How to Slash Lead Times & Hidden Costs When Buying Medical Supplies in The Bahamas
Goal: Drive inbound requests for a Cost & Lead-Time Audit from hospital and clinic buyers.
Executive Snapshot
Bahamian buyers overpay by up to 40% and wait weeks longer than necessary because of five solvable frictions.
Fixing HS-code errors, pre-clearing in Click2Clear, switching to pallet contracts, using CARPHA’s 90-day fast-track, and correctly zero-rating medicines can cut landed costs by 15% and lead time by 30% — even during hurricane season.
1. The Hidden HS-Code Trap
- Mis-declared HS codes lead to unnecessary duties (e.g., HS 9018 vs 9027).
- Pro Tip: Simulate duty in Bahamas Customs’ online Tariff-Search before issuing a Purchase Order (PO).
2. Click2Clear Pre-Clearance
- Regulation 26(2) allows electronic customs entries before arrival.
- Brokers can save 24-48 hours and avoid demurrage fees.
3. Freight Math
| Mode | Transit Time | Cost (300 lb) | Source |
|---|---|---|---|
| Ocean Pallet | 3-4 days | US $75 – 125 | Bahamas source |
| Courier Box | 2-3 days | ≥ US $520 | FedEx Public Tariff |
4. CARPHA Fast-Track
- The CARPHA CRS issues import decisions in ≤ 90 days.
- Cuts months off first-time imports.
5. VAT & Zero-Rating
- Since 2018, most prescription and over-the-counter medicines are zero-rated for VAT.
- Correct application can significantly reduce landed costs.
6. Hurricane-Season Playbook
- Maintain a 30-day supply buffer.
- Use duty-rebated local warehousing to protect against supply disruptions during storms.
7. Action Checklist
- Run an HS-code audit
- Pre-clear shipments using Click2Clear
- Adopt pallet-based freight contracts
- Utilize the CARPHA CRS for faster regulatory clearance
- Apply zero-rated VAT for eligible medicines
- Build 30-day supply buffers for hurricane season
Result:
- 15% cheaper landed cost
- 30% faster delivery
Author: Janae Hudson – CEO