Latest update November 21st, 2024 1:00 AM
Foreign mining companies handed carte blanche exemption on taxes and fees on anything brought into Guyana
…pay Customs Officers to clear their imports at port of their choosing
A luxury off road vehicle imported into Guyana, purportedly to be used for mining operations
Kaieteur News – Large-scale mining companies have been operating in Guyana for decades with many of their terms and conditions being kept out of the public domain.
Similarly, small and medium-scale miners have been at pains, lamenting the conditions under which government policies hinder their progress in developing the industry and the unfair advantages being handed to foreigners.
A perusal of contracts signed with at least two mining companies suggests a carte blanche on imports, giving credence to the local lamentations. The contracts, all of which this publication was told are crafted in similar fashion, not only give clearance to the companies to import any kind of equipment, it also gives foreigners carte blanche exemption on taxes and fees on anything brought into Guyana. Compounding the situation further, the Mineral Agreements also allow for the foreign mining companies to pay Customs Officers to clear their imports at a port of the company’s choosing.
These are among the glaring similarities uncovered during a perusal of the Reunion Manganese Inc. Agreement that was signed between the Government of Guyana and the Geology and Mines Commission (GGMC), as well as the Karouni Agreement (Troy Rresources). In the Reunion contract, under the clause that deals with importing property into Guyana, the pact stipulates that government will provide the proper public officers having jurisdiction to provide customs clearance facilities and personnel for the company, and its mining operations, “at a location designated by the company within the prospecting area as applicable.” The contract, dictates however that the company shall defray all reasonable expenses incurred by the government in connection with providing such Customs’ personnel.
Meaning, the company will have to foot the bill for the customs officer(s) and their services.
This publication in its Sunday edition featured on its Front Page, a luxury off road vehicle imported into Guyana, purportedly to be used for mining operations. It should be noted however, that under the contract signed with the government, GGMC and Reunion Manganese Inc. the company is firstly exempted from paying customs duties, Value Added Tax (VAT), and any other direct or indirect tax, on all equipment required for the project.
Additionally, it was further clarified at section eight (8) of the contract, that whether for its own account of any local or foreign contractor retained for the project purposes, they too shall not be required to pay any licence, fees, duties or any other charges relating to the important of any vehicle to be used for the project’s purposes within Region One of Guyana.
The only caveat, if the vehicle is to be removed from Region One, or not used for its intended purpose, then the company would be liable to pay applicable duties and taxes.
In addition to equipment, vehicles and machinery for the project, the pact also provides for the importation of all usual and necessary personal items and electronic and household effects that are not available in Guyana, to be exempted, provided that these are listed as for the project.
These however, cannot be resold, unless with the explicit permission of the Commissioner General of the Guyana Revenue Authority, government, or with the government’s blessing, to another person. The same obtains for the Karouni Mineral Agreement, where also the company is given a similar provision with the exception of exemptions on the importations of food and a ten-year cap. As indicated in the Reunion Manganese Inc. contract, it is the company that effectively defrays the cost associated with the clearance of any imports into the country. Additionally, the government spells out that in order to carry out their operations effectively, “it is required to import on an expedited basis a significant amount of goods. As such, the contract dictates that the government undertakes to ensure that the company’s imports “will be treated on an expedited basis by Customs Personnel.”
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