The Marine Association of the BVI has strongly condemned a series of proposed legislative amendments that would significantly increase fees and regulatory burdens on vessels operating in BVI waters.
The association in a position paper submitted to the BVI Government on Thursday, February 5, warned that these changes, which have already led to economic retaliation from the United States Virgin Islands (USVI), will cripple the marine industry.
The bills—the Customs Management and Duties (Amendment) Bill, 2024, the Commercial Recreational Vessels Licensing (Amendment) Bill, 2024, and the Cruising and Home Port Permit (Amendment) Bill, 2024—are seen by the association as an attempt to limit USVI-based vessels from operating in the BVI rather than improving the business environment for local operators.
Concerns Over Burdensome Regulations & Increased Fees
The Marine Association argued that the amendments would further complicate an already outdated regulatory system while drastically raising fees. Instead of encouraging business growth, the association says the changes will hinder operations for both local and foreign operators.
The association had previously advocated for a streamlined regulatory structure that would allow for marginally higher fees in exchange for simplified processes, but instead, the outcome has been the opposite. The association highlighted key concerns, including:
- Unfair Targeting of USVI Companies – The amendments appear to disproportionately impact USVI vessels rather than strengthening the BVI’s marine industry.
- Excessive Fee Increases – The drastic rise in fees could make it unsustainable for vessels to operate in the BVI, leading to a drop in revenue for local businesses that rely on marine tourism.
- Lack of Industry Consultation – Many stakeholders were unaware of the amendments or did not fully understand them, with some hesitant to provide feedback due to fears of repercussions.
- Risk to the BVI’s Competitiveness – Instead of making the BVI more attractive to the marine sector, the amendments place additional obstacles that could drive business away to competing markets.
USVI Responds with Proposed 25% Tariff on BVI Imports
The proposed changes have not gone unnoticed by the USVI government, which has moved swiftly to respond. USVI Governor Albert Bryan Jr. recently called for an emergency meeting with the Virgin Islands Legislature to deliberate on imposing a 25% tariff on imports from the BVI.
The tariff proposal is seen as direct retaliation for the BVI’s legislative amendments, which heavily impact USVI-based charter companies. USVI officials argue that the BVI’s approach creates an imbalance in cross-border trade and unfairly disadvantages USVI businesses operating in the region.
BVI Gov’t in talks with USVI
Acting Premier and Minister for Communication and Works, Hon. Kye Rymer has since responded to the matter, noting that his government has begun discussions with the USVI administration regarding the proposed 25% tariff on goods imported from the BVI.