Tuesday, 10 March

Importers and Exporters Association backs gov't ban on land transit of selected goods

Business
Transit goods

The Importers and Exporters Association of Ghana (IEAG) has welcomed the government’s decision to ban the land transit of selected imported goods through Ghana’s borders, describing the move as a long-overdue measure to protect state revenue and promote fair trade.

The directive, issued by the Finance Minister, Cassiel Ato Forson, to the Ghana Revenue Authority through its Customs Division, requires that certain commodities be imported exclusively through the country’s seaports rather than through land borders.

The affected products include cooking oil, rice, sugar, frozen foods, textiles, flour, canned tomatoes, pasta or spaghetti and pharmaceutical products.

In a statement signed by its Executive Secretary, Samson Asaki Awingobit, the Association said the directive addresses long-standing concerns within the trading community about the abuse of the land transit system.

According to the Association, some operators have been exploiting the transit regime by declaring goods as cargo destined for neighbouring countries, only to divert them into the Ghanaian market without paying the required duties and taxes.

IEAG noted that the practice deprives the state of substantial revenue while creating unfair competition for businesses that follow the legitimate import process through the seaports.

The Association also raised concerns about the systematic undervaluation of goods entering through land borders, where some traders allegedly misdeclare the value, quantity or classification of products in order to reduce their tax obligations.

IEAG believes routing the affected goods through Ghana’s seaports will enhance transparency and accountability in the customs clearance process, since the ports are equipped with stronger verification systems, including cargo scanning technologies and standardised valuation mechanisms.

The Association further welcomed the government’s decision to recentralise the Customs Technical Services Bureau (CTSB), describing it as a step that will improve data coordination and strengthen cargo valuation and intelligence operations.

However, IEAG urged the government to ensure strict and sustained enforcement of the directive, noting that similar measures in the past had sometimes failed due to weak monitoring and lapses at the borders.

To ensure the success of the policy, the Association called for enhanced border surveillance to prevent smuggling through unapproved routes.

It also suggested that the government consider deploying military personnel to support border operations as a deterrent to organised smuggling networks.

 

The Association reaffirmed its commitment to supporting government efforts to strengthen trade governance, protect national revenue and create a fair and transparent business environment in Ghana

Source: Classfmonline.com/Cecil Mensah