Samuda extends CET waiver on cement importation
Industry and Trade Minister Karl Samuda has extended a waiver of the Common External Tariff (CET) on cement importation for another six months to allow 240,000 tonnes to be imported into the island.
“We expect to be in good shape in respect to the supply of cement in the future,” he told journalists at a press briefing held yesterday at the ministry’s headquarters on St Lucia Avenue in Kingston.
The decision, Samuda said, was taken in consultation with manufacturers, Caribbean Cement Company, importers and other stakeholders in the industry.
“We are not applying the CET to ensure that we do not run short of cement,” said Samuda.
In the aftermath of tainted cement being supplied to the market by the monopoly Carib Cement and a subsequent shortage, Government in early 2006 waived a 40 per cent anti-dumping tariff to allow the importation of the product for two years.
“That waiver expired on September 9,” Samuda said yesterday.
The waiver was intended to ensure the availability of cement while Carib Cement completed upgrading at its Rockfort plant.
Samuda added that while there was currently no shortage of cement, Carib Cement would not be “up and running” in another six months to be able to supply the projected demand.
Pointing to a lack of confidence in Carib Cement’s ability to satisfy demand, Samuda said that the company in the past had not fulfilled its obligations to supply sufficient quantities of cement to the construction industry.
“In almost all cases in the past, they have fallen short,” the minister said.
Meanwhile, the minister said preparatory work had begun on the establishment of a proposed industrial park on the Caymanas lands.
“We are now in the process of doing final surveys and the application for a change of use,” he revealed.
According to Samuda, the industrial park will be connected by rail to the wharf and will also accommodate the aerodrome which will be removed from Tinson Pen.
The project, he said, should cost approximately $2.5 billion but he was unable to give a specific timeline on the start of project, saying only that it would be done in phases.
The minister also announced that the Bureau of Standards Jamaica would be upgraded and that the Factories Corporation would be pushing for the sale of factory space owned by the corporation, instead of long-term rentals.
“We are not intended to be landlords indefinitely,” said Samuda.
He argued that the factories were established for manufacturing and were not to be used as warehouses for people involved in trading. Instead, he said the factory space should be sold to business people with a provision that it be used for the purpose it was intended.
“We are not providing warehouse space,” Samuda said.