Soap manufacturer Blue Power Group, says it is working hard to get back into Caribbean markets after being forced to stop exports due to high tariffs. 

The company had been successfully exporting its products to the region up until 2021, but a ruling from the Caribbean Court of Justice (CCJ) made it too expensive to continue.

Speaking on Taking Stock with Kalilah Reynolds, General Manager VJ Tolan explained that at the heart of the issue is a 40% tariff on the raw materials Blue Power imports from Asia to manufacture its soaps. 

The tax is applied when the materials arrive in Jamaica, and when the finished products are exported to the Caribbean, they are hit with another 40% tariff. This double taxation made it nearly impossible for Blue Power to compete in the Caribbean market.

“Our brands are ready to go back global and ready to get back to the Caribbean because there is demand,” Tolan said. “But we can’t get there right now because of the high cost of export.”

The company has taken significant steps to overcome this challenge. One major move was investing in a plant to manufacture the key raw material locally, reducing dependence on imports. 

However, despite having the equipment and capability to produce, Blue Power has faced roadblocks in getting the necessary certificate of origin. This certificate, issued by local authorities, is crucial in proving that the raw materials are sourced locally, which would allow Blue Power to benefit from trade agreements and avoid heavy duties.

Tolan expressed frustration over the long delays. “It’s been over a year now that we’ve been trying to get this in place, and we need to get it done,” he said.

The loss of the Caribbean market was a big hit to Blue Power, accounting for 20% of its revenue at the time. Even though the company has managed to grow in other areas, reclaiming its space in the Caribbean is still a top priority.