Jamaican Manufacturers have been purchasing soap chips (soap in a stage that must only be formed into bars before it is sold) from Indonesia, yet are selling their finished soap products under duty-free CARICOM provisions.
CARICOM duty-free provisions for regional soap manufacturers requires manufacturers to go through the entire saponification (soap-making) process to qualify for exemption from duties.
The Dominica Coconut Products Successors Ltd. has taken this matter to CARICOM, arguing that Jamaican manufacturers are cheating the required process by skipping the soap-making/saponification process, and purchasing near ready-made soap from Indonesia, a country that is outside the Caribbean region.
In the latest on the DCPS case against Jamaican manufacturers, CARICOM’s council for Trade and Economic Development (COTED) has determined that soap manufacturers in Jamaica are not eligible to receive Certificates of Origin for their soap exports.
While the ruling has not been ratified, the Dominica Manufacturing Association (DMA) has shown support to the stance of the DCPS, who is calling for a level playing field for all manufacturers.
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