KINGSTON–Jamaica says it has asked the Caribbean Community (Caricom) to undertake a review of its verification procedures under the rules of origin requirements of Caricom in yet another twist to trade concerns with T&T.Industry, Investment and Commerce Minister Anthony Hylton said the Jamaica Customs Agency is playing the key role for the island in the revision process, which is being undertaken through the Caricom Customs Committee.
The move follows two years of investigation by Jamaica to determine the origin of nine lubricant products imported from T&T.Hylton told Parliament the investigation found that five of the items were in breach of the rules of origin requirements of Caricom and the matter was brought to the attention of the Trade Enforcement Advisory Mechanism (Team), following a formal complaint by an importer in 2012.
"In September 2012, Jamaica Customs initiated a query verification procedure in accordance with Caricom rules regarding the lubricating oil complaint. Up to 2014, the information was not provided from Trinidad and Tobago," he told legislators.He noted that Minister of Foreign Affairs and Foreign Trade AJ Nicholson, then sought the intervention of the Caricom Secretariat and the information was obtained in early 2014.
"Although the information provided was taken in good faith, there remained some doubt regarding the rigour of the verification done by the Customs authorities in Trinidad and Tobago. A decision was taken for Jamaica to do an on-the-spot investigation to review the production processes, books and accounts of the three exporters," Hylton said.
He said the objective of the investigation was to determine whether the products satisfied the requirements for the Rules of Community Origin, noting that the verification visit was completed in T&T over the period July 21-23.The minister said the products that failed to comply with the rules of origin would not receive a refund of customs duties deposited and the companies that imported these products may be subject to an audit to recover the duties that should have been applied to previous import shipments.
The items found to be compliant will be eligible for a refund of deposits made during the period of the verification query.
Hylton said the investigation has pointed to the need for further amendments to ensure clarity regarding the treatment of import duties where there is a non-response by an exporting member state. He reiterated the government's pledge to protect investors, not just by ensuring the integrity of imported products under preferential schemes but by continuing to enforce trade rules to ensure a level playing field for local producers.
"Indeed, the fundamental lesson to be drawn from this exercise is that a legal framework already exists within Caricom to ensure that our national interests are protected. However, these rules will remain as lifeless provisions unless we take bold and assertive actions to bring them to life and test their efficacy," Hylton said. (CMC)