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JMA partners with CEIBA to boost regional trade
Inside this Issue EXECUTIVE DIRECTOR UPDATE
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MANUFACTURERS’ MONTH
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PAST EVENTS
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ECONOMY AND STATISTICS
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NEW TAX MEASURES 2015/16
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WORK OF THE SECTRETARIAT
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NEW MEMBERS
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Jamaica Manufacturers’ Association (JMA) President, Brian Pengelley, signs a MOU with Christophe Foucault, Chairman of Guadeloupe based company, CEIBA, to promote sea freight exchange application, BECCA.
BENEFITS:
Sign up to BECCA through the JMA
It will enable importers and exporters to find the best shipping deals for their import and export of goods based on price and delivery deadlines. It will easily locate transport solutions for importers and exporters. It will allow shipping operators, freight forwarders and ship owners to optimize their transportation. It will guarantee JMA members CEIBA access to a specific registration form, by which each member will get a discount of 10% off the price (excluding tax) of the credit packs that enables the use of the BECCA platform and 10% off the price of advertising inserts.
This platform can be accessed at www.becca-exchange.com
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Executive Director Update 50% DISCOUNT ON CAF FOR INTERMEDIATE GOODS The JMA is pleased to advise that after making representation to the Ministries of Finance and Industry as well as Jamaica Customs, as at February 1, 2015, the 50% discount on the Customs Administration Fee (CAF) and the relief of the Standard Compliance Fee (SCF) will be applicable on containers of raw materials, intermediate goods and packaging materials. Please note that the 100% CAF on intermediate goods though implemented as at December 1, 2014 should have been effected June 2014; the team was successful in negotiating that there will be no retroactive charges of the CAF, prior to December 1, 2014. However, the CAF paid during the period of December 1, 2014 to January 31, 2015 is nonrefundable.
NEW PROCEDURE FOR RELIEF OF DUTIES ON PACKAGING Please note that the following changes are now in effect to be granted relief for Customs Duty on Packaging Materials:
Manufacturers and Customs Brokers will no longer be required to apply to the JMA; Manufacturers and Customs Brokers will need to apply to the Ministry of Industry, Investment and Commerce (MIIC).
Application Procedure:
Provide copy of Tax Compliant Certificate (TCC) and Certificate of Incorporation Complete and submit the Incentive Data Form (can be accessed on the JMA website) Provide a listing and description of packaging items being imported; Provide estimated quantity of imports for the year; Have a site visit of the Production Facility conducted by Ministry of Industry.
Submit your documentation to the following representatives at MIIC: Team Leader: Marcus Edwards, contact number- 968-8599; Email: medwards@miic.gov.jm Mrs. Avis Matthias, contact number- 968-8610; Email: amatthias@miic.gov.jm Mr. Derick Wellington, contact number- 968-8534; Email: dwellington@miic.gov.jm Mr. Clarence Frater, contact number- 968-8624; Email: cfrater@miic.gov.jm
GCT DEFERMENT ON PACKAGING Please note that GCT deferment on packaging is only applicable to imported packaging and not packaging purchased locally. The deferment of GCT on the purchase of local packaging came to an end, as of October 2014. The JMA, however, continues to advocate for its re-instatement.
REFINED SUGAR IMPORTATION A meeting was held with the Ministry of Agriculture, Ministry of Industry and other sugar stakeholders on March 4, 2015, to share the Refined Sugar Importation Regime Proposal from the MOA. The proposal included:
Duty free entry of refined sugar by manufacturers and other small manufacturers purchasing through distributors; Labelling of Packaging of refined sugar for the retail trade; Inspection, monitoring and enforcement to be undertaken by Trade Board and SIA (as in Law SIA Act); US$35 per metric tonne of refined sugar and alternative sugar (including artificial sweeteners). This would raise an approximate J$246M per year.
A membership meeting was held on March 11 at the JMA, to discuss the proposal by the Ministry of Agriculture on the Refined Sugar Importation Regime. The JMA will be submitting a position paper.
