Barbados · GOVERNMENT
Key Facts
- —What happened Barbados lost more than US$1.5 billion in customs revenue from 2023 to July 2026.
- —How big The loss is over half the US$2.73 billion the Customs department collected in the same period.
- —The real story The figure combines lawful concessions and waivers with suspected fraud; no breakdown is published.
- —The catch The loss is a reported estimate, not an audited figure, and no arrests or prosecutions are mentioned.
- —Who it hits The Barbados Customs and Excise Department, led by acting head Lynette Padmore, reported the data.
- —What comes next The IMF says over 7,000 waivers cost 5.8% of GDP yearly; a monitoring unit was announced but unconfirmed.
The loss covers concessions, waivers, and suspected fraud. It equals more than half of Customs’ collections in that period.
Barbados customs revenue took a heavy hit between 2023 and July 2026, with losses topping US$1.5 billion. Barbados Customs collected about BDS$5.46 billion (US$2.73 billion) in that period.
However, over BDS$3 billion (over US$1.5 billion) was lost to concessions, waivers, and suspected evasion.
Customs Revenue Losses Explained
Barbados customs revenue is the money the Customs and Excise Department collects from duties, excise, and border taxes on imports. The department’s acting head, Lynette Padmore, shared the figures with the public through Barbados Today.
The loss is a combined figure, covering lawful concessions and waivers as well as suspected fraudulent practices. No breakdown has been published, so it is unclear which part is largest.
The collections totaled BDS$5.46 billion (US$2.73 billion) from 2023 to July 2026. However, the loss of more than BDS$3 billion (more than US$1.5 billion) was reported by Padmore.
The loss figure covers the period from 2023 to July 2026, matching the collections period. However, no breakdown has been published, so the exact share from each category remains unknown.
Barbados Customs Revenue Peg Impact
The Barbados dollar, written BDS$ and coded BBD, is the national currency. The rate has long been fixed at two to one.
So every Barbados dollar is half a US dollar. For example, BDS$5.46 billion equals US$2.73 billion, and more than BDS$3 billion equals more than US$1.5 billion.
This fixed peg means the exchange rate does not move day to day. The fixed peg is a policy, not a market rate, so it remains stable.
Therefore, the US dollar figures are always exactly half of the Barbados dollar amounts. The peg is a fixed policy, so the exchange rate does not fluctuate.
As a result, the US dollar amounts are always exactly half of the Barbados dollar figures.
Concessions and Waivers Defined
In short, a concession is a legal reduction in duty or tax owed on imports, granted under government policy. A waiver is a decision to give up the duty or tax altogether on a particular import.
Both are lawful and are not the same as fraud. The Customs department lists them alongside suspected evasion, not inside it.
Concessions are granted for public purposes like investment and development. Meanwhile, waivers are given up entirely, often for sector incentives.
Concessions are legal reductions in duty, while waivers are complete exemptions. Both are granted for public purposes, such as investment and development projects.
Suspected Fraud Practices
Barbados Today described the suspected evasion as fraudulent practices of undervaluation and under-invoicing. By contrast, undervaluation means declaring goods at less than they are worth.
Meanwhile, under-invoicing means presenting an invoice for less than the actual price paid. These practices reduce the duty owed, contributing to the overall loss.
However, no arrests, charges, or prosecutions have been reported in connection with these suspicions. The suspected evasion involves undervaluation and under-invoicing, which are fraudulent.
Still, no breakdown of losses by category has been published. The suspected fraud involves undervaluation and under-invoicing, which are illegal.
Meanwhile, no arrests or prosecutions have been reported, as the statement is preliminary.
IMF Weighs In on Waivers
As a result, the IMF reported that approved waivers exceed 7,000, costing 5.8 percent of GDP per year in foregone revenues. This is a separate measure from the Customs department’s loss figure.
The IMF figure is a share of national output, not a money amount, and covers tax and customs waivers. It should not be added to the Customs loss, as they are different measures from different bodies over different periods.
The IMF’s 5.8 percent of GDP is a separate estimate of waiver costs. In addition, it covers only waivers, not concessions or fraud.
The IMF’s figure of 5.8 percent of GDP is a separate estimate, not a money amount. In addition, it covers only waivers, not concessions or fraud.
Government Monitoring Unit
In addition, the 2024 budget announced plans for a Monitoring and Enforcement Unit to ensure concessions serve their public purpose. The unit would also check that beneficiaries comply with established rules.
As of the budget announcement, the unit was not yet operating. No source confirms that it has been established or is producing results.
The unit was announced in the 2024 budget, but its status is unconfirmed. As a result, no evidence shows it is operational yet.
The unit was announced in the 2024 budget, but its operational status is unconfirmed. As a result, no evidence shows it is currently running.
Graduated Sanctions From 2025
The 2024 budget set a ladder of penalties for beneficiaries who fail to remedy infractions within 90 days. For example, a first-time beneficiary may claim a waiver of up to 75 percent of duties.
Instead, they pay 25 percent for three months. Second and third infractions lead to higher payments, and a fourth infraction results in revocation of status.
These sanctions took effect on January 1, 2025, according to KPMG’s summary of the budget. The sanctions apply when infractions are not remedied in 90 days.
After a fourth infraction, status is revoked for 12 months. The sanctions apply when infractions are not remedied within 90 days.
After a fourth infraction, status is revoked for 12 months.
Requalification for Existing Waivers
The IMF reported that Barbados is implementing an updated governance framework for tax concessions. This includes a time-bound transition for all pre-existing tax and customs waivers to seek requalification.
A modernized duty and exemptions framework has been implemented, requiring all pre-existing beneficiaries to submit for re-qualification in coming years. This is part of the country’s Extended Arrangement with the IMF.
All pre-existing waivers must seek requalification under the new framework. This transition is time-bound and part of the IMF programme.
Customs Revenue Collection at the Border
In 2026, the Customs department’s electronic clearance portal, ASYCUDA, posted a notice about a ‘Letter of Exemption’ requirement. This letter must be uploaded for certain Customs Procedure Codes, such as CPC 820 and CPC 943.
The letter must be addressed to the Comptroller of Customs and cite a specific Ministry of Finance reference. This ensures that exemptions are properly documented at the border.
The notice requires a ‘Letter of Exemption’ for certain procedure codes. This letter must cite a specific ministry reference from March 2026.
The ‘Letter of Exemption’ must be uploaded for certain procedure codes. This letter must cite a specific ministry reference from March 2026.
Frequently Asked Questions
What is the Barbados customs revenue loss?
The loss is more than BDS$3 billion (more than US$1.5 billion) between 2023 and July 2026. It includes concessions, waivers, and suspected tax evasion, as reported by Barbados Today.
Who reported the customs revenue figures?
Lynette Padmore, Acting Comptroller of Customs, provided the figures. Barbados Today published her statement on August 23, 2026.
Are concessions and waivers the same as fraud?
No, concessions and waivers are lawful reductions or eliminations of duties. Fraud involves illegal practices like undervaluation and under-invoicing, which are grouped with the losses but not equated.
What is the IMF’s role in this issue?
The IMF reports on Barbados’s progress under its Extended Arrangement. It noted over 7,000 approved waivers, costing 5.8 percent of GDP per year, but this is separate from the Customs loss figure.
Connected Coverage
Sources: Barbados Today; Barbados Customs and Excise Department; International Monetary Fund; KPMG Barbados budget highlights.
This article was drafted with automated assistance and reviewed before publication. How we use AI · Report an error
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