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Jamaica cannot be a dumping ground for old used tyres
By Al Edwards
Friday, March 04, 2011
The decision by the Minister of Industry, Investment and Commerce Karl Samuda to stand by his decision to impose a ban on the importation of used tyres into Jamaica will prove beneficial to the country's motorists and will stop the funeral parlours profiting from what could have spelt a major impediment to the transportation industry and have serious concerns for the environment.
Karl Samuda
Karl Samuda
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Already Jamaica is plagued by terrible roads and an excessive of deportee cars and to contend with unfit and substandard tyres would simply place yet another burden on motorists' shoulders.
Earlier this week, it was widely reported that the government was all set to lift the orginally imposed ban on the wholesale importation of used tyres. Samuda said that he was cognizant of the arguement that used tyres at 50 per cent cheaper than brand new one would prove cheaper for cash-strapped Jamaicans . He called on the Bureau of Standards Jamaica to develop a table of tyre measurements and requirements, in other words a standard for used tyres.
Prior to the Government's recent policy shift, the only used tyres that were allowed to be imported in to Jamaica were used tyres that were to be retreaded, that is, they were subject to manufacturing prior to them being available to the Jamaican consumer. Hence, used tyres attract zero percent duty. Unfortunately, the Government of Jamaica has allowed used tyres that are not subject to any manufacturing process to be imported and sold directly to the Jamaican consumer, duty free. New passenger tyres, upon arrival at the ports of Jamaica, attract a 25 per cent customs duty based on the CIF value of the goods. Hence, used tyres sold directly to the consumer are indeed cheaper than new tyres.
Is it not worrisome to the Government that their duty policy that favours manufacturing inputs has been exploited by sharp thinking business persons? Used tyre imports are proving to be quite costly for Jamaica as based on projections of used tyre usage compared to new tyre usage, the Government of Jamaica stands to lose a minimum of J$1billion per annum in revenues lost using the current duty regime.
Imported used tyres that have been sold in Jamaica, have been sold at up to 65 per cent of the cost of a new tyre of the same size. So for the consumer, the initial cost is indeed less. But are these savings realized in the long term?
Based on the recommendations of the Ministry of Industry and Commerce to allow used tyres with a tread depth of 4 mm to be imported, the cost per mile for tyres will increase for the Jamaican consumer. Why is this so? On the average, a new tyre has a tread depth of 8mm. When a tyre reaches a tread depth of 1.66 mm is it no longer fit for safe use and so,for a tyre with a 4mm tread depth, only 2.34 mm or 36 per cent of the tyre is available for use, even though the consumer paidup to 65 per cent of the price of a new tyre. So, the Jamaican consumer does not gain from purchasing a used tyre based on recommendations of the Ministry of Industry and Commerce,in fact the cost is between two to three times more!
What about the cost to the environment? Since a consumer will have to purchase up to 3 used tyres to get the same wear as one new tyre, the amount of old tyres that will now be in our garbage disposal sites will be at least 3 times more.
Who will be paying for the increased cost for the disposal of these tyres? Who will be paying for the increased environmental impact of these tyres remaining in our ecosystem for many years? Who will be paying for the increased cost of extinguishing larger fires at Riverton that smoulder and create a smoke that stifles citizens, especially those with respiratory ailments? Who will be paying the increased cost for our public health bill for controlling the dengue outbreak caused by water gathering in the increased amounts of used tyres in our environment?
So yes, these tyres are cheaper at the outset but are they more costly in terms of safety? Do consumers or even the importers of used tyres know what conditions the tyres were subjected to and therefore the integrity of these tyres prior to arrival in this country? Were they stored in some outdoor dump and therefore continuously exposed to weather elements?
Yes they are inspected upon arrival, but the method currently employed does not allow for proper assessment of the integrity of the inner wire framework of the tyre nor the rubber compounds that degrade over time. Who does it cost when consumers are allowed to put their lives and the lives of all road users at risk in using goods that have not been tested by scientific methods and they meet in accidents on our already perilous roadways?
Will the insurance view used tyres as a potential increased risk on the Jamaican road and therefore increase their premiums?
Speaking with Caribbean Business Report last night Managing Director of Globe Insurance Evan Thwaites said: "The idea of importing used tyres for Jamaican motorists is fundamentally not a good one for the country and its motorists. However we in the insurance industry view a tyre as just a tyre and do not adjust our premiums accordingly. However if there were a number of accidents due to poor quality tyres coming into the country, we would certainly have to take a look at it. I don't think as things stand now it will result in a raise in premiums immediately."
Let's hope good sense continues to prevail on this matter.
