA/L/1, 2  December  2016.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  names. In accordance with the Act, t he exclusive right to a trademark is acquired through registration 
in the Register of Marks. The term of protection is 10  years, renewable for consecutive periods of 
10 years each. The Act provides for the right of priority of an earlier national or regional application 
filed by the applicant in any WTO Member or State party to the Paris Convention, as well as provisions 
on lice nces.  
3.3.7.3   Patents  
3.156.   Patents are regulated by the Patents Act  No. 9 of 2000, which entered into force in 2002. 
Patent protection lasts up to 20  years from the date of filing. Protection is renewed every year 
through the payments of fees. Patentability is granted to new inventions involving an inventive step 
and capable of industrial application.  
3.157.   The Act grants the right of priority to WTO Members and parties to the Paris Convention, 
and provisions on compulsory licensing in cases of public interest, in particular,  national security, 
health or the development of vital sectors for the economy, or if the exploitation of the patent is 
deemed to be anti -competitive by the Government, or there has been non -use of a patent.  
3.158.   According to WIPO statistics, there were 146  patent applications over 2014 -20; 124 were 
abroad through the PCT and 22 were domestic, but all from non -residents; there were 30 patent 
grants, all abroad. During the same period, there were 29  industrial design applications and 
registrations (none for utili ty models); all applications were made abroad.85 
3.3.7.4   Geographical indications  
3.159.   The Geographical Indications Act of 2007 only came into effect on 1  November  2016. Prior 
to this date, geographical indications (GI) were protected as collective marks under the trad emark 
legislation. The 2007  Act provides protection: (i)  to an indication that identifies any goods as 
originating in the territory of a country or a region or locality in that territory where a given quality, 
reputation, or other characteristic of the par ticular goods is essentially attributable to its GI; (ii)  to 
a GI even if it has not been registered; however, registration of a GI offers a higher level of 
protection; (iii)  against a GI that gives a false representation to the public that the goods origi nate 
in a territory other than the one it actually derives from; and (iv)  in respect of homonymous GIs for 
wines, protection shall be given to each indication.  
3.160.   The right of use of a GI is restricted to a producer carrying on activity in the geographical 
area specified in the Register, in the course of trade and only in respect of the products specified in 
the Register where such products possess the quality, reputation, or other characteristic set out in 
the Register. The Act allows for invalidating the reg istration of a GI on the grounds that the GI does 
not qualify for protection, rectifying the registration of a GI on the grounds that the geographical 
area specified in the registration does not correspond to the GI, and the indication of the products 
for which the GI is used, or the indication of the quality, reputation, or other characteristic of such 
products is missing or unsatisfactory. The Act also contains provisions that allow for proceedings to 
prevent the unlawful use of GIs or to prevent a use th at constitutes an act of unfair competition 
within the meaning of Article  10bis of the Paris Convention. The Registrar may refuse or invalidate 
the registration of a trademark that contains or consists of a GI with respect to goods not originating 
in the territory indicated, if use of the indication in the trademark for such goods in  Saint Kitts 
and Nevis is of such a nature as to mislead the public as to the true place or origin of such goods. 
The Registrar additionally may invalidate or refuse a mark that conflicts with a GI for wines and 
spirits.  
3.3.7.5   Copyright  
3.161.   The Copyright Act, Cap  25.08 (Act  No. 8 of 2000), which entered into force in 2002 contains 
legislation on copyright and neighbouring rights. The term of  copyright protection is life plus 50  years 
for literary, dramatic, musical, and artistic works; 50 years for sound recordings, films, broadcasts, 
and cable programmes; and 25  years from the end of the calendar year in which the edition was 
first published for typographical arrangements of published editions. Literary works encompass 
 
85 WIPO, Statistical Country Profiles: Saint Kitts and Nevis . Viewed at: 
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  computer programs and tables and compilations. T he Copyright Act also extends protection of moral 
rights to producers of phonograms and to performers. Copyright owned by international 
organizations is protected for 50  years from the date of creation of the work.  
3.162.   The Copyright Act also provides for copyr ight protection in audiovisual production made by 
foreign performers and foreign producers, as well as neighbouring rights in a broadcast made by a 
foreign broadcasting organization. It contains provisions with respect to copyright licensing. The 
authoriti es indicate that they are currently reviewing the Copyright Act, and amendments to it are 
expected to be implemented in 2023.  
3.163.   Copyright legislation protects foreign works, as specified by the Saint Christopher and Nevis 
Copyright (Specified Countries) Orde r, 2018, SRO  No. 6 of 2018 (see below). Prior to the 
implementation of this Order, protection of eligible works was limited to authors who were nationals 
or habitual residents of Saint  Kitts and Nevis or if the work was first published in the country. In t he 
course of a 2016/17 review of its legislation by the TRIPS Council, S aint Kitt and Nevis stated that 
there was an ongoing legislative review of this provision as inconsistent with provisions of the 
TRIPS  Agreement. This would not require parliamentary i ntervention but a legislative amendment 
in Parliament.86 This led to the implementation of SRO  No. 6 of 2018.  
3.164.   The Copyright Act allows for exceptions or exemptions of National Treatment and 
MFN Treatment. The Copyright Act enables the Minister, by Order, t o restrict or allow protection to 
works and nationals of any country specified therein. Section  145 of the Act allows the Minister to 
order that the provisions of the Copyright Act can apply on bases including nationality/habitual 
residence, place of incor poration for bodies corporate, nature of the works, and place of publication 
or performance. Section  146 confers a power on the Minister to restrict protection to countries that 
do not provide adequate protection to works of Saint  Kitts and Nevis.  
3.165.   The Sain t Christopher and Nevis Copyright (Specified Countries) Order, 2018, SRO  No. 6 of 
2018, made under section  145 of the Copyright Act, Cap  18.08, and published on 29  March  2018, 
in the Official Gazette No.  18 of 2018, extended copyright protection for works from countries 
specified in it. In fact, the Act contains in its Schedule a list of countries (specified countries) to 
which the Copyright Act applies. More specifically, the Order states that the provisions of the Act 
shall apply in relation to: (i)  perso ns who are citizens or habitual residents of a Specified Country as 
they apply to persons who are citizens or habitual residents of Saint  Kitts and Nevis; (ii)  bodies 
incorporated or established under the laws of a Specified Country as they apply in relati on to bodies 
incorporated or established under the laws of Saint  Kitts and Nevis; (iii)  literary, dramatic, musical, 
or artistic works; and sound recordings, films, and typographical arrangements of published editions 
first published in a Specified Country  as they apply in relation to such works, sound records, films, 
and editions first published in Saint  Kitts and Nevis; (iv)  broadcasts made from or cable programmes 
sent from a Specified Country as they apply in relation to broadcasts made from or cable 
programmes sent from Saint  Kitts and Nevis; (v)  performances taking place in that country or given 
by an individual who is a citizen or habitual resident of that country; (vi)  performances incorporated 
in a phonogram that is protected under Article  5 of the Rome Convention; or performances not being 
fixed on a phonogram, which are carried by a broadcast that is protected by Article  6 of the Rome 
Convention, as they apply in relation to performances taken in Saint  Kitts and Nevis or given by an 
individual who is a citizen or habitual resident of Saint  Kitts and Nevis. The Order also specifies that, 
where the term of protection for a work has expired according to the legislation in force in a Specified 
Country where the work was first published, the work shall n ot enjoy protection under the provisions 
of the Act.  
3.3.7.6   Enforcement of intellectual property rights  
3.166.   Saint Kitts and Nevis submitted to the WTO the Checklist of Issues on Enforcement of 
Intellectual Property Rights in December  2016.87 
3.167.   In general, the judicial authorities may order injunctions; damages, including recovery of 
profits, and expenses, including attorney's fees; destruction or other disposal of infringing goods 
and materials/implements for their production; and any other remedies. In respect of all c ivil 
 
86 WTO document IP/C/W/623, 30  January  2017.  
87 WTO document IP/N/6/KNA/1, 21  December  2016.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  IPR infringement cases, costs including expenses and attorney fees can be awarded pursuant to the 
Civil Procedure Rules or the Magistrates Code of Procedure.  
3.168.   The different IP laws contain dispositions with respect to enforcement. The Patents Act sets 
out various enforcement mechanisms; a plaintiff in proceedings for infringement shall be entitled to 
relief by way of: (i)  an injunction restraining the defendant from any apprehended act of 
infringement; (ii)  an order for the defendant to deliver up or de stroy any patented product in relation 
to which the patent is infringed or any article in which that product is inextricably comprised; 
(iii) damages in respect of the infringement; (iv)  an account of the profits derived by the defendant 
from the infringem ent; and (v)  any other relief provided for in the general law; an injunction to 
restrain the defendant from causing the infringement; an order to deliver up or destroy the infringing 
product, which can include the seizure of imports; an award of damages; a  payment on account of 
the profits derived from the infringement by the defendant; or any other relief mandated by the 
Court.  
3.169.   Under the Trademarks Act, infringement of the right to a mark may lead to a High Court 
injunction; an award of damages; an order t o seize, forfeit, or destroy any infringing product or 
article; or to other remedies as decided by the High Court. Customs is authorized to seize imports 
to prevent goods infringing marks from entering the country. Forging a mark or a collective mark, 
or importing products containing a forged mark or infringing the right to a mark is liable to a fine of 
not less than XCD  15,000 but not more than XCD  40,000, or to imprisonment of 5 to 12  years. 
Under trademark legislation, injunctions can be granted for infr ingements and imminent 
infringements. However, this applies only to trademarks registered in Saint  Kitts and Nevis.  
3.170.   The Copyright Act contains provisions on civil and criminal proceedings for copyright 
infringement through the sale, hire, or importation of goods. Infringement of copyright is punishable 
by a fine of up to XCD  250,000, up to five years' imprisonment, or both. Remedies for infringement 
of economic rights include seizure of infringing copies and adjudication of damages. Under the 
Copyright Act, the Comptroller of Customs may temporarily restrict importation of infringing copies 
after the copyright owner has requested the Comptroller in writing to do so. Within this request, the 
owner must furnish evidence of pending or actual impor tation and give security and indemnity 
against the Comptroller. Further provisional measures in relation to this restriction can be made by 
the Minister.  
3.171.   No detailed information was available to the Secretariat on enforcement activities. However, 
the autho rities note that there were four  cases related to enforcement of IPR rights during the review 
period.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture  
4.1.  Saint Kitts and Nevis has a small agriculture sector. After the closure of the sugar industry, 
agriculture  has lost considerable share of GDP. The contribution of agriculture, livestock, and forestry 
to GDP was just 0.7% in 2021, of which the contribution of farming was 0.4%, livestock 0.3%, and 
forestry less than 0.1%. The share of fishing, on the other hand,  has been increasing. It  contributed 
1% to GDP in 2021.  
4.2.  Following the closure of the Saint  Kitts Sugar Manufacturing Corporation (SSMC), the Sugar 
Industry Diversification Foundation (SIDF) was established to facilitate its insertion in other parts of 
the economy. With time, the SIDF has become an important investor in the economy, especially in 
the agriculture sector, which has received a significant share of its total funds.  
4.3.  After stopping the production of sugar, the main crops are now fruits, such as pi neapple, 
papaya, and watermelon, as well as tomatoes, together with sweet potatoes, onions, sweet peppers, 
and peanuts. Agri -processing activities are also of importance and revolve around the production of 
beer and dehydrated fruit products as well as jui ces. These activities have been developing 
particularly since the demise of the sugar industry.88 There are currently some 45 agri -processors 
in operation.  
4.4.  The Ministry of Agriculture and Marine Resources is responsible for agricultural, livestock, and 
marine resources policy formulation and management. The Ministry of Environment  is responsible 
for forestry. The Department of Agriculture in the Ministry of Agriculture and Marine Resources is 
responsible for the development of non -sugar agriculture in Saint  Kitts. The Department's main 
mission is to support non -sugar agriculture and to secure food self -sufficiency and satisfy export 
markets towards sustainable development. The Department operates specific programmes for crop 
and livestock development guided by a Strategic Plan and implemented through the Annual Work 
Programme, which follows the guidelines of a broader Agricultural Development Strategy. The 
Department of Marine Resources is responsible for fisheries policies.  
4.5.  The Ministry of Agriculture and Ma rine Resources in Saint  Kitts provides some support services 
to farmers, extension and advisory services, such as the Farmer Training Programme, and market 
research and marketing assistance. Financial incentives are also granted to the sector, for example,  
a special rate for water used by farmers for agriculture, and duty and tax concessions on farm 
vehicles, farm equipment, and farm inputs. The Department of Agriculture provides technical support 
to farmers to protect crops from severe weather and pests th rough projects such as the 
Agriculture  Resource Management Project. The main plan with respect to agriculture is the 
Saint Kitts and Nevis Agricultural Transformation and Growth Strategy 2022 -2031, which was 
launched on 30  September  2021.  
4.6.  The Ministry of A griculture, Lands, Housing, Co -operatives and Fisheries of the Nevis 
Island  Administration has general oversight and responsibility for the Departments of Agriculture, 
Co-operatives and Fisheries as well as the Nevis Housing and Land Development Corporatio n. Its 
main objective is to transform and support the progressive growth of agriculture, fisheries, and 
cooperatives so as to overcome the challenges of food security and poverty and to actively 
participate in and benefit from global trade.89 The Ministry,  with resources from the Basic Needs 
Trust Fund (BNTF), assists farmers and processers to improve their packaging and labelling by 
providing equipment to generate and affix labels and barcodes to their products. Assistance to the 
livestock subsector has be en mainly through the provision of medicaments to combat animal 
diseases at a subsidized price and assistance to foster artificial insemination.  
 