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Executive Director Update Cont’d CARICOM/CANADA TRADE AGREEMENT For the last rounds of negotiations December 8-11, 2014 and January 20-23, the JMA provided critical input on the Exclusions List; Tariff Rate Quotas in particular for exportation of cheese; and the Rules of Origin The 6th Meeting of the CARICOM Working Group was held on March 4, to finalize CARICOM’s position on the revised tariff offer and the definition of ‘investor of a party’. The region remains committed to concluding an Agreement with Canada that is mutually beneficial to both parties.
LAUNCH OF FINANCE DIRECTORY FOR MSMES On January 21, 2015, an Internet based Finance Directory was launched, which will provide the Micro, Small and Medium Sized Enterprise (MSME) sector with relevant financing information and other support services. This Finance Directory was developed by the Development Bank of Jamaica (DBJ) in collaboration with the University of the West Indies (UWI) Mona School of Business and Management (MSBM) and other MSME Stakeholders. The aim is to promote the development of the sector, limit the number of start-up failures and promote growth that is socially inclusive. The website address is: www.findmsmefinancing.com.jm SPECIAL ECONOMIC ZONES The Green Paper on the Special Economic Zones (SEZ) has been tabled in Parliament. It can be found on the Houses of Parliament website: www.japarliament.gov.jm. The JMA is currently working on our submission. Please submit any comments to Renay Folkes-Johnson at renay@jma.com.jm
Manufacturers’ Month GLEANER FEATURE To commemorate Manufacturers’ Month, the Jamaica Manufacturers’ Association (JMA) will be publishing a Special Feature in the Gleaner on Tuesday, April 7, 2015, to highlight the importance of the productive sector and encourage support for the wide range of quality products made in Jamaica. We invite your company to participate in this feature geared towards promoting our local manufacturing sector. The cost to advertise is below:
$130,000 + GCT (Full page ad 52cm X 6 cols) $80,000 + GCT (Half page colour ad 26cm X 6 cols) $50,000 + GCT (Quarter page colour ad 26cm X 3cols) $10,000 + GCT (Company/product logo)
Please contact Rochelle Roye-DeWalker at 922-8880-3 or rochelle@jma.com.jm to confirm your participation. We look forward to your favourable response by Friday, March 20, 2015, as we continue to work towards building “Brand Jamaica”. The deadline for artwork is March 23, 2015.
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Manufacturers’ Month Cont’d ENERGY FORUM An Energy Forum will be held on Thursday, April 23, 2015. The Guest Speaker for the event is Dr. Kirk Abbot, Director of New Leaf Power. Alternate power supply companies will be mounting exhibits. The JMA will provide further details on Manufacturers’ Month activities at a later date.
Past Events PRESENTATION ON THE FLEXI-WORK WEEK On January 15, a team from the Ministry of Labour and Social Security made a presentation on the Flexi-Work arrangement to the membership. The full presentation can be accessed on the JMA website www.jma.com.jm in Notices. Below are highlights from the event:
TURKS AND CAICOS TRADE MISSION The JMA collaborated with the Jamaica Exporters’ Association (JEA), InterCaribbean Airways, the Turks and Caicos Chamber of Commerce and Caribbean Export Development Agency, with the support of the Jamaican Honorary Consul to the Turks and Caicos Islands, the Hon. Allan Hutchinson, in coordinating a Trade Mission to the Turks and Caicos Islands (TCI) from January 19 to 21, 2015. Crimson Dawn Manufacturing, Industrial Chemicals Limited, Jamaica Broilers Group, Sue Tru Manufacturing and Diamond Paints/Sure Manufacturing were among the exhibitors that showcased their products to potential distributors and explored business opportunities in Turks and Caicos. Additionally, the JMA represented six (6) members, namely, Latin American Exporters, Honeykist Apiaries Ltd, Home Choice Enterprise, Springvale Enterprises, Lifespan Company Limited and Ansel Development.
