THE ANTI-DUMPING and Subsidies Commission has recommended an immediate combined
40 per cent tariff on the importation of Portland Grey Cement, despite continuing
arguments about the Caribbean Cement Company Limited's (CCCL) request for Government
to raise the Common Export Tariff (CET) to 50 per cent.
The Commission, which has been investigating the CCCL's complaint that imported
cement is hurting the local industry, yesterday made its preliminary determination
that "a provisional safeguard measure should be imposed in the amount of
25.83 per cent."
As of today, that measure could be added to the already existing 15 per cent
tax. It would then remain in effect for 200 days or, according to the Commission,
until the Beverley Morgan-chaired executive agency "accepts an undertaking,
suspends or terminates the investigation, or makes a final determination."
In its investigations, which were initiated in October after the CCCL's complaint
was filed a month earlier, the Anti-Dumping Commission said it found that "the
investigated product has been imported into Jamaica in such increased volumes
as to cause injury and threat of serious injury to the domestic industry, and
thus constitute a threat to the viability of the domestic industry."
In a further explanation of the safeguard measures implemented, the Commission
said it had determined a rate of duty that brought the importers' costs in line
with the CCCL's ex-factory price.
"The Commission was mindful of the need to recommend a safeguard measure
that would preserve competition and would not translate into higher prices to
the consumer," it said.
The Commission indicated that its recommendation was made to the Ministry of
Commerce, Science and Technology, and that the new measures would be put in
place 'pursuant to Sections 17 and 20' of the Safeguard Act. In October, the
CCCL almost had its way when Dr. Omar Davies, Minister of Finance and Planning,
attempted to pass amended customs legislation, through the House of Representatives,
which would have led to the increase.
But the Finance Minister met stiff opposition from the other side of the House
when Oppo-sition MP Karl Samuda suggested there was a danger of over protection,
leading to higher prices. The debate on the legislation was suspended and the
Finance Minister was expected to return to the House with additional information.
He has not yet done so.
Since then the CCCL and its chief competitor, Mainland, have fought an advertising
war in the media, putting forward their arguments for and against the increased
tariff, respectively.