IN a recent report by the Office of the US Trade Representative (USTR), Ghana’s customs practices and port infrastructure were identified as significant barriers to trade, presenting challenges for importers and contributing to delays and inefficiencies.
The report, National Trade Estimate Report on Foreign Trade Barriers, highlights that despite efforts to implement risk management approaches, a substantial percentage—between 60 percent and 80 percent — of imports entering Ghana are subject to physical inspection or scanning upon arrival. This high rate of inspections far exceeds Ghana’s stated goal of reducing inspections to around 10 percent for agricultural products based on risk assessment.
Anecdotal evidence cited in the report points to erratic application of customs and import regulations, lengthy clearance procedures, and instances of corruption within the customs system. These factors result in significant delays, leading to unnecessary demurrage charges and product deterioration, particularly affecting importers of perishable goods.
While the Ghana Revenue Authority (GRA) has assumed the inspection and valuation responsibilities previously handled by destination inspection companies, the transition has only slightly reduced delays, with physical inspections remaining a major obstacle to efficient trade operations.
Ghana has implemented several initiatives since 2017 aimed at improving online trade information and processing, including the establishment of a National Single Window and the introduction of electronic (‘paperless’) cargo clearance at ports to streamline clearance processes.
However, challenges persist in customs valuation practices. Despite the Customs Act of 2015 stipulating that customs valuation should primarily be based on transaction value, stakeholders report that GRA often applies benchmark values or uses the higher of the benchmark or transaction value for customs valuation, potentially leading to overvaluation of imported goods.
The report also highlights specific challenges related to customs valuation of imported vehicles, including a customs examination fee of 1 percent and a complex valuation system based on vehicle age and origin that may result in overvaluation, particularly for used vehicles.
Additionally, the report notes Ghana’s commitment to the World Trade Organisation (WTO) Trade Facilitation Agreement (TFA) but highlights delays in submitting required notifications related to import, export, and transit regulations, as well as customs valuation legislation.
Overall, the US Trade Representative report underscores the importance of addressing customs challenges in Ghana to facilitate smoother trade operations and enhance transparency and efficiency in the import and export processes.
The GRA is yet to respond to Africa Briefing’s request for comment.