GRA institutes take measures to counter misappropriation of goods in transit

News from Saturday, January 19th, 2019

Source: Graphic.com.gh

2019-01-19

The Ghana Revenue Authority (GRA) is working with the Ghana Ghana Shippers Authority to eliminate criminals involved in the diversion of goods in transit to landlocked countries in the local market, resulting in a loss of revenue for the state.

In these circumstances, new measures are being put in place to streamline processes and procedures in transit trade.

Measures include transit monitoring, registration of transit vehicles, transit insurance requirements and transit freight forwarder licensing to limit the number of freight forwarders involved in transit operations. transit.

At a stakeholder awareness seminar on transit trade in Accra last Wednesday, the Commissioner of the Customs Division of the Ghana Revenue Authority (GRA), Mr. Isaac Crentsil, said that other initiatives had been put in place, including the introduction of the first port rules system.

Under this system, transporters would be required to pay duties in the country of destination and goods released from Ghanaian ports only after receiving notification of compliance with the rights obligations.

The theme of the seminar was "Streamlining processes for the growth of transit trade in Ghana", and brought together representatives of trade councils from Ghana's landlocked neighbors who transited goods through Ghana's ports of Burkina Faso, Niger and Mali.

Other participants included local representatives from the Ministry of Transport, the Ghana Ports and Harbors Authority (GPHA) and GC-Net, among others.

Transit trade

Transit trade refers to activities related to the pbadage of goods from one country to another, usually landlocked.

These goods transiting through Ghana are not meant to be consumed on the local market and are not subject to the payment of duties and taxes to the Government of Ghana.

Under international conventions, geographically disadvantaged states may have free access to the coastline of neighboring countries for the shipment of their international trade.

This is facilitated by a number of international laws, protocols and agreements such as the Anti-Convention Convention on Transit Trade of Landlocked Countries (1965), the International Convention on Multimodal Transport of Goods (1980), the Convention for the Protection of ECOWAS Road Goods Transport (1982) and the World Trade Organization (WTO) Trade Facilitation Agreement (2013)

Effect

Mr. Crentsil spoke out against goods in transit, which are mostly high-consumption goods found on the domestic market.

"In the name of transit, goods imported into Ghana and processed in the transit region to Burkina Faso, Niger or Mali are diverted to the local market. The goods are unloaded either in Kumasi or in some remote corners, even in Accra ",

"Customs took several steps to stop the activity, but to no avail. Using human escorts to track machines, the offenders continued to defy the customs and deprive the government of any income, "he said.

He added that the new measures would be reviewed every year to ensure their effectiveness and improve customs control procedures.

Advantage

Benonita Bismark, chief executive of the Ghanaian Cargo Authority, said the new measures would ensure efficient customs controls and facilitate trade and income generation.

She said that Ghana had made tangible financial benefits from transit trade, according to a 2015 GSA report that estimated total revenue of $ 24 million, the equivalent of GH $ 94 million. , returned to the Ghanaian economy through some quantifiable services provided operators involved in the provision of transit services.

The benefits of transit trade in the same year also accounted for about 1 million metric tons of Ghana's 17 million metric tons of throughput.

"A number of other entities that directly benefit from transit trade, including gas stations, hotels, restaurants, all contribute to boosting the economy and improving the livelihoods of Ghanaians." , she said.

Warning

In a speech read on behalf of Finance Minister Ken Ofori-Atta, by the head of the Ministry's tax council unit, Daniel Nuer, he said that the government was concerned about the widespread abuse of transit system.

He hoped that the new measures put in place would put an end to leaks and divergences of goods under the transit trade regime, leading to a loss of revenue in terms of taxes and duties.

"All leaks should be a thing of the past. We must contribute our quota to the development of our country, "he said.
Deputy Minister of Transport, Daniel Nii Kwartei Titus-Glover, warned the perpetrators of criminal activities in the ports to give up the act.

"We know the nation's destroyers because they use service providers in the ports.

Let me warn you that when you are caught, do not call any politicians, "he said.