Another controversy may be brewing in the local scrap metal industry, this time over what industry officials say is the recent imposition by government of a fee for the inspection of containers of scrap metal prior to shipping overseas.
Stabroek Business has learnt that at a recent meeting with Works and Hydraulics Minister Robeson Benn scrap dealers were informed of government’s intention to impose a service fee for the inspection process that precedes the export of scrap metal.
Stabroek Business has been informed that at the meeting Minister Benn, who met with the scrap dealers in the absence of Prime Minister Samuel Hinds from the country announced that government intended to impose a fee of $100,000 for every 20ft or 40 ft container of scrap inspected prior to loading.
The dealers with whom Stabroek Business spoke said that they made a counter offer of $10,00 per container which was rejected by the Minister.
Stabroek Business understands that a further offer of $50,000 per container of ferrous metal and $70,000,00 per container of non ferrous metal is under consideration.
According to the dealers the new fee has come in the wake of changes in the inspection procedures which now require exporters to subject their scrap prepared for export to checking by officials of several agencies including the three utility companies – GT&T, GPL and GWI as well as Linmine. Officials of the Office of the Prime Minister and the Customs Administration are also part of the inspection process.
The recent changes in the inspection process which now allow the utility companies and Linmine to be part of the exercise came in the wake of the controversy that has arisen over allegations that some of the metals exported by the dealers have been stolen.
Stabroek Business understands that several containers of scrap are currently being loaded for export. However, it is unclear whether these containers will be subjected to the new tariff.
Last year government clamped down on the export of scrap metal following claims that dealers were linked to theft of metals from the utility companies. One of the dealers with whom Stabroek Business spoke said that the export of scrap is based on application for and approval by the government on a consignment basis.
One of the exporters with whom Stabroek Business spoke said that any new tariff will significantly reduce the already slim profit margin on scrap exports. He said that the cost of accumulating and exporting a 20-ft container of scrap could be as high as US $5,000 which cost included around US $1,700 in freight charges.
