WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 224 - 
 
ANNEX 4 – SAINT KITTS AND NEVIS 
 WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 225 - 
 
CONTENTS 
1   ECONOMIC ENVIRONMENT ...................................................................................... 228  
1.1   Main Macroecono mic Developments .......................................................................... 228  
1.1.1   Real  economy ..................................................................................................... 228  
1.1.2   Fiscal policy and structural reform .......................................................................... 231  
1.1.3   Balance of payments, and monetary and exchange rate policy .................................... 233  
1.2   Trade and In vestment Flows .................................................................................... 235  
1.3   Outlook ................................................................................................................. 235  
2   TRADE AND INVESTMENT POLICY FRAMEWORK ...................................................... 238  
2.1   General Constitution al and Legal Framework .............................................................. 238  
2.2   Trade Policy Formulation and Implementation ............................................................. 239  
2.3   Investme nt Regime ................................................................................................ 240  
2.4   Internatio nal Relations ............................................................................................ 241  
2.4.1   World Trade Organization ...................................................................................... 241  
2.4.2   Preferential agreements and arrangements .............................................................. 242  
3   TRADE POLICIES AND PRACTICES BY MEASURE ...................................................... 244  
3.1   Measures Directly  Affecting Import s .......................................................................... 244  
3.1.1   Customs procedures, documentation, and registration ............................................... 244  
3.1.2   Custom s valuation ............................................................................................... 245  
3.1.3   Rules of origin ..................................................................................................... 2 45 
3.1.4   Tariffs and othe r charges on imports ...................................................................... 246  
3.1.4.1   MFN applie d tariff stru cture ................................................................................ 246  
3.1.4.2   Boun d tariffs .................................................................................................... 24 8 
3.1.4.3   Tariff and tax conce ssions .................................................................................. 248  
3.1.4.4   Tariff preferences .............................................................................................. 250  
3.1.5   Other levi es and charges ...................................................................................... 250  
3.1.6   Import prohibitions, restrictions, an d licensing ......................................................... 253  
3.1.7   Continge ncy measures ......................................................................................... 255  
3.1.7.1   Anti-dumping and countervailing measures ........................................................... 255  
3.1.7.2   Safeguards ...................................................................................................... 255  
3.1.8   Technical regula tions and st andards ....................................................................... 256  
3.1.9   Sanitary and ph ytosanitary me asures ..................................................................... 257  
3.2   Measures Directly Affecting Exports ........................................................................... 259  
3.2.1   Documentation, export  taxes, and re strictions ......................................................... 259  
3.2.2   Export subsidies, financ ing, support, and promotion ................................................. 259  
3.3   Measures Affecting Production an d Trade ................................................................... 260  
3.3.1   Incentives and assist ance ..................................................................................... 260  
3.3.2   Competition policy and regulatory  issues ................................................................. 263  
3.3.2.1   Competition policy ............................................................................................ 263  
3.3.2.2   Price controls ................................................................................................... 26 3 WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 226 - 
 
3.3.3   State-owned enterp rises and priv atization ............................................................... 265  
3.3.4   Government  procurement ..................................................................................... 265  
3.3.5   Intellectual property rights .................................................................................... 266  
3.3.5.1   Overview ......................................................................................................... 26 6 
3.3.5.2   Trade marks ..................................................................................................... 267  
3.3.5.3   Patents ............................................................................................................ 267  
3.3.5.4   Copyright ......................................................................................................... 268  
3.3.5.5   Enforcement of intellectual property rights ............................................................ 268  
4   TRADE POLICIES BY SECTOR ................................................................................... 269  
4.1   Agriculture ............................................................................................................ 269 
4.2   Manufac turing ........................................................................................................ 27 1 
4.3   Services ................................................................................................................  272 
4.3.1   Main features ...................................................................................................... 27 2 
4.3.2   Telecommunications ............................................................................................. 272  
4.3.3   Financial services ................................................................................................. 275  
4.3.3.1   Onshore bank ing and insu rance .......................................................................... 276  
4.3.3.1.1   Banking ........................................................................................................ 27 6 
4.3.3.1.2   Insurance ...................................................................................................... 278  
4.3.3.2   Offshore fi nancial serv ices .................................................................................. 279  
4.3.4   Air transport and airports ...................................................................................... 280  
4.3.5   Maritime tr ansport and ports ................................................................................. 281  
4.3.6   Tourism .............................................................................................................. 284  
4.3.7   Profession al services ............................................................................................ 286  
4.3.8   Other offshore services ......................................................................................... 287  
REFERENC ES ................................................................................................................ 288  
5   APPENDIX TABLES .................................................................................................. 289  
 
CHARTS 
 Chart 1.1 Merchandise trade by SITC section, 2007 and 20 12 .............................................. 236
 
Chart 1.2 Merchandise trade, by main or igin and destinatio n, 2007 and 2011 ......................... 237  
 
TABLES 
 
Table 1.1 Composition of GDP by  economic acti vity, 2007- 13 ............................................... 228  
Table 1.2 Basic macroeconomic indicators, 2007-13 ............................................................ 230  
Table 1.3 Balance of payments, 2007-12 ........................................................................... 234  
Table 2.1 St. Kitts and Nevis, WTO notifications 2007-13 ..................................................... 242  
Table 3.1 Trade-rela ted taxes,  2010-13 ............................................................................ 246  
Table 3.2 Structure of the tariff sched ule in St Kitts and Nevis, 2013 ..................................... 247  
Table 3.3 Summary analysis of the St  Kitts and Nevis M FN tariff, 2013 .................................. 249  WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 227 - 
 
Table 3.4 Products subjec t to excise  taxes ......................................................................... 252  
Table 3.5 Membership in WIPO-administere d intellectual property  treaties , 2013 .................... 267  
Table 4.1 Telecommunicati ons statisti cs, 2008- 13 .............................................................. 274  
Table 4.2 Annual tour ism data, 2007-12 ........................................................................... 285  
 
APPENDIX TABLES 
 
Table A1. 1 Merchandise exports and re-e xports by SITC se ction, 2007- 12 ............................ 289  
Table A1. 2 Merchandise imports by SITC section, 2007-12 .................................................. 290  
Table A1. 3 Merchandise exports and re-e xports by trading partner, 2007-12 ......................... 291  
Table A1. 4 Merchandise imports by trading part ner, 2007- 12 .............................................. 292  WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 228 - 
 
1  ECONOMIC ENVIRONMENT 
1.1  Main Macroeconomic Developments 1.1.1  Real economy 1.1.  The three pillars of the St Kitts and Ne vis economy are tourism, financial services and 
manufacturing. In general, services are the major contributor to GDP, having accounted for 74% 
in 2012 at current prices. Construction accounted for some 12.2% of GDP in 2012, manufacturing for 10.6%, agriculture for 1%, and water and electricity for 1.5%.
1 Tourism is the most important 
activity in terms of jobs and foreign exchange, an d 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. 
1.2.  The structure of the economy remained la rgely unchanged over the 2007-12 period with the 
service sectors continuing to dominate economic activity with their share in GDP increasing from 
71.3% to 78.4%. With net inflows equivalent to about 7% of GDP, services also play a critical role in containing the country's external current account deficit. Agriculture continued to decline during 
the period under review and its contribution to GDP fell from 3% (reported in the previous TPR 
for 2005), to just 1% (Table 1.1). The sector ha s not recovered from the demise of the sugar 
industry, although the production of other crops has increased (see section 4.1). 
Table 1.1 Composition of GDP by economic activity, 2007-13 
(% share of GDP)  
 2007  2008  2009  2010  2011 2012 2013a 
Agriculture, livestock and forestry 0.87  0.98 0.94 1.11 1.14 1.03 1.03  
Crops 0.48 0.55 0.54 0.68 0.71 0.67 0.66 
Livestoc k 0.36  0.40 0.36 0.40 0.39 0.33 0.34  
Forestry 0.03 0.03 0.03 0.03 0.03 0.03 0.03 
Fishing 0.46  0.51 0.45 0.46 0.56 0.56 0.57  
Mining & quarrying 0.17 0.12 0.18 0.13 0.08 0.08 0.08 
Manufacturing 6.89  6.99 8.91 10.22  9.77 10.63 10.75  
Electricity & water  1.64 1.37 1.50 1.54 1.52 1.45 1.44 
  Electricity 1.13  0.93 0.96 0.99 1.02 1.01 1.00  
  Wate r 0.51 0.44 0.54 0.55 0.49 0.44 0.44 
Construction 19.85  18.56  16.43  13.83  13.03 12.24 12.56  
Wholesale & retail trade 7.69 8.42 8.22 8.17 7.59 7.17 7.36 
Hotels & restaurants 7.22  6.94 5.04 5.33 5.56 5.63 5.34  
  Hotels 7.02 6.75 4.87 5.16 5.36 5.43 5.16 
  Restaurants  0.20  0.19 0.17 0.18 0.20 0.20 0.18  
Transport, storage and communications 11.20  11.39  10.91  11.92  13.12 12.85 12.88  
 Transport and storage 6.03  7.14 6.23 6.87 8.03 7.62 7.64  
  Road transport 3.91 4.67 3.75 4.35 4.98 4.74 4.77 
  Sea transport 0.13  0.05 0.04 0.04 0.05 0.04 0.04  
  Air transport 0.05 0.06 0.06 0.06 0.06 0.05 0.05 
  Supporting and auxiliary transport activities 1.95  2.36 2.39 2.43 2.95 2.78 2.77  
 Communications 5.17 4.25 4.68 5.04 5.08 5.23 5.24 
Financial intermediation 13.43  12.41  12.30  12.12  11.97 12.44 12.47  
 Banks 9.76 8.54 8.18 8.31 8.19 8.56 8.61 
 Insurance 1.96  1.77 1.69 1.40 1.40 1.43 1.41  
 Activities auxiliary to financial intermediation 1.71 2.10 2.43 2.42 2.38 2.46 2.45 
Real estate, renting and business activities 14.97  15.62  16.82  17.07  16.68 16.91 16.92  
Public administration, defence & compulsory social 
security 7.61 8.09 8.78 8.67 9.53 9.64 9.40 
Education 4.48  4.68 5.07 5.32 5.25 5.36 5.28  
Health and social wor k 2.54 2.56 2.76 2.57 2.63 2.67 2.63 
Other community, social & personal services 2.56  2.60 2.78 2.56 2.65 2.49 2.47  
Activities of private households as employers 0.34 0.35 0.35 0.31 0.32 0.29 0.29 
Less: FISIM 1.93  1.61 1.45 1.34 1.39 1.45 1.47  
GVA in basic prices 100 100 100 100 100 100 100 
 
a Estimate. 
 Source: Eastern Caribbean Central Bank. 
                                               
1 Total shares do not add to 100% since financial in termediation services indirectly measured (FISIM) 
must be subtracted, which includes total property income receivable by financial intermediaries minus their 
total interest payable. For details see ECCB online information. Viewed at: http://www.eccb-centralbank.org/ Media/gdp_estimates_2000to2014.xls. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 229 - 
 
1.3.  In contrast with the developments in agricu lture, the contribution of manufacturing (including 
agri-industry) to GDP increased from 6.9% in 2007 to 10.6% in 2012 (at basic prices, 8.9% at market prices), mainly due to the dynamism of a few industries, and despite a sharp contraction in the refined sugar and molasses industry. The manufacturing sector consists primarily of light 
manufactures including beverages (beer, malt, rum,  bottled water, and other soft drinks), and 
pasta, with production geared mainly for the do mestic market; and of enclave 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 exports and the 
production of electronic components for export to the United States accounts for an estimated 65% of the sector’s output. St. Kitts and Nevis continues to be the leading OECS exporter of 
electronics components to the U.S. market. Food  and beverage production accounts for about 17% 
of manufacturing output with export activity largely concentrated in the CARICOM market. 
Masonry products (mainly destined for the domestic construction industry) account for about 9%. Manufacturing employs an estimated 8% of the employed labour force. Construction was affected 
by the global crisis, as investment in new hotel facilities fell; the Government expects activities to 
rebound in the near future, with new investment in  tourism, housing, and public sector projects. 
1.4.  The tourism sector's estimated share in GDP averaged 6.2% over 2008-12, down from 
the 7.7% average in the previous five-year period. This reduction is explained to a certain extent 
by weaker demand weakened in the major source markets, and hurricane damage which resulted in the closure of a major resort hotel in Nevis. The tourism sector has been recovering from this sharp decline, and stay-over arrivals increasing  by 6% in the first half of 2013 over the 
comparable period in 2012. Tourism is the largest single private sector employer, accounting for 
an estimated 10% of the employed labour force.  
1.5.  The economy of St. Kitts and Nevis was severe ly affected by the global crisis, which seriously 
impacted its tourism revenues and FDI inflows. Reflecting this, real GDP growth was sluggish 
during the period under review, declining (at market prices) at a 0.3% annual average rate between 2007 and 2012 in the case of real GDP at  market prices, and of 0.4% for real GDP at 
basic prices. Real GDP at market prices contracted in 2009 and 2010, and again in 2012; at basic 
prices, in every year during 2009-12 (Table 1.2). Following four consecutive years of contraction of real output, the St. Kitts and Nevis economy began to recover in the first half of 2013. This incipient recovery is being led by a pick-up in st ay-over tourist arrivals and increased construction 
activity. 
1.6.  Although it stagnated during the period, GDP per capita in St. Kitts and Nevis, at some 
US$14,000 in 2012, is the second highest among OECS countries. St. Kitts and Nevis is now 
ranked by the World Bank as a high income country. The fiscal position deteriorated as tax 
revenue declined by almost 20% between 2008 and 2010, and the public debt increased to over 
160% of GDP by the end of 2010. This led the auth orities to adopt a fiscal adjustment programme 
at the end of 2010, including tax reform through the elimination of the consumption tax and its 
substitution by the VAT, and an 80% increase in electricity tariffs. Fiscal consolidation and strengthening the financial sector has been the co rnerstone of St. Kitts and Nevis' policy agenda 
since 2010.
2 
1.7.  The Government estimated GDP growth of  over 2.5% for 2013, triggered by investment 
projects in tourism and to a lesser extent energy. As pointed by the IMF and developed in section 3 of this report, investment projects benefit from income tax, VAT, and import duty 
incentives under the Small Business Act, the Fiscal Incentives Act, the Hotel Aids Act, and the 
Special Resorts Development Act. Investment flows also benefit from the requirements of the Citizenship by Investment Program. The IMF also  reports that, as of end-June 2012, 11% of all 
applicants to the programme elected to purchase real estate for a minimum of US$400,000 per 
unit. FDI flows are expected to continue expandin g in the near future. The IMF projects FDI to 
average 17.5% of GDP in 2014–17, slightly above its pre-crisis level.
3 
                                               
2Government of St Christopher and Nevis (2012). 
3 IMF (2013). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 230 - 
 
Table 1.2 Basic macroeconomic indicators, 2007-13  
(Per cent unless otherwise specified) 
 2007  2008  2009  2010  2011 2012 2013a 
Real sector        
Nominal GDP at market prices (EC$ million) 1,847.2  1,983.6  1,914.0  1,869.6  1,965.7 1,976.2 2,037.3  
Nominal GDP at basic prices (EC$ million) 1,608.9  1,715.9  1,687.7  1,638.4  1,662.0 1,677.0 1,732.8  
Real GDP at market prices (EC$ million) 1,766.0  1,838.9  1,736.0  1,680.0  1,708.5 1,687.5 1,715.3  
Real GDP at basic prices (EC$ million) 1,538.2  1,590.8  1,530.8  1,472.2  1,444.5 1,432.0 1,459.0  
GDP per capita at basic prices (EC$) 37,770  38,754  36,868  36,756  37,874 37,969 .. 
GDP growth (real, market prices) 2.8  4.1 -5.6 -3.2 1.7 -1.2 1.7  
GDP growth (real, basic prices) 4.8 3.4 -3.8 -3.8 -1.9 -0.9 1.9 
GDP components (% of GDP)  
Total consumption 71.6 86.9 86.5 88.7 84.1 83.3 86.5 
  Private consumption 62.5  76.6 75.6 78.0 73.6 72.7 76.3  
  General government consumption 9.2 10.3 10.9 10.7 10.5 10.6 10.2 
  Gross capital formation 44.9  40.6 40.5 33.1 30.0 28.3 28.7  
  Construction  36.3 33.7 30.4 25.6 23.2 21.9 22.2 
  Transport equipment 2.3  2.3 2.0 1.5 1.3 1.3 1.3  
Other equipment 6.3 4.5 8.1 6.0 5.5 5.1 5.2 
Net exports of goods and services (% of 
GDP) -16.5  -27.5  -27.0  -21.8  -14.1 -11.6 -15.3  
Exports 34.0 31.9 24.6 29.1 33.1 33.5 33.4 
 Goods 8.4  9.4 5.3 8.1 9.1 9.2 9.1  
 Non-factor services 25.6 22.5 19.3 21.0 24.0 24.3 24.3 
Imports 50.5  59.4 51.6 50.9 47.2 45.0 48.7  
 Goods 35.4 42.4 37.4 35.3 32.0 30.1 33.2 
 Non-factor services 15.1  17.0 14.2 15.6 15.2 14.9 15.5  
Gross national savings 28.4 13.0 15.1 13.7 18.2 18.8 16.2 
Foreign savings 16.5  27.6 25.4 19.4 11.8 9.5 12.6  
Consumer price index (end of period) 2.9 5.3 2.1 0.6 7.1 1.4 0.6b 
Consumer price index (period average) 2.8  6.5 1.2 5.2 2.8 0.2 -0.5b 
Implicit gross value added deflator (end 
period) .. 2.6 2.5 0.6 2.8 1.1 .. 
General government finance (% of GDP)  
Current revenue 29.2 29.4 30.9 29.2 36.7 36.8 .. 
 of which, tax revenue 22.6  22.8 22.7 19.7 23.0 22.8 ..  
     of which taxes on international trade 10.9 10.6 9.7 9.0 5.9 5.8 .. 
       of which        
          Consumption tax 5.3 5.1 4.5 3.7 0.1 0.1 .. 
           Import duties 3.0  2.9 2.7 2.8 2.7 2.6 ..  
           Customs service charges 2.0 2.1 2.0 1.9 1.8 1.7 .. 
     If which Value Added Tax  .. .. ... 1.1 8.5 8.2 ..  
Current expenditure 28.3 29.0 31.4 30.5 33.0 31.2 .. 
Current account balance 0.9  0.4 -0.5 -1.3 3.1 3.6 ..  
Primary balance 3.1 5.2 2.1 -0.1 6.0 8.3 .. 
Overall fiscal balance before grants -3.5  -1.8 -4.9 -7.7 -1.1 2.1 ..  
Overall fiscal balance after grants -1.9 -0.3 -1.1 -4.6 2.8 12.7 ..
Total public debt 131.0  148.5  163.9  153.6  144.9 92.3 ..
Money and interest rates         
Broad money, M2 (end of period) 11.5  2.0 5.8 8.2 10.1 11.6 13.5 
(Apr) 
Weighted deposit interest rate 3.8 3.7 3.4 3.5 3.4 3.4 3.4c 
Weighted lending interest rate 9.0  8.6 8.5 8.5 9.1 8.4 8.4c 
Prime lending rate 8.5 8.5 8.5 8.5 8.5 8.5 8.5 
 
.. Not available. a Preliminary/estimate.  b June. c March.  Source: ECCB (2013), National Account Statistics 2012  and ECCB (2013), Annual Economic and Financial 
Review, 2012 . 
1.8.  During 2007-12, inflation, as measured by the increase in the CPI, was moderate on average, 
at 3.1% a year; however, it has been relatively volatile since then, reaching peaks in 2008 and 2010, lows in 2011 and 2012, and declining during 2013. Data are not available on the level of employment and wage movement in St Kitts and Nevis for the period under review. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 231 - 
 
1.1.2  Fiscal policy and structural reform  
1.9.  The Minister of Finance is responsible for fiscal policy formulation and implementation in 
St. Kitts and Nevis. This power is vested on the Minister by the Constitution. The Finance Administration Act of 2007 introduced new and amended provisions for the management of public 
revenue, expenditure, treasury management oper ations, public debt, public accounts, and the 
oversight of statutory bodies. St. Kitts and Nevis does not have an independent monetary policy as a consequence of the common currency and the exchange  rate peg to the U.S. dollar; fiscal policy 
is the main domestic instrument used to counter the effects of external shocks and stabilize 
income. As reported in the previous Review, ther e  is  s ti l l hig h d e p e nd e ncy on taxe s  o n fore ig n 
trade for revenue, although the main share has moved away from tariffs and into the VAT, which was introduced during the period under review (see section 3). 
1.10.  The Constitution grants the Nevis Island Assembly exclusive powers to make laws relating 
to the mobilization of loan and grant financing an d economic planning and development in Nevis. 
The Ministry of Sustainable Development is responsible for national development planning, and its 
specific responsibilities include collection and compilation of economic statistics, coordinating 
relationships with external development lending and donor agencies; monitoring the implementation of the national de velopment plan; preparation and monitoring of the Public Sector 
Investment Programme (PSIP), and physical planning. 
1.11.  The global recession of 2008-09 resulted in a sharp deterioration of St. Kitts and Nevis' 
fiscal accounts. The negative effects of the already high public sector debt burden were aggravated 
by negative real growth. Since then, St. Kitts and Nevis has been making efforts to improve its 
fiscal accounts, and showed a primary surplus in every year of the period under review, except 
in 2009. However, the overall public sector continued to post a deficit until 2012; the deficit (before grants) peaked at 7.7% of GDP in 2010, as  increasing debt service requirements limited 
fiscal flexibility, while tax revenue declined and ca pital outlays increased. The deficit started to 
decline in 2011 as a fiscal adjustment programme started to be implemented. Overall fiscal accounts before grants returned to surplus in 2012. Moreover, with domestic debt comprising an 
estimated 68% of the debt stock, the relatively hi gh exposure of the financial system to sovereign 
risk emerged as a matter of policy concern. 
1.12.  In 2010, the authorities started implementing a programme of fiscal consolidation and 
structural reforms.
4 The programme included replacement of the consumption tax by a 
value-added tax (see section 3), implementing an Excise Tax Act, introduction of an 
unincorporated business tax to replace the traders’ tax, and restructuring the housing and social development levy. These measures were formally approved and implemented between 
November 2010 and January 2011 and were accompanied by an electricity tariff reform, a 
reduction of the share of non-discretionary expe nditure in total spending, the strengthening of 
control systems, and the prioritization of capital expenditure and a freeze of the public wage bill. 
Apart from achieving a sustainable fiscal position and engaging in debt restructuring, the reforms 
aim at securing a higher middle-term economic growth path, and strengthening the financial sector. To this end, the Banking Sector Reserve Fund was established to provide temporary liquidity support to solvent financial institutions, if needed. The specific objective of the fiscal 
adjustment effort, coupled with a comprehensive debt restructuring programme, is to significantly 
reduce the debt service burden and help set the public debt-to-GDP ratio firmly on a downward 
path toward the ECCU debt target of 60% of GDP by 2020.  
1.13.  The programme targeted the achievement of average primary fiscal surpluses of about 
5.6% of GDP during 2011–13. The goal was met in both 2011 and 2012 and for 2013 the authorities estimate a primary surplus equivalent to 15% of GDP, and an overall balance of 11.7% 
of GDP. This was partly a result to the tax reform and expenditure-containment measures, and 
was supported by strong non-tax revenue flows. 
1.14.  The IMF backed St. Kitts and Nevis' adjustment programme. In 2011, the Executive Board 
of the IMF approved a three-year Stand-By Arrangement (SBA) for SDR 52.51 million 
(US$84.5 million).
5 The arrangement was intended to support the economic programme, debt 
restructuring, to restore debt and external sustainability, and set the stage for sustained growth. 
                                               
4 For details of the actions taken, see Gove rnment of St. Christopher and Nevis (2010). 
5 IMF (2011a). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 232 - 
 
SDR 22.15 million (US$35.6 million) was made available for immediate disbursement. In its 
assessment, the IMF noted that "o ver the medium term, the structural reforms envisaged by the 
authorities will complement fiscal adjustment", and that "these reforms aim at strengthening 
public financial management, improving the business climate, enhancing the social safety nets, 
removing obstacles to growth, and restoring competitiveness."6 
1.15.  While the reforms introduced are expected to continue to improve fiscal accounts, the 
authorities still have to tackle the issue of the revenue forgone through fiscal incentives for 
investment and import duty concessions. Curtailing concessions and making them more 
transparent, may help strengthen the fragile fiscal situation, and would enhance the predictability and accountability of the investment regime. As a first step in this direction, the authorities have committed, in the context of their reform programm e, to review of the system of customs duties 
and tax exemptions, and to continue to monitor the revenue cost of these exemptions, estimated 
at about 2% of GDP in the first half of 2012. The idea is to amend the laws providing incentives, 
including the Fiscal Incentives Act, the Small Business Act, the Hotel Aids Act, and the Special 
Resorts Development Act. The authorities are consid ering modifying the provisions of these Acts to 
make them more rules-based, rationalizing the list of priority sectors eligible for exemptions, streamlining provisions pertaining to reduction of consumption taxes, and favour providing 
incentives through accelerated capital depreciation instead of tax holidays. However, the full 
implementation of these measures requires regional coordination since all other OECS states and most other CARICOM countries have similar incentives laws. St. Kitts and Nevis has notified the Fiscal Incentives Act No. 17 of 1974, Cap. 20.14 to the Committee on Subsidies and Countervailing 
Measures (SCM), and has committed to dismantle all export subsidies provided by the Act by 
end 2015 (see section 3.2.2). 
1.16.  As part of their reform programme, the authorities have included trade facilitation 
measures, in particular the further integrating of information technology into customs clearance 
practices. One of the goals is to raise the ratio of electronic to total customs declarations by 
facilitating their submission by all large importers. To this end, the authorities envisage improving 
the design of the e-filing forms to add built-in triggers to facilitate system integration and 
automated audits. 
1.17.  Total public debt rose during most of the period under review, reaching 169.3% of GDP 
in 2009. Considering that debt levels were unsustainable, the authorities announced their intention 
to seek debt restructuring, in June 2011, and initiated bilateral discussions with key creditors. The 
overall objective is to place the public debt on a downward path to achieve the target of 60% of 
GDP by 2020. All public debt was declared eligible for restructuring with the exception of 
multilateral debt and Treasury bills; a debt-for-land swap programme was include as part of the 
process of debt restructuring, and the Banking Sector Reserve Fund was created. In 2012 the Government concluded a debt exchange programme with external commercial creditors and 
negotiated a restructuring arrangement on bilateral debt held with Paris Club creditors. 
Negotiations with non-Paris Club bilateral creditors have also taken place. The Government also concluded a debt-for-land restructuring programme with its major domestic creditor in 2012.  
1.18.  In February 2012, the Government launched an exchange offer for external commercial 
creditors and bondholders, including domestic holders but excluding Treasury bills. The offer was 
accepted in March 2012 by a creditor committee representing some of the major foreign creditors and some EC$369 million (US$135 million) of debt was eligible to be exchanged; some debt 
holders opted to maintain the full value of their debt with long repayments periods, while others 
chose to accept a "haircut", but be paid in a shorter period.
7 The debt-land swap programme was 
conducted through the establishment of a special purpose vehicle (SPV) in charge of selling the 
assigned land; proceeds of sales are passed to creditors in settlement of their original claim. The 
authorities announced their intention to appoint the management of the SPV and outline its operational guidelines by end 2012.
8 The management of the SPV was subsequently appointed, 
                                               
