Lok JackBy McPherse Thompson, Staff Reporter
The Anti-Dumping and Subsidies Commission, in its first ruling since it was established two years ago, has found that Ordinary Portland Grey Cement imported from Thailand into Jamaica has been dumped and has directed that provisional duties of 170 per cent be applied to the product.
The case arose from a complaint made by the Rockfort, Kingston-based Caribbean Cement Company(CCC) that cement imported from Thailand was being dumped in Jamaica, thereby affecting its domestic market.
In making its recent ruling, a copy of which was made available to the Financial Gleaner, the five-member Commission, chaired by Deika Morrison, declared that Ordinary Portland Grey Cement originating in or exported from Thailand to Jamaica directly, or indirectly from Thailand via Trinidad & Tobago, has been dumped.
The Commission, which included Commissioners David Wildish, Beverley Morgan, Cecil Goodridge and Sandra Shirley, estimated the dumping margins for the indirect and direct shipments to be 170 per cent and 178 per cent respectively.
According to the ruling, "the Commission determines that the evidence discloses a reasonable indication that the dumping of the aforementioned goods has caused, is causing, or is likely to cause material injury to the domestic industry."
As a result, duties of 170 per cent were imposed on Ordinary Portland Grey Cement originating in or exported from Thailand and released from the Jamaica Customs Department during the period March 14, 2001 and ending on the day on which the Commission makes a final determination.
The Commission said its investigation was continuing and it will be required to make a final determination by June 11, this year, or 45 days thereafter if circumstances warrant. In the meantime, the Commission has scheduled a public hearing of the case for the week of April 30 to May 4.
General manager of the Caribbean Cement Company, Kelvin Mahabir, speaking with the Financial Gleaner after attending a board meeting of the Jamaica Manufacturers' Association(JMA) in Kingston on Wednesday, said that at the final determination, the Commission will decide whether to levy the penal duties on importers of cement from Thailand for up to five years.
He said the Jamaican importers of Ordinary Portland Grey Cement from Thailand has not imported any since 40,000 tonnes were brought into Jamaica in February, and that it was up to the Commission to apply the punitive duties retroactively.
With Mr. Mahabir was Marc Hebert, an attorney and consultant at the Washington, D.C.-based law firm Bracewell and Patterson, who has been retained by the Caribbean Cement Company for the anti-dumping case.
Last year, the Caribbean Cement Company's chairman, Arthur Lok Jack, said they have complained to the Anti-Dumping Commission about imports of dumped cement.
In 1999, Trinidad Cement Limited (TCL), parent company of the Caribbean Cement Company, also complained that it was hit by dumped cement from Thailand. In response, TCL cut cement prices by 44 per cent for more than five months as it pursued an anti-dumping complaint with the authorities. The dumped cement was eventually halted and the Trinidad & Tobago Ministry of Trade and Industry imposed duties of 152.84 per cent on all cement shipments from Thailand over the five-year period to 2005.
The Jamaican Anti-Dumping and Subsidies Commission, which investigates cases of cheap imported goods undermining the local market, was set up to administer the provisions of the Customs Duties (Dumping and Subsidies) Act, which was passed in March 1999.
