GRA starts stamping cigarettes in smuggling clampdown

May 06, 2018 News

Following the introduction of stamps to ensure liquor entering Guyana have been taxed, authorities have now turned their attention to cigarettes.
According to the Guyana Revenue Authority (GRA), it is now alerting importers, retailers and resellers of tobacco products that its Customs, Excise and Trade Operations (CE&TO) has commenced the application of Excise Stamps on imported tobacco products.

The stamps on the cigarettes.

“Customs Officers are currently visiting premises to verify existing inventories to initiate the stamping process. Upon the conclusion of the verification excise for tobacco products, the Commissioner-General will announce a cutoff date after which, those who purchase such products without the stamps, may be penalized in accordance with the Customs Laws.”
GRA warned that it is the responsibility of the importer, retailer or reseller to provide the staffers to affix the stamps under the supervision of the Customs Officers.
GRA has also reminded that the cut-off date for liquor in stock was February 28.”
“As such, Customs Officers are currently conducting visits to premises, and any unstamped alcohol products will be deemed illegal and may be seized and dealt with in accordance with the provisions of the Customs laws.”
The affixing of excise stamps on alcohol and tobacco products is an anti-smuggling measure, in accordance to the law, GRA said.
In November last year, the tax agency in one of its most telling strikes to reduce smuggling and collect its taxes, launched a major project to stamp imported alcohol.
The high-security bar-coded stamps are designed to reduce the leakage of an estimated $2B in taxes that Guyana loses annually from smuggled hard liquor and cigarettes.

GRA’s Deputy Commissioner, Rohan Beekhoo, demonstrating how the stamp is to be affixed during the rollout on the alcohol, back in November.

Using a mobile scanner, enforcement officers could determine right away whether the taxes have been paid or attempts were made to forge the stamps.
GRA has internal controls that can tell which batch of stamps has been affixed to which imported liquor.
With alcohol products attracting high duties, smugglers have been capitalizing on corrupt law officials and some Customs Officers, along with unmanned open borders.
Popular liquor like Absolut, Ciroc, Johnny Walker, wines, Hennessy and Malibu and even beers are being smuggled.
GRA has admitted that its capacity is severely tested to reduce smuggling, with the reality that there will never be enough staffers to monitor the expansive 83,000 square miles.
After careful assessment, it was decided that GRA will engage Canadian Bank Note (CBN), the company which has been working on the security on Guyana’s bank notes, to come up with a programme to ensure that import liquor can be tracked.
The project was announced since 2016.

A Customs official demonstrating how the excise stamp should be placed on cigarette packs.

Importers are asked to register with GRA.
The cost for stamps on imported alcohol is $16, with the one for tobacco being $8.
GRA is estimating that smuggled alcohol is about 60-70 percent of what is imported annually.