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Past Events Cont’d TURKS AND CAICOS TRADE MISSION CONT’D Event Highlights:
MANUFACTURING/TOURISM SPEED NETWORKING EVENT In a thrust to strengthen the linkages between local suppliers and hoteliers, the JMA partnered with the Ministry of Tourism and Entertainment, Jamaica Hotel and Tourist Association (JHTA) and JAMPRO for a one-day Speed Networking Event on January 21, 2014, at the Half Moon Convention Centre, in Montego Bay; and on March 18, at the Jamaica Pegasus Hotel. Here are some highlights from the event:
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Past Events Cont’d MANUFACTURING/TOURISM SPEED NETWORKING EVENT CONT’D TESTIMONIALS: No Brand Chemicals: I would like to congratulate the JMA/Linkages team for putting on a great conference at Half Moon. We met with over 25 hotels that all have an interest in our products. Boss Furniture: Great first trial! Jamaica needs more of this type of collaboration to grow the nation. Sunset Beach Resort and Spa: Impressed at the development of high quality goods and services on offer – Anticipating other such events.
EXPORTING TO MARTINIQUE AND GUADELOUPE WORKSHOP The JMA received funding from the European Union Capacity Building project to undertake a Fact Finding Mission to Martinique and Guadeloupe in 2014. The objective of the workshop held in partnership with JAMPRO on February 12 was to present the findings, opportunities for export and how to gain market access. Please visit the JMA website www.jma.com.jm to access the findings and see highlights below:
JMA/SCOTIABANK LOAN DAY The JMA collaborated with Scotiabank to host a Loan Day on February 17, in an effort to secure financing for the productive sector. Scotiabank has launched its SME 125th Loan Fund, providing $500 million in financing to the productive sector, at interest rates as low as 9.5%. Below are highlights from the occasion:
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Past Events Cont’d IMPROVING ACCESS TO FINANCE WORKSHOP On March 4, 2015, under the project “Improving Access to Finance” funded by the Development Bank of Jamaica (DBJ), two (2) workshops were held with Financial Institutions, Business Support Organizations and micro, small and medium enterprises. The objective of the workshop was to sensitize stakeholders on the use of credit ratings to access loans. The presenters were from the regional credit rating agency CARICRIS. Below are highlights from the Workshop:
JAMAICA INVESTMENT FORUM The Jamaica Investment Forum (JIF) was held March 10-12, 2015, in Montego Bay and JMA President, Brian Pengelley presented on the opportunities in manufacturing, as it was one of the areas being promoted, along with International Financial Services, Agriculture, Business Process Outsourcing (BPO), Tourism and Logistics. The event attracted over one hundred (100) international investors. Below are highlights from JIF:
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Economy and Statistics GROSS DOMESTIC PRODUCT The Jamaican economy declined by 1.4 percent in the third quarter of 2014 when compared to the similar quarter of 2013. This performance was negatively impacted by a 7.8 per cent fall in the Goods Producing industries as the Services industries improved by 0.7 percent. When compared to the second quarter of 2014, output in the economy fell by 1.8 percent. All industries within the Goods Producing industries, with the exception of Construction experienced lower levels of output. Reduced output was recorded in: Agriculture, Forestry & Fishing (-22.8 per cent), Manufacturing (-5.6 per cent) and Mining & Quarrying (-2.0 percent). The Construction industry grew by 1.6 percent. The weak performance in the Agriculture, Forestry & Fishing industry resulted from the severe drought conditions experienced throughout the island. The decline in Manufacturing was mainly attributed to a 51.6 percent decline in petroleum refining. There was no production of petroleum products for two months of the review quarter as the refinery was closed for operational maintenance in August and September. Lower production in the Mining & Quarrying industry was due largely to a 3.2 percent fall in alumina production. However, crude bauxite production increased by 2.2 percent resulting from improved efficiency at the bauxite plant. Increased output was recorded for all industries within the Services industries with the exception of the Producers of Government Services, down 0.2 percent and Electricity & Water Supply, down 1.1 percent. Higher output levels were recorded for; Hotels & Restaurants (4.1 percent), Other Services (1.6 percent), Transport, Storage & Communication (1.1 percent), Real Estate, Renting & Business Activities (0.4 percent), Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment (0.3 percent) and Finance & Insurance Services (0.2 percent). Value added for the economy fell by 1.8 percent for the third quarter of 2014 when compared with the second quarter in 2014. The Goods Producing industries recorded a decline of 10.6 percent, while the Services industries grew by 1.2 percent.
