House passes Customs Management & Duties Bill

The House of Assembly has passed the Customs Management and Duties (Amendment) Bill 2025, aimed at encouraging local ownership and longer vessel stays in the Virgin Islands’ marine sector.

Premier Dr Natalio Wheatley introduced the bill, explaining that it was crafted to “refine and modernise aspects” of the existing customs legislation in line with the needs of the BVI’s growing maritime economy. The bill seeks to extend duty-free periods for certain vessels and provide exemptions for locally owned boats registered under BVI companies.

“This legislative initiative focuses on key adjustments aimed at fostering a more competitive and supportive environment for Virgin Islands businesses operating within the maritime sphere,” Dr Wheatley stated.

A key provision in the bill allows vessels owned by BVI residents and registered abroad to remain in the territory for up to 180 days duty-free. This is a significant increase from previous thresholds, which, according to the Premier, discouraged long stays.

“Because these individuals, based on the value of the boat, would incur duty, it would discourage them from staying,” he explained. “We would ensure that the vessel would not become dutyable for a full six months.”

Debate on the bill raised concerns about whether enough was being done to incentivise local individual boat owners. Opposition legislator Ronnie Skelton questioned whether the legislation unfairly favoured BVI-registered companies over individual residents trying to enter the marine industry.

“If you buy a second-hand boat, you end up paying duty,” Skelton argued, suggesting that individual investors might be put at a disadvantage. He called for clearer incentives for “local boat owners to want to buy a boat and keep it here in the Virgin Islands.”

In response, Dr Wheatley acknowledged the concern and said it would be addressed at the private committee stage of the legislative process. He said the legislation aligns with efforts to support both tourism and financial services by encouraging vessel registration through BVI companies.

“Whatever we can do to get our persons involved in the maritime industry— which is our bread and butter — we should be willing to do,” Dr Wheatley stated.

He credited the Maritime and Shipping Authority for proposing changes to support the financial services industry and praised the collaborative efforts behind the bill’s development.

The bill passed after minor amendments were made in the committee stage, with full support from the government bench. Dr Wheatley said he hopes the legislation will strengthen the BVI’s position as a premier maritime jurisdiction and generate new opportunities for residents.