The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

WHILE new regulations governing the scrap metal industry have added paperwork and additional operational costs for dealers, one operator told Tribune Business the price to remove the "band of thieves" stigma was worth it.

Everette Rolle, proprietor of Caribbean Recycling, told Tribune Business that since the new legislation governing the industry had been implemented he had seen a 2-3 per cent increase in operational costs.

Mr Rolle said, however: "I always look at the big picture. The cost of doing business is more but we are no longer viewed as a band of thieves. The stigma is gone, and so the price you pay to remove that stigma is worth it. People can come and see that we are legitimate businessmen, which many of us were before, but there was a stigma."

Last summer, the Government placed a temporary ban on the scrap metal trade, while imposing a permanent ban on all copper exports in an effort to curb the wanton theft and mangling of valuable property said to be linked with the industry.

Prime Minister Hubert Ingraham subsequently tabled the Pawnbrokers and Secondhand Dealers Bill 2011 in the House of Assembly, which set out operational guidelines and regulations for pawn brokers, 'cash for gold' operators and scrap metal dealers. Under the provisions of the new law, business owners or dealers engaged in the export of scrap metal will have the duty and responsibility to verify the identity of customers and to maintain records of all transactions.

Mr Rolle said: "We have had to go through a number of hoops. We have had several meetings with the Customs department to get clarification on how we will work the procedures. The Act is one thing, but how it works is a different things.

"We have had several meetings to work out the fine details. It's a lot of paperwork. We have to have people now dedicated to facilitate the amount of paperwork required. There is also a whole new set of procedures at the dock. This is costing us much more to do business because of the additional paperwork required, but we have to stay in the business and continue to do this."

He added: "I think everyone now has a handle on what is required. It's costing us way more to get it done, but once you understand the process you can execute it. The new port also has additional procedures that they are imposing on us. It's not a walk in the park but we have to get it done."

The new legislation governing the scrap metal industry has proven to be too onerous for some dealers, who have opted to get out of the business.

Ronny Etienne, owner of scrap metal trading firm, Ronny's Auto, told Tribune Business: "Guys are shipping, though you only have a handful. The biggest thing now is probably the new port fees, but at least you could eat now.

"The procedures are straightforward. Once you adhere to the requirements, everything just goes smoothly. We have a lot more paperwork, and you have to show Customs more paperwork to make them satisfied as to where you are getting your stuff from. With the paperwork and the timeframe they are giving you, we're not able to get out as much volume but we can still eat."