Guyana - Investigation into transfer pricing

The investigation into transfer pricing should include a scrutiny of shipping documents from 2006 and earlier
Monday, December 11th 2006 (Stabroek News)

Dear Editor,

I welcome the public commitment of Mr Robert Persaud, Minister of Agricul-ture and Mr James Singh, Commissioner of Forests, to investigate the practice of transfer pricing by log exporters from Guyana to China and elsewhere.

I note the Minister's words as quoted in your report (SN, December 9, 2006): "Further, the GFC will be carrying out, with immediate effect, 100% verification of all exports to ensure that species such as Locust and Crabwood are not exported."

I recommend that the Minister of Agriculture and the Commissioner of Forests read the 16-30 November issue of the freely-available fortnightly Tropical Timber Marketing report from the ITTO (www.itto.or.jp) which states:

"About 7,778 cubic metres of mixed logs from Guyana arrived at Zhangjiagang port for the first time in September this year. The shipment featured 30 species, including greenheart, courbaril and purpleheart."

'Courbaril' is the trade name for 'locust,' a species that cannot legally be exported in log form from Guyana.

The Commissioner of Forests also stated in his letter of November 17, published in your newspaper, that the GFC "does not accept the category mixed hardwood [for export of timber]… all species have to be listed individually on the commercial invoice."

May I recommend that the investigation include a scrutiny of the shipping documents of exports from Guyana in 2006 and earlier? That investigation should uncover which log exporters are listing courbaril among the 'mixed logs' exported.

If courbaril is not listed in the shipping documents submitted in Guyana, how come this species is listed in the shipping documents presented at Zhangjiagang port in China, and later reported to ITTO?

Yours faithfully,

Mahadeo Kowlessar