About Us > Lobby Issues

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IssuesOutcome
40’s
Electricity GenerationSuccessfully lobbied for the changeover in electricity generation from 40 to 50 cycles.
Quantitative Restriction on ImportsEffectively advocated the imposition of quantitative restriction on imports.
50’s
Bureau of StandardsSuccessfully advocated for the establishment of the Bureau of Standards in the 50’s. 
60’s
Free TradeLobbied for regional economic integration, which resulted with Jamaica’s signing of the CARIFTA agreement in 1968 and the subsequent growth of the country’s export trade with its Caribbean neighbours.
80’s
Formation of Trafalgar Development BankThe formation of the Trafalgar Development Bank (now Pan-Caribbean Financial Services) was a major initiative of the JMA as it assisted manufacturers with overcoming the challenges posed by structural adjustment.
Removal of Structural disincentivesLobbied for the removal of the structural disincentives to production, to enable manufacturers to adjust to the increasingly competitive international environment.
DutiesSuccessfully lobbied for the reduction of duties on capital goods and spare parts.
Screwdriver legislationAdvocated the passage of screwdriver legislation
Anti-dumping LegislationPlayed an integral role in the drafting of the Anti-dumping Legislation.
General Consumption TaxThe JMA’s interventions in the late 80’s led to the Government’s adoption of a General Consumption Tax (GCT) regime to shift some of the taxation burdens from production inputs to consumption, the dismantling of most price control mechanisms for local manufacturers, the restructuring of import tariffs and the streamlining of import certification procedures to curtail smuggling and under- invoicing.
90’s
National Industrial PolicyCharged for the development of a National Industrial Policy between 1990 and 1994 that would help foster investment and the structures, long term growth of the manufacturing sector. Today, many of the provisions for which we fought are embodied in the Policy.
Raw Material for ManufacturersBetween 1994 and 1996, secured the relief of retroactive Customs on duties, on raw materials for the packaging sub-sector, as well as deferment of the tax on imported raw materials and intermediate goods.
DumpingBetween 1996-2000 the JMA’s lobbying succeeded in the Government’s introduction of a stringent import monitoring programme to prevent the entry of dumped and substandard products into Jamaica, the removal of the taxes on raw material imports and the removal of duties on capital goods.
00’s
Process Foods ActIn 2001, played an integral role in securing amendments to the Processed Food Act.
Property TaxIntegral in averting the 2002 increase in property taxes which benefited both manufacturers and the wider society
Deferral of GCT on packaging materialLobbied for the deferral of GCT on packaging materials, granted by government in July 2003
Reduction of Port FeesIn 2004, there was an increase in port fees due to the imposition of a security cess of US$122 on out-bound and in-coming cargo by the Port Authority of Jamaica.  The JMA lobbied on behalf of members for a reduction in such charges and this led to a select number of export manufacturers being granted a 20% discount on the cess.
Retroactive Duties on Raw MaterialsIn 2004, a number of members were audited by the Customs Department and charged large sums of retroactive duties because they had used certain free codes without obtaining the necessary waivers from the Ministry of Finance. The JMA therefore met with the Customs Department who referred the issue to the Ministry of Finance.  At the end of the year the audits and retroactive taxes remained unresolved.
Protecting Local Cement ManufacturersThe local manufacturer of cement was protected under the Safeguard Legislation of 2001 for relief from increased imports of Ordinary Portland Grey Cement.  The surge of imports of this product had caused serious injury or threat thereof to the local producers.  The company and the cement industry triumphed in the end as a favorable ruling from the Antidumping and Subsides Commission was received.
Regaining uniform contracts to local uniform suppliersThe JMA in partnership with the Jamaica Business Development Center held several meetings with entities involved in the procurement of local uniforms. This bore fruit as in May 2004 when a local supplier, Designs by Marc, was awarded the contract to supply the National Commercial Bank with 22, 750 pieces of garment.
Removal of Customs SurchargeCommunicated with the Shipping Association of Jamaica and Port Authority of Jamaica for the removal of the congestion surcharge imposed on importers by shipping lines which are members of the Association of West India Trans-Atlantic Steam Ship Lines (WITASS). The JMA in collaboration with the Trinidad and Tobago Manufacturers’ Association (TTMA) lobbied against the charges and jointly wrote to WITASS.  In March 2005, the surcharge was removed from the Ports in Jamaica but remained in Trinidad. 
