MINISTER of Industry, Investment and Commerce, Anthony Hylton, says his ministry is preparing to launch the Automotive Repair and Re-certification Initiative (ARRI) during 2015/16.

Speaking in the sectoral debate in the House of Representatives recently, Hylton said the new regime will allow repairs to imported damaged motor vehicles, and the re-manufacturing of automotive parts being accommodated in the special economic zones (SEZs).

He said certified entities will be granted special approval to trade in the damaged vehicles and re-manufactured auto parts.

“The approval process will facilitate a greater level of control, monitoring and order in the industry, through the use of modern technology and appropriate regulation,” Hylton stated.

“We are convinced that establishing the trade in damaged vehicles, through the SEZ model, will present a viable commercial opportunity, given the considerable markets of Latin America and the wider Caribbean,” he continued.

According to Hylton, ARRI, like the re-opening of scrap metal trade, will require that the government create the appropriate facilitatory and regulatory structures. However, he said that it will be up to private capital to make business decisions on whether to assume the commercial risks.

“Early indications of interest in this emerging sector are positive,” he assured.

He said that the ministry’s launch of the initiative during the current fiscal year, will represent a “big move forward” in terms of employment creation. He pointed out that his ministry wants to position Jamaica as a regional hub to supply repaired and re-certified motor vehicles to near shore markets.

He also said that the removal of the ban on the importation of the damaged vehicles, when properly structured will stimulate the local automotive industry.

Currently, under the Motor Vehicle Import Policy, which came into effect in April, 2014, the importation of motor vehicles considered to be in a damaged or salvaged state is prohibited, irrespective of: the extent of the structural damage; whether the damage was caused through flooding or any other natural disaster; and whether the damage occurred in transit or not.

The Government may, however, vary the guideline depending on, among other factors, the micro and macro-economic issues guiding policies at specific times.

Last year, a special task force was established to examine the current importation ban, resulting from representation made by stakeholders, as well as recognition of the positive impact damaged motor vehicle importation could have on Jamaica’s logistics-centred economy.

Hylton said that the task force would determine if it should be lifted. He said that several areas were identified which required attention, including: determining the likely positive or negative consequences; outlining a set of strategies and best practices that would lay the foundation for lifting the ban, with due consideration to the concerns of different interest groups; and addressing any deficiencies associated with the previous regime.