GRA fines 11 containers of used tyres shipped before ban

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Following Government’s announcement of a ban on the importation on used tyres, dealers moved to import some 11 containers of tyres in order to bypass the new restriction.

This was revealed by Commissioner General of the Guyana Revenue Authority (GRA), Godfrey Statia. He explained to reporters at a press conference on Thursday that with the ban on the importation of used tyres taking effect on April 1, the importers were given a long notice beforehand.

Used Tyres slipped through the system with the new restriction in place

To this end, the dealers had ordered bulks of used tyres ahead of the restriction date, which came in afterwards.

“There were actually 11 containers, I think, that slipped through that came in late after then and they put a fine on the tyres in those 11 containers. So I think we put $600 per tyre; I had first put $1000 but he wrote and appeal, and we say ok we will reduce it,” Statia said.

On this note, the Commissioner General pointed out that the Revenue Authority is not expecting to see an effect in terms of revenues as a result of the ban anytime soon.

“As far as I could see, you would see a reduction in revenue probably until the new year because the guys have restocked and have brought in as much used tyres as they could. So you would not see any effect on the revenues or any effect on the ban until probably next year,” he said.

The April 1 ban on the importation of used tyres was enforced for dealers, while the GRA had allowed a two-month extension period for vehicles that were bought with used tyres before that date.

Importers of vehicles with used tyres that are not in conformity with the 6mm and over standard will be fined for each category of tyres. This includes a $10,000 fine for motor cars, vans, and minibuses; and $15,000 for SUVs and pick-up vehicles.

Moreover, it was reminded that the import duty charged on new tyres was reduced from 30 to 15 per cent effective February 1, 2017.

However, even as Government forges ahead with the implementation of the new law, the Guyana Used Tyres Association continues to protest the move, staging several picketing exercises to get the Government to reverse the ban but to no avail.

In fact, the Association had even submitted a petition with over 100 signatures in support. According to information supplied by the dealers, used tyres cost between $3000 and $5000, whereas new ones would be more than two times that price, as they lament the impact the ban will have on the livelihood of used tyre dealers.

 

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