Uncleared vehicles to be sold

by Shirley Thomas
Guyana Chronicle
March 8, 2001


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UNCLEARED: some of the motor vehicles to be advertised for sale by the Customs and Trade Administration.

THE Guyana Revenue Authority (GRA) is taking steps to put up for sale motor vehicles and other goods which have been imported and not cleared by importers, some for several years.

Motor vehicles which constitute the bulk of goods deemed 'want of entry', and may now be sold, cannot be removed by the importers since they reportedly cannot find the money to clear them.

These were brought in mainly by auto sales dealers.

Commissioner General of the Guyana Revenue Authority, Mr. Edgar Heyligar, said the department is about to do some house cleaning.

"Irrespective of how I feel, or how they feel, I am here to administer the law", he said.

There are reportedly 711 motor cars among the tons of "want of entry goods" (goods not cleared within a month of arrival into the country) lying at the various wharves. Most of the vehicles are Toyota models including Corolla, Carina, Corona and Sprinter.

Most of those on the wharves of the Guyana National Industrial Company; the Guyana National Shipping Company and John Fernandes have been there for the last three to five years, despite efforts by the shipping companies and the Customs Department to get the importers to clear and remove them.

The National Shipping Association issued a press release reminding importers of their duties and responsibilities in relation to the goods being imported, pointing out that there was an ever growing congestion at the wharves, and requesting that they make efforts to pay up the necessary duties and take possession of the motor vehicles.

But few have been removed.

The GRA has been publishing notices in the Official Gazette, signalling its intention to put the vehicles up for sale.

Following these notices, 70 vehicles were cleared from one transit shed with about 570 on hand. Very little success was recorded with the others.

Commenting on the move, Heyligar said: "We are about to do some 'house clearing'. We have advertised in the gazette, and will soon do likewise in the newspapers."

This move, he said, is aimed at clearing the many 'clogged up' wharves, while recovering taxes and other charges.

Whatever is left will go to the shipping companies with a 'lien' on the importers, he said.

He added that sale can commence seven days following the notices in the newspapers.

The GRA is inviting sealed bids and the goods will go to the highest bidders.

Heyligar said the importers may still go to the Customs Department to put themselves in order before the cars go on sale.

According to the Commissioner General, the failure of the importers to pay up and remove the vehicles from the wharves is effectively tying up millions of dollars in revenue and payment due to other entities - at least US$3M.

He confirmed that it requires about US$4,200 to clear one motor car, although the bottom line is that charges are applied based on the engine capacity of the vehicle, regardless of the age and model.

The Revenue Authority is concerned over the growing loss of revenue as a result of the failure of the importers to clear the goods, and is keen on getting in the maximum it could.

But the shipping companies are also crying out, since their facilities are now virtually cramped.

Some have had to deploy some of the cargo to other places, incurring additional expenditure such as providing security for the goods. And storage costs continue to go unpaid.

Some persons feel it would be foolhardy to pay G$800,000 or more for a vehicle lying on the wharves for years and exposed to the elements. Parts might even have been pilfered, and the vehicles depreciated in value, they say.

Replacement of parts and other costs could effectively push the overall expenditure way beyond G$1.5M - the average cost of a Toyota motor car already cleared and in the store.

Over the last three years there has been a virtual boom in the importation of cars.

In 1998, the importation figure for motor cars was a whooping US$7.3M; in 1999 US$5M and for the first half of 2000, US$5.5M, representing 14 to 16 per cent of the approximate US$80M bill for all consumption goods coming into the country for the same period.

For the same period, under intermediate goods, the importation bill for parts and accessories almost doubled that for motor cars.

The parts and accessories bill for 1998 and 1999 were at US$17.5M and US$8.7M, respectively.

In 2000, for the first six months alone the bill amounted to US$24.2M, a sharp increase.

Meanwhile, the fuel and lubricants bill for the same period amounted to US$32.4M; US$42.1M, with US$56.4M for the first half of 2000.

Investigations reveal that relations between many suppliers and importers have gone sour since the bulk of the cars brought in have still not been paid for.

The importers of the vehicles have been in default for years, and in accordance with Section 90(2) of the Customs Act 80:01 the Customs and Trade Administration reserves the right to dispose of them.