6 IMF (2011a). 
7 The IMF noted that about one third of creditors op ted for the "par bond", an EC$-denominated 45-year 
bond with a 15-year grace period on principal payments that carries a 1. 5% coupon. The remaining two thirds 
of creditors chose the discount bond, accepting a 50% cut in the face value of their claims. The discount bond 
is a US$ denominated 20-year bond carrying a 6% coupon for the first four years, and a 3% coupon thereafter. 
These bonds have a guarantee from the Caribbean Development Bank fo r up to an aggregate limit of 
US$12 million (IMF, 2011b). 
8Government of St Christopher and Nevis (2012). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 233 - 
 
and in 2013 several board meetings were held to  look at the operational guidelines, ethical 
standards and government mechanisms. Sales were scheduled to begin in late January 2014.  
1.19.  As a result of the above measures, the debt stock is estimated to have declined to just 
above 100% of GDP by the end of 2013. The auth orities noted that there has also been some 
easing of interest payment commitments, which are projected to average 2% of GDP over the 
medium term down from an average of 6.7% of GDP over 2009-12. 
1.20.  Apart from dealing with fiscal and debt restructuring issues, the programme comprised a 
number of other structural reforms. These included changing the management of the price control 
for basic staples, strengthening the public fina ncial management systems, reforming the social 
security and pension systems, closing the govern ment-operated Supply Office and transferring the 
responsibility of managing the supply of price-subs idized staples to the private sector (section 3). 
The Government also engaged in negotiations with  the private sector to rationalize the liquid 
petroleum gas (LPG) market and revise the price formula. The Government is planning to phase out the subsidies for basic staples in the medium-term in conjunction with strengthening the social 
safety net. As part of the reform programme and the agreement with the IMF, the Government 
also committed to limit central government transfers to public enterprises, and to amend the Finance Administration Act, in order to strengthen supervision through the Government Entities 
Oversight Board. The Government embarked on a process of privatization of the St. Kitts 
Electricity Company (SKELEC) in August 2011. The authorities state that SKELEC was able to cover its operating costs in 2012. 
1.21.  In accordance with a recent IMF report, the authorities are pursuing the dual goal of making 
tax policy more growth friendly, while broadening the tax base and improving revenue 
administration. To achieve this, the 2013 budget pr ovides for a decrease in the corporate income 
tax rate from 35% to 33%. At the same time, the authorities are trying to improve tax 
compliance, close loopholes in the corporate income tax, and strengthen the audit and 
enforcement processes.
9 
1.1.3  Balance of payments, and mo netary and exchange rate policy 
1.22.  St. Kitts and Nevis' current account of the balance of payments traditionally shows a deficit, 
since imports of goods largely exceed exports, an d the surplus in services, although considerable, 
is insufficient to cover the difference. Current account deficits, although large, fluctuated widely during the period under review; they peaked at ov er 25% of GDP during the global financial crisis, 
in 2008 and 2009. The crisis impacted St. Kitts and Nevis' balance of payments largely through a 
sharp decline in tourism receipts, which had not yet returned to pre-crisis levels as of 2013. More specifically, while the 2008 increase in the deficit was primarily on account of higher import levels, 
the sharp downturn in tourism receipts was the main cause of the high deficit in 2009. The trade 
balance shows a traditional large deficit, as imports are almost four times the value of exports (Table 1.3). However, since 2008, it has declined considerably, mainly on account of a 38% 
decline in imports between 2008 and 2012. Although 2008 levels were above trend, 2012 imports 
were still low by historically levels, being below the levels recorded in 2007 prior to the crisis. Over 2007-12, repatriated profits by branches of foreign-owned commercial banks (averaging 
2.4% of GDP) continued to be the main driver  of the negative income balances. The overall 
balance averaged 4% of GDP over the period. 
1.23.  As during the previous review period, the de ficits have been financed largely by high foreign 
direct investment (FDI), although there were also sizeable capital transfers during 2007-12. Net 
FDI inflows ranged from 16% to 20% of GDP. Real estate property sales to non-residents 
dominate FDI inflows, accounting for some 66% of the total over the 2007-12 period.  
1.24.  The external public debt service ratio, wh ich had averaged 23% of GDP during 2007-11, fell 
off to 10.6% of GDP in 2012, largely reflecting, the impact of the restructuring of the country’s 
external commercial debt. 
                                               
9 IMF (2014). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 234 - 
 
Table 1.3 Balance of payments, 2007-12  
(US$ million) 
 2007 2008 2009 2010 2011 2012 
Current account -113.0  -203.3  -180.1  -138.6 -88.2 -70.8  
Goods and services -113.3  -202.3  -191.4  -155.9 -105.5 -86.5  
Goods -203.9  -243.0  -228.1  -194.6 -171.3 -156.8  
Merchandise -191.3  -249.2  234.2  -200.9 -178.6 -164.7  
  Exports 51.6  62.7 31.5 51.8 60.8 60.9  
  Imports 243.0  311.9  265.7  252.7 239.3 225.6  
Repair on goods 0.1  0.1 0.2 0.2 0.1 0.2  
Goods procured in ports by carriers 5.9 6.1 6.0 6.1 7.2 7.7 
Services  72.1  40.6 36.7 38.7 65.7 70.3  
Transportation -30.3  -47.5  -29.2  -30.9 -29.6 -28.7  
Travel 112.3  95.6 72.0 76.5 79.9 79.3  
Insurance services -8.6 -12.6  -10.9  -11.4 -11.2 -11.0  
Other business services  -5.7 -1.4 -3.1 -12.4 -8.2 -7.1  
Government services 4.3 6.6 7.9 16.9 34.9 37.8 
Income -31.0  -34.1  -33.9  -29.2 -29.3 -31.3  
Compensation of employees -0.5 -0.6 -0.6 -0.4 0.0 0.0 
Investment income -30.4  -33.6  -33.4  -28.8 -29.3 -31.3  
Current transfers 31.2 33.1 45.1 46.5 46.6 47.0 
General government 6.6  4.6 15.4 12.7 16.5 16.7  
Other sectors 24.6 28.5 29.7 33.9 30.1 30.3 
Capital and financial account 130.7  218.1  206.1  171.4 150.7 89.2  
Capital account 20.3 33.9 25.8 60.2 68.1 77.1 
Capital transfers 20.3  33.9 25.8 60.2 68.1 77.1  
Financial account 110.4  184.1  180.3  111.2 82.6 12.1 
Direct investment  134.5  177.9  130.7  116.3 109.6 100.4  
Portfolio investment -13.0  10.5 -11.1  -17.3 -15.4 -9.1 
Other investments -11.1  -4.3 60.7 12.2 -11.6 -79.2  
Public sector long-term loans -4.2 25.3 -1.7 -0.7 14.3 17.1 
Commercial banks -29.8  -55.4  64.2 20.3 -27.8 -149.0  
Other assets 6.1 -6.1 -6.3 0.0 9.5 11.3 
Other liabilitiesa 16.7 32.0 4.5 -7.4 -7.6 41.5  
Overall balance  7.2 14.7 26.0 32.8 62.4 18.4 
Financing -7.2 -14.7  -26.0  -32.8 -62.4 -18.4  
Change in SDR holdings 0.0 0.0 -13.3  0.0 13.5 0.0 
Change in government foreign assets -0.1  -0.1 0.0 -0.1 -0.1 0.0  
Change in imputed reserves -7.1 -14.6  -12.7  -32.7 -75.9 -18.5  
Memorandum        
Current account balance (% of GDP)  -16.5  -27.6  -25.4  -19.4 -11.8 -9.5 
Estimated visitor expenditure (EC$ million) ..  297.2  225.4  241.7 254.1 252.9  
Outstanding external public debt (% of GDP) .. 44.6 43.2 42.3 46.3 41.8 
Import cover ratio (months)  .. 8.4 13.9 14.7 18.6 22.7  
 
.. Not available. a Includes errors  and omissions. 
 Source: ECCB , Annual Economic and Financial Review,  (2012) and (2013). 
1.25.  Together with the other OECS States, St. Kitts and Nevis is a member of the Eastern 
Caribbean Currency Union (ECCU). The Monetary Council of the Eastern Caribbean Central Bank 
(ECCB) is responsible for monetary policy for the whole OECS, including two territories that are not 
WTO Members (Anguilla and Montserrat). The exchange rate followed by the ECCB is a peg to the U.S. dollar, at a rate of EC$2.70 per US$1. This rate remained unchanged during the review period 
(as was the case in the previous review period).  Although the nominal effective exchange rate 
followed the movement of the U.S. dollar vis-à-vis the currencies of other trading partners due to the peg, inflation movements differed. Due to an average CPI increase lower in St. Kitts and Nevis 
than in the United States, there was a real currency depreciation vis-à-vis the U.S. dollar. This, 
together with a depreciation of the U.S. dollar with respect to the euro and other major currencies, implies a gain in competitiveness for St. Kitts and Nevis during the period under review. 
1.26.  The growth in monetary aggregates has been accelerating since 2009. Broad money supply 
(M2) expanded at an annual average of 8.2% between 2006 and 2012 (end-of-period). Credit to 
the private sector expanded at an annual average of 3% during the period, while credit to the Central Government has been declining sharply since mid-2011, when the debt restructuring 
programme started. However, credit to the Government still represented some 31% of total credit 
in 2012, while personal credit accounted for 37% of the total and only 32% of credit was devoted to finance private sector activities, of which the biggest share was for construction.
10 Also, credit to 
                                               
10 ECCB (2013). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 235 - 
 
the private sector increased by just 1% in 2012. In parallel, the stock of net foreign assets 
doubled between mid-2011 and mid-2013, to exceed  EC$1.56 billion, some 77% of GDP. The 
prime lending rate remained at 8.5% throughout the period under review; other lending rates also 
remained relatively stable. 
1.2  Trade and Investment Flows 
1.27.  Exports of goods are highly concentrated on a few manufactured goods. Products such as 
switches, relays, fuses, and electrical capacitors (SITC 7) accounted for about 80% of total exports 
in 2012; beverages accounted for some 6%, and other manufactured products for 3%. 
(Table A1.1). Exports of agricultural products ac counted for less than 2% of total exports. Some 
22% of all imports are foodstuff and other agricultural products; imports of machinery of transport equipment accounted for some 27% of total imports in 2012, while other manufactured goods 
(SITC 6 and 8) accounted for another 35% and fuels for 3% (Table A1.2 and Charts 1.1 and 1.2). 
1.28.  St. Kitts and Nevis' main trading partner continues to be the United States, which was the 
destination for some 82% of exports in 2012, and th e origin of 67% of imports. The second largest 
partner is Trinidad and Tobago, followed by the United Kingdom, Antigua and Barbuda and other 
OECS countries, Jamaica and Cana da (Tables A1.2 and A1.3). 
1.29.  Total foreign direct investment during 2007-12 amounted to US$1.76 billion. The main 
foreign investment inflows in the period were in construction, hotel development and 
reconstruction, and the electronics industry. 
1.3  Outlook 1.30.  The IMF forecasts GDP growth of 1.9% in 2013 and 3.2% in 2014; consumer prices are 
expected to increase by 3% in 2013 and 2.5% in 2014.
11 Over the medium-term, the IMF is 
expecting economic activity to pick up as constr uction and tourism are expected to continue to 
recover. Real GDP growth is estimated to reach 4% in 2016, supported by already approved FDI 
projects.12 
1.31.  The authorities consider that the economy is now well poised to consolidate its recovery 
from the effects of the global economic and financial crisis. They have noted that reduction of the 
debt stock will continue to be the focus of de bt-management strategy, and public sector debt, 
estimated at just above 100% of GDP, is proj ected to reach 75% of GDP by 2016 and continue 
trending downwards towards the target of 60 % of GDP by 2020. Over the medium term, the 
outlook is for the economy to continue its recovery and real GDP growth is expected to average 
3% over the 2014-16 period. These projections hing e on: (i) continued recovery in key external 
tourism markets; (ii) a steady pick-up in construction; and (iii) the expectation that manufacturing exports will increase as a result of the planned implementation of the recently negotiated partial 
scope agreement with Brazil.  
1.32.  The authorities expect the tourism sector to  grow by an average 3% rate over the medium 
term as stay-over arrivals to increase. After a contraction in 2013, the manufacturing sector is 
expected to grow at an annual average of 2.8% for the next three years supported in part by 
projections for duty-free access to the Brazilian market as a result of the ratification of the recently negotiated partial scope agreement. The constructi on sector is projected to grow by an annual 
average of 5% over 2014-16, based on the continue d buoyancy of the real estate sector and FDI-
financed tourism resort development. The wholesale and retail sector is expected to grow by an 
average 3.9% over the same period, as domestic demand responds to the projected expansion of economic output. 
1.33.  On the downside, the authorities consider that tourism remains vulnerable to the possible 
effects of any setback in the ongoing U.S. recove ry, to weather-related shocks, and to delays in 
the implementation of planned private sector construction projects. The trade deficit could widen 
as a result of increased imports associated with the projected expansion of the real sector. 
                                               
11 IMF online information. Cons ulted at: http://www.imf.org/ex ternal/country/K NA/index.htm. 
12 IMF (2013). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 236 - 
 
However, the impact on the current account should be mitigated by FDI inflows for the financing of 
the private sector projects currently in the pipeline. 
Chart 1.1 Merchandise trade by SITC section, 2007 and 2012 
2007 2012
(a)    Exports and re-exports
Total: US$51 million
(b)    Im ports 
Total: US$272 million Total: US$226 millionTotal: US$62 millionBeverages, 
tobacco
5.2%Misc.manuf. 
articles
2.5%
Machinery & 
transport equip.
88.5%Food & live 
animals
1.5%
Food & live 
animals
15.7%Food & live 
animals
1.4%
Manufactured 
goods
1.5%Other
0.8%Other
1.4%
Other
0.7%Other
1.0%Beverages, 
tobacco
6.1%Crude 
materials
0.5%
Manufactured 
goods
0.7%
Machinery & 
transport equip.
79.5%Misc.manuf. 
articles
10.3%
Beverages, 
tobacco
2.9%Beverages, 
tobacco
2.8%Food & live 
animals
22.1%
Crude materials
2.1%
Crude 
materials
1.9%Mineral fuels
6.9%
Mineral 
fuels
2.8%Chemicals
6.7%
Chemicals
7.9%
Manufactured 
goods
18.1%Manufactured 
goods
18.6%Machinery & 
transport equip.
31.1%Machinery & 
transport equip.
26.6%Misc.manuf. 
articles
16.0%Misc.manuf. 
articles
16.2%
 
 
Source: Eastern Caribbean Central Bank online statistics at http://www.eccb-centralbank.org. 
 WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 237 - 
 
Chart 1.2 Merchandise trade, by main origin and destination, 2007 and 2011 
2007 2011
(a)    Ex ports and re-ex ports
Total: US$51 million
(b)    Im ports 
Total: US$272 million Total: US$248 millionDominica
1.2%
Total: US$61 millionAntigua & 
Barbuda
1.8%
United States
86.6%St Lucia
0.8%
Canada
3.0%Asia
0.5%
United States
81.8%Trinidad & 
Tobago
0.5%Other 
America
4.8%Others
1.3%
United States
58.8%Other 
America
8.9%EU(27)
8.6%Other Europe
0.3%Japan
3.7% China
1.3%Other Asia
2.0%
Others
0.1%
United States
67.3%Canada
2.2%Other America
7.9%EU(27)
6.7%Other Europe
0.4%Japan
2.1%China
2.5%Other Asia
1.7%
Jamaica
0.7%Dominican Rep.
1.1%Europe
1.8%Europe
3.5%Asia
0.1%Other 
America
5.1%
Antigua & Barbuda
3.1%Trinidad & Tobago
2.6%St Lucia
2.4%Dominica
2.2%
Trinidad & Tobago
10.8%Trinidad & Tobago
6.3%Dominican 
Rep.
1.7%Jamaica
1.6%Others
0.2%
 
 
Source: Eastern Caribbean Central Bank online stat istics at http://www.eccb-centralbank.org; and UNSD 
Comtrade database. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 238 - 
 
 2  TRADE AND INVESTMENT POLICY FRAMEWORK 
2.1  General Constitutional and Legal Framework 2.1.  The Federation of Saint Kitts and Nevis's legal system is based on English common law. The 
Constitution is the supreme law and all other laws must conform to it or are void to the extent of 
any contradiction or inconsistency. Introducing changes to the Constitution requires at least a 
two-thirds majority vote in the National Assembly and may also necessitate a referendum, depending on the matter. 
2.2.  The Federation of St. Kitts and Nevis has a Westminster-style parliamentary system. The 
Queen of England, represented by the Governor General on the island, is the Head of State. 
Although St. Kitts and Nevis is constitutionally a single state, the Constitution grants significant autonomy to Nevis, which has a semi-autonomous Island Assembly, an Island Administration, and 
a Premier. 
2.3.  The exercise of the executive power is the re sponsibility of the Cabinet of Ministers, which is 
headed by the Prime Minister, appointed by th e Governor General after each election. The 
appointee is the elected Member of the Nation al Assembly who commands the support of the 
majority of elected members. The Cabinet is subs equently appointed by the Governor General on 
the advice of the Prime Minister. The Cabinet is collectively accountable to the National Assembly. 
2.4.  The Cabinet of Ministers has the power to co nclude and sign international treaties and trade 
agreements; in this respect, the Prime Minister or  any other Minister may be authorized to sign 
such agreements on behalf of St. Kitts and Nevis. International agreements to which St. Kitts and Nevis is a party are not part of domestic law per se; they must be enacted into domestic law. Only 
WTO Agreements that have been explicitly incorporated into the laws of St. Kitts and Nevis are 
part of domestic legislation and may be invoked by private individuals before national courts. 
2.5.  Due to the specific characteristics of th e Federation, the responsibility for law-making is 
shared between the National Assembly in St. Ki tts, and the Nevis Island Assembly, depending on 
the scope and nature of the law. The unicameral National Assembly has exclusive authority to enact laws of federal concern, including on defence or foreign relations, while the Nevis Island 
Assembly is empowered 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 concern, without prior concurrence of the Primer Minister. In the event of  inconsistencies between the provisions of laws 
enacted by the National Assembly and those of the Nevis Island Assembly, the former prevail. 
2.6.  The National Assembly is composed of 11 elected representatives and three senators, one 
appointed by the Governor General on the advi ce of the leader of the opposition, and two 
appointed on the advice of the Prime Minister. Parliamentary elections are due every five years but 
may be called sooner; the last elections were held in January 2010. 
2.7.  The law-making process at the federal level starts with the introduction of a bill by a Minister 
of Government in the National Assembly, generally after the draft of this has been approved by the 
Cabinet of Ministers. Bills go through three readings; in the course of the second reading it is debated by members of the Assembly and, wher e necessary, amendments are made. In the third 
reading, the bill is put to a vote. Bills become la w only after they have received the assent of the 
Governor General and enter into force once they have been published in the Government Gazette . 
2.8.  The judiciary is independent from the Executive and the National Assembly. Magistrate courts 
deal with minor civil and criminal cases, while serious criminal matters, civil cases involving claims 
above EC$5,000, and questions of interpretation of  the Constitution are dealt with by the High 
Court. The Eastern Caribbean Supreme Court, an itin erant court based in St. Lucia, is the first level 
of appeal (see Common Report).
13 The final court of appeal is the Judicial Committee of the Privy 
Council (JCPC), based in London.14 
                                               
13 For more information on the Cour t, see: http://www.eccourts.org/. 
14 More information on the Council, see: http ://www.jcpc.gov.uk/about/role-of-the-jcpc.html. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 239 - 
 
 2.9.  In 2005, St. Kitts and Nevis and other CARICOM members states established the Caribbean 
Court of Justice (CCJ), a regional court with both original and exclusive jurisdiction for interpreting 
provisions of the Revised Treaty of Chaguaramas 2001, and appellate jurisdiction for municipal appeals from the member states. However, accession to 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 Implementation 
2.10.  The Ministry of International Trade,  Industry, Commerce and Consumer Affairs is 
responsible for managing St. Kitts and Nevis’s international trade relations, and overseeing the formulation, development, implementation, and ma nagement of trade policies. The Ministry has 
responsibility for all WTO, international, and regi onal trade issues and is in charge of matters 
related to anti-dumping, subsidies, technical barriers to trade, and competition policy, including 
enforcement of the two latter issues. The authoritie s have indicated that the Ministry’s objectives 
are multifold and include coordinating and prom oting trade policy, safeguarding and improving 
citizen welfare, including through consumer protection. This is done through the work of the 
Ministry's three departments: the Trade Policy Division; the St. Kitts and Nevis Bureau of Standards; and the Consumer Affairs Department. 
2.11.  The Trade Policy Division is responsible for the coordination, management, development, 
and implementation of all trade policy issues. This includes trade promotion, business facilitation, and facilitating capacity building in government departments and ministers whose activities affect the country’s trade-policy agenda. The Consumer Affairs Department is tasked with ensuring fair 
trade competition and the free flow of correct in formation in the marketplace. The St. Kitts and 
Nevis Bureau of Standards' key responsibilities include protecting the health and safety of 
consumers; preventing deception of consumers in the purchase of goods and services, facilitating 
local, regional, and international trade; and a ssisting the development of industry and commerce 
locally. The Bureau is also the National Codex Contact Point, the enquiry point for the WTO TBT Agreement, the National Contact Authority for th e CARICOM Region al Organisation for Standards 
and Quality (CROSQ), and the National Contact Authority for the Inter-American Metrology System 
(SIM). The Bureau is the notification and distri bution point for voluntary and mandatory standards 
and regulations to the Codex Alimentarius Commission.  
2.12.  Trade policy is developed by the Ministry  of International Trade, Industry, Commerce and 
Consumer Affairs, with input from all stakeholders in the public and private sector as well as civil 
society through consultations with all parties concerned. The main agencies that participate in the formulation of trade policy are: the Ministry of Finance, Sustainable Development, and Information 
Technology; the Customs and Excise Department; the Ministry of Foreign Affairs; the Ministry of 
Legal and Justice; the Ministry of Agriculture and Marine Resources; the St. Kitts Investment Promotion Agency; the Ministry of National Secu rity; and the Chamber of Industry and Commerce. 
The Customs and Excise Department is directly responsible for tariffs and customs valuation, and 
participates in the formulation of policy relating to services and to foreign direct investment. The private sector is represented in the trade form ulation process by the Chamber of Industry and 
Commerce, through specially organized consultations. In addition, the views of labour unions are 
taken into account when formulating trade policy. 
2.13.  Trade policy coordination across agencies and sectors is through the St. Kitts and Nevis 
National Trade Policy Advisory Committee (NTPAC).
15 The Committee is actively involved in trade 
policy formulation and implementation and assists the Ministry of International Trade, Industry, 
Commerce and Consumer Affairs in building capacity at the national level and ensuring greater participation of a wider cross-section of stakeholders in all trade policy matters. The authorities 
have emphasized that the Federation's trade po licy seeks extensive involvement of stakeholders 
throughout the process from the identification  stage through the development, negotiation, 
education and implementation stage. This consulta tive process has been applied by the Ministry 
and will continue and be intensified mainly through the NTPAC. 
                                               
15 The NTPAC is chaired by the Permanent Secretary of  the Ministry of International Trade, Industry, 
Commerce and Consumer Affairs, and comprises repres entatives from the Ministry of Finance; the Customs 
and Excise Department; the Ministry of Agriculture; the Bureau of Stan dards; the Chamber of Commerce and 
Industry; the National Coalition of Services Industries (NCSI); the Mini stry of Legal Affairs; the Nevis 
Department of Trade; the National Competitiveness Council; and the Trade Facilitation Task Force. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 240 - 
 
 2.14.  In the context of this Review the authorit ies highlighted that the Ministry of International 
Trade, Industry, Commerce and Consumer Affairs does not have the required human resource capacity to effectively contribute, follow, and participate in all the trade policy issues under discussion and negotiations in the various world arenas, including the WTO.  
2.15.  St. Kitts and Nevis' trade and investment policy objectives are to use openness to 
international trade and fuller integration into the global economy as a means to enhance competitiveness and attract foreign direct investment, particularly in tourism and manufacturing, 
financial services, informatics, and other services, and to promote economic diversification. 
St. Kitts and Nevis has traditionally considered special and differential treatment in its trading arrangements as vital for its economic development, and its participation in the multilateral system as presenting opportunities to achieve this. In particular, St. Kitts and Nevis regards 
participation in the WTO as critically important. However, like other OECS member states, due to 
relatively small human and technical resources in the area of trade policy, St. Kitts and Nevis participates in the system mainly through coordina tion or agreements with regional partners, as 
part of the OECS Economic Union, and through CARICOM (section 2.4). As with other CARICOM 
states, the country depends on the CRNM to facilitate negotiations on its behalf. Policy harmonization with other OECS and CARICOM member  states also covers investment, international 
relations, tourism, and monetary policy. The effort under way to consolidate the OECS Economic 
Union is given utmost importance and priority. 
2.3  Investment Regime 2.16.  The Companies Act No. 22 of 1996 regulates the incorporation and registration of 
companies in St. Kitts, while the process in Nevis is regulated by the Nevis Island Business 
Corporation Ordinance No. 3 of 1984. In both cases, enterprises must register in the Companies Registry and all registered companies must have a registered office in the Federation of St. Kitts 
and Nevis. 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 considered national, no matter where its capital or shareholders originate. There are no nationality restrictions 
for directors in a company. 
2.17.  Taxation in St. Kitts and Nevis relies heavily on indirect taxes, especially since the 
introduction of the VAT. With respect to direct taxes, St. Kitts and Nevis main provisions are contained in the Income Tax Act, Cap. 20.22. Inco me tax is applied only to companies: corporate 
tax is 35% of net profits. Since 1980, there has been no personal income tax. There is a, however, 
a social services levy of 8% on employee earnin gs, half of which is paid by the employer. 
Corporate income tax is not levied on trusts, limited partnerships, and exempt companies, or on 
enterprises that have been granted a tax concession. Profits or gains derived from a sale of assets 
located in St. Kitts and Nevis are subject to a capital gains tax of 20%, if the sale takes place within one year of acquisition. In accordance with Section 35 of the Income Tax Act, Cap. 20.22, a 
withholding tax of 10% is applied on remittances of certain categories of income abroad. Land 
property tax rates depend on the size and nature of the land concerned. 
2.18.  In accordance with the Unincorporated Business Act (Act No. 5 of 2010), businesses that 
are not registered under 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.
16 
2.19.  Offshore (exempt) companies are regulated by the Companies Act and the Nevis Island 
Business Corporation Ordinance. They pay no income, capital gains, withholding, or stamp taxes 
for operations conducted outside St. Kitts and Nevi s. Offshore companies may open bank accounts 
onshore and may hold shares in onshore or offshore companies incorporated in St. Kitts and Nevis. Offshore companies may also choose to register as exempt limited partnerships under the Limited 
Partnership Act No. 24 of 1996, or as offshore trusts under the Trust Act No. 23 of 1996 or the 
Nevis International Exempt Trust Ordinance. Trusts are exempt from the same taxes as other offshore companies, and their beneficiar ies are exempt from property taxes.  
                                               
16 The tax base is defined in the Act as the gro ss takings derived from the supply of goods for the 
month, reduced (but not below zero) by EC$12,500, or the gross takings derived from the supply of services for the month, reduced (but not below zero) by EC$2,000. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 241 - 
 
 2.20.  The Avoidance of Double Taxation And Pr evention of Fiscal Evasion Agreement Act of 2002 
(Cap. 25.01) prevents double taxation with respect to taxes on income, profits or gains and capital gains among St. Kitts and Nevis and other members of CARICOM. St. Kitts and Nevis is party to double taxation treaties with Denmark, Norway, Sweden, the United Kingdom, and the United 
States (limited to social security benefits). 
2.21.  St. Kitts and Nevis' foreign investment regime is open and foreign investors may hold up to 
100% of an investment; they receive national tr eatment. Foreign investors seeking to purchase 
property for residential or commercial purposes must, however, 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 submi ssion to Cabinet for consideration and payment of 
the licence fees. Foreign investors do not need to pay a fee for a landholding 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. 
2.22.  Foreign investment is the responsibility of the St Kitts Investment Promotion Agency 
(SKIPA) and the Nevis Investment promotion Agency (NIPA) with input from the Ministry of 
International Trade, Industry, Commerce, and Consumer Affairs, the Ministry of Finance, and the Ministry of Sustainable Development. 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 Incentives Act of 1974, the Hotel Aids Act, as amended, and under different investment laws in the tourism sector. Remittances to persons or entities abroad are subject to a 10% withholding tax; beneficiaries of the Hotel Aids Act 
may be exempted. Additionally, where a company is  not exempt, there is a 20% capital gains tax 
on profits from the disposal of assets located in St. Kitts within a year of their acquisition, unless an exemption is granted under the Act. Investment  promotion is by the SKIPA in St. Kitts, and by 
the NIPA in Nevis. As at November 2013, SKIPA was in the process of drafting a new Investment 
Code. 
2.23.  Section 3 of the Citizenship Act of 1984 grants  the right of citizenship (without voting rights) 
by investment. This is the legal basis for St. Kitts and Nevis's Citizenship by Investment 
Programme. The Citizenship by Investment Unit in th e Office of the Prime Minister is in charge of 
managing the programme through appointed authoriz ed persons, who must be approached by the 
applicant.
17 Applicants must provide comprehensive personal information; a full medical 
certificate; and evidence of the source of f unds. Under the new regulations of the programme, 
issued in 2012, foreign individuals wishing to obtain citizenship have three options: they must either make a minimum real estate investment of US$400,000, or make investments or Sugar 
Industry Diversification Foundation (SIDF) cont ributions of a minimum total of US$250,000 for a 
single applicant; US$300,000 for an applicant with up to three dependents; US$350,000 for an applicant with up to five dependents; and US$450,000 for an applicant with up to seven 
dependents. They must also pay a number of f ees, including due diligence fees of US$7,500 for 
the main applicant and US$4,000 for each dependen t over the age of 16 years, and registration 
fees for the real estate purchased of US$50,000 for the main applicant and any dependent over the age of 18 years, other than a spouse who, to gether with dependent children under the age of 
18 years must pay a US$25,000 fee.  
2.24.  St. Kitts and Nevis has not signed any bilateral investment agreements. It has double 
taxation agreements with Denmark, Norway, Swed en, the United Kingdom, and the United States. 
2.4  International Relations 
2.4.1  World Trade Organization 2.25.  St. Kitts and Nevis has been a WTO Member since 21 February 1996. St. Kitts and Nevis 
grants at least MFN treatment to all its trading partners. Preferential market access is granted to 
imports from other CARICOM countries and to a number of products from the European Union 
                                               
