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Government of Grenada Duty-Free Barrels Initiative 2009

by admin
It is no secret that the world economy is facing one of its most severe crisis since the 1930s.  Grenada, like the rest of the world, is being negatively affected by the crisis in several ways.  One of our main challenges is balancing the significant shortfalls in Government’s revenues against the increasing need to stimulate the economy and to provide adequate protection for poor and vulnerable groups. 

Whereas it can be argued that cost of living has declined somewhat, it is still a major concern to us, particularly as it relates to food inflation.

You would recall that in 2008 upon assuming office, the Government moved speedily to implement a number of programmes which were aimed at cushioning the effects of the high cost of living of Grenadians.

One such programme was the “Duty-Free Barrels Initiative.”  This programme was implemented on October 1, 2008 and was in place for a period of three (3) months. 

By all means, this programme was a resounding success.  Over 9,000 households benefited from the “Duty-Free Barrels Initiative.”  The revenues foregone by the Government amounted to some EC$1.1 million. 

Given Government’s commitment to do all it can to ease the burden on all households, especially the poor and vulnerable, and notwithstanding the likely impact of such an initiative on its already weak revenue position,  the Government is of the view that such a programme is still relevant today as it was in 2008. 

Accordingly, I am please to announce the “Duty-Free Barrel Initiative” for a second year.
The 2009 roll-out of the Programme will be informed by the following guidelines.

  1. Household Limit: Each household in Grenada will be entitled to a maximum of two (2) duty-free barrels during the implementation period.  Boxes, crates and cartons of equivalent size to a regular barrel will also be eligible.

 

  1. Definition of Household: For this initiative, a household would be a family (nuclear or extended) living together.  At the time of application, the person clearing the barrel will be required to complete a form giving information about name, number of persons in his or her household and other relevant information.  A piece of photo-identification will also be required. 

Furthermore, persons will have to sign a declaration that the information is correct.  Persons who give false information will be subject to fine and prosecution under the Customs Act.

  1. Composition of the Barrels: It is customary for Grenadians to import what Customs calls “foodstuff barrels”.  As the name suggest, these barrels primarily contain foodstuff.  However, it is not unusual for them to have articles of clothing, toiletries and toys.

 

The Customs Department will use the same rule to process barrels under this initiative. 

The exemption will not apply to appliances and electronics.  If these are found in the barrels, the regular duties and taxes will be assessed. 

Customs reserves the right to examine each barrel and determine if it for household or commercial use.  For example, a barrel that has more clothes than food will be assessed as a clothing barrel or even a barrel for commercial purposes depending on its composition.

  1. Exemption: Government will exempt all customs duties and taxes, customs service charge and stamp duty on eligible barrels. In short, all government taxes and charges will be removed. 

However, Recipients of barrels will be required
to pay charges assessed by private warehouses and the Grenada Ports Authority.

  1. Revenue Loss: The revenue forgone by Government will depend on the number of households which take advantage of this special offer.  Based on the 2008 results, the Government stands to forego in excess of EC$1.0 million.
  2. Concerns from the Public: This Government is committed to a process of ongoing consultation with the People. For the 2009 roll out, Government invites the public to provide feedback/ suggestions for improvement of the process over the next 10 days ending September 27, 2009. 

In this regard, we seek the support of the media to publish these guidelines.  Feedback from the public can be sent to email address: financegrenada@gmail.com or at finance@gov.gd. Persons may also call (473)-435-0057 or send a note addressed to the Corporate Communications Officer, Ministry of Finance.

  1. Implementation Period: The programme will commence on October 01, 2009 and end on December 31, 2009.  This means foodstuff barrels arriving in Grenada on or after October 01, 2009 and on or before December 31, 2009 will be eligible up to a maximum of two per household.

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