GRA outlines new freight charges

– warns of penalties for tax evaders

Commissioner General of the Guyana Revenue Authority, Godfrey Statia on Wednesday outlined the new charges for freight services in keeping with Government’s recent reductions to pre-pandemic levels.
On Monday, President Dr Irfaan Ali announced several reductions to shipping-related charges to the tune of $4.8 billion in order to cushion the high costs due to the global pandemic.
In a press statement, CG Statia broke down the calculation of duties and taxes on goods imported and sold locally. The GRA Head advised that the relief to freight charges will be applied to imports of goods subject to certain conditions.
These include: that relief takes effect for a period of six months from August 1, 2021 to January 31, 2022 (Not August 1, 2020 as inadvertently stated in the release from the Office of the President); the invoice must be on or after August 1, 2021, or after, and be within the period specified; this measure is for freight purposes used only in the calculation of duties/taxes; the invoices must be at an FOB level, or the FOB position must be clearly stated on the invoice for valuation checks in keeping with the Fifth Schedule; the relief is granted for the reduction of freight to the pre-pandemic level of March 31, 2020, and will only apply if the actual freight charges paid is higher than the pre-pandemic rate as outlined in the average freight rates; and countries/regions not specifically mentioned above will be reviewed on a country basis when the declaration is submitted and/or when audit checks are conducted.
Additionally, it was noted that the measure is intended to provide relief so that the benefits can be passed on to the consumers. As such, the FOB values declared on invoices will be reviewed, cross-referenced, and applied by the Customs, Excise, & Trade Operations (CE&TO) based on the rules of the World Trade Organisation (WTO) and the Fifth Schedule to the Customs Act, Chapter 82:01 for consistency.
The CG cautioned that should unscrupulous importers seek to manipulate the system for tax evasion, then they will be penalised in accordance with existing legislation.
In this regard, the Central Revenue Protection Unit (CRPU), Post Clearance Audit Unit (PCAU), and Law Enforcement & Investigations Division (LEID) driven by a Risk Management System will verify the accuracy and authenticity of declared particulars and taxes paid in keeping with law.
“Those found non-compliant may be subject additional taxes/fines/penalties and six months imprisonment, and the possible removal of the relief being granted under the measure,” Statia warned.
Persons are asked to contact the CE&TO on telephone number 227-6060 for further clarifications.