By Trudy Simpson, Freelance WriterSEVERAL EXPORTERS, importers and other commercial interests are objecting to the higher inspection fees being demanded by the Port Authority of Jamaica as part of its effort to recoup the more than US$50 million which it spent on improving security at the seaports.
Speaking with The Gleaner yesterday, Beverley Lopez, president of the Private Sector Organisation of Jamaica (PSOJ), and Doreen Frankson, president of the Jamaica Manufacturers' Association (JMA), said the combined private sector had written to the Port Authority expressing concern and counter proposals.
Mrs. Lopez said that both sides had been meeting to discuss the fees which, they fear, would make import and export businesses more uncompetitive, compared with the country's trading partners.
She said that the two sides had met as late as Thursday, when the PSOJ requested a reduction in some fees. "My impression was that they were agreed on and they were supposed to send some new calculations," she said.
On the weekend, The Gleaner obtained a copy of a document, dated April 30, 2004, which states that the fees would become effective on Saturday, May 1, and would be collected by Kingston Wharves Ltd., Newport West, Kingston, on behalf of the Port Authority. Among the fees listed in the document are: the payment of $6,405 (US$105) per container for full container loads (FCL); $12,810 (US $210) per container on less container loads (LCL); $305 (US$5) per wharf ton or part thereof on break-bulk; $3,355 (US$55) per container and $152.50 (US$2.50) per wharf ton or part thereof, on sensitive and specialised cargo as defined in the tariff of wharfage rates.
According to the document, steel is to attract a fee of $122 (US$2) per wharf ton or part thereof; motor units less than four tonnes, $6,710 (US$110) per unit; motor units greater than or equal to four tonnes, $10,065 (US$165) per unit, and unmanifested cargo charge, $32,757 (US$537) per container. Rates were calculated at J$61 to US$1.
The Gleaner was unable to make contact yesterday with Noel Hylton, chairman of the Port Authority, or Robert Pickersgill, Minister of Transport and Works, who has responsibility for the island's ports.
The document states that "the acquisition of container X-ray equipment enables inspection of containers entering and leaving our major ports with minimum delay. This is a very expensive operation and as such the PAJ has found it necessary to recover this cost by the introduction of a security inspection fee."
The Port Authority, it said, had spent more than US$50 million to improve security and had the responsibility to ensure that operational procedures and practices at Jamaica's ports comply with the International Ship and Port Facility Security (ISPS) code.
But while business interests said they understood and supported the need for improved security and the introduction of the fees, they added that the fees, as first proposed, were too high.
Mrs. Frankson said the high fees result from the short recovery period set by the Port Authority which, she said, wants to recover costs in four years. She said that business interests were suggesting that the recovery period be extended to seven years, which would mean a reduction in the fees.
"It's going to affect exporters badly," said Mrs. Frankson, who argued that importers and exporters would feel the pinch. "One of our members says that the new fees will cost him an additional US$100,000 per year. We object very strenuously... it represents an additional cost which will affect our competitiveness."
A customs broker told The Gleaner that he was worried that the new fees would lead to a decrease in the number of barrels and other items coming into the island. He, too, had objected to the length of notice given, stating that the Port Authority should give various interests, both local and overseas, at least 30 days' notice of such fees. He added that more explanation was needed as it was not clear whether the fees were to be charged in addition to some other fees. It also appeared as if some fees were 'doubling up', he said.
