GRA woos fuel smugglers to become legit

Apr 18, 2017 News

Fuel smugglers are being offered a chance to legitimize their operations with the Guyana Revenue Authority (GRA) over the weekend saying it wants to engage the players.

Customs chief,
Lancelot Wills

According to Customs head, Lancelot Wills, the authority has been taking a proactive stance in ensuring it collects what is due. One of the areas, the official stressed, has been fuel.
GRA estimates that it is losing hundreds of millions of dollars annually on fuel taxes due to smuggling.
As recent as over the weekend, Kaieteur News reported that the GRA estimated that it loses over $40M weekly in Region One alone. The area is one of several opened by the previous administration, to benefit residents who are unable to receive supplies because of rough terrain.
However, corruption and smuggling have reportedly become a hotbed in especially border areas like Morawhanna in Region One.
GRA has sent officials to that area to conduct an assessment and has even moved to establish a presence.
The issue has not been a new one. With taxes on imported fuel up to 50 percent, there are big bucks to be made.
Fuel is reportedly coming in by fishing boats, under the guise of legitimate operations, while others are anchoring off the coast of Guyana, in areas where it is difficult to patrol 24/7. Still other vessels are slipping in or attempting to slip in.
The logistics in fighting fuel smuggling would be a challenge, given vast expanse of waters and areas to be covered.
The illegal fuel is largely making its way to the gold bush and even to loggers and far-flung communities – a huge market.
Wills made it clear that it would beneficial to all parties if the persons involved move to legitimize the operations.
“Yes, we invite them to come in and talk to the authorities how the situation can be made

Atlantica at the GNSC wharf a few weeks ago.

right.”
Questioned about a recent report about the presence of a Panamanian boat, Atlantica, which was last month held at the Guyana National Shipping Corporation wharf, Lombard Street, Wills said that it was one situation where GRA managed to collect. He disclosed that the vessel had entered Guyana sometime in February and GRA stepped in after it appeared in distress.
Customs officials boarded the vessel and checks later revealed it had unmarked fuel, amounting to thousands of gallons on board.
Wills said that a local company licensed to import fuel, Lynwil, offered to take the fuel from the vessel which was under guard at the wharf.
Customs officials were even placed on board the vessel to sleep to ensure that it is not taken off without permission.
The Customs chief said that GRA demanded a cash bond and a quantity of fuel was handed over to Lynwil, under what is known at GRA as Permission for Immediate Delivery (PID).
Lynwil has since set up operations at Christianburg Omai Bulk terminal, in Linden, Wills disclosed.
“This is one situation that we have managed to collect as we insisted on a cash bond and there is a little more fuel on the boat. So that is where we want to head also…where persons who want to make the operations a legal one.”

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