PSI
----------------------------------------------------------------------

[ 2003 ] [ 2002 ] [ Destination Inspection ]

2002

[ Remove VAT on Commercial Vehicles? - 07/09/02 ]
[ Importation of Overaged Vehicles - 30/08/02 ]
[ Customs Given the Option to Sell Overaged Cars - 11/07/02 ]
[ Customs Escort Fees Under Scrutiny - 01/05/02 ]
[ Ghana Customs Sign Agreement with WTO - 01/05/02 ]
[ Ghanaian Customs escort fee increase cancelled - 22/4/02 ]
[ Ghanaian Customs escort fees increased - 5/4/02 ]
[ Import Duty/Taxes - April 2002 ]

Remove VAT on Commercial Vehicles? - Article in Le Lloyd - 07/09/02

The President of the Ghana Institute of Freight Forwarders (GIFF), Frank Sarpong, has called the governments attention to the VAT charged on imported commercial vehicles landed at the country's ports. According to him it is cheating to charge VAT in duty elements of commercial vehicles while passengers or users of buses/trucks do not charge the same for the services that they provide.

These taxes are burdening importers who in turn transfer these charges indirectly to the consumer. Only a few importers can clear commercial vehicles due to high tax and VAT levels.To clear a truck one pays no less than 80 million cedis (£6,700).

BACK TO TOP ^

Importation of Overaged Vehicles - 30/08/02

The Ghanaian Government has stated that over aged motor vehicles can now be imported into the country provided importers pay additional penalties in addition to import taxes under Act 634 of 12.08.02. The penalties are as follows:

Motor Cars

Commercial Vehicles - Coach, Bus, Van

Commercial Vehicles - Trucks, Lorries, Tippertrucks

NOTE: The Age of a Motor Vehicle therefore shall be calculated from the year in which the motor vehicle was first manufactured.
Please click here if you would like to see a copy of the governments 'Overage Vehilcle Penalty List'

BACK TO TOP ^

Customs given the option to sell over aged cars - 11//07/02

The Ghanaian Government has decided to give the Customs, Excise and Preventive Service (CEPS) the option to auction confiscated over-aged cars instead of selling them to the steel mills as scrap metal for recycling. Mr. Yaw Osafo- Maafo, Minister for Finance told Parliament on Tuesday when contributing to a Motion that the CEPS (Management) (Amendment) Bill was read for the second time.

He said the new amendments proposed to the Bill seek to discourage the importation into the country very old vehicles since such vehicles not only pollute the environment but also cause accidents. The Amendments of Section 89 (A and B) proposed to increase the penalty rates by substituting five per cent and 20 per cent for 15 per cent and 30 per cent respectively. Mr. Osafo-Maafo said the amendment was in line because it would go a long way in supporting the economy to grow, adding that such penalties would debar people from bringing in over-aged vehicles. He said the graduation was to also discriminate in favour of passenger buses, tipper and cargo trucks because the country needed the services of such vehicles.

The Committee also decided to put the age of commercial vehicles such as trucks, lorries and tipper trucks into four categories. The amendments proposed are that where a vehicle is more than 10 years old but not more than 12 years old, importers shall be made to pay a penalty of five per cent of the CIF value of the vehicle.

Where the vehicle is of more than 12 years old but of not more than 15 years there shall be a penalty of 10 per cent, where the vehicle is more than 15 years old, but not more than 20 years old there shall be a penalty of 15 per cent and where it is 20 years old, there shall be a penalty of 50 per cent of the Cost in Freight value of the vehicle.

BACK TO TOP ^

Customs Escort Fees under Scrutiny - 01/05/02

The Assistant Commissioner of Customs, Excise and Preventive Service (CEPS), Mr Oklu, has ordered the immediate suspension of Customs escort fees, being charged at the country's sea ports. A protest lodged by the Ghana Ports and Harbours Authority (GPHA), Institute of Freight Forwarders, Ship Owners Association and other stakeholders argued that the new tax could collapse maritime business at the seaports. An escort fee of $65 (¢500,000) was introduced in March 2002 by CEPS, a considerable rise of over 500% from US$6 to be paid per day for each escort. A daily flat rate has now been introduced of US$6.5 (¢50,000).