88 Among the products ide ntified for development are cassava products; cookies; tarts; jams and jellies; 
coconuts oils; fruit wines; fruit drinks; fermented drinks; hot sauce; cakes; pastries; chips; candies; 
condiments; dried fruit; vinegar; and sweet potato products.  
89 Ministry of Agriculture, Lands, Housing, Co -operatives and Fisheries of the Nevis Island 
Administration, Ministries: Min. of Agriculture . Viewed at: https://nia.gov.kn/ministries/agriculture/ . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  4.7.  The Government of Saint  Kitts and Nevis provides limited assistance, which for fisheries focuses 
on expanding t he use of fishing aggregate devices (FADs)90 and on providing training to fishers. The 
Department of Marine Resources has taken steps to explore the viability of aquaculture on a wider 
scale following the success of the Saint  Kitts and Nevis Aquaculture Pi lot Project (SNAPPER). 
Assistance has been received through the ACP FISH II Project, financed by the European  Union to 
formulate an Aquaculture Development Strategy. Saint  Kitts and Nevis, together with other 
Caribbean countries, has signed a memorandum of  understanding endorsing the partnership 
between the Caribbean Regional Fisheries Mechanism (CRFM) and the Organization for Fisheries and 
Aquaculture of the Central American Isthmus (OSPESCA) for the conservation, management, and 
sustained development of m arine life. Assistance was also provided by the Government during the 
COVID -19 pandemic.  
4.8.  Persons who sell, trade in, deal in, supply, or dispose of agricultural produce or livestock 
exceeding XCD  100 in value or 10  kg in weight are required to register in the Register of Vendors of 
Agricultural Produce and Livestock. Registration is mandatory, as stipulated by the Agricultural 
Produce and Livestock (Registration of Vendors) Act,  2012 (Act  No. 8 of 2012). A certificate of 
registration may be granted, which i s valid for five years from the date of issue, upon payment of 
the prescribed fee, and is renewable. The authorities note that the implementation of the Register 
is work in progress.  
4.9.  Tariffs for agricultural products are higher than those on non -agricultur al goods. In 2022, the 
applied MFN tariff on imports of agricultural products (WTO definition) averaged 17.4% in 2022, up 
from 15.0% in 2013, while tariffs on non -agricultural products faced an average MFN tariff of  9.9% 
(9.2% in 2013). The highest average  rates by WTO category are on sugar and confectionery 
(24.3%), fruit and vegetables (22.8%), and beverages and spirits (22.7%). Specific import duties 
are applied on some agricultural and agri -industrial goods (Section  3.1.4). The supply of agricultural 
products grown in Saint  Kitts and Nevis is exempt from VAT.91 Tariff quotas are not used. Import 
licences are required for vegetables, eggs, and meat from non -CARICOM countries. Eggs may be 
imported from non -CARICOM countries only by domestic egg producers w hen domestic production 
is insufficient. Imports of some vegetables (cabbages, onions, sweet peppers, tomatoes, and white 
potatoes) are subject to seasonal import restrictions. Import permits are required before introducing 
into Saint  Kitts and Nevis any l ive animals, poultry, or birds or carcasses and parts thereof, plants, 
and planting materials, and pesticides. Saint  Kitts and Nevis has not notified any SPS measures to 
the WTO.  
4.10.  During the period under review, the agriculture sector continued benefiting f rom SIDF 
financing, but this assistance is currently terminated. Assistance was concentrated on six projects: 
(i) the Capisterre Farm Project, which is a 113 -acre farm funded by the Foundation through a total 
investment of XCD  7 million over five  years; (i i) the Hydroponics Community Farms project, focused 
on training to help grow crops vertically in stacked pots of coconut; (iii)  the Agricultural Resource 
Management (ARM) Project, which helps farmers to use soil conservation and land management 
techniques to improve the quality and yield of their produce; and deals with the construction of 
shade houses and training farmers in the production of vegetables under shade houses; (iv)  the 
Agricultural Subsidized Loans Programme established in  2008, which encourag es entrepreneurship 
and fosters growth through access to cre dit at contained cost; (v)  a floricultural project at La Valley, 
St Pauls; and (vi)  an Agricultural Training Employment Project (ATEP), established in October  2007 
to enhance the personal developm ent of unemployed former sugar -industry workers.  
4.11.  SIDF initially committed over XCD  10 million in the form of a grant to fund activities of the 
ARM Project. The Project was later expanded to serve even more farm communities with additional 
grant funds of XC D 7.46 million from SIDF. Capisterre Farm's funding by SIDF totalled investment 
of XCD  7 million. The project consists of 50  acres of farmland currently under cultivation and divided 
into two sections: fruit trees and vegetable crops. The Farm grows a vari ety of crops such as 
pineapples, watermelons, seasoning peppers, cabbage, peanuts, yams, sweet potatoes, sweet 
peppers, dasheen, and bananas, which are mainly supplied locally to supermarkets, vendors, hotels, 
and restaurants. The Hydroponics project invol ves growing crops vertically in stacked pots that are 
 
90 FADs are ma n-made objects used to attract over 300 species of pelagic fish such as marlin, tuna, and 
dolphin fish. FADs generally consist of buoys or floats fastened to the ocean floor with concrete blocks.  
91 In accordance with the VAT Act  of 2010, this includes cove r plants, trees, vines, and their produce; 
flowers, fruits, and vegetables; locally raised poultry; fish; and pigs, goats, cows, or other animals and their 
related products, whether supplied live or not.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  filled with coconut mesh. The plants are grown in a greenhouse; funds allocated total 
XCD 5.4 million. A total of 84  farmers have benefited from an Agricultural Subsidized Loan Program, 
established in 2 008, to encourage entrepreneurship and foster growth in the medium -small and 
micro -agrobusiness sectors. Funding for this programme, for a total of XCD  2 million was provided 
by SIDF through the Development Bank of Saint  Kitts and Nevis, which is responsib le for managing 
and administering the funds. Under this programme, farmers receive loans of up to XCD  25,000 
interest free. SIDF provided funds totalling XCD  290,300 for the Floriculture project to provide 
training in horticultural practices and life skill s to workers who were unemployed following the closure 
of the sugar industry. In March  2009, the La Valley Floriculture Project was upgraded into the ATEP, 
which was created in 2007 to enhance the personal development of unemployed former workers of 
the Sa int Kitts Sugar Manufacturing Corporation (SSMC). SIDF granted XCD  5.2 million to the 
ATEP.92 
4.12.  The Capisterre Farm project has been traditionally used by the authorities in their quest to 
ensure food security, which has always been a policy priority and who se importance has been 
increased by the supply shortages experienced in recent years worldwide. For instance, attempts 
have been made to increase production of fresh vegetables. The traditional objective has been to 
increase the supply of selective crops t o a point where consumers can benefit from lower local prices 
of vegetables on the local market. The authorities indicate that the Capisterre Farm has now been 
divided into smaller plots to promote sustainable agriculture.  
4.13.  Saint Kitts and Nevis has devised  an Agricultural Transformation and Growth 
Strategy  2022-2031, primarily focusing on enhancing national food and nutrition security with an 
emphasis on food safety and reducing crop losses with respect to pests of economic concern. Human 
and financial reso urce constraints, including a turnover of medium -level staff, underscore the need 
for stability in this area of focus and constant technical assistance in areas such as reporting 
obligations under the WTO  SPS Agreement.  
4.14.  The authorities note that the curren t legislative instrument that governs plant protection and 
health is outdated. Several national consultations have been held to update and bring the legislation 
into compliance with all international obligations. The draft Plant Protection Act seeks to pre vent the 
entry and establishment of, and to control the spread of, plant pests; protect plant resources; 
facilitate the movement of plants and plant products into and within Saint  Kitts and Nevis; and 
regulate other matters connected thereto. Draft legisla tion was circulated for public comments in 
the fourth quarter of 2021 and is awaiting a final review by the Legal Department to permit passage 
into Law.  
4.15.  The Department of Marine Resources (DMR) in the Ministry of Agriculture is the authority 
responsible fo r fisheries post -harvest activities and trade, in accordance with Part  7 of the Fisheries 
Aquaculture and Marine Resources Act. The DMR collaborates with relevant government agencies to 
ensure regulations regarding the import, handling, sale, transport, st orage, treatment, and 
processing of fish; promote value; and minimize or prevent risks to human health. However, the 
DMR does not engage, or enter into arrangements, with other States relating to shared fishery 
resources for the purposes of harmonization o f fish trade, marketing, and safety and quality 
standards without consultation with relevant agencies including the Ministries of Agriculture, Trade 
and Tourism, Health, and Safety, and Finance.  
4.2  Manufacturing  
4.16.  Manufacturing, including food processing, accounted for 4.7% of current GDP in 2021. The 
sector is concentrated on light manufacturing activities, especially the production of electronic 
components, which make up for almost three quarters of merchandise exports. In fact, 
Saint Kitts and Nevis is the largest OECS exporter of goods, especially manufactures, to the 
United  States. The main products are electrical or electronic components, and traps for the cable 
industry, for the external market, particularly the United  States, as well as l ight manufactures such 
as alcoholic and non -alcoholic beverages (beer, malt, rum, bottled water, and soft drinks).  
4.17.  The 2021 average MFN tariff on imports of industrial products (ISIC -3 definition) was 10.3%, 
with a peak of 70% (for arms and ammunition); th e average MFN tariff for non -agricultural products 
 
92 SIDF, Agriculture . Viewed at: https://sknsidf.org/agriculture/ . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  (WTO definition) was 9.9%. The highest average tariffs are applied on beverages and tobacco, 
clothing and apparel articles, footwear, fats and oils, and prepared food.  
4.18.  The manufacturing industry benefits f rom the incentives granted under the Fiscal Incentives 
Act and its amendment, and the Small Business Development Act. This includes tax relief from 
corporate tax and customs duties to approved enterprises for up to 15  years.  
4.3  Services  
4.3.1   Main features  
4.19.  Services  are the largest contributors to GDP and employment in Saint  Kitts and Nevis. 
Services account for about 75% of GDP; the main activities are linked to tourism (transportation, 
hotels and restaurants), but the financial sector is also important. Constructio n activity and services 
have been gathering importance, and in 2021, became the single largest contributor to GDP.  
4.20.  Saint Kitts and Nevis made sector -specific commitments under the GATS, in 5 of the 12  main 
service areas: financial services (other financial  services), tourism and travel -related services (hotels 
and restaurants); recreational, cultural, and sporting services (entertainment and sporting services); 
communications services (telecommunication services); and transport services (maritime 
transport) . With the exception of hotel and restaurant services, there are no limitations on 
sector -specific commitments in the cross -border supply and consumption abroad modes. For 
commercial presence, sector -specific reservations are maintained in most subsectors in which 
commitments were made. In tourism, a market access commitment, without restrictions, is granted 
for hotels in excess of 50  rooms, but not for smaller ones. For the presence of natural persons mode, 
market access and national treatment are generall y unbound or subject to limitations.  
4.21.  Saint Kitts and Nevis made horizontal commitments for the movement of natural persons and 
commercial presence. To provide services through commercial presence, the foreign service provider 
must incorporate or establish a business locally in accordance with the regulatory requirements of 
Saint Kitts and Nevis. Foreign companies and individuals wishing to hold property in Saint  Kitts and 
Nevis must first obtain a licence in accordance with the Alien Landholding Act (Sectio n 2). 
Saint Kitts and Nevis reserved a number of small business service opportunities for nationals. Market 
access for the presence of natural persons is confined to people with managerial and technical skills 
that are in short supply or not available in S aint Kitts and Nevis. Saint  Kitts and Nevis has not listed 
any Article  II (MFN) exemptions.  
4.3.2   Financial services  
4.22.  Financial services are one of the main economic activities in Saint  Kitts and Nevis, directly 
accounting for some 7.5% of GDP in 2021.  
4.23.  Under the GATS, Saint  Kitts and Nevis made commitments in financial services only with 
respect to the "registration of offshore companies and trusts (not including insurance companies and 
banks) to do offshore business".93 Saint Kitts and Nevis did not participate i n the extended WTO 
negotiations on financial services.  
4.24.  The Financial Services Regulatory Commission (FSRC), established under the Financial 
Services Regulatory Commission Act, No.  22 of 2009, Cap  21.10, regulates and supervises the 
non-bank financial secto r. This includes insurance companies (domestic and captive (offshore)); 
private pension plans; money services businesses; credit unions; the Development Bank of 
Saint Kitts and Nevis; and trust and corporate service providers. The FSRC is also responsible for 
monitoring compliance with anti -money -laundering and counter -financing of terrorism legal 
provisions. The FSRC houses the company, trust, foundation, and limited partnership registries, and 
it reviews the operations of all regulated entities, monitors financial services business carried on in 
or from within Saint  Kitts and Nevis, and may take action against persons carrying on unauthorized 
businesses.  
 
