The Guyana Revenue Authority (GRA) has sought to remind the general public, particularly tyre importers, dealers, resellers, and retailers, about its restriction on the importation of used tyres.
The GRA said this restriction applied to used tyres on motor vehicles including motor cars; vans; Sport Utility Vehicles (SUVs); pick-ups; buses and other similar vehicles. The revenue body added that control mechanisms were in place to ensure that the correct procedures were followed when applying the law.
In a statement on Monday, the GRA said the restriction on used tyres was effective from Saturday, April 1, 2017 in accordance with Part II of the Second Schedule to the Customs Act (List of Restricted Imports).
As it relates to tyre imports which are presented separately from the motor vehicles, only new tyres will be allowed. When the used tyres are presented with the vehicles, they can be allowed entry with the vehicles once the tyres have a minimum tyre depth of 6mm.
The GRA’s control mechanisms include stringent risk management practices, enforcement checks, inventories, and Customs examinations at the wharves, ports of entry, and premises. These measures are aimed at protecting revenues and ensuring that laws are not compromised. They are intended to mitigate the likelihood of attempts to submit false declarations to the GRA and to evade taxes and smuggle used tyres.
In the lead-up to the effective date for the restriction, the GRA held several discussions, including meetings with the Guyana National Bureau of Statistics (GNBS) on the most effective means of implementation. It also reminded that Customs duties on new tyres have been reduced from 30 per cent to 15 per cent, while the VAT has been reduced from 16 per cent to 14 per cent. This measure took effect from February 1, 2017 and is in keeping with the promotion of a green economy and the protection of the environment.
In an effort to ensure that there is a smooth implementation of the measures, the GRA said it would allow a phase-in period of one month ending on April 30, 2017. During this period, tyres on the used vehicles will be allowed entry once the vehicles were purchased and shipped prior to April 1, 2017. After the phase-in period, importers of used tyres on vehicles not adhering to the stipulated standards after the extension will be fined $10,000 (car, van, minibus) and $15,000 (pickup and SUV) per tyre inclusive of spare, not in conformity with the specifications.
It should be noted that the restriction does not apply to tyres for trucks, lorries, vehicles used in the agricultural and industrial sectors, and special purpose vehicles.