Read more: http://www.jamaicaobserver.com/busin...#ixzz1FkdYPo4w
By Al Edwards
Friday, March 04, 2011
The decision by the Minister of Industry, Investment and Commerce Karl Samuda to stand by his decision to impose a ban on the importation of used tyres into Jamaica will prove beneficial to the country's motorists and will stop the funeral parlours profiting from what could have spelt a major impediment to the transportation industry and have serious concerns for the environment.
Karl Samuda
Karl Samuda#slideshowtoggler, #slideshowtoggler a, #slideshowtoggler img {filter:none !important;zoom:normal !important}
1/1 Already Jamaica is plagued by terrible roads and an excessive of deportee cars and to contend with unfit and substandard tyres would simply place yet another burden on motorists' shoulders.
Earlier this week, it was widely reported that the government was all set to lift the orginally imposed ban on the wholesale importation of used tyres. Samuda said that he was cognizant of the arguement that used tyres at 50 per cent cheaper than brand new one would prove cheaper for cash-strapped Jamaicans . He called on the Bureau of Standards Jamaica to develop a table of tyre measurements and requirements, in other words a standard for used tyres.
Prior to the Government's recent policy shift, the only used tyres that were allowed to be imported in to Jamaica were used tyres that were to be retreaded, that is, they were subject to manufacturing prior to them being available to the Jamaican consumer. Hence, used tyres attract zero percent duty. Unfortunately, the Government of Jamaica has allowed used tyres that are not subject to any manufacturing process to be imported and sold directly to the Jamaican consumer, duty free. New passenger tyres, upon arrival at the ports of Jamaica, attract a 25 per cent customs duty based on the CIF value of the goods. Hence, used tyres sold directly to the consumer are indeed cheaper than new tyres.
Is it not worrisome to the Government that their duty policy that favours manufacturing inputs has been exploited by sharp thinking business persons? Used tyre imports are proving to be quite costly for Jamaica as based on projections of used tyre usage compared to new tyre usage, the Government of Jamaica stands to lose a minimum of J$1billion per annum in revenues lost using the current duty regime.
Imported used tyres that have been sold in Jamaica, have been sold at up to 65 per cent of the cost of a new tyre of the same size. So for the consumer, the initial cost is indeed less. But are these savings realized in the long term?
Based on the recommendations of the Ministry of Industry and Commerce to allow used tyres with a tread depth of 4 mm to be imported, the cost per mile for tyres will increase for the Jamaican consumer. Why is this so? On the average, a new tyre has a tread depth of 8mm. When a tyre reaches a tread depth of 1.66 mm is it no longer fit for safe use and so,for a tyre with a 4mm tread depth, only 2.34 mm or 36 per cent of the tyre is available for use, even though the consumer paidup to 65 per cent of the price of a new tyre. So, the Jamaican consumer does not gain from purchasing a used tyre based on recommendations of the Ministry of Industry and Commerce,in fact the cost is between two to three times more!
What about the cost to the environment? Since a consumer will have to purchase up to 3 used tyres to get the same wear as one new tyre, the amount of old tyres that will now be in our garbage disposal sites will be at least 3 times more.
Who will be paying for the increased cost for the disposal of these tyres? Who will be paying for the increased environmental impact of these tyres remaining in our ecosystem for many years? Who will be paying for the increased cost of extinguishing larger fires at Riverton that smoulder and create a smoke that stifles citizens, especially those with respiratory ailments? Who will be paying the increased cost for our public health bill for controlling the dengue outbreak caused by water gathering in the increased amounts of used tyres in our environment?
So yes, these tyres are cheaper at the outset but are they more costly in terms of safety? Do consumers or even the importers of used tyres know what conditions the tyres were subjected to and therefore the integrity of these tyres prior to arrival in this country? Were they stored in some outdoor dump and therefore continuously exposed to weather elements?
Yes they are inspected upon arrival, but the method currently employed does not allow for proper assessment of the integrity of the inner wire framework of the tyre nor the rubber compounds that degrade over time. Who does it cost when consumers are allowed to put their lives and the lives of all road users at risk in using goods that have not been tested by scientific methods and they meet in accidents on our already perilous roadways?
Will the insurance view used tyres as a potential increased risk on the Jamaican road and therefore increase their premiums?
Speaking with Caribbean Business Report last night Managing Director of Globe Insurance Evan Thwaites said: "The idea of importing used tyres for Jamaican motorists is fundamentally not a good one for the country and its motorists. However we in the insurance industry view a tyre as just a tyre and do not adjust our premiums accordingly. However if there were a number of accidents due to poor quality tyres coming into the country, we would certainly have to take a look at it. I don't think as things stand now it will result in a raise in premiums immediately."
Let's hope good sense continues to prevail on this matter.
Read more: http://www.jamaicaobserver.com/busin...#ixzz1FkdYPo4w
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