93 WTO document GATS/SC/119, 16  November  1995.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  4.25.  The ECCB is the regulator of the banking system in Saint  Kitts and Nevis. The FSRC, 
established under t he Financial Services Regulatory Commission Act, No.  22 of 2009, regulates the 
non-bank financial sector, including insurance. The Nevis Financial Services Regulation and 
Supervision Department is the Nevis Branch of the FSRC and is the agency responsible for 
authorizing and licensing companies or persons to conduct financial services business and for 
monitoring regulated financial services activities to safeguard the public against any illegal and or 
unauthorized financial services business operating withi n or from Nevis.  
4.26.  The FSRC regulates/supervises the following entities: insurance companies (domestic and 
captive); private pension plans; money services businesses; credit unions; the Development Bank 
of Saint  Kitts and Nevis; and trust and corporate servi ce providers. In addition, the FSRC monitors 
compliance of all regulated businesses and activities with anti -money laundering and 
counter -financing of terrorism legislation. The FSRC also houses the companies, trusts, foundations, 
limited partnerships, and  non-governmental organization registries. The FSRC's main objectives are 
maintaining public confidence in the financial system, promoting public understanding and 
awareness of the financial system, and securing the appropriate degree of protection for con sumers. 
The FSRC monitors financial services business conducted in or from within Saint  Kitts and Nevis and 
may take action against persons carrying on unauthorized businesses, or against regulated persons 
not in compliance with the Crime Act, the Anti -Terrorism Act, and other acts, regulations, codes, or 
guidelines relating to money laundering or the financing of terrorism. The FSRC's supervision and 
regulation of financial services business is carried on in accordance with internationally accepted 
standar ds. The Commission encourages the development of high professional standards within the 
financial services industry and promotes industry codes of conduct.94 
4.27.  Through the Corporate Registry, the Nevis Branch of the FSRC is also responsible for the 
registrat ion of all international companies, for the formation of trusts and foundations and 
international insurance companies.  
4.28.  The Saint  Kitts and Nevis Financial Intelligence Unit (SKNFIU), in the Ministry of Finance, is 
responsible for combating money laundering  and terrorist financing.95 The SKNFIU, established 
under the Financial Intelligence Unit Act, Cap  21.09 as amended, is the national centralized agency 
for collecting, receiving, and analysing suspicious transaction reports (STRs) and financial 
transaction s/activities suspected of being related to money laundering and terrorist financing; 
receiving terrorist property reports; and disseminating information to relevant authorities for 
necessary action. The SKNFIU may liaise with foreign FIUs and enter into ar rangements with them.96 
The SKNFIU has the authority to freeze bank accounts for up to five days.97 It is also involved in the 
tracing of illicit funds, and thus represents the element linking the various administrative, 
supervisory, law enforcement, and j udicial authorities charged with identifying and tracing money 
laundering and terrorist financing capital flows.  
4.29.  The Anti -Money Laundering and Countering Financing of Terrorism (AML/CFT) regime in 
Saint Kitts and Nevis requires businesses engaged in financ ial services to file STRs and Terrorist 
Property Reports with the SKNFIU. The Anti -Money Laundering National Committee Act, No.  2 of 
2020, was passed on 23  January  2020, to establish an Anti -Money Laundering National Committee, 
as the Authority responsible  for National Anti -Money Laundering Countering Financing of Terrorism 
(AML/CFT) policies.  
4.30.  Legislation to combat money laundering is contained in the Proceeds of Crime Act  2000, 
Cap 4.28; the Proceeds of Crime (Amendment) Act  2008; the Proceeds of Crime (Am endment) 
(No. 2) Act, 2008; the Proceeds of Crime (Amendment of Schedule) Order, 2012; the Financial 
Services (Exchange of Information) Regulations, 2002 (SRO  No. 15 of 2002); the Anti -Money 
Laundering Regulations,  2011 (SRO  No. 46 of 2011), Cap  9.04; the Anti-Money Laundering 
(Amendment) Regulations,  2012; and the Financial Services (Implementation of Industry 
Standards) Regulations (SRO  No. 51 of 2011). Anti -terrorism laws and regulations include the 
Anti-Terrorism Act, No.  21 of 2002; the Organised Crime  (Prevention and Control) Act  2002; the 
 
94 FSRC, About Us . Viewed at: https://www.fsrc.kn/about . 
95 Financial Intelligence Unit A ct, Cap  21.09, amended by the Financial Intelligence Unit (Amendment) 
Act, No.  23 of 2008; the Financial Intelligence Unit Act, No.  26 of 2005; and the Financial Intelligence Unit 
(Amendment) Act, No.  16 of 2005.  
96 SKNFIU. Viewed at: https://www.fiu.kn/ . 
97 Financial Intelligence Unit Act, No.  15 of 2000.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  Anti-Terrorism De -Listing Procedures Regulations  2011 (SRO  No. 62 of 2011); the Anti -Terrorism 
(Prevention of Terrorist Financing) Regulations,  2011 (SRO  No. 47 of 2011); and the Anti -Terrorism 
(Prevention of Terrori st Financing) (Amendment) Regulations, 2012. During the review period, a 
number of new Acts and regulations were passed, including the Miscellaneous Financial Services 
Amendment Act  9 of 2021; the Proceeds of Crime Amendment Act, Act  No. 10 of 2021; the 
Anti-Money Laundering (Amendment) Regulations,  2021 (SRO  No. 6 of 2021); the Miscellaneous 
Amendments (Financial Action Task Force) Act,  2020, Act  No. 11 of 2020; the Anti -Money 
Laundering National Committee Act  2020, Act  2 of 2020; the Financial Services (I mplementation of 
Industry Standards) (Amendment) Regulations,  2020 (SRO No.  41 of 2020); and the Anti -Money 
Laundering Amend Regulations, 2018 (SRO No.  9 of 2018).  
4.31.  The Anti -Money Laundering National Committee Act, No.  2 of 2020, was passed on 
23 January  2020, to establish an Anti -Money Laundering National Committee, as the Authority 
responsible for National Anti -Money Laundering Countering Financing of Terrorism (AML/CFT) 
policies.  
4.32.  The Common Reporting Standard (CRS) Act was passed by the National Assembly in 
December  2016. The Act established the CRS as the single global standard for the collection, 
reporting, and exchange of financial account information on foreign tax residents. The CRS, 
developed in response to the G20 request and approved by the OECD Co uncil on 15  July 2014, 
requires local reporting financial institutions to identify reportable accounts, collect information on 
the account holders, and report this information to their local tax authorities. The tax authorities 
will, in turn, automatically  exchange this information with other participating jurisdictions on an 
annual basis. The main objective of CRS is to prevent tax evasion.  
4.3.2.1   Onshore banking and insurance  
4.3.2.1.1   Banking  
4.33.  The Eastern Caribbean Central Bank (ECCB) has primary responsibility for the supervision of 
domestic banks. The ECCB Agreement Act,  1983 and its amendments give the ECCB power to 
regulate banking business on behalf of and in collaboration with participating governments. 
Saint Kitts and Nevis' onshore banking legislation is uniformized with that of the rest of OECS 
member States. The Banking Act  No. 1 of 2015, which entered into force on 20  May 2016 and 
repealed the Banking Act  No. 4 of 2004, is the main domestic law governing onshore banking. The 
international  financial services sector is governed by the Offshore Banking Acts in the respective 
countries and is primarily the responsibility of the national regulators.  
4.34.  New legislation was passed during the review period. The Banking Act  2015 was drafted within 
the context of developing of a single banking space in the ECCU. Under the Act, people shall not 
carry on banking business or hold themselves out as carrying on banking business in the Currency 
Union without a licence. The ECCB is the licensing authority for the banking sector and a single 
licence authorizes a financial institution to operate in the space on a branch basis subject to approval 
of location of new business premises. The Banking Act of 2015 strengthened the penalties for 
violations of the Act to m ake them more prohibitive and introduced administrative penalties for 
contraventions of provisions in an effort to improve enforcement by the ECCB. The new Act also 
improved the corporate governance framework by expanding the fit and proper criteria to ren der 
their applicability to all directors, officers, and significant shareholders and allowing for the resultant 
suspension or removal from office of directors and officers who do not meet the fit and proper 
criteria.98 Additionally, the Act introduced a fr amework for the licensing and regulation of financial 
holding companies, and strengthened the remedial action tools and adopted mechanisms that would 
allow for the resolution of troubled banks at least cost.  
4.35.  The minimum paid -up or assigned capital of a fin ancial institution was increased by the 2015 
Act. Every licensed financial institution shall maintain in Saint  Kitts and Nevis unimpaired, paid -up, 
or, as the case may be, assigned capital at least equal to the minimum amounts specified in 
accordance with the following requirements: (i)  if operating as a bank, the minimum required capital 
may not be less than XCD  20 million; or (ii)  if operating as a credit or other financial institution, the 
minimum required capital may not be less than XCD  5 million. In t he case of a licensed financial 
 
98 ECCB, Legal and Regulatory Framework . Viewed at: https://www.eccb -centralbank.org/p/le gal-and-
regulatory -framework . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  holding company, it must maintain in Saint  Kitts and Nevis, paid -up capital at least equal to 
three  times the minimum amount applied to the licensed financial institution for which it is the 
holding company.  
4.36.  Licensed financi al institutions may conduct one or more of the following activities: 
(i) acceptance of deposits and other repayable funds: (ii)  lending; (iii)  financial leasing; 
(iv) investment in financial securities: (v)  money transmission services; (vi) issuing and 
administering means of payment including credit cards, travellers cheques, bankers' drafts, and 
electronic money; (vii)  guarantees and commitments; (viii) the keeping and administration of 
securities; (i x) credit reference services; (x) safe custody of valuab les; (xi) electronic banking; and 
(xii) payment and collection services.  
4.37.  Saint Kitts and Nevis maintains no exchange controls on capital or non -trade current 
transactions. Citizens and companies of Saint  Kitts and Nevis may borrow from, or place deposits 
with, banks located abroad. Foreign ownership and control of onshore banks in Saint  Kitts and Nevis 
are permitted with no limitations. Foreign banks may establish subsidiaries or branches. There are 
no residency or citizenship requirements applied to bank m anagers or directors. Foreign -owned 
banks licensed and incorporated in Saint  Kitts and Nevis are subject to almost the same 
requirements as locally owned and locally incorporated banks and may provide the same services. 
The exception refers to the requirem ent for foreign financial institutions that intend to open a branch 
within the ECCU of submitting some documents and information, including (i)  a certificate showing 
that the home banking supervisor of the jurisdiction in which it was incorporated, formed,  or 
organized has no objection to its application for a licence to do business in the ECCU; and 
(ii) evidence satisfactory to the ECCB that it is subject to comprehensive supervision on a 
consolidated basis by the home banking supervisor of the jurisdictio n. A foreign -licensed financial 
institution must submit a report to the ECCB whenever there is a change of control.  
4.38.  ECCB written approval is required to hold or acquire (i)  shares in a local licensed financial 
institution which, together with any existing direct or indirect holdings of that person, would exceed 
the supervisory thresholds of 10%, 20%, or 50% of the share capital; or (ii)  in the case of a local 
licensed financial institution not having a share capital, more than the supervisory thresholds of 
10%, 20%, or 50% of the total voting rights of all the members entitled to vote at a general meeting 
of the local licensed financial institution.  
4.39.  As at October  2022, there were four commercial banks operating in Saint  Kitts and Nevis, 
two of which are fore ign-owned: one is a subsidiary of a foreign bank that has been locally 
incorporated (Republic Bank of Trinidad and Tobago (RBTT Bank) (SKN) Ltd); and one is a branch 
of a foreign bank (First Caribbean International Bank (Barbados) Ltd (CIBC)). The other tw o banks 
are locally incorporated and locally owned (Bank of Nevis and Saint  Kitts-Nevis -Anguilla National 
Bank Ltd).99 Additionally, the state -owned and -run Development Bank of Saint  Kitts and Nevis 
(Cap 21.05) provides assistance in the form of loans to establish, maintain, and expand development 
enterprises, small manufacturing businesses, and small retail businesses.  
4.40.  As of May  2022, the assets held by commercial banks totalled XCD  6.33 billion, down from 
XCD 6.51 billion in December  2021, and XCD  6.69 billion in December  2020. At the same date 
(May 2022), deposits were XCD  4.71 billion, while loans and advances increased by 10% to 
XCD 2.17 billion.100 These levels were some 10% higher than in the previous year, and this has been 
linked to the recovery in the construction sector and other activities during 2021 and 2022 in the 
aftermath of the COVID -19 pandemic.  
4.41.  In 2009, the ECCB issued Guidelines on Credit Risk Management for Institutions Licensed to 
Conduct Banking Business under the Banking Act, based on  Basel criteria, and which seek to promote 
sound credit risk management at licensed financial institutions. They outline the minimum 
requirements of a comprehensive credit risk management programme, which financial institutions 
should develop and implement  in accordance with a defined credit risk strategy. The guidelines 
reflect the Basel Committee's 17  Principles for Management of Credit Risk (September  2000). In 
 
