Paray: Govt must reduce shipping charges now

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Mayaro MP Rushton Paray has called on the Government to revert to pre-COVID-19 Cost, Insurance and Freight (CIF) charges on shipped goods in order to ease financial burdens on consumers and importers.

Local courier companies have alerted customers to order their Christmas gifts and items from overseas early because of delays.

But yesterday, Paray, in a statement, said astronomical increases in shipping costs, as a result of supply chain challenges, have led to huge hikes in customs duties, excise taxes and Value Added Tax rates. He said as a result, shipping costs for a 20-foot container have typically escalated from US$3,000 to as much as US $15,000 and a 40-foot container has skyrocketed from US$3,500 to US$20,000. He explained that the increased costs are inevitably passed onto consumers, who are already battling job losses, small business closures and other financial difficulties.

The Mayaro MP called on Minister of Trade and Industry Paula Gopee-Scoon to “immediately institute measures to adjust CIF charges on commodity imports to pre-pandemic rates.”

“This measure has been successfully instituted by the Guyanese authorities and has been warmly embraced by consumers and business organisations. The policy move would serve as a major stimulus to economic activity, in facilitating private sector investments and encouraging consumer savings,” he said.

Paray added, “Failure to act promptly and decisively could see entrepreneurs and consumers becoming victims of even higher shipping costs, as the World Trade Organisation is forecasting further disruptions in trade.”

According to Paray, international economic experts have confirmed the steep rise in the cost of imported commodities over the past 18 months, to compound worsening unemployment rates.

He said with Trinidad and Tobago’s annual $4 billion in imported food, steeper charges will have a devastating impact on nutritional levels, especially with respect to vulnerable citizens.

As such, the MP has advised Minister Gopee-Scoon “to implement the requisite measures to adjust shipping charges to what existed in March 2020.”