Guyana, a small South American country on the northern Atlantic coast, has a rapidly developing economy with significant reliance on imports to meet domestic demand across various sectors. As a member of the Caribbean Community (CARICOM) and the World Trade Organization (WTO), Guyana’s trade policies are shaped by regional and international agreements. Imports to Guyana are subject to customs duties, value-added tax (VAT), and special duties based on product category and origin country.
Tariff Structure in Guyana
Customs tariffs in Guyana are categorized under the CARICOM Common External Tariff (CET), a system adopted by all CARICOM member states to harmonize trade within the region. The CARICOM CET applies to imports from non-CARICOM countries, while goods traded within CARICOM benefit from duty-free access.
Guyana’s import tariffs are generally structured as follows:
- 0%: Essential goods such as medicines and certain agricultural products.
- 5%: Raw materials and capital goods.
- 10%: Intermediate goods.
- 20%: Consumer goods.
- 35%: Luxury goods and non-essential items.
In addition to customs duties, imported goods may also be subject to:
- Value Added Tax (VAT): Currently set at 14% on most goods and services.
- Excise Duties: Applied to specific goods, such as alcohol, tobacco, and petroleum products.
- Environmental Tax: Levied on specific goods, including plastic containers, to promote sustainability.
Guyana also benefits from preferential trade agreements with various countries, offering lower tariff rates or duty-free access for certain products under specific agreements, such as the Generalized System of Preferences (GSP).
Tariff Rates by Product Category
1. Agricultural Products and Foodstuffs
Guyana has a significant agricultural sector, but it also relies on imports to meet demand for certain food products. Tariff rates for agricultural imports vary depending on whether the goods are raw materials or processed items.
1.1. Cereals and Grains
- Rice: While Guyana is a major rice exporter, imported specialty rice may be subject to 5% tariffs.
- Wheat and maize: Import duties for wheat and maize, often considered essential raw materials, are set at 5%.
- Processed cereals (flour, etc.): Tariffs range from 10% to 20%, depending on the degree of processing.
Special Import Duties:
- Rice from CARICOM countries: Duty-free access is granted under CARICOM trade agreements.
- Cereals from non-CARICOM countries: Higher tariffs may apply to protect domestic agriculture.
1.2. Dairy Products
- Milk (powdered and fresh): Imports are typically taxed at 10%, with VAT applied on top.
- Cheese and butter: Cheese and butter are subject to 20% tariffs, classified as consumer goods.
- Yogurt and other dairy products: These products are taxed at 10% to 20% depending on the brand and country of origin.
Special Import Duties:
- Dairy imports from non-preferential countries: Additional duties may apply on dairy imports from countries without trade agreements, particularly for premium products.
1.3. Meat and Poultry
- Beef, pork, lamb: Meat imports face 20% tariffs, which are categorized as consumer goods.
- Poultry: Poultry imports, including chicken and turkey, are subject to 20% tariffs.
- Processed meats: Tariffs for processed meats such as sausages and cold cuts range from 20% to 35%.
Special Import Conditions:
- Frozen meat imports: Imports of frozen meat may face additional sanitary checks and restrictions, with higher duties applied in some cases.
1.4. Fruits and Vegetables
- Fresh fruits: Import tariffs on fresh fruits range from 10% to 20%, depending on the type of fruit.
- Vegetables (fresh and frozen): Vegetables are taxed at 10% to 20%, depending on whether they are fresh or frozen.
- Processed fruits and vegetables: Canned or frozen processed vegetables face 20% tariffs.
Special Import Duties:
- Fruits and vegetables from CARICOM countries: Duty-free or reduced tariffs apply under CARICOM agreements.
2. Manufactured Goods
Guyana imports a significant amount of manufactured goods, including textiles, machinery, and consumer electronics. These goods are subject to varying tariff rates depending on their level of processing and end-use.
2.1. Textiles and Apparel
- Raw cotton and fabrics: Raw cotton and fabrics used for clothing manufacturing are subject to 5% tariffs.
- Clothing (cotton and synthetic): Finished apparel products are taxed at 20%, classified as consumer goods.
- Footwear: Imports of shoes and footwear are subject to 20% to 35% tariffs, depending on the material and brand.
Special Import Duties:
- Clothing from CARICOM countries: Duty-free access is provided under CARICOM agreements.
- Textiles from non-preferential countries: Additional tariffs may apply to protect domestic manufacturing.
2.2. Machinery and Electronics
- Industrial machinery: Machinery for agricultural and industrial use is taxed at 5%, classified as capital goods.
- Consumer electronics (TVs, radios, etc.): Imports of electronics are subject to 20% tariffs, classified as consumer goods.
- Computers and peripherals: Computers and related products are generally taxed at 0% to 5%, with VAT applied separately.
Special Import Conditions:
- Machinery from developing countries: Reduced tariffs may apply for machinery imported from countries under preferential trade agreements, such as the WTO’s GSP.
2.3. Automobiles and Automotive Parts
- Passenger vehicles: Imported vehicles are taxed at 35%, reflecting their classification as luxury goods.
- Trucks and commercial vehicles: Commercial vehicles and trucks face tariffs between 5% and 10%, depending on size and engine capacity.
- Automotive parts: Automotive parts and accessories are subject to 20% tariffs.
Special Import Duties:
- Used vehicles: Restrictions apply to the importation of used vehicles, including higher tariffs to discourage the import of older models.
3. Chemical Products
Chemical imports, including pharmaceuticals, fertilizers, and plastics, are essential for Guyana’s growing industries and healthcare needs.
3.1. Pharmaceuticals
- Medicinal products: Essential medicines are typically subject to 0% tariffs to support public health.
- Non-essential pharmaceuticals: Non-essential drugs and healthcare products face 10% tariffs.
