Nearly € 2 billion of losses related to the diversion of freight Freight in transit; Carriers are subject to an ultimatum of 6 months

News from Saturday, January 19th, 2019

Source: thebftonline.com

2019-01-19

According to the customs commissioner, Isaac Crentsil, the customs division of the Ghana Revenue Authority (GRA) has not exceeded its revenue target for 2018 of more than 2 billion GH ¢, and nearly 70 % of this loss is attributed to the transit trade sector.

He stated that the loss of income was due to unfair practices, including the misappropriation of goods and the non-declaration of goods originally destined for transit but ending up in the domestic market.

In order to verify these practices and prevent revenue leakage in this aspect of shipping, the GRA is planning to implement a directive requiring all goods in transit to be containerized.

Under the new system, carriers transporting goods to the landlocked countries of Burkina Faso, Mali and Niger will have to build a container on their trucks in order to carry out this activity.

"We move to the containerization of cargo in transit because we understand that when they use a normal tarpaulin, they cut and seal it along the way.

The containerization of goods in transit will ensure the safety of the goods when they move to their final destination, "Isaac Crentsil told B & FT at an awareness seminar on transit trade in Accra.

Carriers, he said, have up to six months for containers to be built on their trucks so they can continue to operate in the transit trade under the new regime.

"We will give industry operators a lot of time to prepare for the new directive. we have already committed [transporters]and today's awareness seminar is just to go out and inform the public about the new system. "

Mr. Crentsil said the introduction of containerization in the transit trade sector would allow customs to earn more revenue through the state, which could then be reinvested in port efficiency to attract more business. transit in the country's ports.

"This will mean that more transit activities can take place in our ports and more money for the port authorities. Maximized commercial revenues enable the government to improve our roads for the smooth and safe transportation of goods in transit.

"2019 will witness a mbadive growth in transit trade as fraudulent transit transactions cease. Customs is determined to greatly exceed their revenue targets for this year, and we expect all stakeholders that they are playing fair games, "said Mr. Crentsil.

The Transit Trade Stakeholder Awareness Seminar was organized by the Ghana Shippers' Authority (GSA) on "Streamlining Processes for Growth of Transit Trade in Ghana".

It brought together all stakeholders in the transit sector, including freight forwarders, freight forwarders and transporters, to redefine operational requirements and reaffirm the effective customs control of the sector with the dual objective of revenue guarantee and trade facilitation. trades.

She called on maritime logistics actors, particularly those in the transit area, to contribute to the "narrow path of trade facilitation and revenue badurance", as any misstep would reduce the country's chances of take advantage of this trade.

She said: "The diversion of goods in transit through the domestic market drives up the price of goods sold by importers who pay the appropriate duties and taxes.

"The government wants to introduce a measure that will not allow such unfair practices to continue. With this intervention, goods destined for transit will arrive at the final destination, while those destined for local consumption will receive the applicable duties. "

She added: "We have pooled the different stakeholders to familiarize, understand and accept the new directive before it is implemented.

"We hope to raise awareness of this directive through this seminar to help its implementation smoothly."