17 Authorized person means a person  licensed by the Financial Serv ices Regulatory Commission to 
conduct corporate or trust services in St. Kitts and Nevi s and who has paid the fee of US$5.000, as outlined in 
the 2012 Regulations. The list of authorized persons must be posted on the Citizenship by Investment website. 
Office of the Prime Minister online information. Cons ulted at: http://ciu.gov.kn/sites/ciu.gov.kn/files/New_ 
Regulations_CitizenshipbyInvestment-letter.pdf. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 242 - 
 
 under the EPA. There is no umbrella legislation in St. Kitts and Nevis to enact the Uruguay Round 
Act into domestic law. Therefore, the WTO Agreements are only part of domestic legislation insofar as specific laws for their implementation have been put in place. As at June 2013, St. Kitts and Nevis was lagging behind in its process of incorporating the results of the Uruguay Round into 
domestic legislation. This situation was reported in the previous two Reviews. Private individuals 
may invoke WTO provisions before national courts only to the extent that the Agreements are incorporated into national legislation. 
2.26.  Under the GATS, St. Kitts and Nevis made specific commitments on tourism, recreational, 
communications, financial, and maritime transport services. It did not participate in the extended WTO negotiations on telecommunications or on financial services.  
2.27.  St. Kitts and Nevis does not have a national representation to the WTO in Geneva; it is 
represented by an OECS chargé d'affaires posted in Geneva. It is member of the following groups 
in the DDA negotiations: G-90 (ACP + least-developed countries); small, vulnerable economies (SVEs)-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). St. Kitts and Nevis ha s also supported a request by a number of small 
developing Members of the WTO for an extension until 2018 for the provision of export subsidies.
18 
2.28.  St. Kitts and Nevis has made few notifications to the WTO since 2007, mostly pursuant to 
Article XVI of the GATT 1994 and Article 25 of the SCM Agreement, and a response to the questionnaire on import licensing procedures (Table 2.1).
19 The lack of notifications is due, to a 
large extent, to the absence of a responsible agency and of specialized staff to deal with the issue 
or to institutional shortcomings, such as the lack of legislation or regulations. 
Table 2.1 St. Kitts and Nevis, WTO notifications 2007-13  
WTO Agreement Description Document symbol of most 
recent notification 
Implementation of 
Article VI of GATT 1994 
Anti-dumping (Article 16.4 and 16.5) No action taken within the meaning of Article 16.4, and 
Article 16.5 G/ADP/N/193/KNA, 12 January 
2010 
Import Licensing  
Article 7.3 Replies to questionnaire on import licensing procedures G/LIC/N/3/KNA/1, 8 December 
2009 
Subsidies and 
Countervailing Measures (SCM) Article 25 and GATT XVI.1 New and full notification on continuation of extension 
under SCM Article 27.4 of the transition period for the elimination of export subsidies G/SCM/N/155/KNA/Suppl.1
 
G/SCM/N/177/KNA, 18 July 2008 
SCM Article 27.4 Continuation of extension of transition period for the 
elimination of export subsidies G/SCM/N/243/KNA, 1 August 
2012 
Articles 25.11 and 25.12 No action taken G/SCM/N/202/KNA, 14 January 
2010 
 
Source: WTO documents. 
2.29.  St. Kitts and Nevis has not been a complain ant or a defendant in any case before the DSB. 
It has been a third party in three cases, all prior to the review period.  
2.4.2  Preferential agreements and arrangements 
2.30.  St. Kitts and Nevis is a member of the Or ganization of Eastern Caribbean States, since it 
was created by the Treaty of Basseterre in 1981. In 2008, St. Kitts and Nevis ratified the OECS 
Economic Union (see Common Report) and is in the process of adapting legislation to fulfil the 
requirements of the Union. The goal is to reach a point where all policies will be common within the OECS, and economies of scale achieved by avoiding the duplication of functions. This is of particular importance to St. Kitts and Nevis due to its small population and lack of human and 
institutional resources. 
                                               
18 WTO document G/SCM/W/535, 12 April 2006. 
19 WTO documents G/ADP/N/193/KNA, 12 January 2010 and G/LIC/N/3/KNA/1, 8 December 2009. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 243 - 
 
 2.31.  St. Kitts and Nevis also participates in other regional agreements and arrangements. It has 
been a member of the Caribbean Community and Common Market (CARICOM) since 1974 and participates in the Caribbean Single Market and Economy (CSME). Through its participation in CARICOM, it has signed bilateral trade agreements  w i t h  t h e  B o l i v a r i a n  R e p u b l i c  o f  V e n e z u e l a ,  
Colombia, Costa Rica, Cuba, and the Dominican Republic. It also participates in the Association of 
Caribbean States. 
2.32.  Until 2001, this benefited St. Kitts and Nevis' sugar exports to the United Kingdom but 
otherwise did not have a strong impact on exports. As a result of changes to the EC pricing regime 
for sugar, which was challenged in WTO, the arrangements came to an end. St. Kitts and Nevis abandoned sugar production in 2005. As part of CARIFORUM (a negotiating partnership involving CARICOM and the Dominican Republic), St Kitts and Nevis signed an Economic Partnership 
Agreement (EPA) with the EU in 2008 (see Common Report). The EPA, although in force, is still in 
the process of full implementation on the part of St. Kitts and Nevis and other OECS countries, as a number of legal and institutional changes are required. Before the signature of the EPA, St. Kitts 
and Nevis' exports were granted preferential a ccess to the EC market, under the ACP-EC Revised 
Cotonou Agreement. 
2.33.  The authorities consider that the EPA has brought many challenges to St. Kitts and Nevis 
while also offering opportunities, in particular in services. They consider that the EPA offers export 
opportunities to the manufacturing sector. The main challenges relate to the implementation of the EPA, in particular addressing the legislative requirements that will ensure that domestic legislation complies with the requirements of the agreemen t. The lack of adequate human resources to 
facilitate the implementation process, and the te chnical and administrative input needed by both 
the private and public sector to generate the possible benefits from the agreement, are also considered challenges. In the context of this Review the authorities noted that despite those 
challenges, St. Kitts and Nevis is committed to implementing the EPA, including its tariff reduction 
commitments. 
2.34.  As a step to facilitate the implementation of the EPA, in July 2012, the Government 
established the Economic Partnership Agreement (E PA) Unit within the Ministry of International 
Trade, Industry, Commerce and Consumer Affairs, to realize the objectives and provisions of the EPA through public sector coordination and private sector development initiatives. The EPA Unit has implemented a public awareness campaign and has accessed technical assistance through the 
Centre for Development Enterprise (CDE). 
2.35.  A number of exports from St. Kitts and Nevi s benefit from preferential access to the United 
States under the U.S. Caribbean Basin Initiative (CBI). St. Kitts and Nevis has applied for 
enhanced CBI benefits. Its exports also benefit fr om preferential access to the Canadian market 
through CARIBCAN. Through its participation in CARICOM, St. Kitts and Nevis is currently negotiating a CARICOM/Canada Trade and Development Agreement. 
2.36.  St. 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 St. Kitts and Nevis. The agreement is of particular importance for St . Kitts and Nevis expanding electronic components 
industry due to its rules of origin, which allow for regional cumulation.  
2.37.  Products from St. Kitts and Nevis are elig ible for the GSP schemes of Australia, Canada, the 
European Communities, Japan, New Zealand, Swit zerland, Russia, and the United States. The 
range of products varies according to each country's scheme. 
2.38.  St. Kitts and Nevis' aid-for-trade strategy is pursued at the regional level through the 
CARICOM Secretariat. 
 WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 244 - 
 
 3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures Directly Affecting Imports 3.1.1  Customs procedures, docu mentation, and registration 
3.1.  Chapter 20.04 of the St. Christopher and Nevis's laws contains all the legislation relevant to 
customs issues, that is the Customs (Control and Management) Act (Cap. 20.04, originally Act 4 of 
1992 in force since 11 December 1995, amended by Act 7 of 2001), and the Customs (Prescription of Customs Declaration Forms) Regulations-Sect ions 26 and 34 (SRO 4 of 1996) and subsidiary 
legislation. St. Kitts and Nevis is not a member of the World Customs Organization. However, 
through membership in the Caribbean Customs La w Enforcement Council it derives certain WCO 
benefits, inter alia,  in terms of capacity building. Although there were no major changes with 
respect to customs legislation during the review period, there were some procedural changes with 
respect to passenger processing at the airports, pe rsonal cargo inspection at the sea ports, courier 
services, the introduction of risk management, and post clearance. A Customs Export and Import procedures Manual was introduced in 2012. 
3.2.  Goods imported into St. Kitts and Nevis ar e subject to control by Customs and by the Port 
Authority. Notice must be given to Customs and the Port Authority at least one working day prior to the arrival of vessels, along with an advance copy of the cargo manifest. Cargo consignments 
transferred between St. Kitts and Nevis remain under customs control if duty has not been paid.
20 
A Customs entry or declaration is required for all consignments imported into St. Kitts and Nevis. Customs entries may be submitted electronically but at least three hard copies of the entry forms (C100) must also be presented with the relevant commercial invoices, air waybill/bill of lading, and 
a worksheet on the classification and value of the goods. An importer's declaration form may be 
required if the invoice is unsigned or deemed in sufficient by Customs. Customs entries are verified 
to ensure that the items are properly classified, th e value for duty purposes is correct, the relevant 
duties and taxes are accurately computed and that any other regulatory requirement is complied 
with. The entry is then finalized by Customs and an Assessment Notice is generated with the details of the customs duty to be paid. After payment of the duties and the charges due to the Port 
Authority, Customs issues a document authorizing the release of the goods. Goods may be allowed 
entry even if the relevant import documents are not ready, provided a surety is made and the 
documents are presented within a week. Importers are not required to register, and it is not necessary to use a customs broker. 
3.3.  St. Kitts and Nevis has used the Total Revenue Integrated Processing System (TRIPS) for 
electronic customs clearance since May 2006, prior to which it used the ASYCUDA system. As at November 2013, the Customs administration was in the process of migrating from TRIPS 
to ASYCUDA World. 
3.4.  Customs inspects commercial cargo and validates the relevant documents for compliance. In 
the case of non-commercial cargo, the goods are inspected and valued for duty purposes before 
the Customs entry is completed. Prior to verification of documentation, cargo 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. To decide on inspection, the customs 
service classifies shipments according to risk: operations undertaken by importers with an import 
history in St. Kitts and Nevis, and arriving from countries that are not considered to pose risks are 
generally deemed low-risk and subject to a lower rate of inspection. On the other hand, for shipments involving new importers and/or countries that are deemed to pose higher risks, the rate 
of inspection is much higher, with the vast majority of goods subject to physical inspection.  
3.5.  St. Kitts and Nevis legislation allows for the use of special regimes for clearing customs in 
certain cases. Under the Provisional/Deposit Entry Procedure (Section 27(4) of the Customs Act), 
an importer unable to present a proper entry form immediately may expedite the clearance of 
goods by filing a provisional entry, prior the paym ent of a deposit. The amount to be deposited 
usually exceeds the provisionally assessed customs du ty. The authorities have indicated that this is 
to secure any additional duty that may be payabl e at the time of the proper and final assessment. 
                                               
20 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. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 245 - 
 
 The final entry form must be presented within thr ee months from importation, after which a refund 
of any sum in excess of the duty payable is refunded. 
3.6.  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. 
3.7.  In special circumstances Customs may allow certain goods to be pre-released provided that 
the importer agrees to meet stipulated conditions. Pre-releases may be granted for perishables, precious goods, inventory for factories, and goods import for government purposes. Other 
requests are dealt with on a case-by-case basis at the discretion of the Comptroller. The customs 
entry in respect of the transaction must be finalized within one week of the date of the release. The usual time to clear Customs is one or two days. 
3.8.  St. Kitts and Nevis does not have a pre-shipment inspection system. 
3.9.  In the course of the present Review, the authorities noted that the Government has taken 
steps to reform the Customs Department, including programmes to train staff in modern techniques of revenue management and collection. Under the Customs Reform Project, customs 
officers have received management training , and management procedures at the Customs 
Department have been upgraded. According to the authorities, there has been a significant improvement in trade facilitation. Customs is moving to a single-window environment to facilitate 
trade. A trade facilitation needs assessment was carried out in May 2013 from which a National 
Implementation Plan was developed. 
3.1.2  Customs valuation 3.10.  Customs valuation legislation has not been updated since the previous review in 2007. The 
Second Schedule of the Customs (Control and Management) (Amendment) Act No. 4 of 1992, 
based on the GATT Valuation Code, continues to rule customs valuation. In accordance with the Act, the customs value of imports must be the transaction value. If Customs finds it impossible to 
determine the transaction value or if the buyer and seller are related, then the other methods set 
out in the GATT code are to be used. 
3.11.  The use of minimum customs values is explicitly prohibited in St. Kitts and Nevis, in 
accordance with the Customs Act. Also prohibited is the use for valuation purposes of the selling 
price in St. Kitts and Nevis of similar locally produced goods, the price in the domestic market of the country of exportation, or the price for export in a country other than St. Kitts and Nevis. Price guidelines based on international price information are used for imports of used vehicles.
21 The 
authorities indicated in the context of this Review that when there is any suspicion of 
under-invoicing, customs officials may request proper supporting documents from the importer. 
3.12.  Sections 136 and 137 of the Customs (Control and Management) Act Cap. 20.04 provide for 
appeals. The Customs Appeal Commission deals with appeals regarding decisions on valuation, 
duties, and other customs issues. If the appellant 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. 
3.13.  St. Kitts and Nevis did not invoke the special and differential treatment provisions in the 
Customs Valuation Agreement. It has not responde d to the WTO checklist of issues on customs 
valuation, nor has it notified its customs valuation regime.
22 
3.1.3  Rules of origin 
3.14.  St. Kitts and Nevis applies the rules of origin introduced by CARICOM in 1998. In 
accordance with CARICOM origin rules, duty-fr ee treatment is accorded only to goods shipped 
between member states that satisfy the CARICOM origin rules. The CARICOM Treaty contains a 
derogation facility to the application of Common Market Rules of Origin for MDCs, known as the 
Safeguard Mechanism. St. Kitts and Nevis, like other CARICOM members, was expected to 
                                               
21 For example, the prices of used  vehicles imported from Japan, th e main source of imported used 
vehicles, are verified using price guidelines on such vehicles in Japanese websites. 
22 WTO document G G/VAL/W/219, 15 October 2012. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 246 - 
 
 implement the rules of origin contained in Amended Schedule I of the revised Treaty of 
Chaguaramas, based on the 2012 HS from 1 January 2013. As at March 2014, this had not been done in any OECS country. 
3.15.  The EPA with the European Union contains  specific rules of origin (see Common Report). 
3.16.  St. Kitts and Nevis has not notified preferen tial or non-preferential rules of origin to the 
WTO.
23 
3.1.4  Tariffs and other charges on imports 
3.17.  International trade taxes, particularly on imports, continue to be a major source of fiscal 
revenue for St. Kitts and Nevis and their share of total taxes has increased since the introduction of the value-added tax. Imports are subject to tariffs, a customs service charge and VAT. Some imports are also subject to excise duties. Taxes on international transactions raised 
EC$157.4 million in 2012, accounting for 48.1% of the Government's tax revenue, and equal 
to 7.8% of GDP. The main components of these international taxes were the valued-added tax on imports (EC$66.6 million); import duties (EC $46.3 million); and the customs service charge 
(EC$30.2 million), which together provided 45.2% of government tax revenue (Table 3.1). 
Table 3.1 Trade-related taxes, 2010-13 
(EC$ '000) 
International 
trade/transactions taxes 2010  2011  2012a 2013b 2012 
(% of total 
tax revenue) 
Total 139,561 151,226 157,401 165,269 48.1 
Import duty 41,517 41,555 46,277 48,460 14.1 
Export/excise duty 226 104 31 31 0.9 
Excise duty on alcohol & tobaccoc 424 1,376 n.a. n.a. 0.0 
Consumption taxc 49,810 1,513 n.a. n.a. 0.0 
Parcel taxc 10 n.a. n.a. n.a. 0.0 
Non-refundable duty free store levy 1,782 3,414 3,760 4,017 11.5 
Duty-free shop taxd 883 2,051 - - 0.0 
Customs service charge 27,881 26,550 30,197 31,715 9.7 
Travel tax 2,529 2,874 3,075 3,229 1.0 
Environmental levy 1,996 1,208 1,304 1,365 0.3 
Excise tax 12,222 5,912 6,188 6,480 2.0 
VAT 279 64,667 66,569 69,945 21.4 
 
n.a. Non applicable. a Estimates. b Projections. c Taxes eliminated in 2010. 
d Tax eliminated in 2011. 
Source: St. Kitts and Nevis Government Estimates for the Year 2012, Vol. 1. 
3.1.4.1  MFN applied tariff structure 
3.18.  St. Kitts and Nevis' 2013 applied tariff is based on the Harmonized Commodity Description 
and Coding System 2007. It comprises 6,282 tariff lines at the seven-digit level. At the time of this 
Review, St. Kitts and Nevis (together with other OECS member states) was in the process of 
transposing its tariff schedule to the HS2012 nomenclature. St. Kitts and Nevis last notified its applied tariff to the WTO in 2011. 
3.19.  St. Kitts and Nevis applies the CARICOM Common External Tariff (CET) with exceptions 
included in Lists of Exceptions A and C of the CET.  Tariff rates in the CET Sc hedule range from 0 to 
20% for industrial products, and up to 40% for agricultural products. Exceptions to the CET may 
exceed these rates. In the case of products included in List A of the CET exceptions, mainly 
agricultural products, packaging material, ceramics, washing machines and dryers, and sanitary fixtures, which may be subject to a maximum customs duty of 40%, St. Kitts and Nevis applies 
                                               
23 Dominica is the only OECS state that has made such a notification (WTO document G G/RO/W/141, 
1 November 2012). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 247 - 
 
 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. 
3.20.  Although CET changes take place at CARICOM level, until the introduction of the OECS 
Economic Union in 2011, ultimate authority for tariff determination in St. Kitts and Nevis rested 
with the National Assembly, following a Cabinet initiative. In principle, since the adoption of the Economic Union, the OECS Economic Affairs Council is responsible for tariff changes, which are 
made at the OECS level. However, as at September 2013, this was not the case in practice, and 
the National Assembly continued to have responsibility for tariff determination and changes, within the framework of the CARICOM CET.  
3.21.  Under Act No. 6 of 2005 (Customs Tariff (Amendment)), St Kitts and Nevis continues to 
apply a customs service charge (CSC) of 6% on all imports, including those from other OECS 
states and from CARICOM countries. However the CSC will be applied at a rate of 12% of the value 
of goods inclusive of cost, insurance and freight in the case of all goods exempt from tariffs for 
specific purposes (not on zero-rated tariffs). The CSC is applied on the c.i.f. value of the customs 
declaration. Imports by governmental institutions  and enclave manufacturers are exempt from the 
CSC, as well as imports of foodstuffs in packages  of less than 30 kg. A drawback is available for 
manufacturing enterprises that paid the CSC on imported inputs and subsequently exported the 
processed goods. St. Kitts and Nevis has bound this drawback and other import charges, in 
the WTO, at a rate of 18%. 
3.22.  St. Kitts and Nevis does not apply seasonal tariffs. Some 99.7% of its tariff rates are ad 
valorem;  19 tariff headings, accounting for some 0.3% of all tariff lines (all agricultural) are 
subject to specific rates (Table 3.2).
24 Some 24% of tariff lines ar e granted duty-free treatment. 
Around two thirds of all tariff lines are subject to rates between 0 and 10%. Some 24.8% of tariff 
lines are subject to international peaks, while 3.7%  of lines are subject to domestic peaks (25.4% 
and 3.9% respectively if AVEs are taken into account). Tariff rate quotas are not used. 
Table 3.2 Structure of the tariff sche dule in St Kitts and Nevis, 2013 
(Per cent) 
 2006 2013 
excluding AVEs 2013 
Including AVEs 
1. Total number of tariff lines 6,340 6,291 6,291 
2. Non-ad valorem  tariffs (% of all tariff lines) 0.4 0.3 0.3 
3. Non- ad valorem  with no AVEs (% of al l tariff lines) 0.4 0.3 0.0 
4. Lines subject to tariff quotas (% of all tariff lines) 0.0 0.0 0.0 
5. Duty free tariff lines (% of  all tariff lines) 23.5 24.0 24.0 
6. Dutiable lines tariff average rate (%) 13.5 13.3 13.5 
7. Simple average tariff (%) 10.3 10.1 10.3 
8.   WTO agriculture 14.2 15.0 16.1 
9.   WTO non-agriculture (incl. petroleum) 9.6 9.2 9.2 
10.   Agriculture, hunting, forestry and fishing (ISIC 1) 13.6 14.1 14.2 
11.   Mining and quarrying (ISIC 2) 2.6 2.1 2.1 
12.   Manufacturing (ISIC 3) 10.2 10.0 10.2 
13.   First stage of processing 10.2 10.4 10.7 
14.   Semi-processed products 4.7 4.7 4.7 
15.   Fully processed products 13.1 12.8 13.1 
16. Domestic tariff "peaks" (% of all tariff lines)a 3.3 3.7 3.9 
17. International tariff "peaks" (% of all tariff lines)b 25.4 24.8 25.4 
18. Overall standard deviation 11.1 11.0 11.4 
19. Nuisance applied rates (% of tariff lines)c 0.0 0.0 0.0 
20. Bound tariff lines (% of all tariff lines) 97.5 97.3 97.3 
a Domestic tariff peaks are defined as those exc eeding three times the overall average applied rate. 
b International tariff peaks are defined as those exceeding 15%. 
c Nuisance rates are greater than 0% but inferior or equal to 2%.  
Source: WTO Secretariat calculations, based on data pr ovided by the authorities of St. Kitts and Nevis. 
                                               
24 These are: refined sugar (HS 1701.9990); undenatured ethyl alcohol (HS 2207.1000, 2207.2000, 
2208.2010, 2208.2090, 22083010, 2208.3090, 2208.4010, 2208.4090, 2208.5010, 2208.5090, 2208.6000); 
cigars and cigarettes (HS 2402.1000, 2402.2000, and 2402.9000); and other manufactured tobacco and 
tobacco substitutes (HS 2403.1000, 2403.9100, 2403.9910, 2403.9990). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 248 - 
 
 3.23.  The tariff structure and level have remained virtually unchanged since the last review of 
St. Kitts and Nevis, with the main exception of the change in HS tariff nomenclature. The simple average MFN tariff in 2013 was 10.1% (10.3% in 2006). Tariff protection was higher for agriculture (WTO definition), reaching 15.0%, than  for non-agricultural products which faced an 
average MFN tariff of 9.1% (Table 3.3). Tariff rates range from 0 to 70%. If ad valorem  
equivalents for the lines subject to specific rates are included, the MFN average increases slightly, to 10.3% (to 16.1% for agricultural products, while for non-agricultural products, it remains the 
same). The highest average rates by WTO category are on sugar and confectionery (22.7%), and 
on beverages and spirits (22.2%). Other products facing higher tariffs than average include fruit 
and vegetables (16.1%); and animal products (15.6%). The highest tariff rate is applied only on arms and ammunition (70%), followed by beer and stout (50%).
25 This tariff is the result of the 
tariffication of previously existing quantitative  restrictions in 2005. Motor vehicles, which are 
included in List C, are subject to tariffs as high as 45%. The lower tariff rates, by WTO category, are applied on cotton, non-electric machinery, chemicals, dairy products, metals and minerals, and 
petroleum. 
3.1.4.2  Bound tariffs 3.24.  St. Kitts and Nevis's WTO bindings are independent and different from those of other OECS 
countries. In the Uruguay Round, St. Kitts and Nevis bound 97.3% of its tariff lines, the main 
exception being fish products. Bindings on agricultural products were at a ceiling level of 100% for the majority of products, with immediate effect (1995). Products not subject to the ceiling bindings were bound at rates ranging between 10% and 250%,  with implementation periods of up to ten 
years. In the case of non-agricultural products, most tariff lines were bound at a ceiling rate 
of 70% with a number of exceptions, such as cement, petroleum products, 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 is 77.4%, almost seven times the applied rate; the bound rates are 108.9% for agricultural products (WTO definition), and 71% for non-agricultural goods. 
3.25.  St. Kitts and Nevis is the only OECS count ry to have included 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 
3.26.  Under CARICOM rules, members are allowed to apply tariff rates lower than the CET 
provided these are included in the List of Conditional Duty Exemptions to the CET. This list also 
spells out the purposes for which the goods may be admitted free of import duty or at a rate lower 
than the CET. St. Kitts and Nevis, as well as all other OECS countries, having been classified as a 
less developed country within CARICOM, may import all inputs duty-free instead of at the CET rate 
of 5%. St. Kitts and Nevis makes use of this prerogative for the majority of imported inputs. 
3.27.  Tariff concessions and exemptions are also granted under St. Kitts and Nevis' incentives 
schemes for goods to be used in approved industries. Under the Fiscal Incentives Act of 1974, import duty 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 mate rials and articles of hotel equipment 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. 
                                               
25 A 25% tariff rate is applied on imports from CARICOM MDCs, while imports from CARICOM LDCs, 
which include all OECS member states, are zero-rated. (See: Saint Christopher and Nevis Statutory Rules and 
Orders No. 10 of 2005. Consulted at: http://www.sknc ustoms.com/pdfs/Statutory_Rules_and_Orders_No10_ 
of_2005.pdf.) WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 249 - 
 
 Table 3.3 Summary analysis of the St Kitts and Nevis MFN tariff, 2013  
Description No. of lines Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) Final 
bound 
average 
(%) 
Total 6,291  10.1 0 - 70 1.1 77.4  
      
