Scrap-metal trader cites Customs Dept collusion

Tyrone Reid, Sunday Gleaner Reporter

A key player in the multimillion-dollar scrap-metal trade is charging that the Government needs to turn the searchlight on its agencies, claiming that no piece of stolen metal can be exported without collusion in the Customs Department.

Writing off the ban on the trade as unnecessary and unreasonable, Jonathan Aarons, president of the 25-member strong Scrap Metal Federation, said the industry needs more customs officers to properly police the sector.

"There is no way a train line, manhole cover, copper or these things could be loaded into a container and exported off the island unless Customs has knowledge," Aarons added.

He boasted that integrity checks already in place are like Fort Knox.

"It goes back to the regulators, which include Customs and the Ministry of Industry. They are the ones who need to regulate the trade," he said.

But Danville Walker, commissioner of customs, in response to the insinuation that the thievery affecting the country's infrastructure was partly an inside job, downplayed the accusation.

"The allegations probably stem from a lack of understanding of what was agreed between authorised shippers and the Ministry of Industry, Investment and Commerce. So authorised shipments may appear to be unauthorised unless you are aware of the details," said Walker, who responded to Sunday Gleaner queries from Florida where is vacationing.

The Customs boss sided with the Government's decision to shut down the trade. "When we achieve an acceptable standard of law and order, we can look again at having that type of industry. To do so again before that would be premature and irresponsible."

Said Walker: "We cannot put our infrastructure at risk so as to appease those who believe poverty and unemployment is a rationalisation for theft and indiscipline."

Walker contends that the contractual industrial scrap "should and will be allowed to continue, but the foraging industry should only be allowed once every five years to provide an outlet for consumer-generated scrap".

Late last month, Dr Christopher Tufton, minister of industry, investment and commerce, announced an indefinite ban on the industry in response to a drastic increase in metal theft for the trade. Tufton said over the past three years metal theft has cost the Government and the private sector more than $1 billion in losses.

At that time, former Industry Minister Karl Samuda criticised the Government for shutting down the trade. According to him, the Government should have instead sought to restrict the sorting of scrap metals to one central site with a view to providing tighter monitoring of the items being sold into the trade.

The scrap-metal trade has been blamed for the theft of important artefacts and millions of dollars worth of equipment owned by the National Water Commission and the Jamaica Public Service Company.

tyrone.reid@gleanerjm.com

• How the trade works

1. Scrap metals are collected and brought to scrapyard.
   
2. Exporters of scrap metal examine the metals to ensure no contraband is included.
   
3. Proof of purchase required for amounts exceeding a certain weight (e.g., scrap metals provided by bauxite companies);
   
4. Presentation of photograph of supplier and photocopy ID;
   
5. Receipt issued for scrap metals received and a procurement document prepared by exporter;
   
6. Customs officer (on some sites from 8:30 to 4:30 p.m.) examines the metals procured by the exporter;
   
7. Metals loaded in container for export;
   
8. Customs officer prepares integrity form and approval documents needed for export;
   
9. Exporters take approval documents to Jamaica Trade and Invest and Trade Board to acquire licence to export and a letter, respectively;
   
10. Exporters take containers to wharf with relevant documents; containers scanned at wharf for contraband;
    
11. Exporter gets paid before or after container reaches buyer overseas, depending on arrangement.

Source of info - Scrap Metal Federation of Jamaica