Importers from landlocked Burkina Faso, Mali and Niger, who use Ghanaian ports, also objected to the rise of the daily escort fee for goods in transit. Other observers noted that such a payment in addition to transit fees of US$200 per consignment would cause a shift in traffic from Ghanaian ports to those of Lomé (Togo) and Abidjan (Côte d'Ivoire) where incentives are being introduced to win back importers.

It is a legal requirement that Customs officials must accompany all goods from the port through the country to the Customs point of exit ensuring they are not discharged on route.

BACK TO TOP ^

Ghana Customs Sign Agreement with WTO - 01/05/02

The World Trade Organisation (WTO) and the Custom Excise and Preventive Service (CEPS) have signed an agreement on custom valuation and trade facilitation. The WTO Consultant, Mrs. Rosenow and the Ghanaian Deputy Trade and Industry Minister, Mr. Kwesi Osei Adjei, signed the agreement which will lead to simplified customs procedures and swift clearance of goods. The WTO agreement will established a transparent environment for the conduct of international trade and underlined the importance of a commercial system that is standardised and fair.

Valuation of goods is an essential component impacting on both tax revenue and trade facilitation. Under the initial valuation system, the 'Commissioner of Valuation' has the final judgement on any queries regarding the declared value of goods.

BACK TO TOP ^

Ghanaian Customs escort fee increase cancelled - 22/4/02

Please note that there has been an order from CEPS announcing the cancellation of the recent increase on escort fees.

BACK TO TOP ^

Ghanaian Customs escort fees increased - 5/4/02

Importers from landlocked Burkina Faso, Mali and Niger, who use Ghanaian ports, are objecting to an increase of the daily escort fee for goods in transit through Ghana under the Customs, Excise and Preventive Service - Management Amendment Act of 2002.

Customs officials accompany all goods in transit from the port through the country to the Customs point of exit ensuring they are not discharged on route.

A rise of US$6 to US$65 will be paid per day for each escort. This is a considerable rise as cargo can often spend more than four days on the road.

Observers say this payment in addition to transit fees of US$200 per consignment is causing a shift in traffic from Ghanaian ports to those of Lomé (Togo) and Abidjan (Côte d'Ivoire) where incentives are being introduced to win back importers. This unilateral decision was taken without consultation with the shipping industry and as such may impede the use of the Ghanaian corridor.

Meanwhile Customs has decided not to charge the escort fees per vehicle and is encouraging importers to consider the use of vehicles that can be sealed to avoid the use of escorts.

OT Africa Line is currently lobbying CEPS to reduce these transit fees.

BACK TO TOP ^

Import Duty/Taxes - April 2002

Currently, there are four different taxes that constitute the Ghana import duty payable on all imported goods at the port of entry: -airport, seaport and inland port. The various taxes as indicated below are applicable to all goods imported into Ghana unless otherwise stated or classified under exemption.

The taxes are: -

(a) The maximum import duty payable is 20% of the C.I.F. value of imported goods.
(b) VAT (Value Added Tax) which is fixed at 12.5%
(c) 10% Special Tax (revised in 2001), and
(d) 0.5% ECOWAS Levy.

The mechanics of the above works as follows:

Step (1) Import duty = 20% x (C.I.F. x prevailing exchange rate to get cedis equi. ) = [a]
Step (2) VAT = ( Equivalent value in cedis of CIF + [a] ) x 12.5% = [b]
Step (3) Special Tax = {equivalent value in cedis of CIF + [a]} x 20% = [c]
Step (4) ECOWAS Levy = equivalent value in cedis of CIF x 0.5% = [d]
Step (5) Finally, import duty payable on goods, imported to Ghana = [a] + [b] + [c] + [d]

Duty is payable to Customs Officials

BACK TO TOP ^

The information given in this document has been given in good faith and believed to be correct at the time of writing. Please verify these facts with other relevant sources before using this as the basis of any action taken as we regret we cannot accept liability for an consequences due to inaccuracies in this information.

"THE CARRIER IS NOT RESPONSIBLE FOR ANY MISSING OR INCORRECT IDR/CRI NUMBERS AND THE RESPONSIBILITY REMAINS WITH THE MERCHANT. ANY FINES/ PENALTIES LEVIED AGAINST THE CARRIER ARE FOR THE MERCHANT'S ACCOUNT."