The Guyana Revenue Authority (GRA), today, in a press statement, sought to remind the general public, particularly tyre importers, dealers, resellers, and retailers, about its restriction on used tires.
GRA said this restriction applies 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 in place to ensure that the correct procedures are followed when applying the Law.
Following is the full statement:
The Guyana Revenue Authority (GRA) wishes to remind the general public, particularly tyre importers, dealers, resellers, and retailers, that USED TYRES were RESTRICTED from April 1, 2017 in accordance with Part II of the Second Schedule to the Customs Act (List of Restricted Imports).
This restriction applies to used tyres on motor vehicles including motor cars, vans, Sport Utility Vehicles (SUVs), pick-ups, buses and other similar vehicles.
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 of 6mm tyre depth.
GRA has control mechanisms in place to ensure that the correct procedures are followed when applying the Law. These 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 the revenues and ensuring that the 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 GNBS on the most effective means of implementation. The general public should also be reminded that Customs Duties on NEW tyres have been reduced from 30% to 15%, while the VAT has been reduced from 16% to 14%. 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’s a smooth implementation of the measures, GRA will allow a phase-in period of 1 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, mini-bus) 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.