Business
Mya Quamie
STAKEHOLDERS including various business chambers greeted the dawn of 2026 with trepidation, dreading the impact of the government-imposed increases in certain costs including higher customs clearance fees, higher cost to register births and deaths and the increase in road traffic fines.
Effective today, January 1, 2026, the standard customs declaration fee will double to $80 while examination fees for 20-foot and 40-foot containers jump from $375 to $750, and $525 to $1,050, respectively.
It is a harsh reality that Pharmacy Board president Andrew Rahaman said he has been dreading.
Calling for exemptions to the increases, Rahaman said it would only exacerbate the already rising cost of medication.
“For many other reasons, the price of medication continues to go up on an ongoing basis and this would just be another instalment. It would add to the price of the landing costs, which will end up being transferred to pharmacies on purchase and then to the customer at the point of sale.
“I think the population could do with some relief…we would really like, for it being such an essential item, for it not to go up. The population has seen many recent increases,” Rahaman told Business Day.
He said these do not come from pharmacies, which have fixed mark-ups but from wholesale suppliers who update prices consistently.
President of the Private Pharmacy Retail Association, Glenwayne Suchit, said while the increased fees could contribute to customs development, it also presents opportunities for profit-driven exporters to increase prices that can even go beyond what they have to maintain revenue.
“A lot of these conglomerates, with the profits that they declare at the end of the year or even quarterly, could easily absorb a 100 per cent increase of those (customs) fees. It all depends on the importer, if they decide to pass on that cost…but generally, a lot of these importers use every excuse to raise their cost,” Suchit said.
He said that on January 26, there will be a meeting with the Customs and Excise Division, National Insurance Property Development Company Limited (Nipdec) and the Health Ministry’s Chemistry, Food & Drugs Division to assess practices that encourage these price increases as well as the monopolistic practices of some big pharmaceutical companies.
Suchit and other stakeholders are also anxiously awaiting the launch of the online drug database that would allow for better transparency in customs transactions.
TT Manufacturers Association (TTMA) CEO Dr Mahindra Ramdeen also expressed concern about the economic impact of the increases which come into effect today.
“While we recognise the importance of efficient cargo examination and border security, raising the examination service cost on an already strained system will disproportionately impact the manufacturing sector,” Ramdeen said.
The chamber voiced similar concerns saying the changes risk becoming just another cost burden if there aren’t service-level improvements.
In a statement on December 30, the chamber said its concern is amplified by the cumulative impact of other cost increases on small and medium enterprises that struggle to absorb added costs.
“These costs may also feed into the broader economy by contributing to higher consumer prices and inflationary pressure.”
The chamber said it is engaging with members to develop an impact assessment of all recent and proposed cost increases.
Effects were already recorded in the chamber’s Business Outlook Index for the final quarter of 2025, where the percentage of employment opportunities in accommodation and food services was affected by a spike in duties on alcohol in October.
In a December 29 interview, president of the San Fernando Chamber of Industry and Commerce Kiran Singh told Business Day the increased costs could affect small traders.
“The ones who import barrels and the less-than-container-load type of importers, they would have to address the increased costs.” He said the chamber is not sure if the rise in customs clearance and examination fees will be passed to consumers.
“They haven’t been enacted as yet. I think there might be some review by traders on their operational expenses and how they will treat with customers upon clearing of the goods. It hasn’t happened as yet, we might have to wait and see how that will unfold over time.
“I think those charges are minimal from what I understand, unless you are bringing in goods that are on the CET (Common External Tariff) list and it attracts more duty than clothing, apparel and footwear.
“The very small trader (like private individuals) will have to pay more, that’s a reality of trade, unfortunately.”
He said despite the doubling, the fees still remain on the lower end of an importer’s expenses, and should be considered with operational expenses in mind. He said he hopes the changes will enhance productivity.
He noted the standard complaints about shipping delays, especially around the Christmas season and hopes for a positive, permanent solution to the issues faced in importing to ensure maximum profit and efficiency.
TT Coalition of Services Industries (TTCSI) president Dianne Joseph said these increases must be viewed in the context of government’s requirement to balance income against rising operational costs.
“While fee increases are never ideal, the incremental cost relative to total cargo value remains manageable. However, we maintain that revenue increases must be matched by service improvements,” Joseph told Business Day.
We urge the Government to implement robust mechanisms to ensure these higher fees translate into greater efficiency and faster turnaround times at our ports. Such improvements would yield long-term benefits for trade and the wider business community.
President of the Couva Point Lisas Chamber of Commerce Deoraj Mahase said those improvements are already bearing fruit. He said recent progress in strategies and processes should be the fees should help customs operations.
“It is going to go a long way. Improvement is coming…and people are already seeing it. For this Christmas period, compared to last year, how many complaints have you heard from those who have been clearing cargo?
“…yes it is more…but if you’re getting your cargo in an hour instead of five, the impact to the economy, business community and everybody else is going to be much more than some small fees,” Mahase said.
Rising costs in automotive sector
Adjustment to the Motor Vehicles Act did not only remove tax exemptions from luxury electric vehicles but also raised the age limit for imports. Per the notice, you can now purchase a CNG vehicle up to eight years old.
But the TT Automotive Dealers Association went as far as appealing to the trade minister to not extend it past six years. President Visham Babwah warned of the potential impact on consumers who choose to go the older, cheaper route.
– Angelo Marcelle
“The public is not aware of the pitfalls that could happen with these vehicles. You are bringing in a vehicle that is three models off…which is a pretty old car.”
Babwah said that association is not against the public accessing cheaper cars but is concerned with the quality and emissions of aged imports.
He said modern vehicles are built less durably, and there are no systems in place to assess the road-worthiness of older vehicles.
“We are calling trouble to this country in the automotive sector. You will see it. People will have to spend thousands to get batteries and a lot of stuff sorted out for their car. It is of great concern to me knowing the work we have done for the automotive industry and the foreign used car sector.”
Babwah said none of the shipping lines are willing to import the used batteries for older cars and consumers might be forced to buy new batteries.
“Which will really cause the vehicle price to go up when they could have gotten a newer vehicle for cheaper or the same price.”
Despite concerns, Babwah welcomed the idea of a fairly implemented 30 per cent quota increase for all stakeholders.
In the spirit of fairness, he also called for revisions to increased minor traffic fines. While supporting doubled penalties for serious infringements, he appealed for the public to have some leeway in other areas.
Motorists will now have to pay $2,000 for offences such as defective windscreens, wipers, mirrors and dripping oil.
“Officers would have to use their discretion and that is not something we must leave to the individual because it could be abused.
“…if somebody has a crack on their windscreen, maybe they couldn’t get it replaced because a lot of the time there are shortages in parts of the country…or for example, you are driving and you have a blown tail light, sometimes these things happen. And you don’t know.”
He suggested a revision and the use of digital systems at the licensing office to give drivers a grace period for getting minor repairs done.
TTCSI president Joseph also called for responsible enforcement of the new traffic fines.
“Enforcement should never be viewed as an arbitrary ‘income earner’ at the expense of innocent citizens. Those tasked with policing our roadways must act with the highest level of integrity.
“We advocate for a system where due diligence is exercised before a citation is issued, ensuring that every action is grounded in fairness and factual evidence.”