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New tax measures in place for steel importation
The Guyana Revenue Authority (GRA) has taken steps to reduce tax fraud involved with the importation of steel.
The authority announced new measures yesterday which call for importers to submit
GRA has announced new measures to reduce tax fraud related to steel importation.
what is known as a Mill Test Certificate. In essence, the certificate verifies the quality of steel being imported thus impacting on what taxes are to be charged.
GRA explained the measure is one of the many to protect the state’s revenues.
“All importers of steel and steel products will now be required to submit Mill Test Certificates from the manufacturer of the product, along with their Customs declarations,” the statement indicated.
In a recent review on the classification declared by importers on steel and steel products imported into Guyana, the GRA said it recognized that the Harmonized System (HS) classification cannot be correctly determined without the Mill Test Certificate.
“This Mill Test Certificate shows the proportion of the elements contained in the steel imported, thus the need for the certificate to accompany each shipment of steel in accordance with the provisions of Section 233 (1) of the Customs Act, Chapter 82:01.”
The authority made it clear that that the Mill Test Certificate must relate to the specific consignment in the declaration – invoices, Bills of Lading, quantities, specifications etc.- and can be facilitated by the supplier, who would be able to obtain the certificate from the manufacturer.
“The new requirement is in keeping with the Common External Tariff (CET) which also makes provisions for products of ‘non-alloy’ steel that attract a 10% customs duty. Usually, most declarations submitted by importers label the product being imported as ‘alloy’ steel which attracts 5 % customs duty.”
The Mill Test Certificate accompanying a shipment, GRA explained, would assist in clearing up any anomalies, as the certified classification will be verified by GRA’s Entry Processing Unit, with guidance from GRA’s Harmonized System Classification Committee (HSCC).
“The classification determined by the HSCC will be used to process and clear the consignments.
GRA wishes to advise importers that if the required Mill Test Certificate is not submitted with the customs declaration, then the importer will be requested to deposit at the rate determined by GRA pending submission of the certificate.
Should the HSCC determine a different classification afterward upon examination of further documentation presented, a notice of demand will be issued to the importer under Section 17 (2) of the Customs Act, Chapter 82:01 for payment of the additional taxes.”
The tax collection entity said that it must also be noted that importers have the option of presenting their case to the Customs Tariff Tribunal for a determination, should they challenge the classification after depositing the duties requested by GRA.
“Importers are further advised that in order to reduce the delay in processing time and clearance of their goods, they can apply to the HSCC in advance for classification decisions on their imports to confirm whether they have used the correct classifications.”
With a booming housing and building industry, Guyana’s importation of steel in recent years has been high with a number of hardware suppliers opening doors.
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