Special Import Duties:
- Medicines from CARICOM countries: Preferential treatment is provided, with duty-free access for many pharmaceutical products.
3.2. Fertilizers and Agricultural Chemicals
- Fertilizers: Fertilizers for agricultural use are taxed at 5%, as they are considered essential to the agricultural sector.
- Pesticides and insecticides: Imports of agricultural chemicals are subject to 10% tariffs, classified as intermediate goods.
4. Wood and Paper Products
Guyana is a country rich in natural resources, including timber, yet it also imports processed wood and paper products.
4.1. Lumber and Timber
- Raw timber: Raw wood imports are subject to 5% tariffs, classified as raw materials.
- Processed wood: Processed timber, such as plywood and veneer, is taxed at 10% to 20%, depending on the level of processing.
Special Import Duties:
- Timber from CARICOM countries: Duty-free access is provided for timber from CARICOM member states.
4.2. Paper and Paperboard
- Newsprint and uncoated paper: Essential for publishing and printing, newsprint is taxed at 5%.
- Coated paper: Imports of coated or glossy paper are subject to 10% tariffs.
- Packaging materials: Paperboard and other packaging materials are subject to 10% to 20% tariffs, depending on the type of packaging.
5. Metals and Metal Products
Guyana imports significant amounts of metals and metal products for its construction and manufacturing sectors.
5.1. Iron and Steel
- Raw steel: Imports of raw steel are subject to 5% tariffs, classified as raw materials.
- Processed steel: Imports of finished steel products, such as steel bars and beams, face tariffs of 10% to 20%, depending on their level of processing.
5.2. Aluminum
- Raw aluminum: Imports of raw aluminum are taxed at 5%.
- Aluminum products: Finished aluminum products, such as cans and sheets, are subject to 10% to 20% tariffs.
Special Import Duties:
- Metals from non-preferential countries: Additional duties may apply to protect local metal industries from unfair competition.
6. Energy Products
Energy products are crucial to Guyana’s growing economy, with imports including both fossil fuels and renewable energy equipment.
6.1. Fossil Fuels
- Crude oil: Crude oil imports are subject to 0% tariffs, reflecting their importance in energy production.
- Refined petroleum products: Gasoline, diesel, and other refined products face tariffs of 5% to 10%, with excise duties applied on top.
6.2. Renewable Energy Equipment
- Solar panels: Imports of renewable energy equipment, such as solar panels, are taxed at 5%, to promote investment in clean energy.
- Wind turbines: Wind energy equipment is often duty-free to support the country’s renewable energy development goals.
Special Import Duties by Country
1. CARICOM Member States
Guyana, as a member of the Caribbean Community (CARICOM), benefits from the CARICOM Trade Liberalization Scheme (TLS). Goods originating from CARICOM member states are eligible for duty-free access to Guyana, provided they meet the rules of origin.
2. United States
Goods imported from the U.S. are subject to the CARICOM Common External Tariff (CET). However, certain products may face reduced tariffs under preferential agreements with the U.S., particularly for goods supporting the oil and gas sectors.
3. European Union (EU)
Guyana benefits from the Economic Partnership Agreement (EPA) between CARICOM and the EU, which allows for duty-free access for most goods originating from the EU. This agreement also facilitates reduced tariffs on specific imports from EU countries.
4. China
China is one of Guyana’s major trading partners, and most Chinese goods are subject to the standard CET rates. However, specific products like electronics and machinery may benefit from reduced tariffs under bilateral trade agreements.
5. Developing Countries
Guyana, as a developing country, enjoys preferential tariffs under the Generalized System of Preferences (GSP), which allows reduced tariffs or duty-free access for certain goods from other developing nations.
Country Facts: Guyana
- Formal Name: Co-operative Republic of Guyana
- Capital City: Georgetown
- Largest Cities:
- Georgetown
- Linden
- New Amsterdam
- Per Capita Income: $8,500 (2023 estimate)
- Population: 800,000 (2023 estimate)
- Official Language: English
- Currency: Guyanese dollar (GYD)
- Location: Northern South America, bordered by Venezuela, Brazil, Suriname, and the Atlantic Ocean.
Description of Guyana’s Geography, Economy, and Major Industries
Geography
Guyana is located in the northeastern region of South America, with a coastline along the Atlantic Ocean. Its interior is dominated by dense rainforests, vast rivers, and savannas. The country has significant natural resources, including gold, bauxite, diamonds, and oil reserves. The Essequibo River, one of South America’s longest rivers, flows through Guyana, playing a critical role in transportation and agriculture.
Economy
Guyana’s economy is transitioning from primarily agriculture-based to one increasingly dominated by oil and gas. The discovery of vast offshore oil reserves in 2015 transformed the economic outlook, with oil production becoming a significant source of revenue. Despite its oil wealth, Guyana continues to depend on gold mining, bauxite mining, and agriculture as key sectors.
Agriculture remains a vital part of the economy, with rice, sugar, and tropical fruits being important exports. Guyana is also one of the world’s leading exporters of bauxite, a key material used in aluminum production.
Major Industries
- Oil and Gas: Guyana’s economy is undergoing rapid growth due to the development of its offshore oil fields, with international companies leading exploration and production activities.
- Mining: Gold, bauxite, and diamonds are major exports for Guyana. Mining contributes significantly to the country’s GDP.
- Agriculture: Guyana’s fertile lands support the production of sugar, rice, and tropical fruits. Agriculture employs a large portion of the population.
- Timber and Forestry: The country’s vast forests support a growing timber industry, with wood products being exported regionally and globally.
- Tourism: Eco-tourism is a growing sector, attracting visitors interested in Guyana’s rich biodiversity and unique natural landscapes, including Kaieteur Falls, one of the world’s tallest single-drop waterfalls.
