GIFF calls for review of legislation hampering business operations
The Ghana Institute of Freight Forwarders (GIFF) is calling for a review of some policies and legislation hampering smooth business operations at Ghana’s ports of entry.
At a press briefing on Tuesday, the GIFF argued that, the imposition of a Reference Price List (RPL) for the valuation of goods at the ports by the Board of Directors of the Ghana Revenue Authority contradicted international trade agreements, particularly those under the World Trade Organisation (WTO) ’s Trade Facilitation Agreement (TFA).
President of GIFF, Edward Akrong, said Ghana’s position as a signatory to the WTO, was bound by principles that advocated a fair and transparent valuation process.
He further clarified that the Customs Act (ACT 891) clearly spelt out the processes and procedures for valuation of goods which the RPL contradicted.
Citing Section 67 and 68 of the Customs Act, Mr Akrong said it was therefore illegal to create a certain minimum value or RPL for valuation purposes.
“Several importers have been saddled with this imposition even though they have provided all evidence of the genuineness of their values,” he said.
This according to him, had added to the high cost of doing business at the ports with its trickling effects on the cost of goods on the market, and also providing an avenue for importers to transfer funds illegally.
Similarly, the GIFF expressed worry over a full implementation of the Interconnected System for the Management of Goods in Transit (SIGMAT), reminiscent of the Cargo Tracking Note (CTN) which impeded the free flow of goods.
Given the bottlenecks of such policies, Mr Akrong stated that it was crucial to reassess and rectify policies that might inadvertently impede the efficiency of our logistics and supply chain operations as the TFA discourages such practices that hinder the smooth flow of goods across borders.
“The TFA, notwithstanding its operational bottlenecks, had been occasioned by the implementation of the SIGMAT which causes extreme discomfort and escalates the cost of doing business at the entry points,” he said.
Mr Akrong stated also that, the recent passage of the Exemptions Act, 2022 (Act 1083) by Parliament, had inadvertently created obstacles in the clearance process, affecting not only private enterprises but also hindering the clearance of the government cargoes at the ports.
He disclosed that COCOBOD and Cocoa Marketing Board for the last three (3) quarters of 2023, had a total of 910 20-foot Equivalent Unit (TEUs) on the Uncleared Cargo List which according to him, was mainly due to lack of exemptions.
Mr Akrong assured that GIFF had resolved to invoke the sub-regional mandate of business and allied stakeholders to nib the canker in the bud in the days ahead.
He noted that in an environment characterised by volatility, uncertainty, complexity and ambiguity, the freight forwarding industry is grappling with the constant changes in policies (typical example: ban on oil imports through frontiers).
These dynamics, he said posed significant challenges to freight forwarding operations. He therefore called for a collaborative approach between government and industry stakeholders to formulate policies that were not only responsive to current global dynamics but also supportive of the growth and sustainability of the freight forwarding sector.
FROM KEN AFEDZI, TEMA
