CCJ judges to rule on cement war

UPDATE:

LOCAL cement manufacturer Trinidad Cement Ltd (TCL) has referred to the Caribbean Court of Justice (CCJ), in its original jurisdiction, a complaint that the State has applied the incorrect classification to its competitor Rock Hard Cement.

After hearing from attorneys for TCL, the State, Rock Hard Cement, its local distributor Motilal Rahmit and Sons and Caricom, the CCJ judges hearing the complaint reserved their ruling, with the president of the Port of Spain-based court promising give their decision as quickly as they can.
Rock Hard Cement is imported from Turkey and is distributed in TT, as well as other Caricom states.

The cement war in the local market began in 2017, with questions of fair-trade practices, cement classification and the application of duties and tariffs by the Customs and Excise division being raised in multiple courts locally.

Also hearing associated complaints are the Tax Appeal Board and the High Court.
In its complaint at the CCJ, TCL is alleging TT has breached several provisions of the Revised Treaty of Chaguaramas by applying a Common External Tariff (CET) rate of zero per cent on Rock Hard Cement instead of the appropriate rate of 15 per cent.
TCL was represented by Senior Counsel Gilbert Peterson.

In his submissions, he maintained the treaty provided for the protection of the domestic manufacturer, and by virtue of the Customs and Excise Act, the importer has a right to challenge the tariff, which he said was not a payment, but a deposit.
Peterson suggested an amendment of the policy, so that the tariff paid can be considered a debt recoverable by the State.

Peterson said a zero per cent tariff would stand almost as duty-free and when leveraged in the market, will put TCL at a disadvantage.
However, attorneys for the State and Rock Hard called on the court to first classify Rock Hard’s cement. The issue over the classification of the cement as either Portland or high-grade building cement, is already before the local courts. It was also an issue which troubled the CCJ judges, who questioned if they were competent enough to make such a decision, when the Caricom’s Council for Trade and Economic Development (COTED) had the specialist competency to do so.

Senior Counsel Deborah Peake, who represents TCL, disagreed, instead calling on the judges to embark on the job.
“You have the scientific evidence before you. Germane to the dispute is how the cement should be classified. Let’s not speculate on what COTED is likely to do,” she said, adding that the local courts have stayed their proceedings until the CCJ rules.

Rock Hard’s attorney Allan Wood, QC, agreed with Peake’s submissions, adding that it was the court’s role to classify an importer’s goods, not COTED’s or Customs’.
“There is no provision in the revised treaty to make a determination of a specific importer’s goods. That is the role of the court.

“The issue here is the CET and what rules are applicable to the CET.”
Motilal Ramhit and Sons’ lead counsel Ramesh Lawrence Maharaj, SC, argued that TCL did not have the jurisdiction to bring its complaint to the CCJ, adding that it was for the Tax Appeal Board to apply the CET.

“If Government wants the regime to change, they can take steps to do so with COTED.”

ORIGINAL STORY:

LOCAL cement manufacturer Trinidad Cement Limited (TCL) has referred to the Caribbean Court of Justice (CCJ), in its original jurisdiction, a complaint that the State has applied the incorrect classification to its competitor, Rock Hard Cement.

After hearing from attorneys for TCL, the State, Rock Hard Cement, its local distributor Motilal Rahmit and Sons, and Caricom, the CCJ judges, hearing the complaint, reserved their ruling, with president of the Port of Spain-based court promising give their decision as quickly as they can.

Rock Hard Cement is imported from Turkey and is distributed in TT, as well as other CARICOM States.

The cement war in the local market began in 2007, with questions of fair trade practices, cement classification and the application of duties and tariffs by the Customs and Excise division being raised in multiple courts locally.

Also hearing associated complaints are the Tax Appeal Board and the High Court.

In its complaint before the CCJ, TCL is alleging TT has breached several provisions of the Revised Treaty of Chaguaramas by applying a Common External Tariff (CET) rate of zero per cent on Rock Hard Cement instead of the appropriate rate of 15 per cent.