By Al Edwards, Financial EditorA SHIPMENT of imported blended cement from Egypt bound for local supplier Mainland International has sparked a heated war of words as to what tariff applies to blended cement and Portland cement.
Mainland imported 36,500 tonnes of cement at a cost of approximately US$4 million from an Egyptian supplier. The shipment arrived at Port Esquivel, St Cathrine on the 4th of April, 2004 and Mainland attempted to comply with the usual Customs procedures only to be told that there would be a 24 hour delay while Customs determined what tariff should be applied and the quality of the product.
A Mainland spokesperson speaking Wednesday Business yesterday said: "We expected to pay some J$30 million to clear the cement only to be told by Customs after a few days that we would have to pay J$103 million. We maintain that a tariff duty should not apply to blended cement. Tariff code 2523.291 applies to building cement which was gazetted whereas tariff code 2523.90 applies to blended cement."
It transpires that all cement imported is Portland cement but it is the chemical composition that determines what type of cement is being imported. The shipment in question was subjected to two tests by the Bureau of Standards, one to determine whether it was fit to enter the country, and secondly, a chemical test to establish the type of cement coming into the country. The imported cement passed both tests with the Bureau of Standards deeming it fit to leave the ship bound for Mainland's premises.
NOT SATISFIED
However, Customs was not satisfied, subjecting the cement to its own testing. " "This further testing by Customs undermines the authority of the Bureau of Standards and means that an importer can bypass the Bureau and appeal straight to Customs.
"What if Customs had determined that it was a regular Portland Type 1 cement, would it pursue further testing, or simply accept the results? Right now we cannot sell this cement because of this stance by Customs and it is costing us millions to just keep it stored at Mainland's warehouse in Hayes, Clarendon. This incident has already cost us US$350,000 in demurrage."
The Director of the Bureau of Standards, Dr. Omer Thomas said: " We conducted our test in early April and found that the imported cement you mentioned is a blended cement. Now if what is reported by the client (Mainland) is true, that Customs has ignored out test and conducted one of its own, it will set a dangerous precedent which means importers can ignore tests conducted by the Bureau and appeal to some body that doesn't have the authority to conduct tests.
"The laboratory used by Jamaica Customs is not internationally recognised, is not accredited, nor is it certified. It is not a member of the laboratory network of the Inter-American metrology system. The laboratory we use is the only certified IS017025 in the Caribbean. Our results are traceable to the primary standards in France which is the Bureau of International Weights and Measurements.
"Today (Tuesday) we have detained a shipment of Black & Decker irons because they are contaminated with lead and are not properly labelled. Does this mean that someone can bypass our test and pronounce these irons fit for public use? Customs may well be extra vigilant in ensuring that dumped cement does not come on to the Jamaican market and so would subject imported cement to rigorous testing. Only last month the Anti-Dumping and Subsidies Commission (ADSC) took the decision to impose a 96.27 per cent tariff on Chinese cement. A Government delegation from the People's Republic of China said last week that the decision was unfair and they are prepared to contest it. Attempts to ascertain a comment on this matter from Jamaica Customs were unsuccessful.
