Govt halts all scrap exports

Jamaica's industry, investment and commerce ministry has halted all scrap metal exports until the issue of breaches of an earlier suspension are resolved, government information service JIS reported. The decision follows the breach of a cabinet order stating that companies eligible to export scrap must receive a permit from the trade board, minister Christopher Tufton said during a press conference. On July 29, the cabinet banned scrap exports due to widespread larceny over the past three years, as well as the failure by industry players - despite repeated warnings - to implement measures to help reduce theft, JIS said. However, a subsequent cabinet order allowed entities generating scrap during their legitimate course of business to be permitted to export the material. The export must be done in the firm's own name, and only after a permit has been granted by the board. Inquires with the customs department revealed that eight entities have been exporting scrap, Tufton said. However, it was later confirmed that the only entity that applied for an export permit was Crown Packaging Jamaica Limited, which received a permit as this company is a generator of its own scrap. The press conference was in response to allegations of back door deals related to scrap exports. The other area of concern is to determine whether or not the exporting of scrap generated by entities in their legitimate course of business was done in accordance with the cabinet order, or by middle men or traditional scrap metal dealers, Tufton said. The industry, which has been around since 2003, earned less than US$20mn in 2010, JIS previously reported.