TRADE REVIEW - JANUARY TO NOVEMBER 2014 Jamaica’s total expenditure on merchandise imports during January to November 2014 fell by US$279.6 million or 5.0 per cent to US$5,287.0 million, when compared to the same period in 2013. Earnings from total exports went down by US$109.1 million or 7.5 percent to US$1,347.4 million. As a result, the trade deficit at the end of November 2014 stood at US$3,939.6 million; this showed a decrease of 4.1 percent or US$170.5 million when compared to the same period in 2013. The value of imports from the major trading partner the United States of America (USA) during the 2014 review period grew by US$158.7 million or 8.4 percent to US$2,040.0 million when compared to the similar period in 2013. Goods from the USA accounted for approximately 38.6 percent of Jamaica’s total import bill, compared to 33.8 percent in the comparable 2013 period. At the end of the 2014 review period, the trade deficit with the USA stood at US$1,512.3 million, moving up from US$1,171.1 million in the similar 2013 period, an increase of US$341.3 million.
Imports During the eleven-month period of 2014, there was a general downward trend in the value of imports, with six (6) of the ten (10) commodity groups registering declines. “Mineral Fuels, etcetera” the main contributor, fell by US$153.6 million to a value of US$1,790.1. The reduction for this group was mainly due to lower imports of the division petroleum, ‘petroleum products and related materials’. “Food” declined and accounted for 15.8 percent of the import bill. This commodity declined by US$51.3 million or 5.8 percent, to US$837.0 million. The divisions responsible for this decrease were ‘cereals and cereal preparations’, ‘sugars, sugar preparations and honey’, ‘vegetables and fruits’ and ‘miscellaneous edible products’. “Chemicals” followed a similar pattern and was valued at US$566.5 million, moving down by US$129.7 million or 18.6 percent, when compared to the US$696.2 million recorded in the comparable 2013 period. Lower imports of ethanol products were the primary contributor to this decline. “Beverages & Tobacco” also decreased and was valued at US$66.4 million, US$4.3 million or 6.1 percent below the US$70.7 million recorded in the similar 2013 period. “Animal & Vegetable Oils & Fats” and “Other” went down and was valued at US$38.0 million and US$96.9 million respectively.
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Economy and Statistics Cont’d TRADE REVIEW - JANUARY TO NOVEMBER 2014 CON’D Imports Cont’d When compared to the 2013 period, the following commodity groups all recorded increases. Machinery and Transport Equipment valued at US$846.6 million, grew by US$14.1 million or 1.7 percent due mainly to higher expenditure in the divisions ‘telecommunication and sound recording and reproducing apparatus’, ‘office machines and automatic data processing equipment, power generating machinery and equipment’ and ‘electrical machinery apparatus and appliances etc.’. “Manufactured Goods” grew by US$17.0 million or 3.1 percent and was valued at US$560.8 million. Higher importation of primarily ‘non-metallic mineral manufactures n.e.s’, ‘paper, paperboard and articles of paper etc.’, ‘manufactures of metals’ and ‘textile, yarn and fabrics’ were the main contributors to this increase. “Misc. Manufactured Articles” increased and was valued at US$426.4 million, US$24.5 million or 6.1 percent increase above the US$401.9 million recorded in 2013. Higher imports of the divisions ‘furniture & parts thereof’, footwear’ and ‘prefabricated buildings, sanitary, plumbing, heating and lighting fixtures and fittings’, impacted this increase. “Crude Materials (excl. Fuels)” increased and was valued at US$58.4 million, up from the US$50.9 million recorded in the similar January to November 2013 period, an increase of US$7.4 million or 14.6 percent, due to higher imports of ‘textile fibres’ and ‘cork and wood’.