99 ECCB. Viewed at: https://www.eccb -centralbank.org/statistics/core -financial -soundness -indicators -
datas/ comparative -report . 
100 ECCB, Financial Stability Statistics – Selected Core Financial Soundness Indicators for Commercial 
Banks . Viewed at: https://www.eccb -centralbank.org/statistics/core -financial -soundness -indicators -
datas/comparative -report . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  accordance with the guidelines, the prudential benchmark for non -performing loans (NPL) ratio 
(loans 90  days and more in arrears plus non -performing overdrafts as a percentage of total loans 
and advances) is 5%; the net liquid asset ratio is 20%; and the capital adequacy ratio (CAR) 8%.  
4.42.  The ratio of nonperforming loans to gross loans in the banking  sector stood at 20.9% at 
end-2021, 15.9  percentage points above the ECCB's tolerable limit but 1.8  percentage points lower 
than the average ratio over the prior five years. Notwithstanding, the ECCB noted that the 
Federation's banking system remained liqu id at the end of December  2021. As at end -2021, the 
provisioning against these loans was 41.9%; the CAR ratio was 22.1%; the net liquid asset/total 
deposit ratio was 51.1%; the return on equity 13.3%; and the return on assets 1.9%.101 In 
particular, the net  liquid asset ratio far exceeds the regional prudential limit of 20%.  
4.43.  Saint Kitts and Nevis has one government -owned development bank, established by the 
Development Bank of Saint Kitts and Nevis Act  No. 1 of 1981, Cap  21.05. The Bank is tasked with 
facilitating and encouraging savings and investment; it grants loans and other forms of financial 
assistance to help establish and maintain development enterprises, and expand small manufacturing 
and retail businesses. In 2022, Saint  Kitts and Nevis had four cre dit unions, governed by the 
Cooperative Societies Act  No. 31 of 2011.  
4.44.  New regulations regarding industry standards were introduced during the review period. The 
Saint Christopher and Nevis Financial Services (Implementation of Industry Standards) 
(Amendmen t) Regulations, 2020, SRO  No. 41 of 2020, published on 3  September  2020 in the Extra 
Ordinary Gazette No.  69 of 2020 provides guidance on how to carry out a risk assessment of the 
business with respect to money laundering, terrorist financing, and the fina ncing of the proliferation 
of weapons of mass destruction. Regulated businesses are expected to take a risk -based approach 
(RBA) with respect to these issues to identify, assess, and understand them. The RBA is not optional; 
it is a prerequisite for the ef fective implementation of anti -money laundering, counterterrorist 
financing, and counter -proliferation financing measures. The RBA must be subject to ongoing 
monitoring and kept up to date.  
4.3.2.1.2   Insurance  
4.45.  At end September  2022, there were 13  registered and regu lated insurance companies in 
Saint Kitts and Nevis, of which 10 agencies and 1 branch of foreign companies, and 2  locally 
incorporated companies.102 There are also two insurance brokers and eight insurance agents. 
Insurance companies must be registered with the Registrar of Insurance within the Ministry of 
Finance. Insurance licences are renewed annually and subject to an annual fee.  
4.46.  The Insurance Act  2009 (Act  No. 8 of 2009), the Insurance Amendment Act 2009 (Act  No. 10 
of 2009), and the Insurance Amendments Act  2011 (Act  No. 8 of 2011) comprise the sector's main 
legal framework. This framework follows model legislation that made it uniform with that of the other 
OECS member countries. The Insurance Act applies to (i)  all local insurance companies; (ii)  all other 
insurance companies, whether or not incorporated in Saint  Kitts and Nevis, that carry on any class 
of insurance business there; (iii)  all ass ociations of underwriters registered to carry on insurance 
business in Saint  Kitts and Nevis; (iv)  all insurance intermediaries, whether or not locally 
incorporated, that carry on insurance intermediary activities in Saint  Kitts and Nevis; and 
(v) privatel y administered pension fund plans, whether administered by individual trustees or by 
trust corporations. The Act also applies to the reinsurance business, whose policies are treated as 
insurance business of the class and type to which the policies would ha ve belonged if they had been 
issued by the reinsurer.  
4.47.  The FSRC regulates the insurance business, and the Registrar of Insurance is responsible for 
the general administration of the Act. The Registrar must maintain separate registries for local and 
foreign insurance companies, and for associations of underwriters. Registration as one of these three 
types of entities is a prerequisite for the provision of insurance services. Local companies must be 
incorporated, and foreign companies must be registered (as an  external company) with the Registrar 
of Companies. Licences to provide insurance services are granted for one year, renewable on 
 
101 ECCB, Financial Stability Statistics – Selected Core Financial Soundness Indicators for Commercial 
Banks . Viewed at: https://www.eccb -centralbank.org/statistics/core -financial -soundness -indicators -
datas/comparative -report . 
102 FSRC, Domestic Insurance . Viewed at: https://www.fsrc.kn/regulated -entities/domestic -insurance . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  payment of the prescribed annual fee. All companies must maintain an insurance fund equivalent to 
the insurance liabilities of  the company. The statutory deposits and insurance fund must be approved 
by the Registrar of Insurance.  
4.48.  The application fees for registration are XCD  1,500, unchanged since the last Review. 
Registered firms must pay also annual licence fees of XCD  2,500 fo r local insurance companies, and 
XCD 5,000 for foreign insurance companies. Reinsurance companies are not subject to these fees. 
Registered insurance service providers (individuals) must pay an annual fee of XCD  1,000 (insurance 
brokers, adjusters, and age nts), while sales representatives pay an annual fee of XCD  500. 
Registration of a pension fund plan is subject to the payment of an XCD  1,000 fee.103 
4.49.  A foreign insurance company must maintain a principal office in Saint  Kitts and Nevis and 
must appoint, by power of attorney, a citizen of Saint  Kitts and Nevis as its principal representative. 
Foreign insurance companies (parent or subsidiary) are allowed to establish as a branch. In the case 
of merged companies, one must have undertaken insurance business in its country of incorporation 
for at least three years before the date of the application for a licence. There are no citizenship 
requirements for managers or directors of insurance companies. There is no legal restriction on 
companies located abroad from o ffering insurance coverage to locals.  
4.50.  Insurers must maintain a Statutory Deposit Requirement, which for long -term insurance is 
XCD 1 million. Deposit requirements for an insurance business other than long -term or motor vehicle 
insurance is the greater of XCD  500,000 or 40% of premium income less the amount paid for 
reinsurance (for business in the Federation).  
4.51.  Capital requirements vary according to the origin of the insurance company. Local insurance 
companies must have share capital, fully paid -up in cash, of not less than XCD  2 million; foreign 
insurance companies must have worldwide share capital fully paid -up in cash of not less than 
XCD 5 million. Mutual companies must have uncommitted reserves of not less than XCD  5 million. 
The Act also co ntains detailed provisions on insolvency and intervention.  
4.52.  All insurers must pay an annual tax of 5% of all non -life premiums in respect of policies issued 
or applicable in Saint  Kitts and Nevis. Individuals and companies remitting payments to persons 
outside of Saint  Kitts must deduct a 10% withholding tax from non -life insurance premiums. This 
withholding tax does not apply to reinsurance premiums.  
4.3.2.2   Offshore financial services  
4.53.  The FSRC acts as the ultimate regulatory body for non -banking financial services  both for 
Saint Kitts and for Nevis. In both Saint  Kitts and Nevis, the FSRC regulates and supervises its areas 
of competence, including enforcement of anti -money -laundering legislation. The ECCB supervises 
Saint Kitts and Nevis' offshore banks for complia nce. The SKNFIU investigates transactions by any 
financial institution or natural person suspected of being linked to money -laundering or terrorism 
activities.  
4.54.  The Nevis Financial Services Regulation and Supervision Department (the Nevis Branch of the 
FSRC ) is responsible for authorizing and licensing companies or persons to conduct financial services 
business and for monitoring regulated financial services provided by businesses operating within or 
from Nevis. Through the Corporate Registry, it is also res ponsible for the registration of all 
international companies, for the formation of trusts, mutual funds and foundations, and international 
insurance companies.  
4.55.  There are no offshore banks licensed in Saint  Kitts; there is one offshore bank (the 
Internation al Bank of Nevis), registered in Nevis. Some 200  captive insurance companies are 
licensed in Saint  Kitts and some 130 in Nevis, mostly from the United  States and Canada.104 The 
FSRC regulates nine money services businesses (cash advance, money transfer, cur rency 
 
103 FSRC, Registration of a New Insurance Company . Viewed at: 
https://www.fsrc.kn/insurance/domestic -insurance/registration -of-a-new-insurance -company . 
104 Information provided by the authorities; and Nevis FSRC, Regulated Entities: Captive Insurance 
Companies . Viewed at: https://www.nevisfsrc.com/regulated -entities/#captive -insurance -companies . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  exchange)105, which are governed by the Money Services Business Act  No. 26 of 2008 and the Money 
Services Business Amendment Act, Act  No 3 of 2020.  
4.56.  Offshore banks and insurance companies in Saint  Kitts are regulated by the Companies 
Act No. 22 of 1996  (as amended); the Limited Partnerships Act of 1996; the Captive Insurance 
Companies Act No.  12 of 2006, and the Captive Insurance Companies (Amendment) Act, Act  No. 13 
of 2018.106 Companies and limited partnerships providing offshore financials services ar e exempt 
from all taxes as long as they conduct their business exclusively with non -residents. Captive 
insurance companies may only provide insurance for risks that take place abroad. There are three 
types of captive insurance companies: (i)  a Pure Captive  Insurance Company insures the risks of its 
parent and affiliated companies or controlled unaffiliated businesses; (ii)  an Association Captive 
Insurance Company insures the risks of member organizations of its association and their affiliated 
companies; an d (iii)  a Group Captive Insurance Company insures the risks of its parent, owners, 
and affiliated persons; the risks insured of its unaffiliated persons should not be more than one  third.  
4.57.  The advantages of establishing a captive insurance company include m inimizing costs by 
eliminating a large percentage of traditional insurance company overhead; access to the lower -cost 
reinsurance market; retaining profits that would otherwise have been paid to commercial insurers 
(premiums in excess of amounts repaid to cover losses); reducing risk by choosing insured parties 
with a low -risk profile; and the ability to insure risks that would otherwise be uninsurable.107 
4.58.  The Captives Insurance Act, Cap  21.2 was modified in 2018 by the Captive Insurance 
Companies (Amendment ) Act,  2018, published on 28  December  2018, in the Extra -Ordinary Gazette 
No. 67 of 2018, by establishing that the manager of a captive insurance company must be an 
insurance manager who is a legal person that is licensed to carry on the business of insura nce. There 
was also a revision of fees for captive insurance companies. Applications for a licence under the Act 
must provide a description of the captive insurance company's three -year business plan, and contain 
information on all beneficial owners, direc tors, and major shareholders. They must also provide 
evidence of the amount and liquidity of its assets relative to the risks to be assumed; the expertise 
of the person or persons who will manage the company; the overall soundness of its plan of 
operation;  and the adequacy of the loss prevention programmes of its insureds. Minimum 
unimpaired capital requirements vary according to the type of company: for a Pure Captive 
Insurance Company, they are XCD  607,000 (XCD  54,000 for small companies); for an Associat ion 
Captive Insurance Company, XCD  810,000 (XCD  67,000); and for a Group Captive Insurance 
Company, XCD  1.08 million (XCD  81,000).108 
4.59.  The Nevis International Banking Ordinance, No.  1 of 2014; SRO  No. 4 of 2014, as well as the 
Nevis International Banking Reg ulations  2015 and the Nevis International Banking Regulations  2021 
govern offshore banking in Nevis. The Ordinance defines international banking as (i)  receiving 
foreign funds through (a)  the acceptance of foreign money deposits payable upon receipt demand  
or after a fixed period or after notice; (b)  the sale or placement of foreign bonds, certificates, notes, 
or other debt obligations or other securities; or (c) any other similar activities involving foreign 
money or foreign securities; and (ii)  either in whole or in part using foreign funds so acquired for 
loans, advances, and investments whether in Nevis or elsewhere. A licensee under the Ordinance, 
carrying on international banking, shall not receive or solicit funds from any resident of Nevis, but 
may r eceive or solicit funds from any corporation registered under the Nevis Business Corporation 
Ordinance, Cap  7.01 as a limited liability company.  
4.60.  The Ordinance provides that no licence can be issued to an individual. Licences are granted 
only to eligible co mpanies or qualified foreign banks. A licensee is required to have a physical place 
in Nevis approved by the Regulator of International Banking that will also be its registered office. An 
eligible company includes a body corporate, incorporated under the C ompanies Ordinance, that is a 
 