HS 01-24 1,123  15.0 0 - 50 1.0 109.8  
HS 25-97 5,168  9.1 0 - 70 1.1 71.4 
By WTO category      
WTO Agriculture 1,026  15.0 0 - 50 1.0 108.9  
 - Animals and products thereof 149  15.6 0 - 40 1.0 97.3  
 - Dairy products 24 6.5 0 - 25 1.0 99.0 
 - Fruit, vegetables and plants  307 16.1 0 - 40 0.8 101.6  
 - Coffee and tea 29 15.2 0 - 25 0.7 99.1 
 - Cereals and preparations 125  16.1 0 - 40 0.8 101.6  
 - Oil seeds, fats and oils and their products 95 13.8 0 - 40 1.2 125.7  
 - Sugars and confectionary  21 22.7 5 - 40 0.7 108.6  
 - Beverages, spirits and tobacco 118 22.2 0 - 50 0.7 119.1  
 - Cotton 6  0.0 0 - 0 .. 100.0  
 - Other agricultural products,  n.e.s. 152 8.3 0 - 40 1.5 104.3  
WTO Non-agriculture (including petroleum) 5,265  9.2 0 - 70 1.1 71.0  
 - WTO Non-agriculture (excluding petroleum) 5,239  9.2 0 - 70 1.1 71.0 
 - - Fish and fishery products  175 10.3 0 - 40 1.2 100.0  
 - - Minerals and metals 1,115  7.3 0 - 25 1.1 70.0 
 - - Chemicals and photographic supplies 1,006  6.4 0 - 25 1.0 70.1  
 - - Wood, pulp, paper and furniture 329 10.3 0 - 25 0.9 79.5 
 - - Textiles 638  6.8 0 - 25 1.1 70.8  
 - - Clothing 277 24.3 5 - 25 0.1 71.7 
 - - Leather, rubber, footwear and travel goods 179  9.6 0 - 25 1.1 70.0  
 - - Non-electric machinery 588 5.5 0 - 25 1.4 70.1 
 - - Electric machinery 264  11.6 0 - 25 0.8 70.0  
 - - Transport equipment 185 12.5 0 - 45 1.2 70.0 
 - - Non-agriculture articles,  n.e.s. 483  14.5 0 - 70 0.9 71.7  
 - Petroleum 26 8.3 0 - 25 1.0 75.1 
By ISIC sectora      
Agriculture and fisheries 411 14.1 0 - 40 1.1 108.0  
Mining 107  2.1 0 - 25 3.0 70.0  
Manufacturing 5,772  10.0 0 - 70 1.1 75.7 
By HS section      
01 Live animals & products 330 12.4 0 - 40 1.2 98.5 
 02 Vegetable products 382  14.4 0 - 40 1.0 113.2  
 03 Fats & oils 53 21.3 0 - 40 0.8 149.3  
 04 Prepared food, etc. 358  17.5 0 - 50 0.7 106.0  
 05 Minerals 187 3.6 0 - 25 1.7 70.7 
06 Chemical & prod. 937  6.3 0 - 25 1.0 71.7  
 07 Plastics & rubber 244 7.4 0 - 25 1.1 70.0 
 08 Hides & skins 80  9.6 0 - 25 1.2 73.8  
 09 Wood & articles 133 11.2 0 - 25 0.6 70.1 
 10 Pulp, pape r, etc. 172  7.8 0 - 25 1.1 70.0  
 11 Textile & articles 902 11.5 0 - 25 0.9 72.0 
 12 Footwear, headgea r 60  18.6 0 - 25 0.5 70.0  
 13 Articles of stone 186 11.2 0 - 25 0.6 70.0 
 14 Precious stones, etc. 62  15.1 0 - 25 0.7 70.0  
 15 Base metals & products 712 7.1 0 - 25 1.0 70.0 
 16 Machinery 869  7.5 0 - 25 1.2 70.1  
 17 Transport equipment 196 12.0 0 - 45 1.3 70.0 
 18 Precision equipment 229  10.2 0 - 25 0.9 70.0  
 19 Arms and ammunition 24 41.9 0 - 70 0.6 87.7 
 20 Miscellaneous manufacturing 167  16.5 0 - 25 0.6 88.8  
 21 Works of art, etc. 8 25.0 25 - 25 0.0 70.0 
By stage of processing      
First stage of processing 797 10.4 0 - 40 1.4 95.1 
Semi-processed products 1,860  4.7 0 - 40 1.0 71.5  
Fully-processed products 3,634  12.8 0 - 70 0.9 77.0 
 
a ISIC (Rev.2) classification, excluding electricity (1 line). 
 Source: WTO Secretariat estimates, based on data provided by the authorities of St. Kitts and Nevis.  
3.28.  SRO No. 22 of 1974 contains a revised list of products that may be imported into St. Kitts 
and Nevis free of import duties. The exemptions apply to products destined for specific industries or uses: (a) air navigation companies authorized by the Government: motor and in general petrol 
spirits, lubricating oil, machinery and parts and accessories for their aeroplanes; scientific 
instruments, appliances, tools, and apparatus for use in the repair of aeroplanes; and wireless apparatus for use in communications; (b) the fruit and vegetable industry: cord, twine, rope, and WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 250 - 
 
 wire to be used growing any fruit or vegetable for exportation; barrels, boxes, bottles, crates, and 
all packages or containers 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; (c) fishing industry: fishing gear, 
including seine twine, gillnet twine, fishing lines, and galvanized mesh wire, other than for sport 
fishing; (d) apiculture: bees, beehives, and bee-keeping apparatus; (e) chemical industry: sulphuric acid for the manufacture of citric acid; and (f) textiles and clothing industry: dying 
materials. 
3.29.  Apart from 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 wheel chairs; books; bullion and coin; 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, an d radium imported with the approval of the 
Governor 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 
institution use; orthopaedic appliances; re-imports; salt; scientific apparatus for academic research; and surgical equipment. 
3.30.  Under CARICOM regulations goods included in the 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. Goods included in this list are generally produced in the CARICOM region in quantities considered adequate to meet regional needs. 
3.1.4.4  Tariff preferences 
3.31.  Duty-free access is granted by St. Kitts and Nevis to imports from other CARICOM 
countries, provided they meet the CARICOM rules of origin criteria. Under the EPA with the 
European Union, St Kitts and Nevis grants preferential access to most EU products; gradual 
implementation began on 1 January 2009, and is expected to be completed by 1 January 2033. By that date all products originating in the EU, exce pt for exempted products (mostly agricultural and 
agri-industry products) are expected to be gran ted duty-free access to St. Kitts and Nevis and 
other OECS countries (see Common Report). The pace of implementation varies by country; in the case of St. Kitts and Nevis, most products will be liberalized following the general schedule of tariff reductions; only in a few cases, implementation will be either ahead or slightly slower than the 
general schedule. The average preferential rate granted on EU products in 2013 was 6.3%.  
3.1.5  Other levies and charges 3.32.  Indirect taxes on imports are an important source of income, since a considerable part of 
the goods consumed are imported. Although most imports receive national treatment with respect 
to the application of taxes, there are a few instances in which this is not the case. During the period under review, St. Kitts and Nevis, togeth er with other OECS states introduced a value 
added tax and an excise tax; these replaced the consumption tax applied until October 2010. As 
part of its Uruguay Round Schedule of Tariff Concessions, St. Kitts and Nevis bound combined other duties and charges including the customs service charge, the consumption tax, and any other applicable tax, at a general rate of 18%. 
3.33.  The consumption tax was applied on imports as well as domestic products and was ruled by 
the Consumption Tax (Amendment) Order, S.R.O: No. 4 of 2003. The general rates were 22.5% for goods and 4% for professional services; some products were subject to higher ad valorem  
rates, while specific duties were levied on a few products such as tobacco, acetylene, and cement. 
The tax was calculated, in the case of imports on the c.i.f. value plus import duties; the consumption tax was levied upon importation and collected at the point of entry. For goods the 
consumption tax was calculated on the ex-factory price. Domestically produced agricultural 
products as well as produce of CARICOM orig in, were exempt from the consumption tax. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 251 - 
 
 3.34.  The value added tax (VAT) was introduced in 2010, through the Value Added Tax Act, 2010 
(Act No. 3 of 2010).26 The regulations are contained in th e Statutory Rules and Orders (SRO) 
No. 38 of 2011 (Value Added Tax Regulations, 2011). VAT is charged on all domestic supplies and imports. The general rate is 17% for both domestically produced and imported goods and services. 
A lower 10% rate is applied on hotel bills. 
3.35.  VAT on imported goods is charged and payable under the Value Added Tax Act, but the 
Customs (Control and Management) Act, Cap. 20.04 is applied for the purposes of collecting and 
enforcing the payment of the tax. The Comptroller of Customs collects any tax due under the Act 
at the time of importation of any goods. The importer must furnish the Comptroller of Customs with an import declaration upon the entry of the goods and pay the tax due. 
3.36.  The VAT is applied on their "fair market va lue" defined as "the consideration in money which 
the supply or importation would generally fetch if (domestically) supplied or imported in similar 
circumstances at that date in Saint Christopher and Nevis, being an importation freely offered and made between persons who are not related persons".
27 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.28 Failing fair market value 
determination through this method, the Customs Controller is entitled to approve the use of any 
method that can provide a sufficiently objective approximation of the monetary value of the 
supplied or imported good.  
3.37.  The fair market value of imports is generally understood as the value of the goods for the 
purposes of customs duty under the Customs (C ontrol and Management) Act plus: the cost of 
insurance and freight, any customs duty, excise ta x, environmental surcharge, or any other fiscal 
charge, other than tax, payable on the importatio n of such goods; and the customs service charge. 
3.38.  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 and 1701.999); diapers (HS 4818.402 and 4818.40910); locally produced white whole wheat and whole grain bread (impor ted bread is taxable); white and whole wheat 
flour (HS 1101); infant formula (HS 1901.10); ce rtain types of milk (except condensed or 
flavoured 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 elsewhere specified or 
included (HS 2710.40); and petroleum gases and other gaseous hydrocarbons (including LPG, HS 
2711.10). Exports of goods and services, goods used  in repair and maintenance, goods under the 
temporary admission regime, and services engaged by the Ports Authority are also zero-rated. 
3.39.  The Act contains a schedule of Exempt Import Goods (First Schedule), which include: locally 
grown fruits and vegetables and animal products; domestically produced or imported goods, including packing containers, which are exported an d thereafter returned to or brought back by 
the exporter or any other party, without having been subjected to any process of manufacture or 
adaptation and without a permanent change of owners hip; bona fide unsolicited 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 
                                               
26 "An Act to make provision for the imposition and collection of value added tax; and to provide for 
related or incidental matters". Pu blished on 24 August 2010 in the Extra-Ordinary Gazette  No. 41 of 2010. A 
number of amendments to the Act have since then been introduced.  
27 Under the Act, a supply of goods means: (a) a sale of goods; (b) a grant of the use or right to use 
goods, whether with or without a driver, pilot, crew, or  operator, under a rental agreement, credit agreement, 
freight contract, agreement for charter,  or other agreement under which such use or right to use is granted; or 
(c) a transfer or provision of thermal or electrical ener gy, heat, gas, refrigeration, air conditioning, or water. A 
supply of services means anything done which is not a supply of goods or money, including: (a) the granting, 
assignment, cessation, or surrender of a right; (b) making available a facility or advantage; or (c) refraining 
from or tolerating an activity. 
28 "Similar importation", in relation to goods or serv ices, means goods or services produced in the same 
country which, although not alike in all respects, have the characteristics and like component materials which enable them to perform the same func tions and to be commercially interchangeable; and "similar supply", in 
relation to a supply of goods or services, means any othe r supply of goods or services which, in respect of the 
characteristics, quality, quantity, functional components, materials, and reputation of the first-mentioned goods or services, is the same as, or closely or subs tantially resembles, that su pply of goods or services. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 252 - 
 
 transhipment to any other country; goods imported by Saint Kitts and Nevis nationals returning 
home for permanent residence; containers temp orarily imported under Customs Tariff Heading 
8609.00, and goods temporarily imported for processi ng or repair, cleaning or reconditioning. In 
this case, the Comptroller of Customs and Excise may demand a deposit upon an importation as 
security to guarantee that the repaired or reconditioned machines are exported. Equipment 
temporarily admitted for specific economic development purposes is also exempt from VAT, but the Comptroller of Customs and Excise may demand a deposit of half of the value of the 
equipment upon importation as security to guaran tee 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. 
3.40.  Goods imported by a taxable person qualifyi ng for incentives as an Enclave Industry under 
section 2 of the Fiscal Incentives Act, Cap. 20.14 (see below) are VAT-exempt. The goods must be 
consigned directly to the person and must be used in a taxable activity. 
3.41.  The application of the VAT resulted in a slight increase in charges on imports compared to 
when the Consumption Tax was applied. The main reason is that the calculation of the 
Consumption Tax excluded the Customs Service Charge from its base, while the calculation of the VAT includes it.
29 
3.42.  Excise tax is regulated by the Excise Tax Act of 2010 (Act No. 4 2010)30. For imports, excise 
tax is applied on the "fair market value" instead of  on the transaction value. Fair market value is 
defined as "the consideration in money which the importation would generally fetch if imported in similar circumstances at that date in Saint Christopher and Nevis, being an importation freely 
offered and made between persons who are not related persons". Products subject to the tax 
include aerated beverages (generally taxed at 5%), beer and stout (15%), wine and other alcoholic beverages (25%), cigars and cigarette s (20%), motorcycles (8%), weapons (6%), and 
some petroleum products (15% or specific duties) (Table 3.4). 
Table 3.4 Products subject to excise taxes
 
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  Othe r 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 ar rested by the addition of alcohol with plants or 
aromatic substances 25% 
2204.29.90 Other 25% 
2204.30.00 Other grape must 25% 
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 Othe r 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 Othe r 25% 
2208.50.10: Gin and Geneva in bottles of a strength not exceeding 46%  25% 
2208.50.90 Othe r 25% 
2208.60.00  Vodka 25% 
2208.70.00 Liqueurs and cordials 25% 
2402.10.00 Cigars, cheroots and cigarillos, containing tobacco  20% 
                                               
29 An example of this is provided by the Customs De partment. On a c.i.f. value of EC$1,500, with an 
import tariff of 25%, and the previous consumption tax of 17% plus the Customs Service Charge of 6%, the 
calculated cost to the retailer is EC$2,283.75, with import taxes totalling 52.25% of the c.i.f. value. With the adoption of the VAT system the landing cost to the retailer is EC$2,299.05, with import taxes totalling 53.27% of the c.i.f. value. See Customs Depa rtment online information, "Implicati on of VAT on Imports". Consulted at: 
http://www.skncustoms.com/pdfs/VAT%20System.pdf. 
30 "An Act to provide for the imposition and coll ection of excise tax on imported and locally 
manufactured goods, and to provide for related or incide ntal matters." Published in the Official Gazette No. 51 
of 2010, 28 October 2010. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 253 - 
 
 HS Code Description  Tax rate  
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 revolver s, 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 th ose of heading 9307.00.00  6% 
2710.10.00 Motor Spirit (Gasoline) and other light oils and preparations  $2.25/g  
2710.19.10 Kerosene type jet fuel $0.28/g  
2710.19.20 Illuminating kerosene $0.28/g  
2710.19.30 Vaporizing oil or white spirit $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).  $0.03/lb  
 
Source: Excise Act No. 4 of 2010. 
3.43.  The second schedule of the Act contains the list of Exempt Goods, which includes: 
(a) alcohol and spirits (under Customs Tariff Heading 2207); (b) aromatic bitters (2208.90.10 
and 2208.90.20); (c) lubricating oils and greases (2710.90); (d) 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 (e) imports classified under Customs Tariff Heading 93.01, 
93.02, 93.03 and 93.04 by a Department approved  by the Ministry of National Security. 
3.44.  Under Environmental Levy (Used Motor Vehicles) (Amendment of Schedule) Order No. 12 
of 2005, an environmental levy is charged on impo rts of used vehicles. 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 EC$1,000. In 2013, the environment levy rates were: EC$1,000 for used vehicles 
imported less than two years after the date of manufacture; EC$3,500 for vehicles imported between two and four years after the date of  manufacture; and EC$5,000 for used vehicles 
imported four years or more after the date of manufacture.  
3.45.  A deposit levy of EC$0.30 per container is charged on imported beer, stout, malt, ale, and 
aerated drinks in non-returnable bottles, under  the Trade (Bottle and Can Deposit Levy) Act, 
Cap. 20.35 (Act No. 1 of 2002). The levy is refunded on re-export of the bottles or if disposal 
arrangements acceptable to the relevant authorities are made within six months of payment of the deposit.  
3.1.6  Import prohibitions, restrictions, and licensing 
3.46.  Import prohibitions and restrictions are in general regulated by the Customs Control and 
Management (Amendment) Act No. 7 of 2001. In most cases, prohibitions relate mainly to counterfeited, indecent or obscene goods, or goods that are considered a health or safety hazard. 
The list of prohibited imports is contained in the Customs (Control and Management) 
(Amendment) Act, 2001 (Act No. 7 of 2001). The Act also contains the list of restricted goods, including: firearms and ammunition, which require the written permission of the Commissioner of 
Police for importation; radio and television transmitting equipment, which require a licence from 
the Minister of Communication; narcotic drugs and psychotropic substances including controlled drugs, which require a licence from the Chief Medical Officer; tear gas or any ingredient that may produce it, laser pointers and any goods that bear the coat of arms or the flag of Saint Christopher 
and Nevis, which require the written authority of the Minister responsible for National Security; 
rare or threatened species of animals or plants, their products and derivatives, whose international trade is regulated by CITES, unless such goods are accompanied by the appropriate permits signed 
by the CITES authorities in the country of exportation or importation; 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. 
3.47.  Article 164 (Promotion of Industrial Deve lopment) of the revised Treaty of Chaguaramas 
allows less developed CARICOM countries to petition COTED to suspend Community-origin WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 254 - 
 
 treatment to products "as a temporary measure in order to promote the development of an 
industry". Article 164 replaced Article 56 of the CARICOM Treaty, which allowed the use of quantitative restrictions on imports of certain products from other CARICOM countries until 2005. St. Kitts and Nevis applied quantitative restrictions on imports of aerated beverages, beer, and 
pasta products. The restrictions have been generally tariffed, with the exception of beer, which is 
subject to zero rate of import duty and to a 50% alcohol duty. The level of taxation on some 
imported products (e.g. on beer or aerated beverages) can be very high, and increased during the 
review period due to the introduction of the VAT.
31 
3.48.  Until recently, St. Kitts and Nevis applied import restrictions in the form of quantitative 
limits, other than those allowed by Article 164, on some agricultural imports from non-CARICOM countres. Eggs could be imported only by domestic egg producers when domestic production was 
insufficient; and some vegetables (cabbages, carrots, onions, sweet peppers, tomatoes, and white 
potatoes) were subject to seasonal import restrictions and to import licensing requirements. Import licences were granted only when dome stic production could not meet demand. The 
authorities noted that these practices have been discontinued. 
3.49.  St. Kitts and Nevis notified its import licensing regime to the WTO in 1998
32, and responded 
to the questionnaire on import licensing procedures in 2009.33 In its notification to the WTO, 
St. Kitts and Nevis 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. St. Kitts and Nevis operates two licensing systems, one for imports and one for exports. The first regime applies to the 
importation of "general goods". The Supply Office, in the Ministry of International Trade, Industry 
and Commerce was in charge of processing and granting import licences until end 2012. The Office was closed in January 2013, and, since then, the functions have been carried out by the Customs 
Department. 
3.50.  Licences are required for all imports under the Importation of Restricted 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. The procedur es and rules, and the list of products subject 
to licensing are recorded in SRO No. 14 of 1992. The products range from vegetables, eggs, and meat, to motor vehicles and agricultural machinery. Except for eggs and some agricultural products produced 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. As 
notified to the WTO in December 2009, an import licence must be obtained for plant and plant products to ensure that the exporting country an d the products do not appear on the schedule of 
restricted or prohibited goods.  
3.51.  There is a separate licensing regime for the importation of meat and meat products and live 
animals. Applications must be submitted by the importer to the Veterinary Division of the 
Agriculture Department in the Ministry of Agriculture, Marine Resources and Cooperatives. In 
addition the exporting country must provide a heal th certificate for the goods. If the goods meet 
the necessary health standards then the application is signed and the import permit is issued.  
3.52.  In accordance with domestic legislation, until January 2013, when the St. Kitts Supply Office 
was closed, the importation of goods produced locally could be temporarily restricted and subject 
to licensing whenever there was an abundance of local fresh produce. In this case, the Supply Office was required to notify the major importers of their allocated quotas, and import licences 
could be refused if there was abundant domestic production.
34 The overall quota was determined 
by the level of domestic production, but individu al quotas were allocated based on the import 
                                               
31 The products subject to quantitative restrictions were: aerated beverages (2202.101), waters; other 
waters (201.10), beer (22.03), malt (2202.90.20), candles/paraffin wax (34.06), curry powder (0910.50), pasta (19.02), animal feed (23.09), wooden furniture (9401.60 /9403.60), solar water heaters (8419.19), and 
industrial gases/oxygen, carbon dioxide, acetylen e (2804.40, 2811.21, 2901.292). These products have been 
tariffied at rates of 50%, 25%, 50% (alcohol duty); 25% , 15%, 40%, 10%; 5, 15 or 25% (according to the 
subheading); and 10 or 25%, respecti vely. The level of taxation for imported beer, considering the 50% 
alcohol duty, the 6% customs service charge, the 15% excise duty, and the 17% VAT is 134.6%. The level of 
taxation for aerated beverages is 95. 4%, while that for curry is 48.4%. 
32 WTO document G/LIC/N/1/KNA/1, 31 July 1998. 
33 WTO document G/LIC/N/3/KNA/1, 8 December 2009. 
34 In this case, the applicant was informed of the refusal and given the reasons. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 255 - 
 
 history of the importer. Applicants were allowed at least one month to submit applications for 
licences upon the announcement of the opening of quotas. Quotas were allocated on a yearly basis, while licences were issued at least one month prior to importation. The authorities have noted that licences were allotted for certain goods to domestic producers; the Supply Office 
monitored these licences to ensure that they were used for imports. The transfer of licences for 
succeeding periods was not allowed. There was no specific published list of authorized importers; however, the names of importers who received licences were made available to any other 
government agency upon request. In the course of this review, the authorities have noted that this 
practice has been discontinued  as the St. Kitts Supply Office no longer exists. In relation to meat, 
meat products, and plants, import restrictions are activated when there is a disease outbreak. There are no country quotas for imports originating from disease-free countries.  
3.53.  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 to 
another person. 
3.54.  Permits are required for imports of any live  animals, poultry or birds or carcasses and parts 
thereof, plants, planting materials, and 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 
3.55.  St. Kitts and Nevis has no domestic legislation on anti-dumping or countervailing duties. 
Since there is no umbrella legislation to enact overall the Uruguay Round Act into domestic law, 
the provisions of the WTO Agreement on Antidumping are not part of domestic legislation and 
hence cannot be invoked in Court. The legislation currently available with respect to contingency measures dates from 1958 and, hence, is not in accordance with the Anti-dumping Agreement. 
3.56.  St. 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 Agreement. Thus it had not taken any anti-dum ping actions within the meaning of Article 16.4 
of the Agreement and did not anticipate taking any for the foreseeable future. St. Kitts and Nevis 
would promptly notify the Committee on Anti-Dumpi ng Practices of any changes that might take 
place in this regard, including the establishment of a competent authority to initiate and conduct anti-dumping investigations, as well as the domestic procedures governing the initiation and 
conduct of such investigations, and would report without delay to the Committee any anti-dumping 
actions in accordance with Article 16.4.
35 
3.1.7.2  Safeguards 
3.57.  St. Kitts and Nevis does not have any national legislation with respect to safeguards. 
However, it may invoke regional rules for the application of safeguards, under CARICOM rules. St. Kitts and Nevis, as a less developed CARICOM member, may invoke the special 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 may authorize. Members may not apply safeguard measures against the products of a di sadvantaged country where such products do not 
exceed 20% of the market of the importing member. 
3.58.  St. Kitts and Nevis did not implement any safeguard measures during the period under 
review.  
3.59.  St. Kitts and Nevis did not make use of the safeguard provisions included in the Uruguay 
Round Agreement on Agriculture. 
                                               
35 WTO document G/ADP/N/193/KNA, 12 January 2010. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 256 - 
 
 3.1.8  Technical regulations and standards 
3.60.  St. Kitts and Nevis made no notifications to the TBT Committee during 2007-13. In the 
course of the current Review, the authorities noted that technical assistance is required to build 
capacity of the TBT National Enquiry Point. 
3.61.  Technical regulations and standards are developed by the Saint Christopher and Nevis 
National Bureau of Standards, established under the National Bureau of Standards Act No. 7 of 1999, now the National Bureau of Standards Act CAP. 23.15 Revised Edition 2002. The Bureau 
started operating in 2000. The National Bureau of  Standards functions under the umbrella of the 
Ministry International Trade, Industry, Commerce and Consumer Affairs and is governed by the Standards Council, composed of representatives of the public and private sectors.  
3.62.  The St. Kitts and Nevis Bureau of Standards is a member of the Caribbean Regional 
Organization for Standards and Quality (CROSQ),  Inter-American Metrology System (SIM), Pan-
American Standards Commission (COPANT), and an Affiliate Member of the International Electro-Technical Commission (IEC) Country Programme. 
3.63.  The Bureau's statutory function is to prep are, promote, and generally adopt standards on a 
national, regional or international basis relating to structures, commodities, materials, articles, and other things offered to the public commercially.
36 The Bureau also has the mandate to prepare, 
frame, modify or amend specifications and codes of  practice, and to maintain testing facilities, to 
carry out testing, calibration, and certification, and to publish standards marks. The Bureau 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 standards. The Bureau also acts as the Enquiry Point for the 
WTO TBT Agreement
 and the Contact Point for the Codex Alimentarius Commission. The Ministry 
of Trade is the designated Notification Point for the WTO-TBT Agreement.  
3.64.  Standards are drafted or adapted by technical committees established by the Standards 
Council in the Bureau's Departments of Chemistry, Entomology, Metrology, Microbiology, and Soil. The committee must reach consensus on the technical content of the draft standard. The draft 
standard is then circulated to stakeholders for feedback and comments, for a period of 60 days. 
Upon receipt of the comments and after the 60 da ys comment period, the final draft is prepared 
for the approval of the Council. If a technical regulation will be based on the standard the draft is sent to the legal draftsman for vetting and comment. A revised and edited final draft standard, 
approved by the Standards Council and a letter s eeking approval for the draft is 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 draftsman are included. 
When the Minister approves the draft, it is declared a St. Kitts and Nevis National Standard; and is 
printed and gazetted, and copies are sent for notification to the relevant bodies regionally and internationally. 
3.65.  International standards and CARICOM st andards adopted/adapted by the Bureau as 
National Standards may be declared mandatory to protect health and safety, ensure quality in goods for export, prevent fraud from misleading ad vertising, and give information to consumers. 
The Bureau 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. 
3.66.  Non-conformity with technical regulations (m andatory standards) is punishable by a fine of 
up to EC$5,000, or up to two years 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. 
3.67.  Technical regulations are also developed by the Government and interested regulatory 
bodies. The main ministries involved in developi ng and implementing technical regulations are the 
Ministries of Health; Information and Technology; Agriculture; Environment and Sustainable Development; Energy; and Public Works, Utilities,  Transport and Posts. The need to develop or 
                                               
36 Bureau of Standards online information. Co nsulted at: http://miticca.gov.kn/ContentAreas 
2.asp?CID=15. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 257 - 
 
 adopt standards and technical regulations is identified by a Government agency, manufacturers, 
consumers or the St. Kitts and Nevis Bureau of Standards (SKNBS). 
3.68.  The authorities stated in the course of th is Review, that an updated list of the technical 
regulations adopted during 2007-13 was not available. 
3.1.9  Sanitary and phytosanitary measures 
3.69.  The enquiry point under the WTO Agreement on Sanitary and Phytosanitary (SPS) Measures 
is the Department of Agriculture in the Ministry of Agriculture, Marine Resources and Cooperatives. 
St. Kitts and Nevis is a contracting 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). 
3.70.  St. Kitts and Nevis has not made any notification to the WTO SPS Committee. In the 
previous Review, the authorities indicated that St. Kitts and Nevis had very few resources in this 
area, and was in need of technical assistance. The situation remains the same in the context of the current Review. The authorities noted that St. Kitts and Nevis maintains a number of SPS 
measures but an exhaustive and up-to-date list is not available. Although St Kitts and Nevis has 
legislation on SPS, it lacks the infrastructure necessary to conduct testing of plants and animals. The authorities have noted that there is a food and water testing facility, which helps to identify 
pathogen agents that affect food. However, the capabilities are not in place to test plant pathogens 
and pesticide residues. So control is mostly based on inspection of imports and examination of any documentation issued in the exporting country, such as sanitary or phytosanitary certificates. The authorities stated that such test results are accepted from all countries that implement CODEX and 
OIE standards and that the Ministry of Agriculture uses the facilities of regional and international 
laboratories when and if necessary. 
3.71.  The Quarantine Unit, a subsection of th e Department of Agriculture, is tasked with 
preventing the entry, establishment, and spread of agricultural pests and diseases. This objective 
is fulfilled through inspection, certification, prohibition of entry, treatment, or destruction. The Unit comprises two divisions: Plant Quarantine and Animal Quarantine. The Plant Quarantine Division 
conducts pest and disease surveillance and monitoring activities, and pest and import risk analysis. 
It enforces international import/export regulations, ensures that international sanitary and phytosanitary standards are adhered to and implem ents exotic pest emergency response, control, 
and eradication. Plant quarantine officers inspect ag ricultural and horticultural containers to ensure 
that pests and diseases requiring quarantine are not present.  
3.72.  The Animal Quarantine Division regulates imports and exports of an imal and animal parts 
(including meat and poultry). The Division's regu latory responsibilities include pest and disease 
surveillance, import risk analysis, and maintaining animal health. The Veterinary Authority (Chief 
Veterinary Officer, in charge of the section of the Quarantine Unit for animal, meat, and meat products) is responsible 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 St. Kitts and Nevis. The Veterinary Authority is also responsible for providing certificates and documentation for the exportation of any animal or animal-related item from St. Kitts and Nevis. The Authority monitors, evaluates, and establishes 
areas free of, or with low prevalence for, animal pests and diseases. 
3.73.  The Plant Protection Act, Cap. 14.09 of the Laws of St. Kitts and Nevis sets up the 
phytosanitary conditions for imports of plants. All plants, plant products, plant pests, live beneficial 
organisms, and soils imported into St. Kitts and Nevis must be accompanied by a phytosanitary 
certificate issued by the appropriate agricultural authority of the exporting country. Plants, planting materials, plant products, and soil also require an import licence from the Minister of 
Agriculture. Imports of any plant, plant part, plant product, or fruit and vegetables from any 
country infested with the pink/hibiscus mealy bug are prohibited unless certain conditions are met. In the context of this Review, the authorities noted that, in practice, this is no longer enforced. A draft Plant Protection Bill is currently being discussed with the Ministry of Agriculture; it is on the 
legislative agenda for 2014. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 258 - 
 
