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Cement saga takes new turn - 40% tariff on imported brand
published: Tuesday | December 16, 2003

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.

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