105 FSRC, Regulated Entities: Mo ney Services Businesses . Viewed at: https://www.fsrc.kn/regulated -
entities/money -services -businesses . 
106 Captive Insurance Company Act, No.  12, 2006. Viewed at: http://fsrc.kn/sites/fsrc.kn/files/Law%20 
Library/Laws% 20Relevant%20to%20Insurance%20Businesses/Captive%20Insuranc e%20Act.pdf . 
107 FSRC, Benefits of Establishing a Captive Insurance Company . Viewed at: 
https://www.fsrc.kn/insurance/captive -insurance-companies/benefits -of-establishing -a-captive -insurance -
company . 
108 FSRC, Licensing Requirements for Captive Insurance Companies . Viewed at: 
https://www.fsrc.kn/insurance/captive -insurance -companies/licensing -requirements -for-captive -insurance -
companies . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  wholly owned subsidiary of a bank that is indigenous to Saint  Kitts and Nevis and regulated by the 
ECCB; or a subsidiary of a qualified foreign bank that has been incorporated under the Companies 
Ordinance; or a body corporate  that has been incorporated under the Companies Ordinance of which 
the chief executive officer, at the time of its application for a licence, has at least ten  years' 
experience in banking or finance. A qualified foreign bank is defined as a bank with adequ ate 
capitalization and assets that is licensed to conduct domestic banking in its jurisdiction of 
incorporation, or a financial institution that is directly or indirectly a wholly owned subsidiary of a 
foreign bank.109 Once an application is made and all re quirements are satisfied, a licence will be 
issued to the successful applicant upon the payment of a prescribed licensing fee.  
4.61.  The Ordinance permits the identification and the investigation of all directors, beneficial 
owners, and senior managers of an int ernational bank in Nevis. Only fit and proper persons will be 
permitted to hold a directorship, senior management, beneficial ownership, or shareholding position 
in an international bank.110 The Nevis Financial Services (Regulation & Supervision) Department  
Guidelines, based on Basel Committee guidelines, are applied on the establishment of an 
International Bank in Nevis. The applicant for a licence must submit an application in the prescribed 
form to the Minister of Finance. This process is carried out by t he FSRC -Nevis Branch. The approval 
of the banking licence is subject to the incorporation and capitalization of the company. The 
Ordinance stipulates minimum capital requirements of not less than XCD  2 million. In addition, each 
bank is also required to ha ve deposited or invested USD  200,000 in treasury bills or bonds and 
debentures issued by the Government of St  Christopher and Nevis or the Nevis Island 
Administration; deposits with a bank licensed under the Banking Act; or deposits with a financial 
institution approved by the Minister. Additionally, the international bank must maintain a reserve 
fund and shall, out of its net profits of each year and before any dividend is paid, transfer to the 
fund a sum equal to not less than 25% of those profits wheneve r the amount of the reserve fund is 
less than the paid -up capital of the international bank. The authorities have noted that the Basel 
Committee -Bank Supervision -AMLCFT Guidelines are applied.  
4.62.  The offshore insurance sector is governed by the Nevis Offshore  International Insurance 
Ordinance, 2004, as amended by the Nevis International Insurance Island of Nevis (Amendment) 
Ordinance, 2006 and 2009; the Nevis International Insurance Regulations, 2004 and the Nevis 
International Insurance Regulations,  2006; the  Nevis International Insurance Amendment 
Regulations, 2014; the Nevis International Insurance Regulations, 2021; and the Nevis International 
Insurance (Amendment) Ordinance, 2021.111 Offshore insurance companies must be registered with 
the Nevis Registrar o f International Insurance; registration requires that they keep an office in Nevis, 
and either a manager in Nevis or an appointed registered agent. There are no citizenship 
requirements for directors of captive insurance companies. The minimum paid -up shar e capital is 
set at USD  185,000 for long -term and for general business, and USD  75,000 for reinsurance. Lower 
amounts are required for captive insurance and allied reinsurance business and where more than 
one category of insurance is carried out, the minim um paid -up capital amounts are aggregated.112 
Offshore insurance companies are exempt from income tax and stamp duty. There are also margin 
of solvency requirements: in the case of an insurer not carrying on long -term business, the minimum 
margin of solvenc y must be at least 20% of the net retained premium when it does not exceed 
USD 5 million; where the net retained premium of the insurer exceeds USD  5 million, the prescribed 
amount is USD  1 million plus 10% of the amount by which the net retained premium e xceeds 
USD 5 million. The application, registration, and renewal fees are set out in the Nevis International 
 
109 Nevis International Banking Ordinance, 2014. Viewed at: https://www.nevisfsrc.com/themencode -
pdf-viewer -
sc/?tnc_pvfw=ZmlsZT0vd3AtY29udGVudC91cGxvYWRzLzIwMTgvMTIvbmV2aXMtaW50ZXJuYXRpb25hbC1iYW . 
110 Nevis Financial Services (Regula tion &Supervision) Department Guidelines. Viewed at: 
https://www.nevisfsrc.com/themencode -pdf-viewer -
sc/?tnc_pvfw=ZmlsZT0vd3AtY29udGVudC91cGxvYWRzLzIwMTgvMTIvbmV2aXMtaW50ZXJuYXRpb25hbC1iYW5r
aW5nLWd1aWRlbGluZXMtZG9jLnBkZiZzZXR0aW5ncz0xMTExMTExMTExMTExMSZ sYW5nPWVuLVVT#page=&zoo
m=auto&pagemode=) . 
111 Nevis FSRC, Insurance . Viewed at: https://www.nevisfsrc.com/services/insurance/ . 
112 The amounts are USD  10,000 for single -owner captive; USD  20,000 for less -than-five-owners 
captive; USD  50,000 for five -or-more-owners captive; and USD  10,000 for allied reinsurance business and for 
allied annuity insurance business. An "allied reinsurance  company" is defined as a company carrying on 
insurance business where the registered insurer is allied to a primary insurer who typically initiates insurance 
contracts as part of its normal course of business, and the allied reinsurer will only assume ris ks and accept 
premiums from this primary insurer. Captive insurance business is defined as business where the insured is a 
parent or affiliated company of the registered insurer or is a person in respect of whom the registered insurer 
is authorized by the Registrar to provide insurance.  WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  Insurance Regulations: registration fees and annual renewal range from USD  1,000 to USD  3,000 
depending on business type.  
4.63.  In late 2020, the Saint  Kitts and Nevis Inland Revenue Department (IRD) issued guidance 
notes regarding the treatment of international companies in relation to federal tax. Companies 
managed and controlled outside the Federation, and without a permanent establishment in 
Saint Kitts and Nevis (just a registered office and registered agent), are classified as non -resident, 
and are only subject to tax on income arising in Saint  Kitts and Nevis. These guidelines are in the 
process of becoming legislation.  
4.3.3   Telecommunications and other e lectronic communications  
4.64.  Saint Kitts and Nevis' electronic communications sector is open to foreign investment; foreign 
investors are granted national treatment. There are no limits on foreign ownership of telecom 
companies or citizenship requirements for directors. However, electronic communications licensees 
must be domestically registered and established as local companies.  
4.65.  Saint Kitts and Nevis did not participate in the extended WTO negotiations on basic 
telecommunications services. However, it made commitments with respect to the provision of some 
value -added telecommunications services in its GATS Schedule, which cover electronic mail, voice 
mail, and online information and data processing, all of which were bound without limitations, except 
as regards the presence of natural persons. There are no sector -specific fiscal incentives for the 
electronic communications sector.  
4.66.  Telecommunications and in general electronic communications policy formulation is the 
responsibility of the Ministry of Telec ommunications. The National Telecommunications Regulatory 
Commission (Saint  Kitts and Nevis) (NTRC) is the body responsible for regulation of the sector. At 
the regional level, the Eastern Caribbean Telecommunications Authority (ECTEL) plays an important 
advisory and policy -coordinating role (Common Report). The NTRC was established pursuant to the 
Eastern Caribbean Telecommunications Authority Treaty and the Telecommunications Act  No. 2 of 
2000 to regulate the liberalized telecommunications market in Saint  Kitts and Nevis in collaboration 
with ECTEL, ensure fair competitive practices by telecommunications providers, and promote and 
maintain high -quality services at competitive prices for consumers. The new Electronic 
Communications Act (EC Act), passed in 2 021, confirmed the NTRC's role as regulator of the sector, 
including the use of the radio frequency spectrum in conjunction with ECTEL, as well as the 
assignment and registration of radio frequency to be used by all stations operating in Saint  Kitts and 
Nevis or on any ship, aircraft, or vessel registered in Saint  Kitts and Nevis.113 
4.67.  The main legislation ruling the sector until 2021 was the Telecommunications Act  No. 2 of 
2000, as amended by Act  No. 12 of 2000 and Act  No. 11 of 2011, which deregulated the se ctor and 
opened it to competition. The Telecommunications Act, as amended, was similar to the telecom laws 
of the other OECS ECTEL member States. The Act listed the criteria required for the granting of a 
licence; set the universal service conditions that may be applied; and determined the procedures for 
concluding interconnection agreements. There were also a number of regulations issued through 
Statutory Rules and Orders (SROs). The EC Act of 18  February  2021, Act  No. 3 of 2020, published 
on 19  March  2021 in the Extra -ordinary Gazette No.  13 of 2021 repealed the Telecommunications 
Act, Cap  16.05, and the Telecommunications (Licensing and Authorisation) Regulations.  
4.68.  The process of replacing the Telecommunications Acts in force in the Eastern Caribbean 
Telecommunications Authority (ECTEL) Contracting States with the new Electronic Communications 
Bill (EC Bill) began in 2009. The EC Bill includes, inter alia, provisions to broaden the scope of 
regulations from telecommunications to electronic communications, a nd to address matters including 
but not limited to mergers and acquisitions within the ECTEL Contracting States, preservation of an 
open Internet with the adoption of Net Neutrality provisions, the establishment of the NTRCs as body 
corporates, the setting  up of a tribunal independent of the NTRC to hear unresolved disputes between 
telecommunications providers and customers, and the inclusion of more penalties for breach of the 
legislation.114 Saint Kitts and Nevis was the first OECS country to pass the EC  Act, on 
 
113 NTRC. Viewed at: http://ntrc.kn . 
114 ECTEL (2021), "The Federation of St. Kitts and Nevis Passes Electronic Communications (EC) Act", 
2 March. Viewed at: https://www.ectel.int/the -federation -of-st-kitts-and-nevis-passes -electronic -
communications -ec-act/. WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  18 February  2021, Act  No. 3 of 2020, published on 19  March  2021 in the Extra -ordinary Gazette 
No. 13 of 2021.115 
4.69.  The principal object of the EC Act is to give effect to the purposes of the Treaty Establishing 
the Eastern Caribbean Telecommunications Authority signed at St  George's, Grenada, on 
4 May 2000, and to regulate an electronic communications service and an electronic communications 
network in Saint  Kitts and Nevis. The objectives of the Act include to (i)  ensure that policies in 
relation to th e management of electronic communications are in harmony with the recommendations 
of ECTEL; (ii)  ensure that the public interest and national security are preserved; (iii)  ensure 
consumer protection and the meeting of the needs of all users, including disa bled users, the elderly, 
or users with special needs, in terms of access to an electronic communications service and facility; 
(iv) ensure compliance by licensees for the protection of personal data, for secrecy of 
correspondence, and with the principle of  net neutrality; (v)  ensure the absence of discrimination 
for traffic routing and access to an electronic communications service; (vi) ensure the ability of retail 
customers to access and disseminate information and access applications and an electronic 
communications service of their choice; (vii) ensure the application of appropriate standards in the 
operation of an electronic communications network and electronic communications service; 
(viii) ensure the overall development of electronic communications i n the interest of the sustainable 
development of Saint  Kitts and Nevis; (ix)  promote and maintain fair and efficient market conduct 
and sustainable competition between licensees; (x) encourage, promote, facilitate, and otherwise 
assist in the development o f investment, innovation, and competitiveness in electronic 
communications in Saint  Kitts and Nevis; (xi)  establish a licensing system that is responsive to the 
changes in electronic communications; (xii) ensure the provision of electronic communications a t 
rates consistent with efficient electronic communications service; (xiii) allow for the exercise of 
regulatory functions in respect of the determination and approval of prices, tariffs, and charges for 
the provision of electronic communication; (xiv) ens ure the effective and efficient use of spectrum; 
and (xv) ensure the possibility of using all types of technologies and all types of electronic 
communications services in the frequency bands available to these services, subject to technical 
feasibility.  
4.70.  The Act preserves the NTRC as the national regulatory body. The NTRC's functions, as defined 
by the EC Act include (i)  advising the Minister on the formulation of the national policy on electronic 
communications with a view to ensuring the efficient, economi c, and harmonized development of 
electronic communications in Saint  Kitts and Nevis; (ii)  ensuring that Saint  Kitts and Nevis complies 
with international obligations relating to electronic communications; (iii)  responsibility for technical 
regulation and t he setting of technical standards of electronic communications and ensuring 
compatibility with international standards; (iv)  establishing and managing a National Numbering 
Plan for the allocation of numbers; (v)  regulating the tariff of an electronic commu nications service, 
including a retail tariff in accordance with prescribed tariff regulation regimes if: (a)  an electronic 
communications service is being provided by one licensee or is being provided with a bundle where 
at least one electronic communicati ons service is not in competition; (b)  an electronic 
communications service is being provided within universal service and access; (c)  one licensee or a 
group of licensees has significant market power in a relevant market; (d)  a licensee with significant 
market power is cross -subsidizing an electronic communications service; (e)  there is evidence of 
anti-competitive pricing or conduct; or (f)  such regulation is necessary in the public interest; 
(vi) receiving fees; (vii) receiving and evaluating application s and making recommendations for the 
grant of class licences and forward applications for individual licences and frequency authorizations 
to ECTEL; (viii)  preparing the licence or frequency authorizations and other relevant documents for 
signature by the Minister; (ix)  monitoring and ensuring that licensees or frequency authorization 
holders comply with the conditions attached to licences or frequency authorization; (x) monitoring 
compliance with the terms of interconnection or access agreements; and (xi) investigating and 
resolving complaints related to harmful interference.116 
4.71.  The EC Act also contains details procedures regarding licences and frequency authorizations. 
In formulating a recommendation to grant a licence, the NTRC must have regard to (i)  the purposes 
of the St  George's Treaty; (ii)  the objective of universal service and access including the provision 
of Internet access to meet reasonable demands at affordable prices; (iii)  the protection of the 
 