 3.74.  The Animals (National and International Movement and Prescribed Diseases Prevention) Act, 
2012 (Act No. 7 of 2012) provides for the control of the movement of animals and animal-related items into and within St. Kitts and Nevis. The Act repealed the Animal (Disease and Importation) Act, Cap. 107 which contains provisions to prevent the introduction and spread of prescribed 
animal diseases within St. Kitts and Nevis and to ensure the safe and humane movement of 
animals to and from St. Kitts and Nevis. The Act is administered by the Chief Veterinary Officer, and establishes the Veterinary Authority. The authorities have noted that the 2012 Act enhances 
the scope for decisions to be made based on risk assessment. 
3.75.  The importation of an animal or an animal-r elated item requires an import permit issued by 
the Veterinary Authority and an international veterinary certificate from the relevant authority of the exporting country. 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 to xic substance, or is not done in accordance with 
established international standards and guidelines issued by the WTO and other international 
organizations. Animals, animal-related items and other regulated articles, upon importation, are 
subject to inspection at the port of entry. In accordance with the Act, an inspector will order 
animal to be placed within a quarantine station where the animal: may be suffering from an 
animal disease; may have been in contact with another animal suffering from an animal disease; 
or has not been tested or inspected to determine if it is suffering from an animal disease. 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. The authorities 
indicated that, in practice, the majority of animal imports are subject to quarantine, usually for at 
least one month, depending on 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 
imports. The large majority of animal imports are from the United States and Canada. 
3.76.  The Pesticides and Toxic Chemicals Control Act of 1999 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 comprises ten members from the Government and non-governmental organizations. The main function of the Board is to evaluate applications submitted for registration, to obtain licence or a research permit, and to grant or cancel licences. The board also advises the 
Minister on matters relevant to the making of regulations under the Act and monitors the 
implementation of these regulations. Imports of pesticides require a licence from the Pesticide 
Board, under the Drugs (Prevention and Misuse) Act No. 37 of 1978. 
3.77.  The implementation of permanent SPS me asures, such as modifications to the Animal 
(Disease and Importation) or the Plant Protection  Acts require the enactment of legislation by 
Parliament. However, emergency measures may be implemented the Minister of Agriculture 
without parliamentary approval. These measures are expected to have a limited duration; they 
require legislation and parliamentary approval to become permanent. 
3.78.  Although there are no written guidelines for the adoption of SPS measures, the authorities 
indicated that it is based on a review of the risk s involved, both in scientific and economic terms, 
of not taking any action. However, there is no mechanism to inform national stakeholders and 
trading partners prior to the adoption of the measures, and consequently, there is no provision for the solicitation or consideration of comments prior to their entry into force. This is the case for 
both emergency and permanent measures. Notification to stakeholders takes place after the 
implementation of a measure through its publication in the Gazette . Measures are also advertised 
through the media, postings at the air- and seapor ts, and in meetings of the Caribbean Veterinary 
Association. In the course of the previous Revi ew, the authorities indicated that there were no 
plans to change the procedures for adopting or publicizing SPS measures. This seems to be the current situation, which prevents St. Kitts and Nevis from complying with several of the requirements of Annex B of the SPS Agreement. 
3.79.  St. Kitts and Nevis introduced legislation to regulate Genetically Modified Organisms (GMOs) 
in 2012. Act No. 14 of 2012, known as the Bios afety Act, 2012 regulates the registration and 
licensing of 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, but as  at February 2014 was not yet functioning. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 259 - 
 
 3.2  Measures Directly Affecting Exports 
3.2.1  Documentation, export taxes, and restrictions 3.80.  Exporters are not required to register: th ey must submit an export declaration (shipping 
bill) and invoice/packing list, and when required , a phytosanitary or CITES certificate, or, for 
preferential trade, a certificate of origin.  
3.81.  Exports of vegetables require a phytosanitar y certificate. Exports of all live animals require 
an Export Health Certificate, while exports of all animal meat (fresh or frozen) require an export 
certificate provided by the 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 certificat e from the Veterinary Unit (Department of 
Agriculture). 
3.82.  Exports are exempt from internal taxes, and zero-rated for VAT purposes. Until 2010, 
export taxes were applied on some live animals, lobsters, and cotton, in accordance with the 
Export Duty Ordinance (Amendment) Act No. 4 of 1970. The adoption of the VAT eliminated export 
taxes. 
3.83.  There is no export promotion agency in  St. Kitts and Nevis, although the St. Kitts 
Investment Promotion Agency (SKIPA) and the Ne vis Investment Promotion Agency (NIPA) are 
tasked with promoting investments, and ec onomic activities, among which exports. 
3.84.  External Trade Order No. 32 of 1958 rules export restrictions and licensing; restrictions are 
generally for safety and health purposes. Until recently, export licences were managed by the now 
closed Supply Office; they are currently under th e Ministry of International Trade, Industry, 
Commerce and Consumer Affairs. 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 St. Kitts and Nevis are restricted. 
3.2.2  Export subsidies, financing, support, and promotion 3.85.  St. Kitts and Nevis has not notified to the WTO Committee on Agriculture whether it 
provides export subsidies to agricultural products. In the context of this Review, the authorities 
have stated that St. Kitts and Nevis does not provide such export subsidies. However, as mentioned above, the fruit and vegetable industry benefits from certain advantages on its exports, including the duty-free importation of certain in puts and materials and of machinery and parts 
used by the industry. 
3.86.  St. 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.
37 In July 2007, the General Council decided 
to extend the date for the dismantlement of ex port subsidies to end 2015. Members benefiting 
from the extension must take, from 1 January 2008, the necessary internal steps to eliminating 
export subsidies under the programme before the end of the final two-year phase-out period.  
3.87.  St. Kitts and Nevis, like other OECS countries, grants some fiscal benefits that are 
contingent upon exportation, especially those av ailable after the end of the 15-year tax holiday 
granted to some enterprises. Concessions in the form of tax credits are granted under the Fiscal 
Incentives Act, which provides for income tax relief on the profits accruing from a company’s 
exports. This benefit is granted only to enterp rises that are exporting, and may not be granted 
while enjoying a tax holiday and duty-free imports of raw materials and capital goods. Enclave 
enterprises, exporting their entire production, may receive the maximum tax-holiday period, 
15 years, under the Fiscal Incentives Act. The au thorities indicate that they could not provide 
estimates of revenue forgone under the Fiscal Incentives Act for the period 2007-13. 
                                               
37 WTO documents G/SCM/N/74/KNA, 17 December 2001; G/SCM/N/71/KNA, 4 March 2002; 
G/SCM/N/95/KNA, G/SCM/N/99/KNA, 3 July 2003; G/SCM/N/114/KNA, 28 July 2004; G/SCM/N/123/KNA, G/SCM/N/128/KNA, 25 July 2005; SCM/N/128/KNA, 26 July 2005; and G/SCM/N/146/KNA, 13 July 2006. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 260 - 
 
 3.88.  St. Kitts and Nevis does not have legislation that would provide for the establishment of free 
zones. The duty-free regime, established under th e Duty Free Shops (Licensing and Taxation) Act 
No. 6 of 2010, consists of two types of approved duty-free licen ces, one for alcohol and tobacco 
(licence B) and the other for a specific list of goods (A). There is duty-free operator fee of 
EC$10,000 per year. The advent of the VAT changed some of the parameters of the regime, 
whereby locals are subject to the tax, and non-residents are zero-rated. They pay a non-refundable duty-free store levy of 6%, ex cluding CSC, import and excise duties. 
3.89.  The OECS Export Development Unit (EDU) offers export promotion support, with assistance 
from the Caribbean Export Development Agency. Until 2009, when this scheme ended, St. Kitts 
and Nevis' exporters could make use of the insu rance and export credit guarantee facilities 
provided by the Eastern Caribbean Central Bank (ECCB), covering political and commercial risks. 
3.3  Measures Affecting Production and Trade 
3.3.1  Incentives and assistance 3.90.  St. Kitts and Nevis uses incentives schemes to attract investment, encourage new 
employment opportunities, and promote diversification of the economy. The St. Kitts Investment 
Promotion Agency (SKIPA) and the Nevis Investment  Promotion Agency (NIPA) are in charge of 
managing these schemes. The incentives available generally take the form of income and profits 
tax holidays and import duty exemptions. The av erage value of tax concessions granted over the 
period 2008-12 is estimated at EC$142.8 million. 
3.91.  St. Kitts and Nevis has, on various occasions, notified to the Committee on Subsidies and 
Countervailing Measures the Fiscal Incentives Act No. 17 of 1974, and was granted an extension 
for its modification or elimination until end 2015, under the decision relating to Article 27.4 of the 
SCM Agreement.
38 This is the only subsidies programme notified by St. Kitts and Nevis. Under the 
Fiscal Incentives Act, a tax holiday 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 exports all its production. To this end, companies are classified as: (i) Group 1 enterprise s, where local value is 50% or more of sales, 
which may be granted a tax holiday of up to 15 year s; (ii) Group 2 enterprises, with local value of 
between 25% and 50% of sales, which are granted concessions for up to 12 years; (iii) Group 3 
enterprises, with local value of between 10% an d 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. 
3.92.  Additional benefits, in the form of income tax rebates at the termination of the tax holiday 
period, are based on the company's share of export  profits in its total profits. Accordingly, the 
income tax rebate is 25% when export profits ar e 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. In addition, companies benefiting from a tax holiday 
under the Fiscal Incentives Act may import duty-free machinery, equipment, spare parts, building 
materials, raw and packaging materials, and other in puts, as appropriate, to be used in eligible 
enterprises. 
3.93.  In addition, there are sector-specific incentives for tourism, as included in the Income Tax 
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 pr ojects, with preference given to the construction 
of hotels, casinos, and villas; these ad hoc ince ntives do not require approval by the National 
Assembly.  
3.94.  During the period under review, St. Kitts and Nevis introduced a scheme to assist locally 
owned small enterprises. The Small Business De velopment Act of 2009 (Cap. 20.61) provides for 
the establishment of a regulatory framework to facilitate the growth and development of small 
businesses. For the purposes of the Act, a small business is defined as: (a) not having more than 25 employees; (b) annual turnover not exceeding EC $2 million; (c) net assets or paid up capital 
                                               
38 Most recently through WTO document G/SCM/N/243/KNA, 1 August 2012. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 261 - 
 
 not exceeding EC$1 million; (d) locally owned39; (e) no more than 25% owned or controlled by a 
company whose annual turnover and net assets or paid-up capital do not exceed the annual turnover and net assets or paid up capital mentioned above; (f) where the composition of its board of directors is not controlled by a company whose annual turnover and net assets exceed the 
annual turnover and net assets mentioned above; and (g) having no agreement for the purpose of 
fees on a continuing basis for managerial or other services to persons who are not nationals of St. Kitts and Nevis or other CARICOM states and who are not resident in St. Kitts and Nevis, where 
those services do not form part of the normal business operations of the enterprise. 
3.95.  To benefit from the programme, a company must be declared "approved small business" by 
the Minister of Trade, Industry and Consumer A ffairs. Applications for this status must be 
accompanied by a certificate of incorporation issued pursuant to the Companies Act, 1996 or a 
business licence issued pursuant to the Licences on Businesses and Occupations Act, 1972. If all 
requisites are met, the Minister of Trade will i ssue a declaration of approved small business within 
90 days of the application; this declaration is published in the Official Gazette  and the company 
will receive a Certificate of Registration. 
3.96.  Approved small businesses benefit from a number of incentives: (a) a concession on the 
VAT (originally on the consumption tax); (b) a reduction on income tax for a minimum of the first 
three and a maximum of the first five years of establishment or reconstruction of the small 
business; (c) relief on income tax by way of an allowable deduction on any money borrowed from any financial institution including any bank, non-bank or credit union; (d) export incentives for research and development and export promotion activities; (e) a rebate on corporate tax; (f) an 
exemption from or reduction in customs duty on inputs imported for use in the small business; 
(g) an exemption from or reduction in customs du ty on any plant, machinery, equipment or motor 
vehicle imported for use in the small business; and (h) a reduction of property tax of up to 75% 
pursuant to the Property Tax Act, 2006, in respect of any land and building used in the operation 
of the approved small business.  
3.97.  To benefit from these incentives, the business must show that it has met at least five of the 
following criteria: (a) it has produced a strategic plan or business plan and financial projections for 
the next 24 months; (b) it has adopted industry standards and compliance methods relevant to that industry; (c) it has shown equity capital improvements; (d) it has in the immediate preceding year made serious efforts to become more efficient, as measured by financial ratio indicators; 
(e) it has achieved significant growth in the last two years of its operation measured by production 
levels, revenue performance, increase in market  share and other growth performance indicators; 
(f) it has combined or intends to combine with an other small business to share relevant services or 
with respect to the bulk importation of raw materials or other goods; (g) it has created additional 
employment within the small business; (h) it has utilized or intends to utilize new skills and technologies; and (i) it has demonstrated a strong likelihood to generate new investment, 
products, processes, employment or production capacity. 
3.98.  The priority sectors for the establishmen t of small businesses are specified in the First 
Schedule of the Act and include: (a) tourism related services (excluding hotels and restaurants); (b) transport and storage; (c) information, communication, and technology activities; 
(d) agriculture, forestry and related service activities; (e) arts and cultural activities; 
(f) construction services; (g) entertainment services; (h) fishing and mariculture; (i) manufacturing; (j) personal care services; (k) repair of personal and household goods and 
vehicles; (l) sanitation, sewage and refuse disposal services; (m) sporting and recreational 
services; and (n) financial services (excluding qualified entities providing services to non-residents only). 
3.99.  Beneficiaries are also entitled to receive government technical assistance in the areas of 
management, accounting, and production techniques; the development of product package and label design; the development and maintenance of quality control; the provision of marketing and storage assistance for the local and export market; the provision of assistance to businesses 
seeking to participate in overseas trade shows; th e preparation of business plans to facilitate the 
                                               
39 Under the Act, "locally owned" company means (a) a company that is not under foreign control within 
the meaning of the Aliens Landholding Regulation Act, Chapter 102; or (b) a business of which not more than 
one third of the assets are under the control of a pers on who is not a national or who is not licensed to 
undertake business under the Licenses on  Businesses and Occupations Act, 1972. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 262 - 
 
 initial financing and management of the business; and any other activity necessary to start, 
continue or expand specified operations in the approved small business. 
3.100.  Approved small businesses must submit annual audited statements of accounts in 
accordance with generally accepted internationa l auditing standards. A Small Business Advisory 
Committee was created to advise the Minister of Trade, Industry, Commerce and Consumer Affairs 
on matters relating to the small business sector. 
3.101.  The Development Bank of St. Kitts and Ne vis (DBSKN) provides credit for agriculture, 
tourism, agri-industry, manufacturing, and mortgage financing. The DBSKN was established by 
Act No. 1 of 1981, amended in 1983 and is whol ly owned by the Government, but with full 
operational autonomy under the direct responsibilit y of the Minister of Finance. In 2007-13, the 
bank approved 1,000 loans amounting to EC$41 million. 
3.102.  Assistance to the different sectors of the economy is provided through the Sugar Industry 
Diversification Foundation (SIDF). The SIDF was fo unded in September 2006 by the National Bank 
Trust Company; it is one of three approved options for obtaining citizenship, along with real estate 
and investments. 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 industri es. The SIDF has been designated a specially 
approved project for the purpose of Citizenship-by-Investment. 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 undertake the development of new and existing industries, projects or enterprises. The Foundation may also 
provide 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. Up to mid 2013, the SIDF had invested over US$60.3 million by way of grants, loans, and share 
holdings: 20.2% were channelled to the Government, 16.1% to resort development, 13.7% to 
tourism, 13.2% to electricity, 9.4% to agriculture, 6.7% for construction, 6.7% for financial investments, 6.2% for training, 3% for entrepreneurship, and the rests for art, culture, education, 
and sports projects. In total, 24 projects have been financed.
40 
3.103.  SIDF funds have been destined to the Government for budgetary purposes; allocations 
have also been made to the Development Bank of  St. Kitts and Nevis to establish several funds 
including the Agricultural Fund, the Small Hotel and Restaurant Modernization Fund (SHARM), and 
the recently introduced 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 St. Kitts Tourism Authority has received financing for the airlift support 
programme. A number of agricultural projects ha ve been financed with SIDF resources (see 
section 4.1). 
3.104.  Enterprises from St. Kitts and Nevis (and other CARICOM countries) may receive 
concessionary credits funded or guaranteed by the Caribbean Development Bank (CDB) for 
projects of between US$750,000 and US$5 million. Loans from ordinary capital resources (OCR) 
are at an annual rate of 6.03% (public sector) or 8.03% (private sector), with a repayment period 
of up to 22 years. Loans from special fund resources are granted to St. Kitts and Nevis (a Group 
3 country) at an annual interest rate of 2.5%, wi th a repayment period of 30 years, including a 
grace period of 10 years.
41 On loans made from OCR, the CDB also levies a commitment fee of 1% 
per annum on the amount undisbursed, and a 1% front-end fee on loans directly to the private 
sector.42 
3.105.  During the period under review, the authorities established the St. Kitts Investment 
Promotion Agency (SKIPA), which promotes investment in St. Kitts at international, regional, and 
local levels. SKIPA focuses on attracting potential long-term investors as well as investments that 
will diversify the economic base of St. Kitts, in line with its strategic objectives outlined in the National Adaptation Strategy 2006-13. SKIPA al so undertakes investment facilitation, which 
include providing information, assistance in finding business opportunities, and acting as the point 
                                               
40SIDF online information. Consul ted at: http://www.sknsid f.org/projects/project s_details.cfm?prz=6&p 
=19. 
41 Caribbean Development Bank (2008). 
42 Caribbean Development Bank (2008). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 263 - 
 
 of contact for procedures to be taken to establish a business, for local and foreign investors. SKIPA 
facilitates investments in all economic activities, but concentrates its marketing efforts in activities finding defined as priority sectors (agriculture, tourism, financial services, and information technology). 
3.106.  SKIPA also provides support for business expansion and lobbies the Government to 
implement policy changes to improve the investme nt environment. SKIPA has been focusing on 
documenting, standardizing and streamlining pr ocedures, reforming the investment incentives 
regime, and providing for a transparent and level playing field for all investors regardless of origin, 
project size or years in operation.
43 SKIPA does not provide financing for investments and does not 
charge any fees for its services.  
3.107.  A similar agency operates in Nevis: the Nevis Investment Promotion Agency (NIPA) 
provides pre-investment and after-care guidance to investors pursuing investment opportunities 
on the island. NIPA's mandate is to: promote key sectors for investments; 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.
44 
Like SKIPA, NIPA does not provide financial support. 
3.108.  During the period under review, the construction sector benefited from a Building Materials 
Incentives programme consisting in exemptions of customs duties and the customs service charge 
on building materials. The scheme was introduced in 2011 and scheduled to expire in December 2012 but was extended to end 2013. 
3.3.2  Competition policy and regulatory issues 
3.3.2.1  Competition policy 
3.109.  St. Kitts and Nevis does not have a competition law, only 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. The provisions  of the Consumer Protection Act of 2003 protect 
consumers from misleading and deceptive practice s in promotion, supply and sale of goods and 
services. The Act also addresses fair contract terms individually negotiated between suppliers and 
consumers. 
3.110.  Chapter VIII of the revise d CARICOM Treaty deals with 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 enfo rcement in the CSME (see Common Report). Under 
engagements in the EPA, there are provisions with respect to competition policy (see Common Report). The authorities indicated that a regional competition policy will be implemented, but no 
specific date has been set for this. Draft mode l legislation is being prepared by the CARICOM 
Secretariat. 
3.111.  The Department of Consumer Affairs of the Ministry of International Trade, Industry, 
Commerce and Consumer Affairs is responsible for the enforcement of the Consumer Protection 
Act and promoting fair, consumer-friendly business practices that encourage and educate businesses to comply with the Act. The Department is also in charge of liaising with the CARICOM Secretariat in providing current, harmonized consumer-protection legislation. 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). To this end, the Department receives input from the Ministries of Agriculture and Health, and of financial 
institutions. 
3.3.2.2  Price controls 3.112.  Price controls on basic consumer items have been in place for over 45 years. The legal 
foundation for the controls is the Distribution of  Goods and Price Control Act No. 7 of 1968, now 
                                               
43SKIPA online information. Consulted at: http://www.stkittsipa.org/about_SKIPA_what_we_do.asp. 
44NIPA online information. Consulted at: http://www.nevisi pa.org/about.php. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 264 - 
 
 Cap. 18.09 of the laws of St. Kitts and Nevis. 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 income families. The Act identifies special districts, which encompass the island of Nevis, and areas of St. 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.
45 
3.113.  During the period under review, modifications were introduced to the scope and manner of 
applying price controls, to depend less on rigidly fixed prices, and more on market conditions. In 
the 2007 Budget Address, the Government stated the need to monitor consumer prices and that Government would tighten up the price-control regime. This led to the passing of SRO No. 41 of 2007 (see below).  
3.114.  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. Although prices for these goods were periodically updated, they did not always follow market movements. 
Prices were fixed at the wholesale and retail levels. Maximum wholesale prices were the same 
throughout the Federation, but maximum retail prices were fixed for Basseterre, the capital, and for Special Districts, which encompass the island of Nevis, and areas of St. Kitts outside the 
boundaries of the town of Basseterre. 
3.115.  A new system was put in place through the Price Control Order of 2007, SRO No. 41 
of 2007. The new Order does not fix maximum wholesale or retail prices, but allows the wholesaler to make a 20% mark-up on the landed cost of goods, while the retailer is allowed to make an 
additional 20% mark-up on the wholesale price of goods. 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 the S.R.O., the prices are monitored for: chicken wings, leg quarters, drumsticks, backs, 
thighs, and neck; 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; rice; deterg ent; 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 sp ecial districts under the Distribution of Goods and 
Price Control Act may apply the maximum price system set out for special districts in SRO No. 60 of 2011. 
3.116.  The Government has provided subsidies for cement, milk, LPG, and cooking gas and 
electricity under provisions of the Distribution of Goods and Price Control Act. Currently, subsidies apply only to LPG, cooking gas and electricity. The price of fuels is subject to maximum profit 
margins for dealers and retailers. 
3.117.  The importation, distribution, and pricing of LPG and cooking gas in St. Kitts and Nevis is 
governed by the Distribution of Goods and Pric e Control Act, Cap. 18.09 of the laws of the 
Federation. The Act gives the Government 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 Price of Goods Act, fixed at EC$30 for a 20 lb tank and at EC$140 for a 100 lb tank. The 
difference is subsidized by the Government.
46 
3.118.  St. Kitts abolished its Supply Office in January 2013. This office applied price controls and 
was governed by the provisions of the Price Co ntrol Order of 2007, except for cement, milk, LPG 
and cooking gas and electricity which were governed by different regulations. Nevis continues to 
operate its own independent Supply Office. Through the new Supply Office, prices are controlled under the Distribution and Price of Goods Act, where Nevis is distinguished as a special district, 
and as such, uses the maximum price system for special districts contained in SRO No. 60 of 2011. 
                                               
45 Government of St. Kitts (2006). 
46 The subsidy for 2011 has been calculated to be as  much as EC$33.58 on each 20 lb tank of gas and 
EC$136.00 on each 100 lb tank of gas, sold to consumers,  totalling around EC$5 million for the year (Office of 
the Prime Minister, St. Kitts and Nevis, "Post-Cabine t Briefing", 28 March 2012. Consulted at: http://www. 
cuopm.com/pcbtext. asp?PCB_ID=60). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 265 - 
 
 3.3.3  State-owned enterp rises and privatization 
3.119.  St. Kitts and Nevis has not notified any state-trading enterprises to the WTO. 3.120.  Until January 2013, the Supply Office had an import monopoly on wheat flour in bulk 
(packages bigger than 5 lb), rice in bulk (packa ges bigger than 10 lb), and evaporated milk. The 
monopoly did not extend to imports in retail-size packages. 
3.121.  The Central Marketing Corporation (CEMACO) acted as a marketing agent for non-sugar 
agricultural produce, competing with private retailers until its demise in 2009.  
3.122.  There are three other major public enterprises, the Air and Seaport Authority, the 
Development Bank of St. Kitts and Nevis, and th e Frigate Bay Development Corporation, but they 
do not engage in trading activities. 
3.3.4  Government procurement 
3.123.  There are no official statistics regarding the value of government procurement in St. Kitts 
and Nevis. IMF public finance figures indicate that  public sector current expenditure on goods and 
services represented some 5.4% of GDP, while capital expenditure accounted for some 2.7% of 
GDP in 2012.
47 These levels are considerably lower than in the previous year, due to the 
corporatization of the Electricity Department in 2011. 
3.124.  St. Kitts and Nevis is not a party to the WTO Plurilateral Agreement on Government 
Procurement. There are no expressed indications towards St. Kitts and Nevis joining the GPA. The 
CARIFORUM-EU EPA, signed in October 2008, contains public procurement conditions that require transparency in all government procurement ab ove a threshold of approximately €164,000 (see 
Common Report). The FRIP (Framework Regional Integration Policy on Public Procurement) 
contains elements of procurement legislation at  a CARICOM basis. It contains transparency 
thresholds and procurement thresholds. The FTA that CARICOM is currently negotiating with Canada contains provisions on government procurement. 
3.125.  Under the Finance Administration Act of 1990, Cap. 20.13, the Ministry of Finance is 
responsible for government procurement. During  the period under review, St. Kitts and Nevis 
introduced specific legislation on government procurement. This is a very important step, since in 
the past the Ministry regulated procurement by issuing Financial Regulations (FR) and Financial 
(Stores) Regulations in accordance with The Financial Rules, 1998 (First Schedule) and The Stores Rules 1998 (Second Schedule) of the Finance and Audit Amendment Act 1998 (Act No. 25 of 1998). However, these were executive acts and did not contain permanent prescriptions. 
Observers had indicated that these rules could be easily changed by the Minister of Finance and 
did not reflect established government procurement principles and practices.
48 The new Law aims 
at closing this gap and introduces legislation that is permanent and in accordance with 
international practice. 
3.126.  As a measure to enhance transparency and further the centralization of the procurement 
process, a Central Purchasing Unit (CPU), created under the Ministry of Finance in 2000, procures 
stationary, furniture, and equipment for all sectors of government. All other supplies are procured 
at ministry or public agency/enterprise level. In the procurement of supplies, local purchase orders 
are used in many cases and procurement is at ministry level; quotations from three local suppliers are obtained, and the supplier is chosen on the basis of lowest price. Tendering for small local 
public works projects 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 . 
3.127.  In the quest to further improved transp arency and to fulfil its engagement under the 
Stand-By Arrangement with the IMF, draft legisl ation with respect to Government Procurement 
was sent to Parliament in June 2012. The Procurement and Contract Administration Act 2012 was 
                                               
47 IMF (2013). 
48Third Caribbean Procurement Conference (CPPC) onli ne information. Consul ted at: http://www.cppc 
2012.org/home/islands.html. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 266 - 
 
 enacted on 14 September 2012. The Act mandates public competition by companies bidding for 
government contracts and contains conditions for the use of the various procurement methods. The Act also contains information on principles guiding the selection among bids, typical periods involved in the procurement process, publication and other transparency requirements, appeal and 
review procedures, and sanctions. The entry into force of the FRIP may require adjustments to the 
Act. No regulations have been issued for the implementation of the FRIP, but the authorities noted that CARICOM has launched needs-assessment consultations to see where member states are in 
their implementation efforts. 
3.128.  The Procurement and Contract (Administration) Act, 2012 appoints procurement officers: 
the director of Public Works will be the procurem ent officer for works; the Manager of Procurement 
in the Ministry of Finance, will be procurement o fficer for most goods, but the accounting officer for 
the Ministry, department or entity requiring the procurement will be the procurement officer for 
food, pharmaceuticals, vehicles, explosives, firearms, petroleum products, water equipment, and restricted goods under the Customs Act. The Act establishes 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. 
3.129.  Procurement must be made using one of the following methods: (a) competitive tender, 
under either sealed bids or sealed proposals; (b) sole source procurement; (c) emergency procurement; and (d) 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 Procur ement Board. The thresholds have not yet been 
defined. In February 2014, the authorities stat ed that regulations and thresholds were being 
developed and finalized by the line ministry responsible. 
3.130.  A contract for procurement by tender procedures must be awarded to the qualified bidder 
who submits the best responsive evaluated tender wi th respect to quality, availability, capability, 
and price. 
3.131.  Imports for government consumption are not subject to customs duties or consumption 
tax, but they are subject to the customs service charge.  
3.3.5  Intellectual property rights 
3.3.5.1  Overview 3.132.  The administration of intellectual property la ws is under the responsibility of the Minister of 
Justice and Legal Affairs, in particular, the Intellectual Property Office, created by virtue of 
section 3 of the the Patents Act Cap. 18:25. The re gistration of patents, trade marks, and service 
marks is done in the Intellectual Property Registry in the Intellectual Property Office.  
3.133.  Legislation on trade marks, patents, and copyright was updated in 2000 to make it more 
compatible with the TRIPS Agreement. Three laws dealing with intellectual property protection issues were passed by Parliament in that year and entered into force in 2002. However, the authorities have noted that enabling regulations are either in draft form (trade marks) or do not 
exist (copyright, patents). In March 2007, Parliame nt approved the Geographical Indications Act 
No. 6 of 2007 (Cap. 18:39), and passed the Protecti on of Layout Designs Act but these are not yet 
in effect. A Protection on New Plant Va riety Act is currently in draft form. 
3.134.  As at July 2013, St. Kitts and Nevis had not notified its IPR legislation to the TRIPS 
Council
49, or its IPR contact point. St. Kitts and Nevis is a member of the World Intellectual 
Property Organization (WIPO) and a signatory to various WIPO-administered treaties (Table 3.5). 
In the context of the present Review, the authorit ies noted that St. Kitts and Nevis is undertaking 
a comprehensive review of all its intellectual property legislation to ensure compliance with all its obligations under various treaties, conventions, and agreements. This is being done with the 
                                               
49 WTO document IP/C/M/53, 22 March 2007. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 267 - 
 
 assistance of WIPO. They stated that the current laws had not been notified to the TRIPS Council 
because they require amendments to become TRIPS compliant, and that the necessary enabling regulations need to be drafted and passed by Parlia ment to give effect to some of the provisions 
therein. 
Table 3.5 Membership in WIPO-administe red intellectual property treaties, 2013
 
Convention/Agreement Accession 
The Convention Establishing the World Intellectual Property Organization (1970) 9 April 1995 
The Paris Convention for the Pr otection of Industrial Property, Stockholm Text (1883) 9 April 1995  
The 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 Cl assification of Goods and Services for the 
Purposes of the Registration of Marks (1957) 27 October 2005 
 
Source: World Intellectual Property Organization  online information. Viewed at: www.wipo.int. 
3.135.  St. Kitts and Nevis is a member of various other IP-related treaties, such as the 
International Plant Protection Convention (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). 
3.3.5.2  Trade marks 
3.136.  Trade marks are regulated by 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 Act extends protection to all visible signs capable of distinguishing goods (trade marks) or 
services (service marks), as well as collective marks and trade names. In accordance with the Act, 
the exclusive right to a trade mark is acquired th rough registration in the Register of Marks. The 
term of protection is the standard ten years, renewable for consecutive periods of ten 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 licences. 
3.137.  As at February 2014, the Trademark Act and Draft Regulations were being reviewed before 
passage by Parliament. The revision of the Act and the Draft Regulations includes: customs/border protection measures in accordance with the TRIPS Agreement and the EPA; other enforcement 
measures; and issues related to the implementation  of the Internet Treaty, the Madrid Protocol, 
and the WIPO Trademark Treaty. 
3.138.  According to Intellectual Property Office data, there were 1,807 trade mark applications 
over the 2007-13 period. According to WIPO data, 524 trade marks were registered during 
2007-11 period. 
3.3.5.3  Patents 3.139.  The Patents Act No. 9 of 2000 entered into force in 2002. Patent protection is for 20 years. 
Patentability is granted to new inventions involving an inventive step and capable of industrial 
application. 
3.140.  The Act contains provisions to grant 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. 
3.141.  According to WIPO statistics, there were 32 patent applications over 2007-11; 8 were for 
industrial designs (none for utility models). All applications were made abroad. Of the total of patent and industrial design applications, nine  were international application made under the 
Patent Cooperation Treaty (PCT) and the rest were national or regional applications. Over the 
same period, 19 patents and 1 industrial design re gistration were granted. Patent applications WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 268 - 
 
 over 1997-2011, by field of technology, were as follows: computer technology (22.19%); audio-
visual technology (10.94%); medical technology (8.51%); civil engineering (7.60%); mechanical elements (5.17%); digital communication (4.86%); basic communication processes (3.95%); IT methods for management (3.65%); pharmace uticals (3.65%); handling (3.65%); others 
(25.83%).
50 
3.3.5.4  Copyright 3.142.  Copyright legislation is contained in the Copyright Act Cap. 25:08 (Act No. 8 of 2000), 
which entered into force in 2002. 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 ca lendar year in which the edition was first 
published for typographical arrangements of pu blished editions. The meaning of literary works 
encompasses computer programs and tables and compilations. The Copyright Act also extends 
protection of moral rights to producers of ph onograms and to performers. Copyright owned by 
international organizations is protected for 50 years from the date of creation of the work. 
3.143.  The Copyright Act provides for copyright pr otection in audio-visual production made by 
foreign performers and foreign producers, as well as neighbouring rights in a broadcast made by a foreign broadcasting organization. The Act contains provisions with respect to copyright licensing. 
3.3.5.5  Enforcement of intellectual property rights 
3.144.  St. Kitts and Nevis has not submitted to the WTO the Checklist of Issues on Enforcement 
of intellectual property rights. 
3.145.  The different IP laws contain dispositions with respect to enforcement. The Patents Act sets 
out various enforcement mechanisms, including: 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 dama ges; a payment on account of the profits derived 
from the infringement by the defendant; or any other relief mandated by the Court.  
3.146.  Under the Trademarks Act, infringement of the right to a mark may lead to: a High Court 
injunction; an award of damages; an order to seiz e, forfeit or destroy any infringing product or 
article; or to other remedies as decided by the Hi gh 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 EC$15,000 but not more than EC$40,000, or to imprisonment of 5 to 12 years. 
3.147.  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 EC$250,000, up to five-years imprisonment, or both. Remedies for 
infringement of economic rights include seizure of  infringing copies and adjudication of damages. 
3.148.  No information was available to th e Secretariat on enforcement activities. 
 
