New Customs order effected
Stabroek News
February 27, 2004
Finance Minister Saisnarine Kowlessar has signed an order which replaces his discretionary powers with regard to duty-free concessions.
The new Customs Duties (Amendment) Order replaces the discretionary powers afforded to the finance minister, under Section 12 of the Customs Act (now repealed). It gives legislative effect to zero-rated import duty concessions, which had been subjected to standing Secretary to the Treasury (ST) letters.
Kowlessar had the right under Section 12 of the Customs Act to remit duties, rents and charges based on individual application by importers and exporters. However, the Fiscal Enactment Amendment Act removed the discretionary powers of the government to grant remissions/exemptions.
But this left the question of a list of zero-rated items for the mining, agricultural and industrial sectors, which had received approval through standing ST letters and had not required individual approval.
A statement from the Ministry of Finance said with the repeal of Section 12, it became necessary to give legal effect to the list of concessions under those standing ST letters, hence the issuance of the Customs Duties (Amendment) order to legislate the concessions.
Kowlessar thanked the business community for its patience and understanding during the transition period from the repeal of Section 12 to this new order.
The order amends the First Schedule (Part III) of the Customs Act and makes explicit to the layman what concessions are now exempted from duties, instead of simply giving tariff headings.
The order also covers partial exemptions and new items include:
* Instruments, integrated circuits, micro assemblies and apparatus, when imported for use exclusively for commercial or industrial businesses engaged in information, communication and technology sectors and are not put up for sale;
* computer hardware
* machinery, equipment, motor vehicles for industrial use, tools, spares and supplies for other approved industry when imported by a person in accordance with an agreement or contract signed by the government;
* vitamins;
* equipment and materials for use in bee-keeping.
Household effects for remigrants are also covered but have to be imported six months prior to and up to nine months after arrival.
Full exemptions will also now cover:
* louvre blades and other windows,
* fertilisers, manures, insecticides, fungicides, weedicies, herbicides and inoculants;
* motor vehicles as determined and published by the Ministry of Agriculture for agricultural use including the transport of produce;
* building materials and equipment and appliances for first installation of/in approved hotels, guest houses and other facilities subject to published guidelines;
* public transport type passenger motor vehicles including coaches and mini buses, imported solely for the use in hotels and resorts and subject to published guidelines;
* goods imported with funds loaned to the government to assist in the economic development of Guyana.
The order also covers concessions under the In Aid of Industry Act including:
* machinery, equipment, motor vehicles, tools, spares and supplies;
* goods, including motor vehicles, imported by or for the use by foreign persons employed by the government as public or contract officers subject to published guidelines;
* supplies and equipment for use by the University of Guyana;
* goods imported by the Bank of Guyana;
* motor cars, motor cycles and parts imported on behalf of or by members of a registered motor racing club for sole use at race meetings or at trials;
* materials for packaging manufactured goods;
* machinery and equipment for generating electricity from non-traditional sources (solar energy, hydro electricity, biogas, windmills, nuclear reactors, vapour power units and other similar equipment);
* motor vehicles whose date of manufacture is four years in excess of the date of importation of such vehicles;
* equipment, spares and vehicles for use in the mining industry;
* fuel imported from Venezuela or Curacao.
In the case of exports, fish, including shark fins but excluding aquarium fish, and shrimp are excluded from customs duties.