115 The Act may be viewed at: https://www.ntrc.kn/wp -content/uploads/2021/05/Electronic -
Communications -Act-No.-3-of-2021.pdf . 
116 Electronic Communications Act (EC Act), Act  No. 3 of 2021. Viewed at: https://www.ntrc.kn/wp -
content/uploads/2021/05/Electronic -Communications -Act-No.-3-of-2021.pdf . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  interests of retail customers, purchasers, and ot her users of an electronic communications service; 
(iv) the promotion of competition among licensees; (v)  the promotion of R&D and introduction of a 
new electronic communications service; (vi) the encouragement of foreign and domestic investors 
to invest i n electronic communications; (vii) appropriate technical and financial requirements; 
(viii) the need to safeguard of public interest and national security interests; and (ix)  the specified 
class within which the particular applicant falls.  
4.72.  As at March  2022, there were 6 operators providing fixed voice, mobile, broadband, 
subscriber television, and submarine cable services, and 11  individual licences had been issued and 
were used: three for fixed public services (Cable and Wireless (LIME), The Cable, and Car ibbean 
Cable Communications); 3 for public mobile services (Cable and Wireless (LIME), DIGICEL, and 
UTS-CariGlobe Mobile); 3 for broadband network operators (Cable and Wireless (LIME), The Cable, 
and Caribbean Cable Communications); and 2 for submarine cab le operators (Cable and Wireless 
(LIME) and Southern Caribbean Fibre).117 
4.73.  There are three classes of licences: (i)  an individual licence; (ii)  a class licence; and (iii)  a 
class or sub -class of licence recommended by ECTEL. A licensee who holds an individua l licence is 
authorized to deploy or operate any facilities -based electronic communications network and provide 
any electronic communications services in accordance with the individual licence. A licensee who 
holds a class licence is authorized to offer th e electronic communications service included in the 
class licence. Licences are valid for the period specified in them. The EC Act stipulates that ECTEL 
shall do a periodic assessment of the Electronic Communications sector and advise the Minister 
whether on the renewal of a licence or frequency authorization a modification to the terms and 
conditions is needed as a result of a change in the market or sector, new or emerging technology, 
or the overall development of electronic communications in Saint  Kitts and Nevis. The NTRC must 
keep a register of all licensees.  
4.74.  Licences for public mobile telecommunications, public fixed telecommunications, public radio 
paging, and for Internet service provision are subject to an application fee of XCD  1,000, an initial 
fee of XCD  20,000, and an annual fee of 3% of gross revenue. Licences for submarine cable landing 
are subject to an application fee of XCD  1,000, an initial fee of XCD  50,000, and an annual fee of 
XCD 50,000.  
4.75.  Saint Kitts and Nevis has the highest mobile serv ice penetration in the ECTEL member States, 
but there has been a decline since its peak in 2016 and 2017 (Table  4.1). In  2020, the mobile 
penetration rate was 127%, 32  percentage points lower than in 2017; this has been partly due to 
the proliferation of n ew applications and technologies and the increase in competition. Previously, 
many users needed two phones from different providers to call at a lower cost to users of that 
provider. Mobile broadband Internet penetration has increased dramatically over the  period, and the 
ratio is currently close to 100%. Fixed -broadband penetration reached 44% in  2020.118 
Table  4.1 Telecommunications statistics, 2016 -20 
 2016  2017  2018  2019  2020  
Provider revenues (XCD million)  140 134 132 122 120 
Fixed -line penetration (%)  36 36 32 33 33 
Mobile penetration (%)  159 159 147 133 127 
Fixed broadband Internet penetration (%)  29 32 34 42 44 
Mobile broadband Internet penetration (%)  89 75 72 100 93 
Investment (XCD  million)  27 14 25 13 19 
Employment  133 136 143 150 155 
Local traffic from a fixed line (million minutes)  43 21 20 18 15 
Local traffic from a mobile phone (million minutes)  107 101 103 103 92 
 
117 ECTEL (2021), Annual Electronic Communications Sector Review 2019 -2020. Viewed at: 
https://www.ectel.int/wp -content/uploads/2021/10/Final -2020-AECSR -Report -12.Oct_.2021 -1.pdf. 
118 ECTEL (2021), Annual Electronic Communicatio ns Sector Review 2019 -2020. Viewed at: 
https://www.ectel.int/wp -content/uploads/2021/10/Final -2020-AECSR -Report -12.Oct_.2021 -1.pdf. WT/TPR/S/437  • Saint Kitts and Nevis  
 
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   2016  2017  2018  2019  2020  
International incoming traffic (fixed and mobile) 
(million  minutes)  7 6 6 4 4 
International outgoing traffic (fixed and mobile) (million minutes)  20 12 12 11 9 
Source:  ECTEL (2021), Annual Electronic Communications Sector Review 2019 -2020. Viewed at: 
https://www.ectel.int/wp -content/uploads/2021/10/Final -2020-AECSR -Report -12.Oct_.2021 -1.pdf. 
4.76.  Total revenue from the electronic communications sector i n Saint  Kitts and Nevis reached 
XCD 120 million at the end of March  2020. Mobile service accounted for the largest component of 
total revenue at 46%, while fixed broadband accounted for 31%. Total investment in the electronic 
communications sector in Saint  Kitts and Nevis reached XCD  19 million at the end of March  2020. 
Investments were made to enhance the fixed and mobile networks aimed at facilitating an 
improvement in customer experience, speeds, and coverage. Additionally, investments were made 
in the S ubscriber Television Hybrid Fiber -Coax networks. There was a total of 21,500 fixed 
broadband subscriptions in 2020, an increase of 6% from 2019. Increased ADSL and cable modem 
connections contributed to the overall growth in fixed broadband subscriptions.  
4.77.  Under the St  George's Treaty, ECTEL has the power to recommend a regional policy on the 
pricing of telecommunications services. ECTEL has recommended a regional Price Cap Plan for the 
regulation of fixed services offered by Cable & Wireless in the ECTEL me mber States on several 
occasions. These recommendations are contained in the First Price Regulation Agreement; the 2004 
Price Cap Plan; the 2010 Price Cap Plan; the 2015 Recommended Price Cap Plan; the 2021 Mobile 
Consumer Safeguards; and the 2022 Retail P rice Regulation Regime (RPRR). The 
Telecommunications Acts in each member State gives the National Telecommunications Regulatory 
Authority the power to regulate the prices for telecommunications services. The NTRAs have the 
power to approve the rules and g uidelines for how the tariffs of regulated telecommunications 
services are to be determined or changed by a service provider whose tariffs are regulated.119 
4.78.  In Saint  Kitts and Nevis, licensees may set their own telecommunication tariffs based on 
market forc es where there is effective market competition, as provided under the 
Telecommunications (Retail Tariff) Regulations No.  21 of 2015. The service provider must file their 
tariff proposal with the NTRC for approval in the case of a regulated service; for unr egulated services, 
a notification is sufficient, without requiring approval. Tariffs are regulated for telecommunications 
services by providers designated as dominant by the NTRC, upon recommendation from ECTEL, or 
in cases of anti -competitive conducts. In  this case, NTRC may impose price caps, price floors, 
regulated profit margins, or cost -based tariffs. The NTRC may also engage in the revision of an 
unregulated tariff in case of customer complaints. The tariffs for regulated services in Saint  Kitts and 
Nevis are determined in accordance with the Recommended RPRR applicable to Regulated Services 
provided by Cable & Wireless Limited (C&W) in ECTEL Member States, agreed between Cable and 
Wireless and the ECTEL member States. The RPRR took effect on 1  March  2022 and has a term of 
four years until 31  December  2025, the date at which the RPRR expires, unless ECTEL determines 
and recommends that it be either renewed or replaced. RPRR provisions are determined for each 
category of service.120 Mobile and landline ca lls are subject to a 5% tax.  
4.79.  Saint Kitts and Nevis coordinates its policies regarding e -commerce with other OECS and 
CARICOM countries. At a national level, several projects have been put in place or are in the pipeline, 
including the GOSKN Digital Transfo rmation Project ; the Online Payment Strategy ; the Land Registry 
Integration System ; the E-Government Network Infrastructure Project ; the Enterprises Cyber 
Security Project ; the IT Makerspace Development Project ; and the Measuring ICT for Development 
Project . The authorities noted that during the review period there have been some gains with respect 
 
119 ECTEL, Price R egulation . Viewed at: https://www.ectel.int/regulatory -framework/price -regulation/ . 
120 For instance, there is a General Price Cap Index; for those regulated services that are subje ct to a 
price cap index (PCI) constraint, the PCI is specified in the following form: PCI = I – X +/- Z, where I = 
Inflation Factor (calculated as the previous year's change in the Consumer Price Index for the applicable ECTEL 
member State as calculated an d published by the ECCB; X = Productivity Offset Factor; and Z = Exogenous 
Factors (such changes in operating costs that are outside of C&W's control and are material in magnitude). 
More information in : Recommended Retail Price Regulation Regime (RPRR) App licable to Regulated Services 
Provided by Cable & Wireless Limited ("C&W") in ECTEL Member State . Viewed at: https://www.ectel.int/wp -
content/uploads/2022/02/RPRR -Guidelin es.pdf . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  e-readiness in Saint  Kitts and Nevis, including the i mplementation of legislation on data protection , 
electronic transaction s, cybersecurity and  consumer protection, and virtual assets.  
4.3.4   Air transport and airports  
4.80.  The designated appropriate authority for civil aviation security (AVSEC) in Saint  Kitts and 
Nevis is the Minister for Foreign Affairs and Aviation. The Minister has delegated the day -to-day 
operational function to the Civil Aviation Division (CAD), which ensures that Saint  Kitts and Nevis 
fulfils its civil aviation safety and security obligations under the Chicago Convention on International 
Civil Aviation. The Department is responsible fo r air transport policy formulation, reform, and 
implementation in Saint  Kitts and Nevis. Operators in the sector require air transport licences, which 
are reviewed and granted by the Air Transport Licensing Board. The Board is also responsible for 
setting landing charges.  
4.81.  The AVSEC's responsibilities include (i)  reviewing, updating, and enforcing the national civil 
aviation security programmes; (ii)  coordinating and facilitating National Civil Aviation Committee 
Meetings; (iii)  providing technical advice to  the Minister; (iv)  implementing policy decisions by the 
Minister; (v)  providing technical advice to the St  Christopher Air and Sea Ports Authority (SCASPA) 
and the Nevis Air and Sea Ports Authority (NASPA) on civil aviation matters; (vi) acting as Nationa l 
Civil Aviation Coordinator for the International Civil Aviation Organization (ICAO) and the 
Transportation Security Administration; (vii) conducting inspections, tests, surveys, audits, and 
investigation of civil aviation security at the Robert L. Bradsh aw and the Vance W.  Amory 
International Airports; (viii) building capacity for civil safety and security; (ix)  facilitating the work 
of the Eastern Caribbean Civil Aviation Authority (ECCAA); (x) negotiating air services agreements; 
(xi) facilitating and a pproving code sharing agreements; (xii) assisting in air lifts; (xiii) advising on 
chartering issues; (xiv) representing Saint  Kitts and Nevis at regional and international civil AVSEC 
forums; and (xv) providing technical advice and support to the local ci vil aviation industry.121 
4.82.  The ECCAA is responsible for regulatory oversight regarding safety and security issues. 
Although there is no foreign participation, there is no legislation precluding it with respect to the 
provision of auxiliary air transport serv ices. Similarly, there are no foreign investment restrictions 
on ownership of domestically incorporated carriers. There are, however, legal restrictions on 
cabotage, where the concept of a national airline extends to those registered in other CARICOM 
count ries; there are no domestic carriers. The authorities indicate that this restriction is not enforced.  
4.83.  The ECCAA's purpose is to (i)  regulate civil aviation safety and security; (ii)  develop 
harmonized civil aviation regulations, policies, and practices by applying ICAO standards and 
recommended practices (SARPs) uniformly; (iii)  establish and maintain a regulatory environment 
that promotes safety and efficiency in the civil aviation industry; (iv)  create a secure environment 
for the civil aviation industry;  (v) provide technical and specialized civil aviation services; 
(vi) undertake and coordinate studies for ensuring the sustained development of civil aviation in the 
region; and (vii)  collaborate with national, regional, and international agencies and orga nizations to 
further the development of civil aviation.122 
4.84.  There are two airports in Saint  Kitts and Nevis: the Robert L. Bradshaw International Airport 
in Saint  Kitts and the Vance W. Amory International Airport in Nevis. Although domestic legislation 
does not require it, both airports are owned by the Government. In 2021, the last year for which 
statistics were available, there were just over 106,400  air passenger arrivals.123 According to the 
authorities, the vast majority of imports arrive by maritime tra nsport, rather than air.  
4.85.  Saint Kitts and Nevis does not have any domestically incorporated airlines. Foreign -based 
companies provide scheduled services to Canada, the United  Kingdom, and the United  States 
(Atlanta, Charlotte, Miami, and New York), as well as destinations within the Caribbean. Aircraft 
handling services such as air -start units, high -loaders, passenger stairs, and ground power units are 
offered on a rental basis. Air cargo services are provided by freight forwarders including FedEx, DHL, 
 
