Gov’t Halts Export Of Scrap Metals

KINGSTON — The Ministry of Industry, Investment and Commerce, has halted all exports of scrap metal from Jamaica, until the issue of breaches of an earlier suspension are cleared up.

Minister of Industry, Investment and Commerce, Hon. Dr. Christopher Tufton, said that the decisionfollows the breach of a Cabinet Order stipulating that companies eligible to export scrap metal must receive a permit from the Trade Board.

“I had asked yesterday for a suspension of any export until the matter is properly cleared up, and we do not expect it to take long to clear up this matter up,” he said.

Dr. Tufton, who was speaking at a press conference at his Ministry on Tuesday (November 1), said queries with the Jamaica Customs Department have revealed that eight entities have been exporting scrap metal, although only one permit was granted by the Trade Board.

The press conference was in response to allegations of back door deals, relating to the export of scrap metal.

He said that, to date, the Trade Board has received only one licence request, and has granted the permit, to Crown Packaging. However, when the Ministry checked with the Customs Department, to determine whether or not other scrap metal dealers or entities that generate scrap were involved, it was sent a list indicating that eight companies were, in fact, exporting scrap metal.

“For that to have taken place and the Trade Board to be unaware of that, and not be involved in the granting of those permits, is a clear breach of the Cabinet Order and, therefore, it is something that we have to recognize and it is something that we have to correct,” he said.

Dr. Tufton noted that discussions have been ongoing with Minister of Finance and Planning, Hon. Audley Shaw, and the Director of Customs, Danville Walker, about taking steps to correct the matter, noting that the Jamaica Customs Department has accepted responsibility for the breach.

He said that a detailed probe is being undertaken, to ensure that the scrap metals that were exported were from legitimate generators.

The other area of concern is to determine whether or not the exporting of the scrap generated by entities in their legitimate course of business, was done as is stipulated in the Cabinet Order, or by middle men or traditional scrap metal dealers, he said.

 “We are being told today, that even though the companies that were getting rid of the scrap are legitimate generators of scrap, the actual export process took place in the name of traditional scrap metal dealers; that is another breach of the Cabinet Order and again is something that we have to correct,” Dr. Tufton pointed out.

Cabinet decided to effect a ban on the exportation of scrap metal on July 29, against the background of the widespread pillaging of scrap metals over the past three years, as well as failure by industry stakeholders, despite warnings, to implement measures to help to curb the theft.

A subsequent Cabinet Order, however, outlined that entities generating scrap metal during their legitimate course of business, be permitted to export the material. But, this export must be done in the entities own name, and only after a permit has been granted by the Trade Board.

By Chris Patterson, JIS Reporter