                                               
50WIPO online information. Consul ted at: http://www.wipo .int/ipstats/en/ statistics/co untry_profile/ 
countries/kn.html. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 269 - 
 
 4  TRADE POLICIES BY SECTOR 
4.1  Agriculture 4.1.  St. Kitts and Nevis has a small agriculture sector. Since the closure of the sugar industry, 
agriculture has lost considerable share of GDP, as sugar was by far the main crop. The contribution 
of agriculture, livestock and forestry to GDP in cu rrent prices declined to just 1.03% in 2012, of 
which the contribution of farming was 0.67%, lives tock 0.33%, and forestry 0.03% of GDP; fishing 
contributes some 0.56%. Fish landings declined by 3% to 692,780 lb down 3% from 2011, with a 
total value of EC$6.8 million. 
4.2.  After the closure of the St. Kitts Sugar Manufacturing Corporation (SSMC), the sole producer 
and exporter of sugar in July 2005, some 12% of  the labour force was left unemployed. These 
workers were given EC$44 million in July 2005 in severance payments, and a Sugar Industry 
Diversification Foundation (SIDF) was established to facilitate their insertion in other parts of the 
economy. With time, the SIDF has become an important investor in the economy (see sections 2 and 3), including in the agriculture sector, which has received some 9% of its total funds.  
4.3.  The main crops are now fruits such as pineapple, papaya, and watermelon, as well as 
tomatoes, together with potatoes, sweet potatoes, onions, sweet peppers, and peanuts. Agri-processing activities revolve around the produc tion of beer and dehydrated fruit products as 
well as juices. These activities have been developing particularly since the demise of the sugar 
industry.
51 There are currently some 35 agri-processors in operation. There was a substantial 
decrease in livestock production during 2012, affe cted by diseases and the high cost of animal 
feed.52 
4.4.  The Ministry of Agriculture and Marine Resour ces is responsible for agricultural, livestock, and 
marine resources policy formulation and management. The Ministry of Sustainable Development is responsible for forestry. The Department of Agriculture in the Ministry is responsible for the 
development of non-sugar agriculture in St. Kitts, an d provides a wide range of services as well as 
technical support. The Department's stated mission is "to be a high quality provider of leadership and support in non-sugar agriculture; to secure food self–sufficiency and satisfy export markets 
towards sustainable development in St. Kitts and Nevis".
53 The Department promotes production 
diversification, economic linkages with other se ctors, and conservation of the eco-system. It 
operates with specific programmes for crop and livestock development; the programmes are 
guided by a Strategic Plan and implemented through the Annual Work Programme, which reflects a 
broader Agricultural Development Strategy. The Annual Work Programme is implemented in 
collaboration with the institutions including CARDI, FAO, and IICA. The Department of Marine Resources is responsible for fisheries policies. 
4.5.  The Ministry of Agriculture provides some support services to farmers, such as a 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 vehicl es, farm equipment, and farm inputs. 
4.6.  The Government's strategy for the developm ent of agriculture continues to focus on seeking 
an increase in non-sugar agricultural production in a sustainable manner to satisfy local demand and to supply selected export markets. The Government is attempting to foster competitiveness in 
the sector, by promoting larger farms and cooperativ es of production; to this end, the Government 
has facilitated the establishment of a new agri-processors group, the St. Kitts Agro Processor Cooperative. 
4.7.  Food security remains a policy priority. To this end, work intensified at the Capisterre Farm 
in 2012 in an attempt to increase production of fresh vegetables. The objective is to increase the supply of selective crops to a point where consumers can benefit from lower local prices of 
                                               
51 Among the products identified for development ar e: 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. 
52 Government of St. Kitts and Nevis (2012). 
53Ministry of Agriculture and Marine Resources onli ne information. Consulted at: http://agriculture. 
gov.kn/?q=node/28. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 270 - 
 
 vegetables on the local market. Farm development also contributes to another of the goals of 
agricultural policy, to create employment. The Department of Agriculture provides technical support to farmers to protect crops from severe weather and pests through projects such as the Agriculture Resource Management Project. 
4.8.  To meet the goal of diversifying food  production, and promoting the development of 
agri-industry the Ministry of Agriculture has take n control over an agri processing facility and a 
demonstration farm in need. The Ministry, with resources from the Basic Needs Trust Fund (BNTF), 
has also been assisting 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, which suffered from a major contraction (26%) in 2012, has been mainly through the provision of medicaments to combat animal diseases at a subsidized price and 
assistance to foster artificial insemination.  
4.9.  Assistance for fisheries focuses on expa nding the use of fishing aggregate devices (FADs)
54 
and on providing training to fishermen. The authorities are concerned about potential changes in 
the distribution and structure of species, thei r habitats and the impact of extreme weather 
associated with abnormally high sea surface temperatures. They have deemed it necessary to explore adaptive measures to build resilience within the subsector, and protect the marine species 
in the surrounding waters from over-fishing. The Department of Marine Resources has taken steps 
to explore the viability of aquaculture on a wider scale following the success of the St. Kitts and Nevis Aquaculture Pilot Project (SNAPPER). Assistan ce has been received through the ACP FISH II 
Project, financed by the European Union to fo rmulate an Aquaculture Development Strategy. St. 
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 marine life.
55 
4.10.  Under the Agricultural Produce and Livestock (Registration of Vendors) Act, 2012 (Act No. 8 
of 2012) registration in the Register of Vendors of  Agricultural Produce and Livestock is mandatory 
for persons who sell, trade in, deal in, supply or dispose of agricultural produce or livestock 
exceeding EC$100 in value or 10 kg in weight. A certificate of registration is valid for five years from the date of issue, upon payment of the prescribed fee, and is renewable. 
4.11.  Until its closure in 2009, the Central Marketing Corporation CEMACO was a marketing agent 
for non-sugar agricultural produce. CEMACO acted as an outlet for farmers to dispose of excess 
supply of a product, and functioned as a price stabilizer, absorbing excess supply and preventing prices from falling.  
4.12.  Reflecting CARICO M's tariff schedule features, tariff protection in St. Kitts and Nevis is 
higher for agricultural products than for non-agricultural goods. In 2013, the applied MFN tariff on imports of agricultural products (WTO defini tion) averaged 15% or 16.1% including AVEs. 
Considering the sectoral approach defined by th e ISIC classification, the average tariff on 
agriculture and fisheries was 14.1 excluding AVEs in the same year, compared to an average tariff 
of 10.1%. Fruit and vegetables, animals and products thereof, beverages and spirits, coffee and tobacco are subject to higher tariff rates than th e average for agriculture (Table 3.3). Specific 
import duties are applied on some agricultural and agri-industrial goods, included in 19 tariff HS 
headings (section 3.1.4). The supply of agricultural products grown in St. Kitts and Nevis is 
                                               
54 FADs are man-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. 
55 The Caribbean Regional Fisheries Mechanism (CRF M) is an inter-governmental organization to 
promote and facilitate the responsible utilization of th e region's fisheries and other aquatic resources for the 
economic and social benefits of the current and future population of th e region. The Agreement Establishing 
the CRFM was signed by Anguilla, Antigua and Barbuda,  the Bahamas, Barbados, Belize, Dominica, Grenada, 
Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago, and the Turks and Caicos Isla nds in February 2002 and officially inaugurated in 
March 2003. The CRFM consist of three bodies: the Ministerial Council, responsible for policy formulation, comprises the Ministers responsible for Fisheries in each  member state; the Caribbean Fisheries Forum, made 
up of one representative from each Member; and the Secr etariat provides technical, consultative, and advisory 
services to Member States. CRFM online in formation. Consulted at: http:// www.caricom-
fisheries.com/WhatisCRFM/About CRFM/tabid/56/Default.aspx. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 271 - 
 
 exempt from VAT.56 Tariff quotas are not used. Import licences are required for vegetables, eggs, 
and meat from non-CARICOM countries. Import restrictions in the form of quantitative limits are applied to some agricultural products from non-CARICOM countries, such as eggs, which may be imported only by domestic egg producers when domestic production is insufficient. Also, imports of 
some vegetables (cabbages, carrots, onions, sweet peppers, tomatoes, and white potatoes) are 
subject to seasonal import restrictions. Import permits are required before introducing into St. Kitts and Nevis any live animals, poultry or birds or carcasses and parts thereof, plants, and 
planting materials, and pesticides. St. Kitts and Nevis has not notified any SPS measures to the 
WTO. 
4.13.  The agriculture sector has been benefiting since 2005 from SIDF financing. Assistance has 
concentrated on six projects: (a) the Capisterre Farm Project, which is a 113 acre Farm funded by 
the Foundation through a total investment of EC$7 million over five years; (b) the Hydroponics 
Community Farms project, focused on training to help grow crops vertically in stacked pots of coconut; (c) the Agricultural Resource Management 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; (d) the Agricultural Subsidized Loans Programme established 
in 2008, to encourage entrepreneurship and foster growth through access to credit at contained 
cost, and which had benefited 84 farmers up to late  2012; (e) a Floricultural Project at La Valley, 
St. Pauls; (f) and an Agricultural Training Empl oyment Project (ATEP), established in October 2007 
to enhance the personal development of unemployed former sugar-industry workers.  
4.2  Manufacturing 
4.14.  Manufacturing, including food processing, accounted for 10.6% of current GDP in 2012. The 
sector regained some GDP share during the review period since the ending of refined-sugar 
productions was mitigated by the expansion of light  manufacturing and, in particular electronic 
components. St. Kitts and Nevis is the largest OECS exporter of goods, especially manufactures, to 
the United States; and it is seeking extended access to the Brazilian market. However, the sector 
remains concentrated mainly in light manufactures such as alcoholic and non-alcoholic beverages 
(beer, malt, rum, bottled water, and soft drinks), pasta for the domestic market; and products from enclave industries that assemble electrical or electronic components, and traps for the cable industry, for the external market, particularly the United States.  
4.15.  The 2012 average MFN tariff on imports of industrial products (ISIC-3 definition) was 10%, 
with a peak of 70% (for arms and ammunition); the average MFN tariff for non-agricultural products (WTO definition), was 9.2%. The highest average tariffs are applied on beverages and 
tobacco, clothing and apparel articles, footwear, fats and oil and prepared food. The manufacturing 
industry benefits from the incentives granted under the Fiscal Incentives Act. This includes tax relief from corporate tax and customs duties to approved enterprises for up to 15 years 
(section 3.3.2). 
4.16.  During the review period, production of el ectronic components, bottled water, and concrete, 
continued to increase. In general terms, the enclave sector was resilient to the effects of slow growth in the major economies. Exports of electr onic components to the United States continued 
to increase, reaching EC$108.2 million in 2012, up from EC$91.7 million in 2011 and two major 
manufacturers in the sector expanded their capacity to meet the increasing demand.
57 The 
Government's strategy is to focus on high quality products, trying to keep reasonable prices. In 
this respect, the authorities have shown concern about the high cost of energy, which they deem 
has a profound impact on the capacity of the manufacturing sector to operate efficiently and expand its operations. To deal with this issue, the Ministry of International Trade, Industry, 
Commerce and Consumer Affairs and the St. Kitts Investment Promotion Agency (SKIPA), with the 
assistance of the Caribbean Development Fund (CDF ), have undertaken an initiative to conduct a 
comprehensive energy audit of the sector under  the Manufacturers Competitiveness for Energy 
Efficiency (MACEE) Project. The project is expect ed to help identify areas for improving energy 
                                               
56 In accordance with the VAT Act of 2010, this includes: cover plants, trees, vines, and their produce; 
flowers, fruits, and vegetables; locally raised poultry; fi sh; pigs, goats, cows, or ot her animals and their related 
products, whether supplied live or not. 
57 Government of St. Kitts and Nevis (2012). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 272 - 
 
 efficiency, for example by reducing leakages and waste, promoting energy conservation, and 
developing renewable and energy efficient technologies.  
4.17.  The authorities are also trying to encourage the expansion of manufacturing production by 
diversifying markets. In May 2012, the Government completed negotiations to join the Brazil-
Guyana Partial Scope Agreement (PSA) consider ing Brazil a promising market for exporting 
manufactures. The Government has also established a special EPA Unit to assess the challenges to the ability of manufacturers to benefit fully from the EPA, and guide them on using the provisions 
of the agreement to maximize their benefits. The Unit is also conducting studies for the 
establishment of a microfinance facility for small businesses. 
4.3  Services 4.3.1  Main features 
4.18.  Services activities are, by far, the largest contributors to GDP and employment in St. Kitts 
and Nevis. Services account for about 75% of GDP and their economic importance has been growing, particularly since the demise of the sugar industry. 
4.19.  St. 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, however, sector-specific reservations are maintained in most subsectors in 
which commitments were made. In tourism, a mark et access commitment, without restrictions, is 
granted for hotels in excess of 50 rooms, but no t for smaller ones. For the presence of natural 
persons mode, market access and national treatment are generally unbound or subject to 
limitations. 
4.20.  St. Kitts and Nevis made horizontal commitments for the movement of natural persons and 
commercial presence. The provision of services through commercial presence requires that foreign 
service providers incorporate or establish a business locally in accordance with the regulatory 
requirements of St. Kitts and Nevis. Foreign companies and individuals wishing to hold property in St. Kitts and Nevis must first obtain a licence in accordance with the Alien Landholding Act (see section 2). St. Kitts and Nevis reserved a number of small business service opportunities for 
nationals; however, a comprehensive listing has not been included. 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 St. Kitts and Nevis. St. Kitts and Nevis has not listed any Article II (MFN) 
exemptions. 
4.21.  The authorities consider that due to the incr easing reliance of the economy on services, it is 
necessary to develop a structured approach to exploring market opportunities. An institutional 
review and marketing plan was developed for professional services, through technical assistance 
from the Commonwealth Secretariat. The plan is  expected to identify options for enhancing 
competitiveness within the area of professional se rvices. This is considered by the authorities as 
critical to capitalize on the opportunities that can be derived through the CARIFORUM-EU EPA 
Agreement, the CSME and the CARICOM-Canada Trade and Development Agreement, presently 
being negotiated.
58 
4.3.2  Telecommunications 
4.22.  St. Kitts and Nevis' telecommunications sector is open to foreign investment. There are no 
limits on foreign ownership of telecom companies or citizenship requirements for directors. However, telecom licensees must be domestically registered and established as local companies. 
4.23.  St. Kitts and Nevis did not participate in the extended WTO negotiations on basic 
telecommunications services, but made commitments with respect to the provision of some 
                                               
58 Government of St. Kitts and Nevis (2012). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 273 - 
 
 value-added telecommunications services in its GATS Schedule. These commitments 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. 
4.24.  Telecommunications policy formulation is  the responsibility of the Ministry of 
Telecommunications. The National Telecommunica tions Regulatory Commission (St. 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 (see Common Report).  
4.25.  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 St. Kitts and Nevis in collaboration with ECTEL, to ensure fair 
competitive practices by telecommunications providers and to promote and maintain high quality services at competitive prices for consumers. The NTRC is charged with advising the Minister of 
Telecommunications on the formulation of national policy on telecommunications matters and 
ensuring compliance with the Government's international obligations on telecommunications. The NTRC is also responsible for the technical regulation of the sector and for setting technical 
standards and ensuring their compatibility with international standards. It also regulates and 
manages the use of the radio frequency spectrum  in conjunction with ECTEL, including the 
assignment and registration of radio frequency to be  used by all stations operating in St. Kitts and 
Nevis or on any ship, aircraft or vessel registered in St. Kitts and Nevis. The Telecommunications 
Act grants the NTRC the power to regulate telecommunications services prices and to receive and 
review applications for licences and advise the Minister accordingly. It also has the power to review proposed interconnection agreements, investigate and resolve any disputes relating to 
interconnections or sharing of infrastructure between telecommunications providers, monitor anti-
competitive practices in the telecommunications sector, and manage the universal service fund.
59 
4.26.  The main legislation ruling the sector is the Telecommunications Act No. 2 of 2000, as 
amended by Act No. 12 of 2000 and Act No. 11 of 2 011, which deregulated the sector and opened 
it to competition. There are also a number of regulations issued through Statutory Rules and Orders (SROs).
60 New regulations on interconnection were issued during the period under review 
(2008), setting out the rights and obligations of public network operators. 
4.27.  The Telecommunications Act, as amended, is similar to the telecom laws of the other OECS 
ECTEL-member states. The Act lists the criteria required for the granting of a licence; sets the universal service conditions that may be applied; and determines the procedures for concluding 
interconnection agreements. In the Second Schedule to the Telecommunications Act (as 
amended), the Minister responsible for telecommunications is empowered to attach terms and conditions to licences granted. These conditions have usually included universal service 
requirements, and, in one case, a licensee was required to establish a joint venture with a local 
company.  
4.28.  As at March 2012, 12 individual licences had been issued in St. Kitts and Nevis: 3 for fixed 
public services; 3 for public mobile services; 4 for Internet networks and services; and 2 for 
submarine cable operators (Cable and Wireless (L IME) and Southern Caribbean Fibre). In the 
fixed-line market, although three licences have been granted, there are only two providers, the 
incumbent, Cable and Wireless (LIME), and Caribbean Cable Communications. The mobile market 
was, in practice, opened to competition in April 2005, when two additional licensees, DIGICEL and 
UTS-CariGlobe Mobile services started operations in addition to Cable and Wireless (LIME). Currently, these are the three suppliers of th e service. The number of post-paid mobile 
                                               
59 NTRC online informat ion. Consulted at: http://ntrc.kn/?page_id=10. 
60 The main regulations are: SRO No. 44 of 2008 (Interconnection); SRO No. 31 of 2008 (wholesale); 
SRO No. 28 of 2008 (quality of service); SRO No. 29 of 2008 (numbering); SRO No. 30 of 2008 (exemption); SRO No. 04 of 2008 (Universal Service Fund Order); SRO No. 02 of 2008 (Universal Service Fund); SRO No. 13 of 2007 (fees); SRO No. 23 of 2006 (spectrum management); SRO No. 25 of 2006 (spectrum management); 
SRO No. 17 of 2004 (retail tariff); SRO No. 08 of 2002 (terminal equipment and public network); SRO No. 06 
of 2002 (confidentiality in networks and services); SRO No. 03 of 2002 (private network licensing); and SRO No. 02 of 2002 (licensing and authorization). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 274 - 
 
 subscriptions has been gaining share in recent years,  although it is still relatively small. According 
to ECTEL, 88% of mobile subscribers had pre-pa id mobile phones in March 2012, down from 90% 
reported in the previous Review. 
4.29.  Of the four companies licensed to provide internet networks and services, three are 
currently operational (Cable and Wireless (LIME), The Cable, and Caribbean Cable 
Communications). All providers offer high-speed internet access and, as in other OECS countries, there has been a marked shift from dial-up to hi gh-speed Internet access, as a result of rate 
reductions for broadband. 
4.30.  Telecommunication tariffs are determined with a dual system, depending on whether there 
is competition in the market segment. Licensees may set their own tariffs where there is effective market competition, as provided under the Telecommunications (Tariff) Regulations No. 17 
of 2004. Tariffs are regulated for telecommunicati ons services designated by the NTRC as a 
regulated service, generally when it deems that there is insufficient competition. In this case, the service provider must file their tariff proposal to the NTRC for approval. The tariffs for regulated 
services in St. Kitts and Nevis are determined in accordance with the price Cap. plan agreed 
between Cable and Wireless and the ECTEL member st ates. Mobile and landline calls are subject to 
a 5% tax. 
4.31.  Licences for public mobile telecommunica tions, for fixed public telecommunications, for 
public radio paging, and for internet service pr ovision are subject to an application fee of 
EC$1,000, an initial fee of EC$20, 000, and an annual fee of 3% of gross revenue. Licences for 
submarine cable landing are subject to an applicat ion fee of EC$1,000, an initial fee of EC$50,000, 
and an annual fee of EC$50,000.
61 
4.32.  According to information provided by ECTEL, the electronic communication sector's 
performance was affected in 2011-13 by the effect s of the global crisis. Revenue fell 5.2%, to 
EC$110 million in the April 2011-March 2013 period (ECTEL's reference period), direct employment 
remained flat, and overall the communications sector's contribution to gross value added (was 6.69% in 2013). However, there were positive developments in investment, which rose by 36% to 
EC$19 million at the end of March 2013 (Table 4.1).
62 The fall in sector revenue was a result of 
declines in the revenue generated by fixed voice, and mobile services, which declined by 8%, while revenue from fixed internet service increased 20 % and accounted for 17% of total sector revenue. 
Table 4.1 Telecommunications statistics, 2008-13
 
 2008 2009 2010 2011 2012 2013 
Provider revenues (EC$ million) 125 122 129 116 112 110 
Fixed-line penetration (%) 40 40 38 37 26 36 
Mobile penetration (%) 146 154 55 148 143 145 
Broadband internet penetration (%) 22 23 23 24 24 25 
Investment (EC$ million) 23 13 14 14 15 19 
Employment 178 180 171 176 175 149 
Local traffic from a fixed line (million minutes) 73 65 60 45 50 47 
Local traffic from a mobile phone (million 
minutes) 33 30 31 39 40 43 
International incoming traffic (fixed and 
mobile) (million minutes) 34 41 43 18 18 18 
International outgoing traffic (fixed and 
mobile) (million minutes) 21 26 33 34 39 23 
 
Note: Information is provided for year ending on 31 March. 
Source: Information provided by ECTEL. 
4.33.  St. Kitts and Nevis has the highest mobile service penetration in the ECTEL member states, 
but there has been a decline in mobile penetration in recent years. In March 2012, the mobile 
penetration rate was 145%, 10 percentage points lower than in 2010; the number of subscriptions totalled 77,000. It was estimated that 21% of mob ile subscriptions also included a mobile data 
                                               
61 More information on fees may be found at: http://ntrc.kn/?page_id=76. 
62 ECTEL (2014). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 275 - 
 
 package. Fixed-voice penetration reached 36% in March 2013, down 1 percentage point 
from 2011, while fixed broadband penetration was 25%. At the end of March 2013, there were more than 13,000 fixed broadband subscriptions.  
4.34.  At the end of March 2013, local call mi nutes originating from fixed networks reached 
47 million minutes (Table 4.1); fixed to fixed voice minutes accounted for 91% of local fixed 
traffic. The volume of outgoing international minutes from fixed lines accounted for 44% of international call traffic from St. Kitts and Nevis. For the period ended March 2013, more than 
43 million local call minutes originated from mobile networks on St. Kitts and Nevis; 14 million 
international minutes of international calls (42% of the total) originated in mobile phones. 
4.35.  The rates for fixed voice services are regulated under a price cap plan. The rate for fixed to 
fixed on-net voice service has remained unchanged at EC$0.07 per minute since 2008. In contrast, 
the fixed to mobile voice service fee has been falling, and was EC$0.40 per minute at the end 
of March 2013, down 26% from the previous year. This price reduction was in compliance with the terms of the new price cap plan, but prices ar e still high by international comparison.  
4.36.  The published rates for mobile services on St. Kitts and Nevis in March 2013 were: average 
on-net mobile rate, EC$0.58 per minute; average off-net mobile rate, EC$0.92 per minute; and mobile to fixed rates averaged EC$0.67 per minute. These rates remained unchanged in 2013. 
They are only slightly lower than those reported in the previous review and remain high by 
international standards. The monthly rate for basic fixed broadband service (2 Mbps download) remained at EC$99, also high by international standards. ECTEL has noted that this rate represented 4% of monthly GNI per capita, a percentage point below the ITU's 5% benchmark for 
fixed broadband affordability.
63 
4.37.  Subscriber TV is provided by two operators. The Cable, which offers service on St. Kitts; and 
Caribbean Cable Communications, which offers service on Nevis; their monthly rates for basic 
cable service offered by The Cable and Caribbe an Cable Communications were EC$37 and EC$50, 
respectively. 
4.38.  The telecommunications law states that the National Telecommunications Commission 
St. Kitts and Nevis will "plan, supervise, regu late and manage the use of the radio frequency 
spectrum in conjunction with ECTEL". The NTRC is responsible for issuing licences and frequency 
authorizations and for monitoring the use of radio frequencies.  
4.3.3  Financial services 
4.39.  Financial services are of considerable importance for St. Kitts and Nevis, accounting for 
some 12.4% of GDP in 2012. 
4.40.  St. Kitts and Nevis has limited GATS commitments in financial services and did not 
participate in the extended WTO negotiations on financial services. It made commitments only with 
respect to the "registration of offshore companies and trusts (not including insurance companies and banks) to do offshore business".
64 
4.41.  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 sector.65 This includes insurance companies (domestic and captive (offshore)); 
private pension plans; money services businesses; credit unions; the Development Bank of 
St. Kitts and Nevis; and trust and corporate servic e 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. It 
reviews the operations of all regulated entities, monitors financial services business carried on in 
or from within St. Kitts and Nevis and may take action against persons carrying on unauthorized businesses. The creation of the FSRC to replace the previous Financial Services Commission led to 
a reinforcement of regulatory powers and supervisio n, a step taken amidst the negative effects of 
the global financial crisis of 2008-09. 
                                               
63 ECTEL (2014). 
64 WTO document GATS/SC/119, 16 November 1995. 
65 Prior to 2009, the non-banking financial sector was regulated by the Financial Services Commission. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 276 - 
 
