US embassy cable - 05KINGSTON1529

UNCLAS KINGSTON 001529 
 
SIPDIS 
 
STATE FOR WHA/CAR (WBENT), EB/TRA (MATTINGLEY) 
 
E.O. 12958:  NA 
TAGS: EAIR, JM 
SUBJECT: JAMAICA CIVAIR: QUERYING THE GOJ ABOUT FEES 
ATTACHED TO FUEL PURCHASES - JUNE 2005 UPDATE 
 
REF: A) 04 STATE 160714 
 
B) 04 KINGSTON 3134 
C) KINGSTON 1035 
 
1. (SBU) On June 8, Econoff contacted the Ministry of 
Finance and Planning and was directed to Sheila Gordon, 
Director of the Taxation Division, who was aware of USG 
interest in the issue of the customs user fee being 
charged on jet fuel sold to international air carriers 
(ref A), in apparent contravention of the Open Skies 
agreement.  Gordon apologized for the lengthy delay (Post 
first raised the issue with the GOJ in August 2004), 
saying that the Ministry's legal department was still 
looking into the issue and would hopefully return an 
opinion soon.  She added, however, that they were months 
behind in their work. 
 
2. (SBU) When asked whether Air Jamaica was still exempt 
from the customs user fee on international jet fuel, 
Gordon stated that Jamaican customs officers had been 
charging the fee to Air Jamaica on a case-by-case basis, 
taking the airline's troubled financial situation into 
account.  (Note: Air Jamaica, the national airline, was 
reacquired by the GOJ in late 2004.  During a decade of 
privatized operation, it had amassed staggering amounts of 
debt, and was often unable to pay its bills.  End note.) 
When informed of the GOJ rationale for not charging the 
customs user fee on a regular basis, a representative of 
American Airlines (AA) wryly asked Emboff what 
circumstances would allow AA to qualify for exemption from 
the fee. 
 
3. (U) We will continue to press the GOJ for a 
satisfactory resolution of this issue. 
 
4. (SBU) Comment:  Given the slow pace of GOJ response and 
Gordon's admission of discriminatory exemption of Air 
Jamaica from tax payments, Post suggests Department and 
other appropriate USG entities consider imposing a tax on 
Air Jamaica fueling at U.S. airports.  End Comment. 
 
TIGHE