121 Government of St  Kitts and Nevis. Viewed at: https://www.gov.kn/ . 
122 ECCAA, About Us . Viewed at: 
http://www.eccaa.aero/index.php?option=com_content&view=article&id=49&Itemid=56 . 
123 Caribbean Tourism Organization, CTO News . Viewed at: http://www.onecaribbean.org/content/files/ . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  and UPS. Cargo facilities include a bonded warehouse, a transit zone, a domestic -cargo -only zone, 
an animal quarantine station, a fresh meat inspection area, and an express courier centre.  
4.86.  The St  Christopher Air and Sea Ports Authority (SCASPA) has responsibil ity for the 
administration of the Robert L. Bradshaw International Airport in Saint  Kitts, while the Vance W. 
Amory International Airport is managed by the NASPA. These authorities provide all airport 
management and auxiliary services, with the exception o f ground handling services, which are 
provided by private local companies.  
4.87.  The main legislation governing the sector is the Civil Aviation Act,  2004, Cap  8.03 together 
with the Civil Aviation Regulations,  2004, and the Civil Aviation (Amendment) Act,  2021,  Act No. 14 
of 2021, published 26  March  2021, Extra -Ordinary Gazette No.  15 of 2021. The Act specifies the 
criteria to be considered in the granting of an air transport licence: the existence of other air services; 
the need/demand for the proposed service;  and any unfair advantage of the applicant over other 
operators by reason of the terms of employment of persons employed. For countries with which 
Saint Kitts and Nevis has a bilateral air agreement (currently only the United  States and Canada), 
the above issues are not considered, unless the Minister directs otherwise. However, consideration 
is given to whether the airline is fit, willing, and able to operate the service.  
4.88.  The 2021 Act mandates that the Appropriate Authority for Aviation Security (SCASPA) s hall 
be responsible for (i)  establishing and properly staffing of a security organization; (ii)  developing 
laws, regulations, programmes, policies, and procedures and ensuring that these requirements are 
effective, are being implemented, and are sustainabl e; (iii)  developing AVSEC policies and 
requirements consistent with the provisions of Annex  17 and security provisions of Annex  9 of the 
ICAO SARPs; (iv)  issuing decrees, orders, circulars, or directives to require the implementation of 
immediate security measures; (v)  providing oversight for the implementation of AVSEC policies and 
requirements; (vi) authorizing inspections, surveys, audits, and tests by the appropriate authority 
to determine compliance with relevant legislation and to monitor the effectiv eness of the National 
Civil Aviation Security Programme and a National Civil Aviation Transport Facilitation Programme 
through quality control functions; (vii) compelling compliance with national AVSEC policies and 
requirements, if any deficiencies are ide ntified; and (viii) establishing and enforcing AVSEC rules, 
regulations, and procedures including, for example, the designation of security restricted areas and 
the authority to screen or search passengers and baggage.  
4.89.  Saint Kitts and Nevis collects a trav el tax, and departure and arrival and cruise passenger 
fees. 
4.90.  Saint Kitts and Nevis is a contracting state of the ICAO. It has one bilateral air services 
agreement, recorded by ICAO, with Canada. It also has an open -skies agreement with the 
United  Kingdom s igned in 2009, and with the United  States, signed in 2012.  
4.3.5   Maritime transport and ports  
4.91.  Saint Kitts and Nevis has inscribed commitments on "ship registration for the control, 
regulation and orderly development of merchant shipping" subject to certain regis tration 
requirements in its GATS Schedule.124 
4.92.  Maritime transport is significant to the economy: some 95% of imports arrive by sea, and 
most agriculture products are exported by sea. Saint  Kitts and Nevis operates a register of 
international ships and also d erives significant revenue from ships listed on the National Register of 
Ships. Saint  Kitts and Nevis acceded to the International Maritime Organization in 2001, and since 
that time has signed onto a number of its international conventions.125 
 
124 WTO document GATS/SC/119, 16  November  1995.  
125 Saint Kitts and Nevis has acceded to the following IMO conventions: IMO Convention 1948, with 
1991 and 1993 amendments; SOLAS, 1974 a nd Protocols of 1978 and 1988; STCW 78; MARPOL 73/78; ILL 
1966; LL Prot, 1988 – Protocol of 1988 relating to the International Convention on Load Lines, 1966; COLREG 
72, 1972; ITC 1969 – International Convention on Tonnage Measurements of Ships (Tonnage), 1969; CLC 
Prot. 1992 (CLC69 and CLC 92); and SAR, 1979, among others. For a complete list, see IMO, Status of 
Conventions . Viewed at: https://www.imo.org/en/About/Conve ntions/Pages/StatusOfConventions.aspx . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  4.93.  The main port in Saint  Kitts is Basseterre, owned and administered by the state -owned 
SCASPA. The main port in Nevis is Charlestown, owned and administered by the NASPA. Each 
authority has a monopoly in the provision of port services, and approval from the  relevant authority 
is required to discharge and load general cargo.  
4.94.  The overall responsibility for maritime transport formulation and implementation lies with the 
Minister of Transport, currently acting in the Ministry of Tourism, Labour, Civil Aviation a nd Urban 
Development. The Department of Maritime Affairs is the National Maritime Authority executing 
government policy on maritime matters; it directs, coordinates, and monitors maritime activities, 
exercising its competence as a port state, flag state, a nd coastal state administration. The 
Department is also the jurisdictional authority for investigating matters relating to maritime 
disasters, and the administrative authority for investigating and sanctioning violations of merchant 
marine standards under its jurisdiction. The Department represents the Government in international 
forums and conferences relating to maritime activities, and acts as a consultant in all maritime 
transport matters. The Minister may appoint special agents for shipping and maritim e affairs in 
accordance with the Merchant shipping (Agreement) Act,  Cap 7.05. 
4.95.  The Saint  Kitts and Nevis International Ship Registry (SKANReg), an international open 
register, with its operational head office located in London, is under the jurisdiction of the 
Department of Maritime Affairs. SKANReg commenced operation in 2005 and by the end of 2019 
had registered over 2,500  vessels and cargo of over 2.5  million tonnes. It has also issued seafarer 
documents to over 30,000  seafarers of many nationalities.126 The Ports of Registry are Basseterre 
for Saint  Kitts and Charlestown for Nevis. The International Registrar of Shipping and Seamen is the 
sole authority for the registration of Saint  Kitts and Nevis ships and seamen. The Registrar controls 
the issuance of a ll documentation issued on behalf of SKANReg. A maritime resident agent is required 
for every ship registered with SKANReg. Although there are no age restrictions on vessels, those 
over 20  years old may be subject to inspection by SKANReg.  
4.96.  The Merchant Shi pping (Agreement) Act, Cap  7.05 is the main legislation governing maritime 
transport in Saint  Kitts and Nevis. In accordance with the Act, there are no registration limitations 
for foreigners. However, under the Act, foreign companies or individuals may re gister a ship as 
domestically owned, only if they are registered or established locally. Persons qualified to own ships 
registered as Saint  Kitts and Nevis vessels are Saint  Kitts and Nevis citizens; CARICOM citizens 
resident in a CARICOM member State, as long as the ship is engaged in international voyages; 
individuals or corporations in a joint -venture shipping enterprise with Saint  Kitts and Nevis citizens; 
corporations established and with a registered office in Saint  Kitts and Nevis; and any other pers ons 
determined by the Minister. The Act allows non -qualified persons to register a ship under the 
Saint Kitts and Nevis flag if over 51% of the shares of the ship are owned by persons qualified to 
own a Saint  Kitts and Nevis ship and provided a maritime ag ent resident in Saint  Kitts and Nevis is 
appointed.127 However, domestically owned ships pay only 50% of the registration fees that 
foreign -owned ships pay. Also, a representative person is required for registration.  
4.97.  Saint Kitts and Nevis does not place an y legal restrictions on cabotage. There are no 
government -owned cargo vessels, and government cargo is not reserved for domestically flagged 
vessels. There are no restrictions on the nationality of the master, officers, and crew on board.  
4.98.  Other legislation  on maritime transport included the Merchant Shipping (Amendments) 
Act, 2005; the Ship & Port Facility Security Regulations,  2004; the Merchant Shipping (Pleasure 
Vessel) Regulations,  2007; the Port State Control Regulations; the Merchant Shipping (Maritim e 
Labour Convention, 2006) (Amendments) Regulations, 2014, SRO  No. 27 of 2013; and the Merchant 
Shipping (Maritime Labour Convention, 2006) (Amendments) Regulations, 2014, SRO  No. 14 of 
2014.  
4.99.  Taxes and fees, including registration fees, administration fees  for registration, and annual 
fees and taxes, are levied on maritime transport activities; these often vary according to the gross 
tonnage. Ships wholly owned by a Saint  Kitts and Nevis company with its registered office in the 
Federation, or a Saint  Kitts and Nevis national or citizen resident in the Federation, are entitled to a 
50% reduction of registration fees.  
 
126 St Kitts and Nevis International Ship Registry. Viewed at: https://www.skanregistry.com/en . 
127 Merchant Shipping Act (2002), Part  II (Articles  3-8). Viewed at: https://www.skanregistry.com/en . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  4.3.6   Tourism  
4.100.   In its GATS schedule, Saint  Kitts and Nevis made commitments on hotel services, limited to 
development of hotels in excess of 50  rooms,  as well as full commitments for restaurant services 
relating to ethnic food. No commitments were made with respect with other tourism -related 
activities.  
4.101.   Tourism has traditionally accounted, directly and indirectly, for a large percentage of GDP. 
Although  hotels and restaurants represented just 8.1% of GDP in 2019, before declining to just 2.9% 
of GDP in 2021, due to the effects of the pandemic, there are sizeable spill -over effects from tourism 
on construction, distribution services, electricity, agricult ure, and manufacturing. The sector was 
brought almost to a halt by the COVID -19 pandemic and the confinement measures and other 
restrictions that had to be adopted to fight it.  
4.102.   Value added in the hotels and restaurants sector contracted by over 20% in 2021  reflecting 
a further decline in visitor arrivals, with respect to 2020, partially due to travel restrictions and 
containment measures imposed to contain the COVID -19 virus. Total visitor arrivals fell by 59.3% 
to 122,609 during the year. This development had negative knock -on effects in supporting sectors 
including transport, storage, communication, and wholesale and retail.128 
4.103.   Cruise passenger arrivals expanded between 2015 and 2019; they reached their peak of 
1.2 million in 2018, before dramatically decli ning in 2020 and 2021 as a consequence of the 
COVID -19 pandemic. The number of total visitors reached a peak of 1.3  million in 2018.129 Likewise, 
total visitor expenditure reached XCD  528.6  million in 2018, but declined to just XCD  77 million 
in 2021, due t o the pandemic, before recovering somewhat in 2022. The United  States is the main 
source of tourist arrivals to Saint  Kitts and Nevis (61.1% of the total in 2019), followed by other 
Caribbean countries (20.5%), the United  Kingdom (7.4%), and Canada (5.4%) (Table  4.2). 
Table  4.2 Tourism statistics, 2015 -21 
  2015  2016  2017  2018  2019  2020  2021  
Total visitors  1,033,816  1,054,901  1,192,959  1,297,349  1,181,822  300,665  122,609  
Stay-over visitors  116,871  115,765  114,854  122,896  120,142  29,695  20,210  
United  States  70,132  67,805  67,081  74,439  73,355  19,054  14,926  
Caribbean  22,975  23,775  24,062  26,462  24,640  4,321  2,095  
United  Kingdom  10,046  10,055  9,921  8,616  8,915  2,136  1,081  
Canada  6,937  6,934  6,786  7,185  6,497  2,604  927 
Other countries  6,781  7,196  7,004  6,194  6,735  1,580  1,181  
Excursionists  3,829  3,955  3,960  4,312  4,099  1,026  455 
Cruise ship passengers  909,107  932,230  1,067,412  1,167,647  1,053,388  267,562  101,897  
Yacht passengers  4,009  2,951  6,733  2,494  4,193  2,382  47 
Number of cruise ship calls  440 422 523 540 478 167 119 
Total visitor expenditure 
(XCD million)  361.34  374.66  430.99  528.56  509.74  122.92  77.00  
Source:  Eastern Caribbean Central Bank, Real Sector Statistics – Selected Tourism Statistics . Viewed at: 
https://www.eccb -centralbank.org/statistics/tourisms/comparative -report . 
4.104.   The formulation and implementation of tourism policy in Saint  Kitts and Nevis at the federal 
level is the responsibility of the Minister of Tourism, currently the portfolio is in the Ministry of 
Tourism and International Transport. Marketing and promotio n activities are carried out by the 
Saint Kitts Tourism Authority and the Nevis Tourism Authority, as well as the private sector 
Saint Kitts Hotel and Tourism Association and the Nevis Hotel and Tourism Association.130 The 
Ministry of Tourism of Nevis deals  with product development in Nevis.  
4.105.   To run a hotel or house, a licence from the Minister of Finance is needed. Saint  Kitts and 
Nevis offers fiscal incentives to encourage the construction or renovation of hotels. The Hotel Aids 
(Amendment) Act, 1998 provid es for the granting of licences to import building materials and hotel 
equipment free of customs duties or duty drawbacks for the construction or renovation of a hotel. 
 
