New GRA system pegged at US$2.1M

Jul 11, 2017 News

…to come on stream in 2018

The Guyana Revenue Authority (GRA) has pegged the new Automated System for Customs

GRA Commissioner-General, Godfrey Statia

Data (ASYCUDA) at a cost of US$2.1M. The system is expected to be up and running by the end of next year. However, a pilot run of the new system is expected to be done by September of this year.
This was disclosed yesterday by Commissioner-General of GRA, Godfrey Statia, as he answered questions during a meeting of the Public Accounts Committee in the parliamentary chambers.
The plan to implement this system came as a 2015 observation, whereby the GRA considered the introduction of ASYCUDA, so as to improve customs operations and upgrade the existing Total Revenue Integrated Processing System (TRIPS). The modification to TRIPS is expected to focus only on taxation.
According to the observations, the new system which is also described as TRIPS II, is expected to address the majority of existing issues and introduce new features towards improved tax operations.
Statia was asked whether a business case analysis was undertaken regarding the new system. He said that this was done, whereby the United Nations Conference on Trade and Development (UNCTAD) was invited to do the analysis. He said that initially the UN Conference had said that the system would cost the state US$1.5M and it would have cost US$2.3M with the single window module.
However, Statia said that when the revenue authority looked at what the Ministry of Business and other government agencies are trying to put in place, it was recognised that it might be duplicity of effort, by GRA having a single window module along with the government agencies.
“So we went in the initial phase to just get the ASYCUDA by itself and at the last count they told us that it would cost US$2.1M.” He affirmed that this is the final figure which is being negotiated with the UNCTAD.
Following the pilot project in September, Statia said that a full ‘turn-up’ of the system is expected by the end of 2018, the latest. This is according to the agreement signed between the GRA and the UNCTAD, which was contracted to implement the system.
Money has been allocated in the 2017 budget towards this project. When asked what specific improvements can be expected from the new system, Statia said that ASYCUDA is currently being used in over 100 countries. He said that there will be a common database, especially for valuation purposes. According to Statia, across all countries, as exports leave, the system will be alerted based on the ports they would have passed.
He said that the only problem envisaged to implement the system would be a ‘push-back’ for staff that are accustomed to keeping things in the system for a lengthy period of time.
“That is the only push-back. We expect to get increased revenues also based on the system. The system has to pay for itself within a few months of implementation due to increased revenue. Then you have electronic payments, electronic declarations, and all these things. You are going to cut the time per container of imports being cleared by over 75 per cent.”
The GRA Commissioner-General said that basic efficiencies will be improved following the rollout of the system, whereby the business community stands to benefit and there will be greater revenue collection.
In terms of preparation for the new system, Statia said that included in the US$2.1M is payment for training. He said that the group to work along with ASYCUDA has already been identified and that ASYCUDA will be taking the team up for training and the UNCTAD will also help in the procurement of the equipment so as to make the system suited for the 21st Century.