Lower interest rates to facilitate retooling in the manufacturing sectorLobbying for lower interest rates resulted in a number of banks offering special financial facilities to the sector such as the Scotia Production Fund which offered loans at a rate of 9 ½ %. In 2004 The JMA intensified this lobby and joined forces with the Jamaica Agricultural Society to seek a reduction in interest rates spreads, which would facilitate lower loan rates.   One of the major results of the lobby was that in May 2005, the Minister of Industry and Tourism, in her budget presentation announced that one hundred million Jamaican dollars (J$100M) from the funds available under the Government of Jamaica European Union Credit Scheme would be lent to manufacturers through Pan Caribbean Financial Services. The fund was geared towards retooling or expansion of operations in the productive sector. Eligible companies could borrow between two million ($2M) and ten million ($10M) for up to seven years at a rate of 10.5%.In 2006, the sector continued its lobby for the reduction of lending rates to the industrial sector. The average commercial banks lending rates has declined from 22% in 2005 to 21% in 2006, which is still considered by the JMA as prohibitive to the retooling of small and medium sized enterprises.  The JMA also lobbied for a reduction in the “interest rates spread” as the spreads were excessive given that in most cases they averaged 18%. The President of the Jamaica Manufacturers’ Association and the President of the Jamaica Agricultural Society requested that the Fair Trading Commission (FTC) examine the issue of Interest Rate Spreads in the commercial banking sector and collusion among the banks on bank charges. In July, the Commission ruled that “no direct or indirect evidence of a collusive agreement with respect to interest rates and bank charges among banks was uncovered”.  In April 2008 the JMA also secured a special financial window through First Global Bank exclusively for its members.
Packaging MaterialThe challenges of packaging especially as it relates to corrugated cartons continued unabated in 2004, with members not only experiencing inconsistency in supplies from the local producer but also from regional producers.  Discussions therefore began with an investor to examine the possibility of establishing an efficient corrugated carton facility in Jamaica.  In August 2006, Corrpak invested US$ 42M in a new corrugated plant.  The plant has created jobs for over 25 persons and has the capacity to produce 60,000 boxes per day.
Procurement PolicyAnother major policy position that the Association grappled with during 2005 was crafting a procurement policy which would ensure “set a sides” for the small and medium sized businesses in the manufacturing sector. The JMA in collaboration with the Ministry of Industry and Tourism developed a Public Procurement Policy. In December, the Committee met with the Ministry of Industry and Tourism to finalize the proposal for submission to cabinet. The framework of the draft Cabinet Submission stipulated that government reserve 10% of their supplies for micro and small enterprises. The document proposed a 15% price differential for foreign suppliers of goods.  At the end of the year the policy was yet to be submitted to cabinet.  In June 2008, the procurement policy was taken to Cabinet for discussion
Modernization of Industry ProgrammeIn May 2005, the GCT was revised and the zero-rated schedule was deleted resulting in changes to the Modernization of Industry Programme.  This change meant that manufacturers importing capital goods under the programme could no longer have the GCT deferred but had to pay the GCT at the port of entry.  The JMA therefore met with the Ministry of Industry and Tourism and the Ministry of Finance to resolve the issue which was changed to allow manufacturers to once again benefit from the incentive
2% Customs User FeesIn preparation for the 2005/06 budget, the committee also submitted a proposal to the Minister of Finance for the simplification of the structure of the GCT and revision of the 2% customs user fees (CUF). The committee asked the Minister to consider a CUF where the amounts paid would be credited against tax obligations. We continue to lobby for the removal of the 2% customs user fee on raw material and capital equipment.  In the budget presentation 2007/08 Minister the Hon. Audley Shaw announced that the 2% CUF could be applied as a tax credit on capital equipment.
Environmental LevyIn September 2005, the Ministry of Land and Environment  proposed a 0.3% environmental levy on all imports except capital goods, spare parts and services which was  projected to earn the government $400M.  In October, the Committee met with representatives of the Ministry of Land and Environment and expressed its objection to the proposal and recommended that a 0.1% tax across the board be implemented which would also apply to the services sector. At the end of the year the proposal was yet to be finalized. 
Port Charges/Congestion at the PortIn May 2006, manufacturers began to experience delays at the ports in receiving their raw and packaging materials. In order to be proactive and prevent a repeat of the effects of the congestion in 2004, the JMA and the Port Authority collaborated to facilitate manufacturers. Therefore, information related to containers and shipment was collected from members and submitted to the Port Authority so that priority could be given to those ships transporting containers for manufacturers. This process helped some companies to receive containers in a timely manner; however other companies that continued to experience delays had to temporarily cease operations and close various areas of their production.   During this period, a Congestion Surcharge and Terminal Handling fees were implemented by the West India Trans Atlantic Steam Ship Lines (WITASS). These charges would severely increase the cost of production which would negatively impact the competitiveness of the manufacturing sector, the Association therefore lobbied for their removal.
Removal of Mattresses and all building materials from the Tourism Incentive ActThe JMA in 2007 presented its position to the Prime Minister, The Ministry of Industry and has also met with the Minister of Tourism to ask that these items be removed from the incentives list as they are produced locally
US$2.00 Compensation premium on shipments of Containers and Equipment In February 2008 The SAJ and PTHA implemented a US2:00 premium on each container or equipment appearing on a bill of lading. The JMA stated its strong objection to the imposition of this charge as the Association did not feel that its members were responsible fro the lost of containers and other equipment owned by the shipping lines and that this charge would increase the cost of doing business. The Association therefore met with the two Associations and the charge was not implemented.

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