NewsWhore
05-20-2011, 05:40 PM
Jamaican and Dominican cement producers are in dispute over their penetration of each other's markets. Local producers are responding to anti-dumping protectionist measures in Jamaica, while Jamaicans are trying to export production surplus to the Dominican market, competing on price.
Consumers may benefit from the dispute. Hardware stores report that the price of cement has dropped RD$25-RD$30, down from a peak price of RD$315 as local authorities and producers and Jamaican cement importers try to sort out the current impasse.
Recently, the consumer protection agency, ProConsumidor blocked the entry of 58,800 bags of Carib Cement from Jamaica until the Ministry of Public Works issues a no-objection certificate. ProConsumidor questioned the quality of the cement.
Docemca, the importer that is affected by the ban, claims that Dominican producers who would be affected by the lower-priced Jamaican import are behind the ban.
Meanwhile, the Association of Dominican Portland Cement Producers (Adocem) published an advertisement today criticizing Carib Cement, its representatives in the Dominican Republic and the governmental Standards and Quality Systems Department (Digenor) for "dishonest behavior, lack of transparency and violation of Dominican laws" in the import of Jamaican cement.
Adocem says the dispute dates back to 15 February 2010 when Jamaica imposed an anti-dumping order against the Dominican Republic on behalf of Carib Cement, alleging the local market was being affected. Adocem says this was not the first time this kind of order had been issued, indicating that other exporting countries including China, Thailand, Indonesia and the United States had also been affected by the protectionist barriers imposed by Jamaica. They make the point that at that time Carib Cement was not able to supply the quantity or quality of cement needed.
Adocem adds that in 2006, Carib Cement was affected by quality complaints within Jamaica itself.
In a chronological account of Carib Cement's import history, they mention that a first shipment of Carib Cement arrived on 19 March 2010 with 2,500 tons of cement. The cement was imported using a company, Materiales de Construccion El Jobo that they say was made up by people who when consulted were not aware of having formed that company for the sale and distribution of construction materials, as specified in the commercial registration.
They also make the point that the shipment was declared in Customs with a value of CIF of US$50, or about RD$80 per bag, which would be undervaluing the total to evade the corresponding Customs taxes.
In their explanation, Adocem says that on 31 August 2010, after a visit to Jamaica, the director of Digenor convened the technical committee to modify the RTD 178 regulation on cement, which consists of safety requirements and guarantees to consumers.
On 25 April 2011 a new shipment arrived with 2499 tons of cement, this time the importer was Importadora Docemca SRL. Digenor issued certificates in their favor but Adocem described them as irregular because the corresponding tests were not made. The company also ignored the need for the Ministry of Public Works to check the technical quality and strength specs before the product's local sale could be authorized.
Adocem says that Digenor issued a quality stamp without approval from the National Standards and Systems Committee, as established in Law 602.
This is why on 28 April 2011 ProConsumidor ordered the immediate removal of the cement from the market until the required process is completed.
More... (http://www.dr1.com/index.html#4)
Consumers may benefit from the dispute. Hardware stores report that the price of cement has dropped RD$25-RD$30, down from a peak price of RD$315 as local authorities and producers and Jamaican cement importers try to sort out the current impasse.
Recently, the consumer protection agency, ProConsumidor blocked the entry of 58,800 bags of Carib Cement from Jamaica until the Ministry of Public Works issues a no-objection certificate. ProConsumidor questioned the quality of the cement.
Docemca, the importer that is affected by the ban, claims that Dominican producers who would be affected by the lower-priced Jamaican import are behind the ban.
Meanwhile, the Association of Dominican Portland Cement Producers (Adocem) published an advertisement today criticizing Carib Cement, its representatives in the Dominican Republic and the governmental Standards and Quality Systems Department (Digenor) for "dishonest behavior, lack of transparency and violation of Dominican laws" in the import of Jamaican cement.
Adocem says the dispute dates back to 15 February 2010 when Jamaica imposed an anti-dumping order against the Dominican Republic on behalf of Carib Cement, alleging the local market was being affected. Adocem says this was not the first time this kind of order had been issued, indicating that other exporting countries including China, Thailand, Indonesia and the United States had also been affected by the protectionist barriers imposed by Jamaica. They make the point that at that time Carib Cement was not able to supply the quantity or quality of cement needed.
Adocem adds that in 2006, Carib Cement was affected by quality complaints within Jamaica itself.
In a chronological account of Carib Cement's import history, they mention that a first shipment of Carib Cement arrived on 19 March 2010 with 2,500 tons of cement. The cement was imported using a company, Materiales de Construccion El Jobo that they say was made up by people who when consulted were not aware of having formed that company for the sale and distribution of construction materials, as specified in the commercial registration.
They also make the point that the shipment was declared in Customs with a value of CIF of US$50, or about RD$80 per bag, which would be undervaluing the total to evade the corresponding Customs taxes.
In their explanation, Adocem says that on 31 August 2010, after a visit to Jamaica, the director of Digenor convened the technical committee to modify the RTD 178 regulation on cement, which consists of safety requirements and guarantees to consumers.
On 25 April 2011 a new shipment arrived with 2499 tons of cement, this time the importer was Importadora Docemca SRL. Digenor issued certificates in their favor but Adocem described them as irregular because the corresponding tests were not made. The company also ignored the need for the Ministry of Public Works to check the technical quality and strength specs before the product's local sale could be authorized.
Adocem says that Digenor issued a quality stamp without approval from the National Standards and Systems Committee, as established in Law 602.
This is why on 28 April 2011 ProConsumidor ordered the immediate removal of the cement from the market until the required process is completed.
More... (http://www.dr1.com/index.html#4)