By Trudy Simpson, Freelance WriterTHE JAMAICA Manufacturers' Association (JMA) said on Monday it will continue to lobby for changes in new security inspection fees demanded by the Port Authority of Jamaica (PAJ) to recoup more than US$50 million spent on improving port security.
"It's another way of taxing production. We are going to continue lobbying to see if we can get some compassion," said Doreen Frankson, president of the JMA. "I'm going to be talking to the Port Authority again and see what happens."
A notice from Kingston Wharves Limited (KWL) indicated that effective May 1, 2004, exporters, importers and other interests will have to pay fees ranging from US$2.50 to US$537 for inspection of containers or unit, per wharf ton or part thereof.
Beverley Lopez, head of the Private Sector Organisation of Jamaica (PSOJ) also said her organisation will be seeking to have more talks with Ports Authority of Jamaica (PAJ) head, Noel Hylton, whose office indicated he is off the island.
In the meantime, the fees will be paid, she said.
"A fee has been posted. We have no choice but to pay it for the time being," Mrs Lopez said.
Grantley Stephenson, managing director of Kingston Wharves, which is collecting the fees on behalf of the PAJ, said there were no problems collecting fees on Monday, and no reports of any party refusing to pay the fees.
FEES TOO HIGH
While business interests said they understood and supported the need for improved security and the introduction of the fee, they added that the fees, as first proposed, are too high.
On Sunday, Ms. Frankson asserted that the high fees were linked to the short recovery period set up by the PAJ, which, she said, wants to recover costs in four years. She said business interests have suggested the recovery period be extended to seven years, which would mean a reduction in the fees.
"It's going to affect exporters badly," said Ms. Frankson. "One of our members say that the new fee will cost him an additional US$100,000 per year. We object very strenuously... It represents an additional cost which will affect our competitiveness," she added.
A customs broker also told The Gleaner that he was worried the new fees will lead to a decrease in the number of barrels and other items coming into the island. He has also objected to the length of notice given, stating the PAJ should give various interests, both local and overseas, at lest 30 days notice of such fees.
The notice outlined that "the acquisition of container X-ray equipment enables inspection of containers entering and leaving our major ports with minimum delay."
