The two major local beverage manufacturers and a key importer are to write the Minister of Finance Dr Ashni Singh to raise their concerns about smuggling and to request a meeting on the issue.
This newspaper understands that Ansa McAl, Banks DIH Limited and Demerara Distillers Limited are concerned that smuggling seems to be continuing unabated particularly following recent reports in the media of significant quantities of beer being imported under unclear circumstances.
Sources say that the three companies feel that from a regional integration perspective the ongoing smuggling makes a mockery of the Caricom Single Market and Economy (CSME).
They are also concerned that the illegal importation is resulting in the state losing hundreds of millions of dollars annually while jeopardising hundreds of jobs locally and regionally.
The companies also feel that the smuggled products may not be transported in the most appropriate of conditions for the preservation of their stated shelf lives, meaning that the products may not satisfy basic standards and other requirements which are needed for the safety of the consumer.
The three companies hope to meet the Minister to discuss the Ministry’s plans and strategies for dealing with smuggling for the benefit of the local industry and the Guyanese consumer.
Chairman of Banks DIH Limited Clifford Reis at the company’s annual general meeting two weeks ago called for legislation to combat the smuggling of beer and other alcoholic beverages.
He said that a joint effort on the part of the regulatory bodies and the enforcement of existing legislation will be necessary to ensure that the critical tax revenues and employment are maintained.
Reis decried the fact that in many instances, the illegal importers sell the commodity at a price that is lower than the local manufacturer and in some instances lower than the price that the commodity is sold for in the country of origin.
As one solution, he recommended that legislation be promulgated where the name and address of the importer/distributor must be printed on the label of all malt-based beverages, liquors and other products. He said that this law, if instituted, would assist law enforcement agencies to identify a product with the legal importer and that smugglers will be in a vulnerable position if they bring in beer, liquor and other products into Guyana without the labelling requirements.
Smuggling has been a major problem for years and the battle against it has varied in intensity.
