Tackling the smugglers
Editorial
Stabroek News
October 10, 2002
The Guyana Revenue Authority (Customs) and the revitalised coastguard with their five vessels must be congratulated on renewed efforts to stamp out the large scale smuggling of petroleum to Guyana, primarily from Venezuela, that has been going on for many years. Some estimates are that as much as $60 to $80 million of gasoline a month has been smuggled into Guyana and into a distribution network that conveys it across the country. The country may be losing as much as $40 million a month in revenue, a heavy loss at any time and especially now.
The Guyana Energy Authority is the only agency authorised to issue permits for the importation of petroleum. The main imports are for the oil companies, though others can import if they obtain the necessary permit in advance. To get a permit one would obviously be required to satisfy a number of requirements as to type of vessel, warehousing facilities and so on.
The Petroleum Act and the Petroleum Regulations made thereunder contain a number of detailed provisions with regard to the importation, discharge and storage of petroleum. Regulation 5 provides that petroleum in bulk shall not be carried in Guyana except on a vessel certified as suitable by the Harbour Master or any other officer appointed by the Minister and shall be stored in such part of the vessel and under such conditions as may be directed. Applications have to be made for the approval of a building to be used as a licensed warehouse accompanied by a site plan showing the position of the proposed building and the distance from other buildings. The licence must be displayed in a conspicuous position at the warehouse and all due precautions must be taken to avoid accidents. The building may be inspected by officials at any reasonable time. Special storage tanks have to be constructed and there are special provisions for the thickness of steel drums or barrels in which petroleum is stored or transported. The Regulations also provide for special precautions to be taken with respect to vessels laden with petroleum which are moored alongside any wharf. These regulations exist because petroleum is a dangerous and volatile commodity which needs to be handled carefully.
It will be a major achievement of the coastguard if they can make a real dent in this illegal trade which has been harming the legitimate oil importers, costing the government a great deal in lost revenue and according to reports permitting the introduction of substandard fuel into the system with resulting damage to vehicles. They have already had some impact on the pirates who devastate our fishing stock and this will be another major feather in their caps. As has been argued in many editorials over the years the expenditure of money on an effective coastguard service will quickly be recouped in terms of the protection of our resources and the restriction of smuggling. Hopefully, this early success will encourage the government to further beef up the coastguard to enable it to deal effectively with the widespread challenges it faces from pirates and smugglers.