The Guyana Forestry Commission (GFC) has announced new rates of export commission on logs destined for overseas markets with effect from August 1 this year.
The revised rates of export commission, a tariff payable by exporters under the forestry sector’s National Log Export Policy, reflect an incremental increase in the tariff during the period up to December 2014, after which a review will be conducted “to inform a revised policy for future years,” the Forestry Commission says.
Under the revised rates of export commission set by the Forestry Commission exporters of several species of logs and squares including Purpleheart, Locust, Green-heart, Red Cedar, Kabukalli, Washiba, Letterwood, Snakewood and Bulletwood, measuring 2cm x20.3 cm and greater will have to pay an export commission rate of 15 per cent of the freight on board (fob) export value of the wood with effect from August 1. With effect from January 1, next year the rate will be increased to 17 per cent, jumping to 20 per cent from January 1, 2014.
The Forestry Commission has also set revised rates of export commission for exports of logs and squares from several other local species including Brown Silverballi, Tatabu, Waramara, Itaballi, Cow Wood, and Wallaba. With effect from August, logs and squares fashioned from these species and measuring 20.3 cm x 20.3cm and greater will attract an export commission rate of 12 per cent, attracting increases to 15 per cent from January 1, next year and 17 per cent in 2014.
The National Log Export Policy was introduced in 2009 as a means of creating an effective regulatory framework for the export of some species of wood though the Forestry Commission says that the continued high rate of exports points to the need for a more stringent policy to deter log exports and stimulate greater in-country processing and value-added forest products production.
Apart from boosting value-added production in the forestry sector and stimulating the local wood products manufacturing sector the Forestry Commission says that its policy seeks to create higher levels of value and employment creation per unit of forest resource extracted and to support domestic demand through local consumption in related sectors including housing and infrastructure.