128 ECCB (2022), 2021 Annual Economic and Financial Review: Saint Christopher (St Kitts) and Nevis . 
Viewed at: https://www. eccb-centralbank.org/documents/19# . 
129 Eastern Caribbean Central Bank, Real Sector Statistics – Selected Tourism Statistics . Viewed at: 
https://www.eccb -centralbank.org/ statistics/tourisms/comparative -report . 
130 For more information on the two local Government promotion activities, see : 
https://www.stkittstourism.kn/ ; and https://www.nevisisland.com . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  Saint Kitts and Nevis also provides corporate income tax breaks for the construction or  extension of 
hotels, under the Income Tax Act  No. 17, 1966 and the Hotel Aids (Amendment) Act, Cap  18.17, as 
amended by Act  No. 19 of 1998. Tax incentives are also granted to investors on a case -by-case 
basis by Cabinet for infrastructure projects, with p reference given to the construction of hotels, 
casinos, and villas. No information was available on revenue forgone as a result of these benefits.  
4.106.   Saint Kitts and Nevis levies a 12% Hotel Room Tax, which comprises a 10% VAT and a 2% 
Island Enhancement Tax.131 A travel tax is levied on tickets for air and maritime travel originating 
in Saint  Kitts and Nevis at a rate of 10% of the cost of the fare (Travel Tax (Amendment) Act,  1997 
and Travel Tax Act,  1981).  
4.3.7   Other offshore services  
4.107.   There is special domestic le gislation for offshore businesses. Offshore companies in 
Saint Kitts are regulated by the Companies Act of 1996, as amended, and in Nevis by the Nevis 
Business Corporation Ordinance, 1984 (as amended).132 
4.108.   Companies that provide online betting and gaming ser vices from Saint  Kitts and Nevis must 
be registered at the Financial Services Department of the Ministry of Finance. These activities must 
be strictly offshore: nationals of Saint  Kitts and Nevis are not permitted to place bets on these 
gaming activities.  
4.109.   The Nevis Business Corporation Ordinance (NBCO) regulates the establishment of offshore 
companies generally known as International Business Companies (IBCs). The NBCO provides for a 
corporation to be incorporated to conduct any lawful business. Under the O rdinance, IBCs must be 
incorporated in Nevis prior to conducting any business; a registered agent with a registered office 
in Nevis must be engaged. The office of the registered agent may act as the office of the company. 
Companies incorporated as IBCs und er the NBCO may make use of nominee shareholders, officers, 
and directors, who may be of any nationality and who may reside anywhere; the identity of the 
shareholders is not required to be filed in any public record.  
4.110.   The NBCO permits the use of shareholder s, officers, and directors, who may be of any 
nationality and who may reside anywhere. The Corporate Secretary may be a corporation or an 
individual. Corporations may serve as directors, and alternate or substitute directors may be 
appointed. All sharehold ers and directors may act by unanimous consent. No annual reports are 
required to be filed in the public records of Nevis. Corporate records may be kept anywhere in the 
world and must be readily accessible by the Registered Agent of the corporation and the  FSRC – 
Nevis Branch upon request.  Whenever there is a change in beneficial owners, shareholders, 
directors, or officers, this change must be reflected in the records held by the Registered Agent as 
stipulated in the NBCO and AML/CFT Regulations. AML/CFT O n-site Examinations are conducted by 
the FSRC  – Nevis Branch to ensure that Registered Agents comply with these stipulations. The 
authorized share capital of a Nevis IBC may be demonstrated in any currency. Bearer shares are 
only permitted with the approva l of the Registrar of Companies or the Regulator. In the case of 
approval, the registered agent must maintain custody of the bearer share certificate on behalf of the 
beneficial owner and must maintain a register of each bearer share.133 
4.111.   In accordance with the Ordinance, Nevis IBCs may amend their articles of incorporation, and 
merge or consolidate with foreign corporations or other Nevis corporations; the Ordinance allows 
corporations formed in another jurisdiction to redomicile into Nevis. The Ordinance al so provides for 
the emergency transfer of domicile to Nevis upon the approval of the Registrar of Companies.  
 
 
131 The legislative basis of the hotel room tax is the Hotel Accommodation and Restaurant (Amendment) 
Act No. 16, 1999.  
132 The Companies Act (Chapter  21.03) has been amended by the Compani es (Amendment) Act  2004; 
the Companies (Amendment) Act  2005; the Companies (Amendment) Act  2010; and the Companies 
(Amendments) Act  No. 4 2011.  
133 Nevis FSRC, IBCs. Viewed at: https://www.nevisfsrc.co m/services/ibcs/ . WT/TPR/S/437  • Saint Kitts and Nevis  
 
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  5  APPENDIX  TABLES  
Table  A1.1 Merchandise visible exports by SITC section, 2014 -21 
(USD  million and %)  
Descrip tion 2014  2015  2016  2017  2018  2019  2020  2021   
(USD  million)  
Total exports  56.8 55.4 51.1 50.3 54.2 57.7 52.1 47.2 
Domestic exports  50.2 47.3 39.2 39.4 43.1 43.7 40.7 37.2 
Re-exports  6.6 8.1 11.9 10.9 11.1 14.0 11.4 9.9  
(% of total exports)  
0. Food and live animals  2.8 1.9 3.0 2.8 3.7 1.7 2.5 4.0 
1. Beverages and tobacco  5.8 8.0 5.0 4.4 5.3 5.6 5.8 8.5 
2. Crude materials, inedible, except fuels  0.1 0.0 0.0 0.2 0.5 0.0 0.2 0.4 
3. Mineral fuels and related materials  0.0 0.0 0.0 0.2 0.0 0.1 0.0 0.0 
4. Animal and vegetable oils, fats and 
 waxes  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
5. Chemicals and related products  0.1 0.2 0.1 0.3 0.2 0.2 0.1 0.2 
6. Manufactured goods  0.8 0.7 3.1 5.2 4.7 5.0 1.1 0.7 
7. Machinery and transport equipment  77.3 75.6 73.6 72.1 67.8 72.3 79.3 73.9 
8. Miscellaneous manufactured articles  10.9 10.2 13.3 13.7 16.0 12.2 9.6 8.6 
9. Commodities and transactions not 
classified elsewhere in SITC  2.1 3.3 1.8 1.0 1.8 2.9 1.5 3.7 
Source:  Eastern Caribbean Central Bank (ECCB), Real Sector Statistics -Selected Visible Trade Statistics . 
Viewed at: https://www.eccb -centralbank.org/statistics/trades/country -report . 
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  Table  A1.2 Merchandise visible imports by SITC section, 2014 -21 
(USD  million and %)  
Description  2014  2015  2016  2017  2018  2019  2020  2021   
(USD  million)  
Total imports  268.4  296.9  333.3  308.9  334.5  338.1  271.5  259.7   
(% of total exports)  
0. Food and live animals  17.6 17.2 21.0 21.5 21.2 20.1 24.0 23.4 
1. Beverages and tobacco  3.1 3.8 3.6 3.5 3.8 4.0 3.2 3.1 
2. Crude materials, inedible, except fuels  2.5 2.7 2.3 2.4 2.6 2.6 2.8 1.9 
3. Mineral fuels and related materials  0.6 3.2 0.6 0.7 0.7 0.6 0.7 0.6 
4. Animal and vegetable oils, fats and 
 waxes  0.3 0.2 0.3 0.3 0.3 0.3 0.4 0.5 
5. Chemicals and related products  7.9 7.0 8.5 8.2 7.9 8.2 9.9 11.3 
6. Manufactured goods  18.1 16.6 18.8 16.7 17.3 16.5 15.5 16.6 
7. Machinery and transport equipment  30.1 26.5 27.5 26.0 25.4 25.3 26.0 28.3 
8. Miscellaneous manufactured articles  19.7 22.2 17.4 20.6 20.4 22.1 17.5 14.2 
9. Commodities and transactions not 
classified elsewhere in SITC  0.2 0.6 0.0 0.1 0.3 0.3 0.1 0.2 
Source:  Eastern Caribbean Central Bank (ECCB), Real Sector Statistics -Selected Visible Trade Statistics . 
Viewed at: https://www.eccb -centralbank.org/statistics/trades/co untry -report . 
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  Table  A1.3 Merchandise exports and re -exports by SITC section, 2014 -21 
(USD  million and %)  
Description  2014  2015  2016  2017  2018  2019  2020  2021  
Total exports  56.8 55.4 51.1 50.3 54.2 57.7 52.1 47.2 
Domestic exports  50.2 47.3 39.2 39.4 43.1 43.7 40.7 37.2 
Re-exports  6.6 8.1 11.9 10.9 11.1 14.0 11.4 9.9 
 (% of imports)  
0 Food and live animals  2.8 1.9 3.0 2.8 3.7 1.7 2.5 4.0 
1 Beverages and tobacco  5.8 8.0 5.0 4.4 5.3 5.6 5.8 8.5 
2 Crude materials, inedible, except fuels  0.1 0.0 0.0 0.2 0.5 0.0 0.2 0.4 
3 Mineral fuels and related materials  0.0 0.0 0.0 0.2 0.0 0.1 0.0 0.0 
4 Animal and vegetable oils, fats and 
waxes  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
5 Chemicals and related products  0.1 0.2 0.1 0.3 0.2 0.2 0.1 0.2 
6 Manufactured goods classified by 
material  0.8 0.7 3.1 5.2 4.7 5.0 1.1 0.7 
7 Machinery and transport equipment  77.3 75.6 73.6 72.1 67.8 72.3 79.3 73.9 
8 Miscellaneous manufactured articles  10.9 10.2 13.3 13.7 16.0 12.2 9.6 8.6 
9 Commodities and transactions not 
classified elsewhere in SITC  2.1 3.3 1.8 1.0 1.8 2.9 1.5 3.7 
Source:  Eastern Caribbean Central Bank (ECCB), Real Sector Statistics -Selected Visible Trade Statistics . 
Viewed at: https://www.eccb -centralbank.org/statistics/trades/country -report . 
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 Table  A1.4 Merchandise imports by SITC section, 2014 -21 
(USD  million and %)  
Description  2014  2015  2016  2017  2018  2019  2020  2021  
Total imports  268.4  296.9  333.3  308.9  334.5  338.1  271.5  259.7  
 (% of imports)  
0 Food and live animals  17.6 17.2 21.0 21.5 21.2 20.1 24.0 23.4 
1 Beverages and tobacco  3.1 3.8 3.6 3.5 3.8 4.0 3.2 3.1 
2 Crude materials, inedible, except fuels  2.5 2.7 2.3 2.4 2.6 2.6 2.8 1.9 
3 Mineral fuels and related materials  0.6 3.2 0.6 0.7 0.7 0.6 0.7 0.6 
4 Animal and vegetable oils, fats and 
waxes  0.3 0.2 0.3 0.3 0.3 0.3 0.4 0.5 
5 Chemicals and related products  7.9 7.0 8.5 8.2 7.9 8.2 9.9 11.3 
6 Manufactured goods classified by 
material  18.1 16.6 18.8 16.7 17.3 16.5 15.5 16.6 
7 Machinery and transport equipment  30.1 26.5 27.5 26.0 25.4 25.3 26.0 28.3 
8 Miscellaneous manufactured articles  19.7 22.2 17.4 20.6 20.4 22.1 17.5 14.2 
9 Commodities and transactions not 
classified elsewhere in SITC  0.2 0.6 0.0 0.1 0.3 0.3 0.1 0.2 
Source:  Eastern Caribbean Central Bank (ECCB), Real Sector Statistics -Selected Visible Trade Statistics . 
Viewed at: https://www.eccb -centralbank.org/statistics/trades/country -report .