Traditional Domestic Exports During January to November 2014, the country’s earnings from traditional exports moved up by US$19.1 million or 2.7 percent to US$739.0 million, due to increases in “Mining and Quarrying”.
Non-Traditional Domestic Exports During the first eleven (11) months of 2014, Non-Traditional domestic exports were valued at US$548.8 million, 16.9 per cent or US$111.4 million below the US$660.2 million value recorded in the similar 2013.
CARICOM TRADE During the period January to November 2014, Jamaica imported US$719.7 million worth of goods from their CARICOM partners; a decrease of US$110.6 million or 13.3 percent when compared to the same period in 2013. This was due mainly to decreased spending on “Mineral Fuels etcetera”, which fell by US$86.5 million or 15.1 percent to US$486.6 million, due mainly to lower imports of ‘petroleum, petroleum products and other related materials’. “Food”, the second most imported item also declined and was valued at US$132.8 million down from the US$151.8 million recorded in the comparable 2013 period. This decline was as a result of lower imports of ‘vegetables and fruit’, ‘sugars and sugar preparations’ and miscellaneous edible products and preparations’. Other commodity groups recording decreases were “Beverages & Tobacco”, “Manufactured Goods” and “Misc. Manufactured Articles”. These were valued at US$32.7 million, US$19.6 million, and US$12.1 million respectively. Jamaica spent US$562.9 million in imports from their leading CARICOM trading partner, Trinidad and Tobago in the 2014 period, down from US$660.4 million in the similar 2013 period. Total exports to the region increased by US$8.4 million or 11.4 percent and was valued at US$82.0 million in the current 2014 review period. Exports to Trinidad and Tobago were valued at US$15.7 million, down from US$16.0 million in the comparable 2013 period. During the eleven (11) month review period of 2014, Jamaica recorded a trade deficit of approximately US$637.7 million with her CARICOM partners compared to US$756.7 million in the similar January to November 2013 period. Source: The Statistical Institute of Jamaica INFLATION Total inflation for the year 2014 was 6.4 percent. This indicates the lowest inflation since 2011 when it stood at 6 per cent. This may have been attributed to the fall in gas prices. EXCHANGE RATE The price of one (1) US dollar as at December 31, 2014 stood at $114.66. The US exchange rate is expected to increase by $8.00 to an approximate value of $123.00 by the end of 2015. Source: Bank of Jamaica
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New Tax Measures 2015/16 On February 19 2015, the Honourable Minister of Finance and Planning Dr. Peter Philips announced a number of taxation changes, which would be utilized in an effort to spread the tax burden. Key of which was an Environmental Levy of 0.5% - to be applied to domestic supplies in order to broaden base and address WTO concerns. The levy will take effect on April 1, 2015 and comprises of the following conditions:The levy shall be reinstituted on CARICOM imports (i.e. it shall therefore apply going forward to both CARICOM & Non-CARICOM imports). The levy shall also be charged on the domestic supply of all goods (with limited exceptions such as supplies by charitable organizations, exempt organizations, the mining sector etc.); A credit may be claimed in respect of environmental levy paid by manufacturers on the importation of productive inputs (e.g. raw materials and intermediate goods). The levy will be administered by requiring taxpayers to file quarterly returns to account for the levy and remit same. The return and levy shall be due within one month after the end of each quarter.
