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Khurshid Sattaur
Commissioner General
Mission Statement
Our mission is to promote compliance with Guyana’s Tax, Trade and Border Laws and Regulations through education, quality service and responsible enforcement, thereby contributing to the economic and social well being of the people of Guyana. |
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Nadia De Abreu
Director - Corporate Communications Unit
Tel: (592) 227-3680
ext 222 |
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Manufacturers need Remission Letter for duty exemption
The Guyana Revenue Authority has instituted a new procedure regarding customs duty waiver on raw and packaging materials for manufacturers.
Effective January 21, 2008 manufacturers who import raw and packaging materials for manufacturing purposes are required to apply to the Remission Unit at the GRA Secretariat for such exemptions.
Manufacturers are exempted from the payment of customs duty on raw and packaging materials under Item 4 of the First Schedule Part 111 B (1) to the Customs Act, Chapter 82:01, which was previously administered by the Customs and Trade Administration.
GRA’s Commissioner-General Mr. Khurshid Sattaur said, “Considering the importance of the manufacturing sector to the development of Guyana, it is necessary for the same duty exemptions which were previously granted to existing (and new) manufacturers to continue.
He said that three categories of manufacturers would benefit from these exemptions. These are:
(a) Manufacturers who benefited from such exemptions prior to the repeal of Section 12 of the Customs Act Chapter 82:01.
(b) New manufacturers who are in similar manufacturing industries to those in (a) above
(c) New manufacturers who are in new manufacturing industries other than those in (a) above.
All raw materials including additives used by manufacturers to produce a final product would be granted customs duty exemption. Raw materials include items such as those used in the manufacturing of beverages, food items, building materials, furniture, garments, detergents, pharmaceuticals, livestock and poultry feed, condiments and confectionery.
However, if any item considered to be a raw material is included in the list of ineligibles, no customs duty exemption would be granted unless a waiver from the Council for Trade and Economic Development (COTED) is secured. A list of ineligible items is found in the First Schedule of the Customs Act, Chapter 82:01.
Additionally, if such raw or packaging materials are manufactured or produced locally, no customs duty exemption would be granted.
According to Director (ag.) of the Remission Unit, Mr. Roopnarine Ramkishun, any manufacturer whether previously registered with the Consumption Tax Unit or a new manufacturer is entitled to duty exemption on packaging materials.
The new procedure requires that current manufacturers must submit a written application to the Commissioner-General accompanied by the standard Remission Unit Tax Exemption Application form, a copy of the invoice and the Bill of Lading/Airway Bill for the item for which exemption is being sought.
The Remission Unit will conduct pre-approval verification checks, including the use of institutional knowledge of the applicant, to ensure the validity of the application and once satisfied, the Remission letter will be granted.
Ramkishun said that new manufacturers would have to submit a proposal outlining among other things, the nature of the business and the type of materials that would be needed to carry on such business. A pre-verification visit by the Remission Unit would be conducted to verify such submissions. If the Guyana Revenue Authority is satisfied with the submissions of the applicant, the normal application procedure for customs duty exemption would follow.
The Post Approval Verification Unit from the Remission Unit and other related Divisions of the Guyana Revenue Authority will also conduct periodic checks to ensure that the items on which customs duty exemptions were granted are used for the intended purpose. This verification was previously done by the now repealed Consumption Tax Department of the Customs and Trade Administration.
Ramkishun noted that if manufacturers cannot accurately account for duty free materials, the relevant sections of the Customs Act would be invoked to recoup taxes payable on the items.
Remission Unit Tax Exemption Application forms can be downloaded from the Guyana Revenue Authority’s website www.revenuegy.org or they can be obtained from the Remission Unit.
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