 4.42.  The St. Kitts and Nevis Financial Intelligence Unit (SKNFIU), in the Ministry of Finance, is 
responsible for combating money laundering and terrorist financing.66 The SKNFIU is the national 
centralized agency for the collection, receipt, and analysis of suspicious transaction reports (STRs), 
financial transactions/activities suspected of being related to money laundering and terrorist 
financing. If the analysis of an STR finds that there are reasonable grounds of a money laundering 
and/or terrorist financing offence, a report is submitted to the Commissioner of Police for action. The SKNFIU may liaise with foreign FIUs and enter into arrangements with them if deemed 
necessary to the fulfilment of the unit’s mandate.
67 It has the authority to freeze bank accounts for 
up to five days.68 
4.43.  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 (Amendment) 
(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 Financ ial 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 
Anti-Terrorism De-Listing Procedures Regulations 2011 (SRO No. 62 of 2011); the Anti-Terrorism 
(Prevention of Terrorist Financing) Regulations, 2011 (S-R.O. No. 47 of 2011); and the Anti-Terrorism (Prevention of Terrorist Financing) (Amendment) Regulations, 2012. 
4.3.3.1  Onshore banking and insurance 
4.3.3.1.1  Banking 
4.44.  Banking activities accounted for 8.6% of GDP in 2012. Domestic banks in St. Kitts and Nevis 
are jointly regulated by the Eastern Caribbean Central Bank (ECCB) and the Minister of Finance. 
The latter is normally required to act in consultation with, and on the recommendation of the ECCB 
in areas where it has ultimate responsibility. The ECCB has primary responsibility for the supervision of domestic banks.  
4.45.  Onshore banking legislation is uniform among all OECS Member States. The regulatory 
framework of the domestic banking system ha s two main legislative components: the ECCB 
Agreement Act, 1983 and its amendments, which gives the ECCB power to regulate banking 
business on behalf of and in collaboration with pa rticipating governments. In the case of St. Kitts 
and Nevis, 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.
69 
4.46.  To conduct banking business in St. Kitts and Nevis, banks must be licensed by the Minister 
of Finance, and fulfil the conditions required for licensing, including having a place of business there. Citizens and companies of St. Kitts and Nevis may borrow from, or place deposits with, 
banks located abroad. St. Kitts and Nevis maintains no exchange controls on capital or non-trade 
current transactions. Foreign ownership and control of onshore banks in St. Kitts and Nevis are permitted with no limitations. Foreign-owned banks licensed and incorporated in St. Kitts and Nevis are subject to the same requirements as locally owned and locally incorporated banks and 
may provide the same services. Foreign banks may establish subsidiaries or branches. The latter 
must submit additional information when applying for a licence to show that they are subject to 
effective supervision at home, and confirm that the regulatory body in their home jurisdiction does 
not object to the application. There are no residency or citizenship requirements applied to bank 
managers or directors. 
4.47.  As at December 2013, there were six commercial banks operating in St. Kitts and Nevis: 
three are branches of foreign banks (Bank of Nova Scotia, Royal Bank of Canada, Ltd. and First 
                                               
66 Financial Intelligence Unit Act 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. 
67 SKNFIU online information. Consul ted at: http://fiu.gov.kn/?q=node/3. 
68 Financial Intelligence Unit Act, No. 15 of 2000. 
69 ECCB online information. Consul ted at: http://www.eccb-centralban k.org/Financial/fin-intro.asp. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 277 - 
 
 Caribbean International Bank (Barbados) Ltd,); one is  a subsidiary of a foreign bank that has been 
locally incorporated (RBTT Bank (SKN) Ltd); the other two are locally incorporated and locally owned (Bank of Nevis and St. Kitts-Nevis-Anguilla National Bank Ltd.).
70 
4.48.  As of April 2013, the assets held by the commercial banks totalled $5.87 billion, up from 
EC$5.36 billion a year earlier. During the same pe riod, deposits grew by 12.2% to EC$3.95 billion 
while loans and advances contracted by 4.8% to EC$2.39 billion. Still reflecting the effects of the global financial crisis, the approval of loans and advances has remained subdued as a result of the 
very cautious stance of banks and the slow rate of recovery in the construction sector during 
2012.
71 In December 2012, the weighted average spread between deposit and lending interest 
rates was 4.96 percentage points (3.40% deposit, 8.36% lending).72 This was three quarters of a 
percentage point below the spread reported in the previous report for December 2006, mainly 
reflecting lower lending rates. In 2012, some 37% of commercial bank credits were personal loans, 
31% were loans to the Government, and the rest (32%) was allocated among the main productive sectors. The main users among the latter are construction (11.1% of total credit allocation), 
utilities (5.2%), distribution (5%), and tourism (3.6%). 
4.49.  Prudential control is based on Basel criteria. In 2009, the ECCB issued Guidelines on Credit 
Risk Management for Institutions Licensed to Conduct Banking Business under the Banking Act, 
which seek to promote sound credit risk management at licensed financial institutions. They 
outline the minimum requirements of a comprehe nsive 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 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%.  
4.50.  As at mid 2012, domestic banks were adequately capitalized, and according to the 
authorities, capable of withstanding the impact of the public sector debt restructuring (see 
section 1).
73 The actual NPL ratio was also 5% in mid 2012 and the provisioning against these 
loans 50.7%; the CAR ratio was 45%; the net liquid asset/total deposit ratio was 54.8%; the return on equity 10.9%; and the return on assets 2%.
74 In particular, the net liquid asset ratio far 
exceeds the regional prudential limit of 20%.75 The IMF notes that, although profitability indicators 
have softened following the restructuring of govern ment bonds, the banking sector's capitalization 
remains above regional norms. However, it reco mmends that any weaker banks are strengthened 
so as to respect the prudential limit even in the case of a liquidity shock.76 
4.51.  St. 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 late 2013, St. Kitts and Nevis had four credit unions, governed by the Cooperative Societies Act No. 31 of 2011.  
                                               
70 ECCB online information. Consul ted at: http://www.eccb-centralban k.org/Financial/fin_banks.asp. 
71 Government of St. Kitts and Nevis (2012). 
72 ECCB (2013). 
73 In its 2013 Budget address, the Government noted that the level of exposure to the public sector had 
been trending downward over the last year and was expe cted to contract sharply with the completion of the 
debt-land swap. It considered that one of the important challenges of the economic programme in the coming months could be to facilitate the movement of some of the excess liquidity into productive investment activity (Government of St. Kitts and Nevis, 2012). 
74 IMF (2013). 
75 Liquidity levels have been grow ing and coverage of total deposits remains well above 40% and the 
regulatory requirement. This is partly explained by the slow pace of recovery  of private investment in particular 
and the reduction of credit to the public.  
76 A stress test conducted by the IMF to illustrate the impact of the debt restru cturing based on data for 
end-June 2012, shows that: (a) the banks' operating income would decline by about one-fourth; (b) the NPL ratio would increase to 15.4% since, considering the hi gh weight of gove rnment assets in the portfolio of 
domestic banks (68%), the debt/lan d swap would impact the NPL ratio by reducing total loans in the 
denominator by the amount of govern ment loans subject to the debt land  swap; and (c) the CAR would decline 
to 20.7%, but still be above the 8% regional benchmark. See IMF (2013). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 278 - 
 
 4.3.3.1.2  Insurance 
4.52.  The insurance business represented 1.4% of GDP in 2012. At end 2013, there were 
13 registered insurance companies in St. Kitts and Nevis, of which ten agencies and one branch of foreign companies, and two locally incorporated companies.
77 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. 
4.53.  New legislation with respect to insurance was introduced during the period under review. 
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) redefined the legal framework to make it uniform with that of th e other OECS Member countries. The Insurance Act 
applies to: (a) all local insurance companies; (b) all other insurance companies, whether or not 
incorporated in St. Kitts and Nevis, that carry on any class of insurance business there; (c) all 
associations of underwriters registered to carry on insurance business in St. Kitts and Nevis; (d) all insurance intermediaries, whether or not locally incorporated, that carry on insurance intermediary 
activities in St. Kitts and Nevis; and (e) privately administered pension fund plans whether 
administered by individual trustees or by trust corporations. The Act also applies to the re-insurance business, whose policies are treated as insurance business of the class and type to 
which the policies would have belonged if they had been issued by the reinsurer. 
4.54.  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 pre-requisite 
for the provision of insurance services. 
4.55.  The application fees for registration are EC$1,500. Registered firms must pay also annual 
licence fees of EC$2,500 for local insurance co mpanies, and EC$5,000 for foreign insurance 
companies. Re-insurance companies are not subjec t to these fees. Registered insurance service 
providers (individuals) must pay an annual fee of EC$1,000 (insurance brokers, adjusters, and 
agents), while sales representatives pay an annual fee of EC$500. Registrati on of a pension fund 
plan is subject to the payment of an EC$1,000 fee. 
4.56.  A foreign insurance company must maintain a principal office in St. Kitts and Nevis and 
must appoint, by power of attorney, a citizen of St. 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 und ertaken 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 offering insurance coverage to locals. 
4.57.  Licences are granted for one year, renewable. The Act requires insurers to maintain a 
statutory deposit equivalent to the greater of EC$1 million or 40% of net premiums for general 
insurance companies, and EC$1 million for life in surance companies. In addition, 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.  
4.58.  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 EC$2 million; foreign 
insurance companies must have world-wide share capital fully paid-up in cash of not less than EC$5 million. Mutual companies must have uncommitted reserves of not less than EC$5 million. 
The Act also contains detailed provisions on insolvency and intervention.
78 
                                               
77 FSRC online information. Consulted at : http://fsrc.kn/?q=regulated-entities. 
78 A registered insurance company carrying on only  long-term insurance business is deemed to be 
insolvent if the value of its liabilities exceeds its assets. A company carrying on only general insurance business is considered insolvent if the excess of assets over liabilities is less than the greater of EC$500,000 or 20% of its premium income in its last preceding financial year; a company carrying on both long-term insurance 
business and general insurance business is deemed insolvent if the excess of its total assets over its total 
liabilities is less than EC$500,000. The business in St. Ki tts and Nevis of a foreign insurance company declared 
insolvent in its jurisdiction of incorporation or registration is also considered insolvent. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 279 - 
 
 4.59.  All insurers must pay an annual tax of 5% of all non-life premiums in respect of policies 
issued or applicable in St. Kitts and Nevis. Individuals and companies remitting payments to persons outside of St. Kitts must deduct a 10% withholding tax from non-life insurance premiums.
79 This withholding tax does not apply to reinsurance premiums. 
4.3.3.2  Offshore financial services 
4.60.  There are no federal regulations on offshore financial services, with the exception of captive 
insurance. St. Kitts and Nevis maintain separate offshore financial institutions and laws. Offshore 
banking is regulated by the Financial Services Department in the Ministry of Finance in St. Kitts, 
and by the Nevis Financial Services Department in the Ministry of Finance and Development in Nevis.
80 Despite the lack of common regulations, the Financial Services Regulatory Commission 
(FSRC) acts as the ultimate regulatory body for non-banking financial services both for St. Kitts 
and for Nevis. In both St. Kitts and Nevis, th e FSRC regulates and supervises its areas of 
competence, including enforcement of anti-money -laundering legislation. The ECCB supervises 
St. Kitts and Nevis' offshore banks for compliance. The SKNFIU investigates transactions by any 
financial institution or natural person suspected of being linked to money-laundering or terrorism 
activities.  
4.61.  The Nevis Financial Services Regulation and Supervision Department (the Nevis Branch of 
the FSR) 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 responsible for the registration of all international companies, for the formation of trusts, mutual funds and foundations, and 
international insurance companies. 
4.62.  There are no offshore banks licensed in St. Kitts; there is one offshore bank (the 
International Bank of Nevis), registered in Nevis. Some 200 captive insurance companies are 
licensed in St. Kitts and some 217 in Nevis, mostly from the United States and Canada.
81 The 
FSRC regulates six money services businesse s (cash advance, money transfer, currency 
exchange), which are governed by the Money Services Business Act No. 26 of 2008. 
4.63.  Under the Financial Services (Regulations) Order No. 25 of 1997 an authorization from the 
Minister of Finance is required to carry out any offshore finance business (deposit-taking, investment, insurance, assurance, trust, corporat e business) within St. Kitts. Offshore banks and 
insurance companies in St. Kitts are regulated by the Companies Act No. 22 of 1996 (as 
amended); the Limited Partnerships Act of 1996 ; and, the Captive Insurance Companies Act 
No. 12 of 2006.
82 Companies and limited partnerships prov iding offshore financials services are 
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. 
4.64.  Offshore financial sector laws and regulations that are applicable both in St. Kitts and in 
Nevis include: the Enactment of the Proceeds of Crime Act No. 16 of 2000, the Anti-terrorism Act 
of 2002, the Anti-terrorism Regulations No . 47 of 2011; and the Anti-Money Laundering 
Regulations No. 46 of 2011, as well as the Financial Services (Exchange of Information) Regulations. These regulations set out the powers of  the FSRC to obtain information and to assist 
a foreign regulatory authority with its inquiries. The industry standards are contained in the 
Financial Services (Implementation of Industry Standards) Regulations No. 51 of 2011. 
4.65.  The Nevis Island Administration has issued several Ordinances that govern offshore 
business in Nevis.
83 Offshore companies must be incorporated under the Nevis Business 
                                               
79 St. Kitts Financial Services online information. Consulted at: http://www.skbfinancialservices.com/ 
taxation.php. 
80 ECCB online information. Consul ted at: http://www.eccb-centralban k.org/Financial/fin_offshore.asp. 
81 Information provided by the authorities; and Nevis FSRC online information. Consulted at: 
http://www.nevisfsrc.com/regulated-entities. 
82 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%20Insurance%20Act.pdf. 
83 The Nevis International Insurance Ordinance, 2004;  the Nevis International Insurance (Amendment) 
Ordinance, 2006; the Nevis International Insurance (A mendment) Ordinance, 2009; the Nevis International 
Insurance Regulations 2004; and the Nevis International Insurance Regulations 2006. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 280 - 
 
 Corporation Ordinance, 1984 (as amended).84 Corporations must have a registered agent in 
St. Kitts and Nevis, who must be a barrister or solicitor admitted to practice in the Federation or a corporation having a paid-in capital of at least EC$500,000. Offshore companies not concluding business in Nevis are exempt from taxes.
85 
4.66.  The Nevis Offshore Banking Ordinance, 1996 (as amended) governs the activities of 
offshore banks in Nevis.86 The establishment of offshore banks requires the consent of the Nevis 
Minister of Finance. At least one director must be is a citizen of St. Kitts and Nevis with a residence 
in Nevis. Wholly owned subsidiaries of St. Kitts  and Nevis banks and qualified foreign banks are 
eligible to apply for a licence to provide offshore banking services. If the licence is granted, separate accounts must be kept.
87 Offshore banks are not allowed to accept deposits from Nevis 
residents or keep Nevis residents as customers for any offshore banking services. Offshore banks 
must have an authorized and paid-up capital of  EC$2 million, and EC$1 million must be subscribed 
and paid-up in cash for deposit into an account maintained by the ECCB. 
4.67.  The Nevis Offshore International Insurance Ordinance (2004) - as amended by the Nevis 
International Insurance Island of Nevis (Amendment) Ordinance, 2006 and 2009 - together with 
the Nevis International Insurance Regulations (2004) and the Nevis International Insurance Regulations (2006), govern the offshore insurance sector.
88 Offshore insurance companies must be 
registered with the Nevis Registrar of International Insurance; registration requires that they keep 
an office in Nevis, and either a management in Nevis or an appointed registered agent. There are 
no citizenship requirements for directors of captive insurance companies. The minimum paid-up share capital is set at US$185,000 for long-term and for general business, and US$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 minimum paid-up capital amounts 
are aggregated.
89 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 solven cy must be at least 20% of the net retained 
premium when it does not exceed US$5 million; where the net retained premium of the insurer 
exceeds US$5 million, the prescribed amount is US$1  million plus 10% of the amount by which the 
net retained premium exceeds US$5 million. The app lication, registration, and renewal fees are set 
out in the Nevis International Insurance Regulations: registration fees range from US$500 to US$2,000 depending on business type; an d annual renewal fees range from US$500 to 
US$1,000 (or the aggregate for more than one class of business). 
4.3.4  Air transport and airports 4.68.  Overall responsibility for air transport policy formulation and implementation in St. Kitts and 
Nevis rests with the Minister of Transport, current ly in the Ministry of Tourism and International 
Transport. The Air Transport Licensing Board revi ews applications for air transport licences, and 
sets landing charges. Regulatory oversight for safety  and security issues is provided by the Eastern 
Caribbean Civil Aviation Authority (ECCAA). There is no legislation precluding foreign participation 
                                               
84 The Nevis Business Corporation Ordinance, 1984 (as amended) by the Nevis Business Corporation 
(Amendment) Ordinance 2009, the Nevis Business Corporation (Amendment) Ordinance 2011, and the Nevis Business Corporation Regulations No. 15 of 2009. Consulted at: http://www.nevisfsrc.com/products/insurance/ legal-framework. 
85 In accordance with Nevis legislation, offshore companies may conduct some activities in Nevis, 
including: maintaining bank accounts in Nevis; investing in stocks or entities of Nevis corporations or being a partner in Nevis partnership or a benefi ciary of a Nevis trust or estate; and acquiring real property in a local or 
industrial tourist facility provided always that such prop erty is situated in a project or development approved 
and authorized by the Nevis Island Administration. 
86 Nevis Offshore Banking Ordinance, 1996 (as amended). 
87 A qualified foreign bank is one licensed under th e Banking Act or licensed to do domestic banking 
business in its jurisdiction of incorporation (or a wholly owned subsidiary of such foreign bank). 
88 Nevis FSRC online information. Consulted at: http://www.nevisfsrc.com/. 
89 The amounts are: US$10,000, for single-owner captive; US$20,000 for less-than-five-owners captive; 
US$50,000 for five-or-more-owners captive; US$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 insure r who typically initiates insurance contracts as part of 
its normal course of business, and th e allied reinsurer will only assume risks and accept premiums from this 
primary insurer. Captive insurance busi ness is defined as business where th e insured is a parent or affiliated 
company of the registered insurer or is  a person in respect of whom the regi stered insurer is authorized by the 
Registrar to provide insurance. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 281 - 
 
 in the provision of auxiliary air transport services. There appear to be no foreign investment 
restrictions on ownership of domestically incorporated carriers; the authorities consider that, since there are no domestic carriers, there is no need to be concerned with foreign investment restrictions on ownership. However, despite the fa ct that there are no domestic carriers, there are 
restrictions on cabotage. 
4.69.  St. Kitts and Nevis has two airports, the Robert L. Bradshaw International Airport in St. Kitts 
and the Vance W. Amory International Airport (pre viously known as Newcastle Airport) in Nevis. 
Both airports are owned by the Government, although this is not mandated by law. In 2008, the 
last year for which statistics were available, th ere were just over 106,400 air passenger arrivals.
90 
According to the authorities, the vast majority of imports arrive by maritime transport, rather than 
air. 
4.70.  There are scheduled services to Canada , the United Kingdom, and the United States 
(Atlanta, Charlotte, Miami, and New York) as well as destinations within the Caribbean. Carriers include American Eagle, American Airlines, Delta, British Airways, Sky Service, and LIAT. St. Kitts 
and Nevis does not have any domestically incorporated airlines. Aircraft handling services such as 
air-start units, high-loaders, passenger stairs, an d ground power units are offered on a rental 
basis. Air cargo services are provided by a number of freight forwarders including FedEx, DHL, 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.
91 
4.71.  During the period under review, the authorit ies have been seeking to increase the frequency 
of flights from and to St. Kitts and Nevis and to achieve a better direct connection with 
international flights. In this respect, the Government welcomed American Airlines' decision to add 
two weekly non-stop flights between the R. L. Br adshaw airport and Miami from end 2012, as well 
as the British Airways service from London, and the seasonal Air Canada service from Toronto. 
4.72.  The St. Christopher Air and Sea Ports Au thority (SCASPA) has responsibility for the 
administration of the Robert L. Bradshaw International Airport in St. Kitts, while the Vance W. Amory International Airport is managed by the Nevis Air and Sea Ports Authority. These authorities 
provide all airport management and auxiliary services, with the exception of ground handling 
services, which are provided by private local companies.  
4.73.  The main legislation governing the sector is  the Civil Aviation Act, 2004, together with the 
Civil Aviation Regulations, 2004. The Act specifies th e criteria to be considered in the granting of 
an air transport licence: the existence of othe r 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. The Minister responsible for Transport has final authority to 
suspend consideration of the application. For countries with which St. 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. 
4.74.  St. Kitts and Nevis collects a travel tax, a departure tax, and a cruise passenger tax. 4.75.  St. Kitts and Nevis is a contracting state of the ICAO. It has one bilateral air services 
agreement, recorded by ICAO, with Canada. It al so has an open-skies agreement with the United 
Kingdom signed in 2009, and with the United States, signed in 2012. 
4.3.5  Maritime transport and ports 4.76.  In its GATS Schedule, St. Kitts and Nevis has inscribed commitments on "ship registration 
for the control, regulation and orderly development of merchant shipping" subject to certain 
registration requirements.
92 
                                               
90 Caribbean Tourism Organization online information. Consulted at: http://www.onecaribbean.org/ 
content/files/. 
91 SCASPA online information. Consulted at : http://www.scaspa.com/RLB_Airport.asp. 
92 WTO document GATS/SC/119, 16 November 1995. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 282 - 
 
 4.77.  Maritime transport is of considerable importance for St Kitts and Nevis' economy. Some 
95% of imports arrive by sea and most agriculture products are exported by sea. Thus, the authorities consider that shipping and the supporting infrastructure, such as ports and harbours, are vital to the economic growth of the country.
93 St Kitts and Nevis operates a sizeable register of 
international ships (see below), it also derives significant revenue from ships listed on the National 
Register of Ships. St. Kitts and Nevis acceded to the International Maritime Organization in 2001, and since that time has signed onto a number of its international conventions.
94 
4.78.  The main ports in St. Kitts are Basseterre and Port Zante, owned and administered by the 
state-owned St. Christopher Air and Sea Ports Authority. The main port in Nevis is Charlestown, which is owned and administered by the Nevis Air and Sea Ports Authority. 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. 
4.79.  Overall responsibility for maritime transp ort formulation and implementation lies with the 
Minister of Transport, currently acting in the Mi nistry of Tourism and International Transport. The 
Department of Maritime Affairs in the Ministry of Tourism and International Transport is the 
National Maritime Authority executing governme nt policy on maritime matters. The Department 
directs, coordinates, and monitors maritime activities, exercising its competence as a port State, 
flag State, and 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 maritime affairs in accordance with the Merchant shipping (Agreement) Act Cap 7.06. These agents may be called upon to carry out various duties as 
authorized officials of the Government linked to obligations under International treaties, including 
IMO conventions.
95 
4.80.  The Government is committed to promotin g shipping and regulatory reforms to ensure 
efficient and competitive shipping services. The authorities consider that St. Kitts and Nevis needs 
to follow international approaches to shipping regulation to ensure international economic competitiveness. Under the United Nations Convention on the Law of the Sea, St Kitts and Nevis has rights and responsibilities over approximat ely 20,400 square kilometres of maritime space, 
roughly 80 times its land space. The authorities consider coastal and ocean areas and their marine 
biological diversity as core national assets that also provide a range of essential environmental services that would be costly or impossible to restore or replace if damaged or lost.
96 
4.81.  The St. 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. The Ports of Registry are Basseterre for St. Kitts and Charlestown 
for Nevis. The International Registrar of Shipping and Seamen is the sole authority for the 
registration of St. Kitts and Nevis ships and seamen. The Registrar controls the issuance of all documentation issued on behalf of SKANReg. A maritime resident agent is required for every ship registered with SKANReg. There are no vessel age restrictions, but vessels over 20 years old may 
be subject to inspection by SKANReg. 
4.82.  The Merchant Shipping (Agreement) Act Cap. 7.06 is the main legislation governing 
maritime transport in St. Kitts and Nevis. There are no registration limitations for foreigners. 
However, under the Act, foreign companies or individuals may register a ship as domestically 
                                               
93 Ministry of Tourism and In ternational Transport (2013). 
94 St. Kitts and Nevis has acceded to the followin g IMO conventions: IMO Convention 1948, with 1991 
and 1993 amendments; SOLAS, 1974 and Protocols of  1978 and 1988; STCW 78; MARPOL 73/78; ILL 1966; 
LL Prot, 1988 - Protocol of 1988 relating to the Internat ional 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 online information. Viewed at: http://www.imo.org/About/Conventions/StatusOfConventions/Pages/Default.aspx. 
95 These duties may include, boarding St. Kitts and Nevis ships; investigating marine casualties and 
crew disputes; inspecting log books; and issuing certif icates and other official documents on behalf of the 
Government of St. Kitts and Nevis. Consulted at: St. Kitts and Nevis International Ship Registry, at: 
http://www.stkittsnevisregistry.net/. 
96 Ministry of Tourism and In ternational Transport (2013). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 283 - 
 
 owned, only if they are registered or established locally. Persons qualified to own ships registered 
as St. Kitts and Nevis vessels are: St. 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 St. Kitts and Nevis citizens; corporations 
established and with a registered office in St. Kitts and Nevis; and any other persons determined 
by the Minister. In general, the Act permits non-qualified persons to register a ship under the St. Kitts and Nevis flag if over 51% of the shares  of the ship are owned by persons qualified to 
own a St. Kitts and Nevis ship, and provided a maritime agent resident in St. Kitts and Nevis is 
appointed.
97 The advantage of domestically owned over foreign-owned ships is that the former pay 
only 50% of the registration fees (see below). 
4.83.  There are no 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. 
4.84.  The Merchant Shipping (Port State Control) Regulations 2008 (SRO No. 34 of 2008) 
mandates the inspection of ships by the Department of Maritime Affairs to ensure compliance with 
the 1996 Memorandum of Understanding on Port State Control in the Caribbean Region, and a 
number of international conventions.98 The Department is charged with inspecting at least 15% of 
the ships that enter St. Kitts and Nevis' ports in a year. 
4.85.  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. The fees range from US$160 for ships of 500 GT or less to US$1,200 for ships 
of 20,000 GT or more. Ships wholly owned by a St . Kitts and Nevis company with its registered 
office in the Federation, or a St. Kitts and Nevis national or citizen resident in the Federation are entitled to a 50% reduction of registration fees. Locally flagged vessels may benefit from duty 
concessions for imports of spare parts, fuel, and other items. 
4.86.  In 2008, St. Kitts and Nevis implemented the International Safety Management (ISM) Code 
through the passage of the Merchant Shipping (International Safety Management (ISM)), 2008 
(SRO No. 15 of 2008). The regulations require that passenger ships, oil and chemical tankers, and 
other cargo ships of 500 tonnes or more comply with the ISM Code and obtain a document of 
compliance. This document may be procured in St. Kitts and Nevis from the Department of Maritime Affairs, and is generally valid for five  years. Documents of compliance issued by the 
competent authorities in foreign countries are also accepted. Other regulations regarding the 
maritime transport sector include the Shipping (Pleasure Vessel) Regulations 2007 and the Merchant Shipping (Ship and Port Facility Security) Regulations 2004. 
4.87.  In 2013, the Government issued a final draf t of the policy and Action Plan. The overall goal 
for the policy is the effective and sustainable management of the marine environment and marine resources of St. Kitts and Nevis.
99 The strategic objectives are to secure rights to marine 
resources; reform ocean governance; preserve and protect the marine environment; promote 
sustainable economic development; promote public awareness, participation, and accountability; increase knowledge and capacity building; and build resilience and managing for uncertainty. 
4.88.  The policy underscores the importance for the Government of managing marine resources 
use in a manner that aims at sharing the benefits arising from their utilization in a fair and 
equitable way, including by appropriate access to resources and by appropriate transfer of relevant technologies. In accordance with this, access to common marine resources for private profit should 
be priced to give a reasonable rate of return to the community. Charges for access to, use of and 
damage to marine resources should reflect the community interest and short- and long-term economic, environmental, social, and cultural costs and benefits. 
                                               
97 Merchant Shipping Act (2002), Part II (Art. 3-8). Consulted at: http://www.st.kittsnevisregistry.net. 
98 The International Convention on Load Lines, 1966 (LL 66); the International Convention for the 
Safety if Life at Sea, 1974 (SOLAS 1974); the Internatio nal Convention for the Prevention of pollution from 
Ships, 1973 and 1978 (MARPOL); the International Conventi on on Standards of Training, Certification and 
Watchkeeping for Seafarers, 1878 (STCW); the Internatio nal Convention on Tonnage Measurement of Ships, 
1969; the Convention on the International Regulations fo r Preventing Collision at Sea, 1972 (CLOREG 72); and 
the Merchant Shipping (Minimum Standards) Convention, 1976. 
99 Ministry of Tourism and International Transport (2013). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 284 - 
 
