Ashford W. Meikle, Staff Reporter
Anthony Haynes (left), general manager of Caribbean Cement Company Ltd., chats with Phillip Paulwell, Minister of Commerce, Science and Technology, shortly after a press briefing on the import regime for cement at the Commerce Ministry offices at the PCJ Building, New Kingston yesterday. - RUDOLPH BROWN/CHIEF PHOTOGRAPHER
EFFECTIVE IMMEDIATELY the Government has temporarily waived the safeguard duty of 25.83 per cent on imported cement.
Phillip Paulwell, Minister of Commerce, Science and Technology, made the announcement yesterday at a hastily convened press conference at the Commerce Ministry's offices at the PCJ Building, New Kingston.
"Cabinet considered the matter ... and agreed that [for] the importation of cement ... the additional 25.83 per cent will be waived," Mr. Paulwell said.
With the temporary waiver, eligible importers will only pay the CARICOM Common External Tariff (CET) of 15 per cent.
The safeguard duty was first implemented in July 2004, on the recommendation of the Anti-Dumping and Subsidies Commission, based on a complaint filed by Caribbean Cement Company Limited (CCCL) that foreign cement was being 'dumped' on the Jamaican market. The Commission agreed with CCC, arguing that the duty was necessary to protect the domestic cement industry.
The waiver will be in effect for six months, until August 31, with a mid-term review at the end of May. However, it will not be applicable to Carib Cement.
According to Paulwell, the decision was reached because "the Trade Board advised ... that its monitoring and analysis indicated that [Carib Cement] would be unable to keep pace with the robust demand in the construction sector for this year."
In fact, last October, bedevilled by a three-day labour strike and heavy rains associated with Hurricane Wilma which damaged its stockpiles and raw materials, CCCL announced its intention to import 40,000 metric tonnes (MT) of cement to plug the shortfall in the market. To date it has imported just under 30,000 MT.
UNABLE TO SATISFY DEMAND
But Mr. Paulwell's announcement comes amid recent calls by a number of businessmen and the Jamaica Masterbuilders Association for the Government to review its tariff policy on imported cement since Carib Cement has been unable to satisfy the demand.
"I am not surprised ... it was bound to happen at some point in time, because Carib Cement cannot support the Jamaican or Caribbean market," said Jodie Myrie, vice president of Mainland International. Mainland was the main competitor to Carib Cement but ceased importing cement two years ago when the Safeguard duty was implemented.
Still, Myrie warned that the duty waiver will hardly change things. "It is going to be very difficult for any person to import cement into the Jamaican market and sell at the price at which cement is sold in Jamaica because of the high freight and energy costs."
He said this was because of the worldwide shortage which would see international suppliers selling to the highest bidder.
PROCEDURE
The Ministry of Finance and Planning will issue duty concession letters to importers who wish to access the lower duty.
Without this letter importers will not qualify for the concessionary duty.
The Trade Board will process applications and make the appropriate recommendations to the Finance Ministry.
IMPORTERS
To benefit from the duty waiver cement importers must establish:
A confirmed commitment from the overseas cement supplier.
That the proposed imports meet Jamaica's mandatory quality specifications as set out by the Bureau of Standards, that is, pertaining to Portland cement.
