Commissioner General of the Guyana Revenue Authority (GRA), Khurshid Sattaur, and Managing Director of BK International, Brian Tiwarie, yesterday continued to trade barbs over the delay in the granting of concessions for the group of companies and the tardiness of the processing of clearance documents.
In a statement issued to the press on Monday, Tiwarie said that the reason his company was late in finishing projects was because of delays the company experienced in receiving tax concessions as per contract agreement from the government.
On Wednesday, Sattaur responded to Tiwarie’s assertions stating that BK International always receives prior to processing (PTP) clearance of goods and added that the company and its related entities collectivity have nearly 400 PTP entries outstanding.
Sattaur told Stabroek News yesterday that the GRA has ceased all PTPs for BK International and related companies.
He said the reason BK International was able to rack up such a large number of PTP transactions was because everything the company cleared was done through the PTP. “He doesn’t go through the system for nothing and there is a reason for that. If he has to go through the system, the things that he wants duty free, he would not be able to get concessions for them,” Sattaur said.
“When it comes to perfecting those entries it requires a process, he has to submit invoices and he has to get an exemption letter. He doesn’t submit invoices.
“One could question whether some companies are using the PTP for the immediate clearance of goods or to conceal questionable items in the shipments,” Sattaur said.
He added that if an importer brings in items for a project and slips in personal or other items that should not be part of the project, this would be detected unless the items are secreted in a container. “It is because of the unaccountability aspect. There is no transparency involved,” Sattaur said. “My system has a high level of transparency and accountability. Each item has to be itemized and [must] have a classification code attached to it. If you come with an invoice that has [both project items and personal items] I won’t give you an exemption letter,” he said.
“He is not saying that he does not have the capacity to do the work, nor he is not saying that the government should give other people work. He want everything for himself and he can’t deliver,” Sattaur said of Tiwarie. “If he can’t do the work to the people’s satisfaction then contract out the work or give it to a foreigner, but don’t blame the GRA.”
Sattaur said that with the system in place now, there is hardly reason for people to have to use the PTP method for the clearance of their goods. He said that this mechanism is a relic of the past of the GRA, when the system for customs clearance was more cumbersome.
He said the GRA would even set up a help desk to make the process easier for large projects, such as the Berbice Bridge, and Skeldon Factory and others.
He said that the PTP system is fraught with risk and danger and the government can run the risk of losing revenue, because unlike the Permit for Immediate Delivery (PID), the PTP is not grounded in the Customs laws and is purely discretionary.
Further, there is no bond lodged prior to the importer using the PTP as in the case with PIDs. He said violations of the terms of a PID would see a company being denied a letter of compliance from the GRA, but not so with the PTP.
Inordinately
But in his defence, Tiwarie yesterday told Stabroek News that Sattaur is the one at fault as he takes an inordinately long time to issue letters of exemption to the company, hence the holdups in the perfecting of the PTPs. “When we clear items [using PTP] we cannot perfect those documents unless he gives us a CG (Commissioner-General tax exemption) Letter,” he explained.
He said he is prepared to tender the evidence to support his position that the tax chief is giving the company a hard time. He said that because of the tax chief, the company had hold ups in a number of projects, including the Ogle Airport, BK Quarries and some major road projects. “If they call an investigation we have the evidence to show,” he stated.
Tiwarie said that for one of the company’s projects, it was made to pay liquidated damages in the order of $38 million while in another project funded by the 8th EDF, the company had to pay $20 million in damages for being one week late.
He said that because of the delays in being granted concessions, some items have had to remain on the wharf for inordinately long periods, becoming expired and unfit for use by the time they are cleared. Further, the company has had to re-import materials that expired; an additional cost to the company.
Tiwarie said that despite the delays and other problems, the company, with good weather, hopes to soon complete the work on the Ogle Airport. He said painting and earthwork are the only things left to be completed for that project. “To date, we have not been paid one cent for work at that airport,” he said.
Tiwarie pointed out that for a three-month road contract, it took three months for Sattaur to approve the relevant concessions.
Citing an example, Tiwarie supplied a letter that acting Commissioner of Mines Karen Livan sent to Sattaur, stating that BK Quarries was the holder of a quarrying licence in the Mazaruni area and giving clearance for that company to be issued with concessions from the GRA based on its approved development plan. That letter was dated September 29, 2011.
Tiwarie said that to date, Sattaur has not approved the agreement for the company to get its concessions. “We are waiting four months for Sattaur to approve our development plan for the quarry,” he said.
Tiwarie explained that although the PTP release of goods allows the company to remove the goods from the wharf, those items cannot be used until the importation documents are perfected. He cited the example of heavy duty trucks, saying that although they might have been cleared from the wharf, they cannot be used because the perfected documents would need to be used for the registration and licencing of those trucks.
The company has stated its commitment to completing a range of sea defence works within the specified time and Tiwarie reiterated his company’s ability and capacity to complete all works undertaken.
