| INTRODUCTION
Trade Facilitation is at the core of Government trade and investment promotion drive. It has been identified as a means of attracting foreign direct investment into Ghana. In line with this objective, the government in 1997 embarked on a trade and investment gateway programme with a loan of 50 million dollars from the World Bank. The Gateway oversight Committee is under the chairmanship of the Vice-President of Ghana. It seeks to make Ghana's business environment more competitive with a view to attracting the neighboring land lock countries to patronize Ghana's ports. The programme is also to strengthen the human and institutional capacity of front line agencies to reorient ate and makes them more proactive to trade facilitation measures. For example the Ghana customs is being assisted to become ISO9000 compliant to ensure consistency transparency and predictability in their procedures. The Ports and Harbors Authority has licensed 4 stevedoring companies to take over cargo handling activities and the authority has now assumed the role of a landlord. Private companies have been encouraged to put up container terminals to decongest the ports. The Gateway oversight Committee which is inter sectorial comprises the following ministries and agencies:
The rational of the composition of the committee is to ensure that all the above-mentioned members whose functions impinge on trade and investment related issues are able to take decisions without delays. As a result of the implementation of the gateway project, in year 2000, Ghana adopted the WTO Valuation concurrently with the Destination Inspection Scheme (DIS). Prior to this, Ghana had over the past 28 years been operating preshipment inspection scheme. The PSI Scheme was long and cumbersome and on the average took between 4-6 weeks before goods were cleared. There was also 100% physical inspection of imports. Under the DIS, two companies namely; Gateway Services Limited and GSBV Ltd were employed by Government of Ghana and assigned responsibility for the destination inspection of imports at the seaports and land frontiers/airport respectively. The DIS has three main components, namely:
(1) The CRMS The CRMS provides a selective approach to inspection using alternating statistical tools to assess risk. This limits the need for full physical inspection.
CRMS analyses data to provide a level of risk for each shipment. A specific level of intervention is prescribed for each shipment based on risk. CRMS separates categories of goods into Green, Yellow and Red channels. The Red channel means physical inspection, and currently covers about 60% of imports and includes items such as food, pharmaceuticals, chemicals, alcoholic and non alcoholic beverages and electrical appliances and accessories, secondhand clothing classified as mandatory by the Ministry of Trade and Industry. In connection with the mandatory goods, the Food and Drugs Board requires that importers submit prototype of goods for test and analysis prior to importation in order to avoid delays when the goods arrive. Yellow means scanning of full container loads of homogeneous goods.
Yellow channel means medium risk goods which go through an X' ray
scanner. These must be full container loads (FCL) of homogeneous goods.
Yellow CEPS, means less container load which are either subjected to
physical or documentary examination, depending on level of risk. Green allows the goods through with a recommended random inspection of 5% by Customs. Green or low-risk transactions pass through without Customs intervention, however, Customs reserves the right to randomly inspect 5% of such goods. Reputable companies such as Unilever, Ashanti Goldfields, British-American Tobacco clear their goods through the green channel. The objective of CRMS is to minimize, if not eliminate the need for
customs to examine each and every consignment without reducing the level
of revenue collection and jeopardizing public health and safety.