 4.89.  The policy's specific goal for maritime transport is to make it safe, secure, clean, and 
internationally competitive. Strategic objectives for the sector include: (i) facilitating and enhancing the expansion of international trade, particularly tourism and exports; (ii) promoting an internationally competitive maritime industry; and (iii) ensuring safety, security, and protection of 
the marine environment. The first objective is to be achieved by developing regular shipping 
services and related infrastructure as well as a well-defined regulatory framework; promoting St. Kitts and Nevis as a cruise ship destination and ensuring the provision of effective support 
services; ensuring that all ports fulfil requirements regarding depth, width, harbour channel 
markings, and other navigational safety items; and establishing bilateral agreements to support maritime developmental activities. The second objective is to be achieved by implementing measures to attract ship owners to register their vessels in St. Kitts and Nevis; promoting St. Kitts 
and Nevis as a crewing nation by ensuring that training continues to comply with international 
standards and supporting, possibly through legisl ation, the hiring by shipping companies of 
St. Kitts and Nevis nationals; by promoting the expansion of ship repair and maintenance 
activities; and by facilitating the development of marina facilities. The safety, security, and 
protection of the marine environment objective will be achieved with measures to ensure that St. Kitts and Nevis’ flagged ships and foreign ships operating in St. Kitts and Nevis' waters operate 
in accordance with local and international maritime safety, security and environmental protection 
standards, including promulgating appropriate safety and marine protection legislation, and implementing the key international shipping treaties.  
4.90.  The policy also calls for the continued use and reinforcement of the Port State Control (PSC) 
regime through regional collaboration and by ensuring that PSC inspection targets are met.
100 The 
authorities have indicated that these targets are currently set at 15% of all ships making a port call. It also aims at promoting the development of domestic ferry services as an alternative 
transport mode, where practicable. 
4.91.  A number of private, including foreign, organizations have agreements with the St. Kitts and 
Nevis' administration to carry out statutory surveys and issue statutory certificates on behalf of the 
Government of St. Kitts and Nevis.
101 
4.3.6  Tourism 4.92.  In its GATS schedule, St. Kitts and Nevis has 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 have been made with respect with other tourism-
related activities. 
4.93.  Tourism accounts, directly and indirectly, for a large percentage of GDP. Although hotels 
and restaurants represented just 5.6% of GDP in 2012, there are important spill over effects from 
tourism on construction, distribution services, electricity, agriculture, and manufacturing. The sector was affected by the global economic crisis; in 2008, just before the crisis, St. Kitts and 
Nevis had some 106,000 stay-over tourist arrivals, 11% less than the previous year. Following a 
further 26.8% contraction in stay-overs in 2009, the sector recorded growth of 3.3% in 2010 and of 5.9% in 2011.
102 The authorities indicated that they expect the number of stay-overs to 
increase in the near future as new hotel facilities will open, and the increase in weekly flights to 
Miami. The opening of the new marina is expected to increase the number of yachting tourists, an 
area the authorities consider of importance due to the revenue generated. 
4.94.  Cruise passenger arrivals have been expanding since 2008, when they passed 
the 500,000 mark for the first time; they grew by over 15% in 2011 but declined in 2012. The 
Government projects in excess of 650,000 passenger arrivals for the 2013/14 season 
                                               
100 The PSC is a mechanism instituted through the IMO by which a state may conduct limited safety 
inspections of all foreign vessels calling at its ports to ensure their co nformity to maritime safety, security, and 
pollution prevention standards. 
101 These organizations are: the American Bure au of Shipping (ABS); Bureau Veritas (BV); 
Germanischer Lloyd (GL); the Indian Re gister of Shipping (IR Class), the International Register of Shipping 
(IRS); the Korean Register of Shipping (KRS); Lloyds Register of Shipping (LR); Nippon Kaiji Kyokai (Class 
NK); Polski Rejestr Statkow (PRS); Registro Italiano Navale (RINA); Russian Maritime Register of Shipping 
(RS); and Turkish Loydu. 
102 Government of St. Kitts and Nevis (2011). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 285 - 
 
 and 700,000 passengers in 2014/15.103 In 2012, total visitor expenditure was estimated at 
over EC$256.4 million (some US$95 million). The Unit ed States is the main source of tourist 
arrivals to St. Kitts and Nevis (64.2% of the total in 2012), followed by other Caribbean countries (16.6%), the United Kingdom (7.7%), and Canada (6.8%) (Table 4.2). 
Table 4.2 Annual tourism data, 2007-12
 
  2007  2008  2009  2010 2011 2012  
Total visitors  379,473 533,353 547,561 621,275 715,250 635,426 
 Stay-over visitors 123,062 127,705 93,081 98,329 101,701 104,240 
    United States 69,894 76,455 54,410 58,710 64,245 66,988 
    Caribbean  28,822 28,982 22,410 21,176 18,893 17,317 
    United Kingdom  12,162 9,970 6,496 8,455 8,047 7,975 
    Canada  7,116 7,805 6,413 6,054 5,961 7,073 
    Other countries  5,068 4,493 3,352 3,934 4,555 4,887 
  Excursionists  5,177 3,920 3,718 3,547 3,682 3,230 
 Cruise ship passengers  249,323 400,916 450,553 515,787 605,407 526,305 
 Yacht passengers  1,911  812 209 3,612 4,460 1,651 
 Number of cruise ship calls  242 232 235 293 337 298 
Total Visitor Expenditure (EC$M) 336.92 297.17 225.41 241.74 254.06 256.39 
 
Source: St Kitts Statistics Office; Nevis Statistics Office; and Eastern Caribbean Central Bank online 
information. Viewed at: h ttp://www.eccb-centralbank.org/ Statistics/index.asp. 
4.95.  Overall responsibility for the formulation and implementation of tourism policy in St. Kitts 
and Nevis at the federal level is with the Minister of Tourism, currently the portfolio is in the Ministry of Tourism and International Transport. Marketing and promotion activities are carried out 
by the St. Kitts Tourism Authority and the Nevis Tourism Authority, as well as the private sector 
St. Kitts Hotel and Tourism Association and the Nevis Hotel and Tourism Association.
104 
4.96.  The authorities continue their policy of trying to attract investment in tourism-related 
facilities and infrastructure, with special efforts to attract a more upscale clientele. In this regard a 
private jet terminal has been constructed at the R.  L. Bradshaw International Airport. Also, at the 
Kittitian Hill Development, a 85 room boutique cottage hotel has been constructed as well as an 18-hole golf course. Phase One of the project is expected to open for the 2013–14 tourist season. 
Similarly, work is being carried out in the Christophe Harbour Development for the construction of 
a yacht marina, together with a complex of homes (Harbour Side) and villas. The Government has also negotiated an agreement for the constructi on of a Park Hyatt Hotel with 200 hotel rooms 
and 50 residential condominiums, scheduled to be opened in the winter of 2014. Other projects 
include the Silver Reef Resort Development, for the construction of apartments and an 
almost US$40 million private investment projects  for the construction of three condominium 
complexes and a commercial complex in Frigate Bay.
105 
4.97.  In early 2013, the authorities undertook a formal review of their Tourism Strategy which 
had guided developments in the sector since 2006. Among the main points of the new strategy are the development of education tourism, and an assessment of the small hotel sector in order to 
formulate an approach for its development. 
4.98.  Licences to run hotels and guest houses ar e granted by the Minister responsible for Finance. 
The Government of St. Kitts and Nevis offers fiscal incentives to encourage the construction or 
renovation of hotels. The Hotel Aids (Amendment) Act (1998) provides 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. St. Kitts and Nevis also provides corporate income tax 
breaks for the construction or extension of hotels, under the Income Tax Act No. 17 of 1966. 
No information was available on the revenue forgone as a result of these benefits.  
                                               
103 Government of St. Kitts and Nevis (2012). 
104 For more information on the tw o local Government promotion activities, see: http://www.stkitts 
tourism.kn; and http://www.nevisisland.com. 
105 Government of St. Kitts and Nevis (2012). WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 286 - 
 
 4.99.  The Cricket World Cup 2007 (Tourism Accommodation Incentives) Act (No. 11, 2005), 
provided limited-period tax incentives for the constr uction of hotels or the conversion of buildings 
into hotels, villa resorts, condominiums or residential complexes of at least eight bedrooms. Incentives under this Act include income tax holidays, the duration of which varies according to the 
number of rooms.
106 There are also customs duty exemptions on imports of building materials for 
a period to be determined by the Cabinet although  imports are still subject to the Customs Service 
Charge. Applications for tax benefits had to be made to the Cabinet for approval before 
31 May 2006, but benefits under the Act may continue, in some cases, up to 2021. Tax relief 
granted under this Act, was not in addition to re lief and customs duty exemptions available under 
the Hotel Aids Act. 
4.100.  St. Kitts and Nevis levies a number of tourism-related taxes and charges: a 
US$22 departure tax for passengers departing both by air and by sea; a US$1.50 cruise passenger 
tax; and a 12% Hotel Room Tax, which comprises a 10% VAT and a 2% Island Enhancement Tax.
107 A travel tax is levied on tickets for air and maritime travel originating in St. Kitts and Nevis 
at a rate of 10% of the cost of the fare (Travel Tax (Amendment) Act 1997, Travel Tax Act, 1981).  
4.3.7  Professional services 4.101.  In its GATS Schedule, St. Kitts and Nevis has made no specific commitments on 
professional services. According to best available information, no professions are specifically 
reserved for nationals. St. Kitts and Nevis has not signed any mutual recognition agreements on professional services.  
4.102.  Professional services are regulated by the Government. Under the Licences on Business 
and Occupations Act (Act No. 6, 1972), as amende d, certain professional service providers must 
obtain a licence from the Minister of Finance in order to practice. These include medical doctors, dentists, lawyers, architects, and accountants (public, certified, and chartered). The licences are 
valid for up to one year, and are renewable; application fees and annual renewal fees range from 
EC$500 to EC$1,000 depending on the profession.
108 Certain professional service providers are 
also subject to the VAT.109 
4.103.  Under the Caribbean Community Skilled Nationals Act, No. 12, 1997, a regional initiative 
to enhance the free movement of skilled persons, CARICOM nationals who are university graduates may enter and work in St. Kitts and Nevis without a work permit. During the period under review, the CARICOM Secretariat continued its efforts towards regional service sector development to give 
effect to requirements of Chapter III of the Revise d Treaty of Chaguaramas. Six versions of a draft 
model professionals bill have been developed at the CARICOM level since 2003, the latest in 2010. The model bill is intended to serve as a basis from which member states would enact legislation for 
the various professions and make amendments where legislation already exists. The bill consists of 
six parts dealing with: (i) interpretation and definitions, in which the CARICOM national is defined; (ii) the establishment of a council; (iii) the requirements and procedures for registration and 
licensing; (iv) discipline; (v) offences and penalties; and (vi) miscellaneous provisions. Once 
enacted, the legislation should facilitate free move ment of professionals; maintain high standards 
of service delivery in the CSME; and enhance international competitiveness of regional professionals so that they can exploit the oppo rtunities available in existing and emerging 
free-trade agreements. Up to date consultations re garding in the draft bill have been undertaken 
with representatives of medical practitioners, pharmacists, veterinarians, nurses and midwives, engineers, architects, and management consultants at both national and regional levels. However, 
no agreement has been reached at the regional level, mainly on account of some contentious 
issues such as the movement of service providers.
110 
                                               
106 Ten-year income tax holiday for accommodation projects between 8 and 29 rooms; and a 15-year 
income tax holiday for accommodation projects of 30 rooms and above. 
107 The legislative basis of the hotel room tax is The Hotel Accommodation an d Restaurant (Amendment) 
Act No. 16, 1999. 
108 These fees are set out in the St. Christopher an d Nevis Statutory Rules and Orders, No. 9, 1997. 
109 Value Added Tax Act, 2010. 
110 CARICOM online information. Consulted at: http ://www.caricom.org/jsp/single_market/services_ 
regime/development_reg ulatory_framework.jsp. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 287 - 
 
 4.104.  The legal profession is regulated by th e Legal Profession Act, 2008 (Act No. 33 of 2008) 
and the legal Profession (Amendment) Act, 2010. The Legal Profession Act created the St. Kitts 
and Nevis Bar Association to promote and maintain the highest standards of practice, conduct, and proficiency of the legal profession and to repres ent and protect its interests. An attorney-at-law 
may not practise as such unless he has been issued a practicing certificate. The Act mandates that 
every attorney-at-law to whom a practicing cert ificate is issued must be a member of the 
Association and must remain a member for so long as  his or her practising certificate is in effect. 
4.105.  The Architects Registration Act, 2010 (Act No. 16 of 2010) regulates the registration and 
practice of architects in St. Kitts and Nevis. 
4.106.  St. Kitts and Nevis is a contracting party to the CARICOM Agreement Establishing the 
Council of Legal Education (see Common Report). As per Annex III to the agreement, the 
Government of St. Kitts and Nevis must recognize that any person holding a legal education 
certificate fulfils the training requirements for practice in its territory.
111 
4.3.8  Other offshore services 
4.107.  There is special domestic legislation for offshore businesses. Offshore companies in 
St. Kitts are regulated by the Companies Act of 1996, as amended, and in Nevis by the Nevis Business Corporation Ordinance, 1984 (as amended).
112 
4.108.  Companies providing online betting and gaming services from St. Kitts and Nevis must be 
registered at the Financial Services Department of the Ministry of Finance. A registration fee of US$80,000 and an annual licence f ee of US$40,000 must be paid. The registered company must 
consult with the Ministry of Finance on the content of any advertisement placed on the Internet 
and must carry out its banking operations with a local commercial bank. These activities must be 
strictly offshore: nationals of St. Kitts and Nevis are not permitted to place bets on these gaming activities. As at early 2014, there were two offshore betting and gaming companies in operation in 
St. Kitts and Nevis. 
4.109.  The Nevis Business Corporation Ordinance regulates the establishment of offshore 
companies generally known as International Business Companies (IBCs). Under the Ordinance, 
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. 
4.110.  Companies incorporated as IBCs under the Nevis Business Corporation Ordinance 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. Companies may serve as directors, and alte rnate or substitute directors may be appointed. 
All shareholders and directors may act by unanimous consent, without a meeting and are allowed 
to issue proxies in writing. No annual reports are required to be filed in the public records of Nevis. Corporate records may be kept anywhere in the world. Changes of shareholders, directors or 
officers do not have to be reported to the Registrar of Companies and are confidential. The 
authorized share capital of a Nevis IBC may be demonstrated in any currency. Bearer shares are only permitted with the approval of the Registrar of Companies or the Regulator. In the case of 
approval, the registered agent must maintain custod y of the bearer share certificate on behalf of 
the beneficial owner and must maintain a register of each bearer share. 
4.111.  In accordance with the Ordinance, Nevis IBCs may amend their articles of incorporation, 
merge or consolidate with foreign corporations or other Nevis corporations; the Ordinance allows 
corporations formed in another jurisdiction to re-domicile into Nevis. The Ordinance also provides 
for the emergency transfer of domicile to Nevis up on the approval of the Registrar of Companies. 
                                               
111 CARICOM online information. Consulted at: 
http://www.caricom.org/jsp/secretariat/legal_ins truments/ agreement_cle.jsp?menu=secretariat. 
112 The Companies Act (Chapter 21.03) has been amended by: the Companies (Amendment) Act 2004; 
the Companies (Amendment) Act 2005; the Companies (Amendment) Act 2010; and the Companies 
(Amendments) Act No. 4 of 2011. As at February 2014, there were 1,457 local companies registered, 57 external companies, 8 public companies, and 1,977 exempted (offshore) companies. WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 288 - 
 
 REFERENCES 
 
Caribbean Development Bank (2008), Basic Information. Viewed at: http://www.caribank.org/ uploads/2012/03/basicinformation1-1-1.pdf. 
 
ECCB (2013), Financial Statistics Yearbook 2013 for the period ended 31 December 2012 . Viewed 
at: http://www.eccb-centralba nk.org/PDF/fsybook_2013.pdf. 
 
ECTEL (2014), Annual Electronic Communications Sector Review 2012 – 2013 ECTEL Member 
States . Consulted at: http://www.ectel.int/index.ph p/resources/publicatio ns?download=93:ectel-
2013-annual-sector-review.  
 
Government of St. Kitts and Nevis (2006), Prime Minister's Budget Address for 2007 . Viewed at: 
http://www.cuopm.com/pdf/Budget_Addres ses/2007_Budget_Addr ess_20061212.pdf. 
 
Government of St. Christopher and Nevis (2010), 2011 Budget Address . Viewed at: 
http://www.gov.kn. 
 
Government of St. Kitts and Nevis (2011), 2012 Budget Address . Viewed at: 
http://www.cuopm.com/pdf/Budget_Addres ses/2012_Budget_Addr ess_20111213.pdf. 
 
Government of St Christopher and Nevis (2012), 2013 Budget Address . Viewed at: 
http://www.gov.kn/sites/default/files/docs/2 013%20Budget%20Addres s%20-Final%20April% 
202013.pdf. 
 
IMF (2011a), IMF Executive Board Approves Three-Ye ar US$84.5 Million Stand-By Arrangement 
with St. Kitts and Nevis,  Press Release No. 11/295, 28 July 2011. Viewed at: http://www.imf.org/ 
external/np/sec/pr/2011/pr11295.htm. 
 IMF (2011b), St. Kitts and Nevis: 2011 Article IV Consultation and Request for Stand-By 
Arrangement-Staff Report; Staff Supplements; Public Information Notice and Press Release on the 
Executive Board Discussion; and Statement by th e Executive Director for St. Kitts and Nevis.  IMF 
Country Report No. 11/270, September 2011. Vi ewed at: http://www.imf.org/external/pubs/ft/ 
scr/2011/cr11270.pdf. 
 
IMF (2013), St. Kitts and Nevis—Fourth Review Under the Stand-By Arrangement, Financing 
Assurances Review and Request for Waivers of Applicability—Staff Report and Press Release, IMF 
Country Report No. 13/42,  February 2013. Viewed at: http://www.imf.org/external/pubs/cat/ 
longres.aspx?sk=40324.0.  IMF (2014), St. Kitts And Nevis: Fifth and Sixth Reviews under the Stand-By Arrangement, 
Request for Waiver of Non-observance of Perf ormance Criterion and request for Waiver of 
Applicability; Staff Report; Press Release . Country Report No. 14/49, February 2014. Viewed at: 
http://www.imf.org/external/p ubs/ft/scr/2014/cr1449.pdf. 
 
Ministry of Tourism and International Transport (2013), National Maritime Policy and Action Plan , 
Department of Maritime Affairs, Final Draft, January 2013. Viewed at: http://www.stkittsnevis 
registry.net/. 
 St. Kitts and Nevis Customs Department (undated), Implication of VAT on Imports . Viewed at: 
http://www.skncustoms.com/pdfs/VAT%20System.pdf. 
 
 WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 289 - 
 
 5  APPENDIX TABLES 
Table A1. 1 Merchandise exports and re -exports by SITC section, 2007-12 
(US$ million and %) 
Description 2007  2008  2009  2010 2011 2012  
Total exports and re-exports 51.1 60.1 47.3 51.8 60.5 61.5 
  Domestic exports 48.4 51.4 44.3 45.6 48.8 53.2 
  Re-exports 2.7 8.7 2.9 6.2 11.8 8.3 
 (% of exports and re-exports) 
 0 Food and live animals  1.4 1.4 2.5 2.0 2.2 1.5 
 1 Beverages and tobacco  5.2 6.4 6.0 4.7 5.5 6.1 
 2 Crude materials, inedible, except fuels  - 1.0 - 0.1 0.1 0.5 
 3 Mineral fuels and related materials  - - - 0.1 - 0.1 
 4 Animal and vegetable oils, fats and waxes  .. - - .. .. - 
 5 Chemicals and related products  0.2 0.8 0.3 0.5 0.4 0.2 
 6 Manufactured goods classified by material  1.5 0.9 1.1 2.9 0.6 0.7 
 7 Machinery and transport equipment  88.5 83.2 86.0 78.7 74.6 79.5 
 8 Miscellaneous manufactured articles  2.5 5.3 3.8 9.6 15.2 10.3 
 9 Commodities and transactions not classified elsewhere in 
SITC 0.6 1.0 0.2 1.5 1.4 1.2 
 
.. Not available. 
- Trade share lower than 0.05%.  
 
Source:  Eastern Caribbean Central Bank online information. Viewed at : http://www.eccb-centralbank.org/ 
Statistics/index.asp. 
 WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 290 - 
 
 Table A1. 2 Merchandise imports by SITC section, 2007-12 
(US$ million and %) 
Description 2007  2008  2009  2010 2011 2012  
Total imports 272.2 324.8 285.1 268.0 248.0 225.6 
 (% of imports) 
 0 Food and live animals  15.7 15.1 17.8 16.9 20.7 22.1 
 1 Beverages and tobacco  2.8 2.4 3.0 2.5 2.5 2.9 
 2 Crude materials, inedible, except fuels  2.1 2.1 2.5 2.5 2.3 1.9 
 3 Mineral fuels and related materials  6.9 8.1 4.0 3.7 2.8 2.8 
 4 Animal and vegetable oils, fats and waxes  0.2 0.3 0.2 0.3 0.3 0.4 
 5 Chemicals and related products  6.7 6.6 7.2 7.3 8.2 7.9 
 6 Manufactured goods classified by material  18.1 18.1 24.0 18.4 18.7 18.6 
 7 Machinery and transport equipment  31.1 23.9 21.2 26.9 26.8 26.6 
 8 Miscellaneous manufactured articles  16.0 23.4 19.9 21.1 17.1 16.2 
 9 Commodities and transactions not classified elsewhere 
in SITC  0.5 - 0.2 0.4 0.6 0.6 
 
- Trade share lower than 0.05%.  
 
Source: Eastern Caribbean Central Bank online information. Viewed at : http://www.eccb-centralbank.org/ 
Statistics/index.asp. 
 WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 291 - 
 
 Table A1. 3 Merchandise exports and re -exports by trading partner, 2007-12  
(US$ million and %)  
Description 2007  2008  2009  2010 2011 2012  
Total exports and re-exports 51.1 60.1 47.3 51.8 60.5 61.5 
 (% of exports and re-exports) 
 America 96.0 94.3 97.3 95.3 96.8 .. 
  United States 86.6 84.7 81.0 74.0 81.8 .. 
  Other America 9.4 9.6 16.2 21.3 15.1 .. 
   Antigua and Barbuda 1.8 1.5 4.0 2.9 3.1 .. 
   Trinidad and Tobago 0.5 0.4 0.5 1.9 2.6 .. 
   St Lucia 0.8 1.0 2.3 3.5 2.4 .. 
   Dominica 1.2 0.4 0.9 1.9 2.2 .. 
   Grenada 0.4 1.2 0.6 1.6 1.2 .. 
   St Vincent and the Grenadines 0.9 0.5 1.5 1.6 1.0 .. 
   Anguilla 0.5 0.4 1.1 1.0 0.7 .. 
   Montserrat 0.3 0.4 1.1 0.7 0.7 .. 
   British Virgin Islands 0.3 0.5 0.3 0.7 0.4 .. 
   Barbados 0.5 0.7 0.6 2.1 0.3 .. 
   Panama 0.0 0.0 0.0 0.8 0.2 .. 
   Canada 0.1 0.1 0.3 0.3 0.1 .. 
   Belize 0.1 0.0 0.0 0.0 0.1 .. 
   Dominican Republic 0.0 0.0 0.0 0.0 0.1 .. 
 Europe 3.5 5.3 1.6 1.8 1.8 .. 
  EU(27) 3.4 5.2 1.6 1.7 1.8 .. 
   France 1.0 0.6 0.5 0.7 1.3 .. 
   United Kingdom 2.3 4.5 1.0 0.7 0.2 .. 
   Germany 0.0 0.1 0.1 0.1 0.1 .. 
   Netherlands 0.0 0.0 0.0 0.1 0.1 .. 
  EFTA 0.0 0.1 0.0 0.0 0.0 .. 
  Other Europe 0.0 0.0 0.0 0.0 0.0 .. 
   Albania 0.0 0.0 0.0 0.0 0.0 .. 
 Commonwealth of Inde pendent States (CIS)a 0.0 0.0 0.0 0.0 0.0 .. 
 Africa 0.0 0.0 0.2 0.0 0.0 .. 
 Middle East 0.0 0.0 0.0 0.0 0.1 .. 
   Qatar 0.0 0.0 0.0 0.0 0.1 .. 
 Asia 0.5 0.4 0.0 0.6 0.1 .. 
  China 0.0 0.0 0.0 0.0 0.0 .. 
  Japan 0.5 0.3 0.0 0.0 0.0 .. 
  Six East Asian Traders 0.0 0.0 0.0 0.1 0.0 .. 
  Other Asia 0.0 0.0 0.0 0.5 0.1 .. 
   United States minor outlying islands 0.0 0.0 0.0 0.5 0.0 .. 
 Other 0.0 0.0 0.9 2.3 1.2 .. 
 
.. Not available. 
a Commonwealth of Independent States (CIS) includes Armania, Azerbaijan, Belarus, Georgia, 
Kazakhstan, Kyrgyzstan, Moldova, Russian Federa tion, Tajikistan, Turkme nistan, Ukraine, and 
Uzbekistan. 
 
Note: Shares are based on UNSD Comtrade data. 0.0% in the table represents negligeable trade. 
 
Source: UNSD, Comtrade database (SITC Rev.3); and Eastern Caribbean Central Bank online information. 
Viewed at: http://www.eccb-centralbank.org/ Statistics/index.asp. 
 WT/TPR/S/299 • Saint Kitts and Nevis 
 
- 292 - 
 
 Table A1. 4 Merchandise imports by trading partner, 2007-12  
(US$ million and %)  
Description 2007  2008  2009  2010 2011 2012  
Total imports 272.2 324.8 285.1 268.0 248.0 225.6 
 (% of imports) 
 America 84.0 86.2 87.1 86.8 86.4 .. 
  United States 58.8 61.0 66.1 68.0 67.3 .. 
  Other America 25.1 25.2 21.0 18.9 19.1 .. 
   Trinidad and Tobago 10.8 11.5 7.7 6.5 6.3 .. 
   Canada 3.0 2.1 1.6 2.0 2.2 .. 
   Jamaica 0.7 1.1 1.9 1.4 1.6 .. 
   Dominican Rep. 1.7 1.7 1.1 1.1 1.1 .. 
   Barbados 1.6 1.7 1.3 1.3 1.1 .. 
   St Vincent and the Grenadines 0.5 0.6 0.6 0.6 0.9 .. 
   Grenada 0.5 0.6 0.7 0.6 0.8 .. 
   Guyana 0.5 0.5 0.5 0.6 0.6 .. 
   Brazil 0.5 0.4 0.5 0.4 0.6 .. 
   Mexico 0.3 0.3 0.2 0.4 0.4 .. 
   Colombia 0.7 0.2 0.3 0.3 0.4 .. 
   Dominica 0.5 0.4 0.3 0.3 0.3 .. 
   St Lucia 0.3 0.3 0.3 0.3 0.3 .. 
   Peru 0.4 0.4 0.6 0.2 0.3 .. 
   Costa Rica 0.1 0.2 0.1 0.2 0.2 .. 
   Panama 0.4 0.5 0.3 0.3 0.2 .. 
   Antigua and Barbuda 0.8 0.3 0.2 0.2 0.2 .. 
   Bahamas 0.0 0.0 0.0 0.0 0.1 .. 
   Argentina 0.1 0.0 0.2 0.1 0.1 .. 
   Chile 0.1 0.1 0.2 0.2 0.1 .. 
 Europe 8.9 7.2 7.5 7.3 7.1 .. 
  EU(27) 8.6 6.5 6.9 7.0 6.7 .. 
   United Kingdom 3.6 4.5 4.2 2.6 4.1 .. 
   France 0.7 0.5 0.4 0.5 0.6 .. 
   Germany 1.7 0.1 0.2 2.8 0.5 .. 
  EFTA 0.3 0.6 0.4 0.3 0.2 .. 
   Switzerland 0.3 0.4 0.3 0.3 0.2 .. 
  Other Europe 0.0 0.1 0.2 0.1 0.1 .. 
   Albania 0.0 0.0 0.1 0.1 0.1 .. 
 Commonwealth of Inde pendent States (CIS)a 0.0 0.0 0.0 0.0 0.0 .. 
 Africa 0.1 0.1 0.1 0.1 0.1 .. 
   Algeria 0.0 0.1 0.0 0.0 0.0 .. 
 Middle East 0.0 0.0 0.1 0.0 0.1 .. 
   Israel 0.0 0.0 0.1 0.0 0.1 .. 
 Asia 7.0 6.4 5.2 5.7 6.3 .. 
  China 1.3 1.1 0.9 1.1 2.5 .. 
  Japan 3.7 3.0 2.5 2.6 2.1 .. 
  Six East Asian Traders 1.4 1.6 1.0 1.2 0.8 .. 
  Other Asia 0.6 0.6 0.8 0.7 0.9 .. 
   India 0.2 0.2 0.3 0.3 0.3 .. 
   Indonesia 0.2 0.2 0.2 0.2 0.2 .. 
 Other 0.0 0.0 0.0 0.0 0.0 .. 
 
.. Not available. 
a Commonwealth of Independent States (CIS) includes Armenia, Azerbaijan, Belarus, Georgia, 
Kazakhstan, Kyrgyzstan, Moldova, Russian Federa tion, Tajikistan, Turkme nistan, Ukraine, and 
Uzbekistan. 
 
Note: Shares are based on UNSD Comtrade data. 0.0% in the table represents negligible trade. 
 
Source: UNSD, Comtrade database (SITC Rev.3); and Eastern Caribbean Central Bank online information. 
Viewed at: http://www.eccb-centralbank.org/ Statistics/index.asp.