War brews between poultry producers, GRA over Jamaica feed

Oct 23, 2016 News

Local poultry feed manufacturers have disagreed with the Guyana Revenue Authority (GRA)

Robert Badal

over a decision not to enforce charging a regional tax on importations from Jamaica.
“We know that the region does not produce soya and corn in any large quantities so it has to come from out of the region. The feed from Jamaica therefore has to be charged the relevant 15 percent taxes as it does not qualify,” says chief of the Guyana Stockfeeds Limited, Robert Badal.
Badal’s company has joined with Bounty Farm, another major player, to help push the Guyana Poultry Producers Association (GPPA) to resolve the issue which has been simmering since last year.
This past week, the Guyana Revenue Authority (GRA) said that from engagements, Nutramix, a feed produced in Jamaica, met criteria which says it can be classified as being produced in the region.
GPPA is contending that the feed is unfairly competing with them.
‘We wrote GRA more than two months ago on this issue after it was noticed that feed was coming in again. We did not see any answers until a story was carried in Kaieteur News,” Badal said.
Badal explained that GRA’s Commissioner-General, Godfrey Statia, was written to on the matter two months ago but the letter was never acknowledged.
“The Ministry of Agriculture is aware of the situation as a complaint has been filed. We know that Jamaica does not produce soya and corn in the amounts being used by Nutramix and there we should be applying the CARICOM tax which says it is a product that comes from out of the region. We are asking that GRA

GPPA’s President,
Patrick De Groot

start charging the tariff forthright.”
According to GRA in a statement last week, in February this year, the Ministry of Agriculture (MOA) requested the GRA to impose import duties (CARICOM External Tariff) on a consignment of poultry feed imported by businessman Deonarine Arjune from Newport Mills of Jamaica, pending verification of the certificate of origin.
GRA said it held 16 containers as a result of the ministry’s request and notified the Ministry of Foreign Affairs (MOFA) since they are the competent authority for foreign trade.
MOA was also notified to provide GRA with the evidence that the commodities were not compliant with the rules of origin.
”The Certificate of Origin indicated that the extra-regional content of the product was two per cent. According to the CET, the finished product must be produced from materials of 23.09, the value of which does not exceed five percent of the export price of the finished product.”
On February 25, 2016, the Poultry Dealers Association, through the MOA, pleaded with GRA to release the 16 containers; this was facilitated.
”This was in consideration of the fact that they did not provide any evidence of impropriety as a basis for continued detention of the commodity. MOA was notified of the release and invited to provide any evidence in its possession of any contravention of the rules of origin in relation to the feed. No such evidence was forthcoming,” GRA said.
On April 8, 2016, MOA again requested that GRA hold a shipment of ‘10 containers of poultry feed to the same consignee and impose import duties.

Poultry feed producers are objecting to Jamaica’s Nutramix being imported with duties not being charged.

”They made reference to the same grounds as outlined for the February shipment, and again no supporting evidence was tendered.”
GRA said that a Jamaican delegation visiting for the 42nd COTED requested a bilateral meeting to address the issue, rather than place it on the general agenda. The meeting was facilitated by the Minister of Agriculture, Noel Holder, on April 22, 2016.
It was agreed at that meeting that the Revised Treaty of Chaguaramas allows for a request of the verification of origin and for the consignee to deposit the import duties in the interim.
According to GRA, subsequent shipments were also required to pay the deposits as a condition for release, pending the response of the Jamaican authority on the qualifying status of the poultry feed.
”The competent authority in Jamaica submitted their findings in July stating that the product is compliant for regional treatment as the allowable component is 4.69%, and therefore within the limit of the permitted five per cent.”
GRA disclosed that the Jamaican authorities, through contact with Caricom and Ministry of Foreign Affairs (MOFA), requested a response on the acceptance of their findings in the verification process. The status of the matter was communicated to the Ministry of Agriculture and Ministry of Foreign Affairs.
Jamaica then approached CARICOM for immediate intervention with the GRA to confirm that the product meets the rules of origin and can now enter Guyana duty free.
According to GRA, Guyana was in no position to refute the findings of the Jamaicans.
As a matter of fact, GRA said there is no need for the Jamaicans to demonstrate the origin of the inputs once the criteria in the list is satisfied.
”The conditions also infer that materials can be used from any other tariff heading in any proportion or value, regardless of origin or percentage of the value of the export price of the finished product. In essence, one is only allowed a maximum of five per cent value of poultry feed as raw materials of the export price of the finished product.”
According to GRA, there are a few options that Guyana can explore in which the local feed producers can claim “serious injury or the threat of serious injury to domestic producers of like or directly competitive products in any industry or specific sector of any industry.”
This means it has to be actioned through MOFA, and supporting evidence must be tendered in accordance with the provisions of the treaty that governs trade in CARICOM, GRA advised.
The recent complaint on behalf of the Guyana Poultry Producers Association was launched by its members, Robert Badal and President, Patrick De Groot.