Information for CRMS process is based on historic data, the
documentation provided by the importer, shipping agencies as well as
commercial intelligence collected by the inspection agencies through
their affiliates, seller, the exporter, country of export, country of
shipment, type of shipment, etc. To ensure the integrity of the DI,
Ghana Customs has strengthened its post clearance audit unit. Recently
professional accountants and auditors have employed to strengthen the
unit. Furthermore, it has been decided that the stacking of containers
will be based on risk levels. This will reduce the time used in locating
containers. (2) TDB TDB assists Customs to analyze prices accurately and on time. The objectives of the TDB are to enable Customs to collect appropriate taxes and duty by identifying and preventing under-valuation of imports. TDB also provides Customs with transactions values for identical and similar goods in line with the provisions of the WTO Agreement on Customs Valuation. The database captures descriptions of goods, prices, discounts, invoiced prices, details on importers, exporters, manufacturers, etc. (3) Container X' Ray Scanning System The container X' ray scanning system helps to determine the contents of a container. As the container goes through the scanner it is viewed on the screens by a team of operators. If anything looks suspicious, that container is brought out and physically inspected. The scanner has 330 millimeters penetration of steel capability. On the average the scanner has the capacity to scan up to 210 containers per day. The use of the scanner reduces the dwell time of containers in the ports thereby making Ghana's ports less expensive and more competitive. The scanner has a limitation. It cannot determine the size, the material the commodity is made of, as well as its quality. The application of CRMS enables Customs to pick at random on various declarants who are likely to defraud and such containers may be physically inspected. OBJECTIVES OF THE DIS These include:
In the light of the above, what is required of importers? Documentation
Ten (10) days before the arrival of the goods the importer presents the following documents to complete the registration process:
Required Information For The VO
The Importance Of The Quality Of The Information Provided
What Are The Responsibilities Of The IAS? They provide:
A copy of the PCVR may be made available to the importer on request. The Final Classification And Valuation Report (FCVR) The issuance of the FCVR is based on:
FCVR provides the importer/agent or CEPS with the following:
Airport Experience
AFGO Village KLM Cargo Office FCVRs are forwarded to the above office and importers are expected to collect these documents from this office and not from the GSBV Head Office. Achievement - It now takes less than one week to clear goods as against 3 weeks under the P.S.I. Problems
Training and Technology Transfer The inspection companies work hand in hand with Customs officials who are normally seconded to the former. The absolute crucial factor is training and transfer of knowledge. The inspection companies give training in Agreement on Customs Valuation, CRMs, TPD, and also scanner training for operators and image analysts, computer and technical training. After the attachment period of six months, Customs Officials return to their units to share the knowledge acquired with their colleagues. Classification and Valuation given by Customs Officials on attachment are considered as an opinion. The final ruling on what should be the value for tax purposes still rests with Custom authority. The Government of Ghana has introduced an electronic automation of Customs procedures under Ghana Community Network, GCNET for short to replace the ASYCUDA system. The GCNET is a joint venture between Ghanaian public and private institutions and SGS, which is the majority shareholder. The scheme has taken off at the airport since the beginning of November 2002. It will be extended to the Tema port in January 2003 and subsequently to the Takoradi port and the land frontiers. The Destination Inspection Scheme (DIS) Implementation Committee The DIS Implementation Committee was formed with the main objective of addressing problems that would arise as a result of the implementation of the scheme. It is made up of public and private organizations, such as Ministry of Trade and Industry, Customs, Ghana Shippers' Council, representatives of the Inspection companies, Ship Owners and Agents Association of Ghana, Ghana Ports and Harbours Authority and Ghana Institute of Freight Forwarders. The Committee at the inception of the scheme used to meet fortnightly but it now meets once a month. The Committee has been instrumental in the initiation and formulation of trade and Customs policies. A sub committee on public education has been formed to enlighten and interact with economic operators in the national and regional capitals. Customs Documentation And Procedures For Transit Trade Available statistics indicate that transit traffic through Ghana rose from monthly average of 270 processed entries in year 2000 to 403 in 2001. This increase can be attributed to the adoption of trade facilitation measures in the ports of Ghana under the Trade and Investment Gateway project, which seeks to establish Ghana as a Gateway to the West African sub-region. The processing of transit documents involves five (5) steps, namely:
It takes approximately 2 hours to process a transit application and deliver transit goods. Problems
It must be explained that most of these problems are common to all West African countries. Facilitation Measures The Ghana government in accordance with existing Sub-regional protocols and bilateral arrangements mandated Customs, Ghana Ports and Harbours Authority (GPHA) and the police to institute measures to mitigate the problems.
|