Please see table below outlining other tax measures to be implemented and the anticipated revenue increase. NEW TAX MEASURE
J$ BILLION
Increase in SCT on auto fuels by J$7 per litre on auto fuels
$
6.41
GCT on residential electricity above 350 KwH per month
$
0.81
Environmental Levy – on domestic supplies (0.5%)
$
0.96
Increase in SCT on cigarettes from J$10.50 to J$12 per stick
$
0.49
Petroleum Cess –specific rate J$2 per litre Overhaul of Trade & Business License Fees Reform of Life Assurance Tax Regime Reduce duty on racehorses reduced from 40% to 5%
$ $ $ $
1.82 0.50 (0.00)
Increase in PIT tax-free Threshold from 2016 to J$592,800 Total
$ $
(0.64) 10.35
Work of the Secretariat PUBLIC RELATIONS AND MARKETING
Speaking engagements/Messages:
Jamaica Stock Exchange (JSE) 10th Regional Conference on Re-igniting the manufacturing sector across the region Message on the work of the Bureau of Standards Jamaica. Unashamedly Ethical Forum Jamaica Investment Forum UTech Conference on Entrepreneurship
Press releases/Interviews:
RESEARCH REQUESTS
Customs Administration Fee (CAF) The work of the JMA Partnership with CEIBA on shipping platform, BECCA Reduction of electricity costs
There were four (4) research requests on:
Manufacturers in Manchester Incentives for foreign investments The furniture industry Hardware distributors
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Work of the Secretariat Cont’d ASSISTANCE PROVIDED
Forty-five (45) requests for assistance were satisfied in areas including:
MEETINGS ATTENDED
CAF Manufacturing Certification/Data Sheet GCT deferment on equipment/raw materials Exporting to Cuba
Thirty-five (35) meetings were attended, including:
A Western Manufacturers’ Meeting held on January 20, in which the JMA addressed issues relating to Customs and Taxation, the streamlining of information and mentorship of micro and small companies in Montego Bay. Knowledge Transfer Sessions with the Bureau of Standards Jamaica (BSJ) on Good Manufacturing Practices (GMP) were conducted with Jam-Mar Processing Ltd., VAP Ltd. , Spanish Grain Store and Perishables Jamaica.
New Members ORDINARY MEMBERS
MSE MEMBERS CONT’D:
Archer Williams Hyder T/A Bizwear Jamaica CEO: Ms. Maxine Williams Address: 46 Upper Waterloo Road, Kingston 8 Tel: 755-0444/5/6; Fax: 755-0444/5/6 Products: Garments for Uniforms.
Western Jamaica Pure Quality Water Ltd. CEO: Mr. Fenton Alexander Address: 4 Lismore Avenue, Kingston 5 Tel: 261-5298 Products: Purified Water and Coconut Water.
Yahman CEO: Mrs. Simone Gandolfi Address: Bay West Shopping Centre, St. James Tel: 971-4451; Fax: 971-4457 Products: Perfumes.
Shavuot International Holdings Co. Ltd. CEO: Mr. Richard Harris Address: #14, 11-13 Kingsway Manor, Kingston 10 Tel: 809-2344/818-8292 Products: Scotch Bonnet Pepper Flakes, Moringa, Soursop Moringa Teas, Moringa-Soursop Powder and Jamaica Black Castor Oil
MSE MEMBERS: Ansel Development Ltd. CEO: Mrs. Antoinette Davis Address: 43 Main Street, Mandeville, Manchester Tel: 625-1296; Fax: 962-0091 Products: Hair, Body and Skin Care KYS Grill CEO: Ms. Sasha Palmer Address: Williamsfield P.O. , Manchester, Mandeville Tel: 283-1731 Products: Popsicles – All Natural
ASSOCIATE MEMBERS: Lubricating Specialties Company Ja. Ltd. CEO: Ms. Sydney Thwaites Address: 232a Spanish Town Road, Kingston 11 Tel: 986-7992; Fax: 986-7811 Promotions and Print Essentials Ltd. CEO: Mr. Adriel McKay Address: 14 Ruthven Road, Kingston 5 Tel: 960-4209; Fax: 906-8879
The Jamaica Manufacturers’ Association (JMA) Ltd. 85A Duke Street, Kingston Tel: 922-8880-3 or 922-8869; Fax: 922-9205 Email: jma@cwjamaica.com; Website: www.jma.com.jm Facebook: www.facebook.com/JMAlimited Twitter: https://twitter.com/manufacturersja