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Country Commercial Guides for FY 2000:
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CHAPTER VI: Trade Regulations and Standards
1. Trade Barriers, including Tariffs, Non-Tariff Barriers and Import Taxes
Commercial Barriers
Traditional barriers to U.S. exports and investment include: (1) limited Ghanaian purchasing power; (2) complex land tenure system; (3) lack of U.S. interest due to the relatively small market size; (4) limited and costly financing resources for U.S. exporters and Ghanaian buyers; (5) stronger attraction of other overseas markets; (6) more favorable credit terms by European suppliers to local importers; (7) limited information; (8) inadequate credit facilities for local importers; (9) perceived British domination of the market due to traditional ties with Britain; (10) high inflation rate; (11) inadequate business infrastructure, particularly in the telecommunications and road sectors; and (12) bureaucratic hurdles for approvals of some investments.
Tariffs and Import Taxes
Ghana is currently using the Harmonized Commodity Coding System (HS) in classifying goods. Taxes assessed on the basis of weight, value or volume are subject to change annually. Goods arriving in country may be subject to import duties, sales tax, special duties, and import excise duty. Duties are imposed on certain categories of exports as well.
Aside from a few items which are exempt from the payment of customs duties, all imports are subject to import duty plus sales tax. The sales tax of 15 percent was replaced by VAT of 10 percent in the last quarter of 1998 and is calculated on the duty-inclusive value of the goods at rates contained in the HS manual. Generally, the import rates imposed on various goods for the current year are as follows: agricultural and educational materials - zero duty; other raw materials and capital goods - 10 percent ad valorem; and all other goods - 25 percent ad valorem. Concessionary duty rates are available for prescribed categories of manufactured goods, while 16 categories of manufactured products attract a heavier customs duty as the GOG seeks to protect certain domestic industries.
Imports into Ghana come under two main categories: (1) import on collection, whereby any person may import into Ghana before paying for the goods (prior approval from the Bank of Ghana is required); and, (2) conventional importation, in which the importer needs to go through the banking system to establish a Letter of Credit (L.C.) or make provision for foreign exchange.
2. Customs Valuation
In general, all imports are subject to customs duties. Exemptions for government, privileged persons, organizations and institutions are provided by law.
The valuation of imports for the purpose of assessing ad valorem tax is currently done based on the Brussels Definition of Value (BDV) assessment method. From January, 2000, Ghana will adopt the Customs Valuation Code (CVC) value assessment method of the World Trade Organization (WTO). This implies that the current Pre-Shipment Inspection (PSI) service will be abolished and replaced by destination inspection. Modalities for its implementation are being discussed.
However, until January, 2000, price verification will still be undertaken by the four Pre-Shipment Inspection (PSI) agencies contracted by the GOG. Invoice prices are normally compared to the export market price generally prevailing in the country of origin, or supply for identical or similar goods. All commercial goods with a value of USD 5,000 or more FOB, with the exception of pharmaceuticals, prepackaged and used or second-hand items, must be covered by a clean report of findings (CRF). Items valued below this threshold attract what is termed the Commissioner's Value, which is subject to change without notice.
G.S.B.V. Company Limited is responsible for the inspection of all goods exported from the U.S., Mexico and Canada.
Regulatory Agencies
Governmental agencies responsible for regulating business activities include:
Taxation: Internal Revenue Service P.O. Box 2202 Accra Tel: 233-21-664961 Fax: 233-21-664938 VAT Service P.O. Box 17177 Accra Tel: 233-21-228725 Fax: 233-21-230286 Monetary Bank of Ghana Transactions: P.O. Box 2674 Accra Tel: 233-21-666902/666361 Fax: 233-21-662996 Labor Issues: Ministry of Employment & Social Welfare P.O. Box M.84 Accra Tel: 233-21-665421 Fax: 233-21-667251 Copyrights: Copyrights Office Private Mail Bag Ministries Post Office Accra Tel: 233-21-229190 Fax: 233-21-224282 Standards/ Ghana Standards Board Labels: P.O. Box M245 Accra - Ghana Tel: 233-21-500065 or 500066 Fax: 233-21-776092 Company Registrar-General's Department Registration: P.O. Box 118 Accra - Ghana Tel: 233-21-662043/664691-33. Import Licenses
The import license system was abolished in 1989. However, for some items a permit or certificate is still required. These include drugs, all communications equipment, mercury, gambling machines, handcuffs, arms and ammunition, and live plants and animals.
Ghana has no quotas for imported items.
Agencies to which one must apply for permits/certificates to import certain items are as follows:
Gold Coins, Uncut Ministry of Finance & Diamonds, Goods Economic Planning Bearing Designs in P.O. Box M.40 Imitation of Money, Tel: 233-21-665421/665441 Handcuffs, Machines Fax: 233-21-667069 For Duplicating Keys: Arms and Ammunition; Ministry of Interior Gambling Machines: P.O. Box M.42 Accra Tel: 233-21-665421/665198 Fax: 233-21-667450 Communications National Frequency & Equipment: Registration Board P.O. Box 1627 Castle Annex, Accra Tel: 233-21-666932 Fax: 233-21-665347 Drugs: Ministry of Health P.O. Box M.44 Accra Tel: 233-21-665421/665323 Fax: 233-21-6638104. Export Controls
With a few exceptions, there are no controls on exports. The main categories of restricted exports include military hardware and antiques and collector's items more than 50 years old, including works of art. These items require special permits and certificates as a prerequisite for their exportation. Other items that require permits are game and wildlife, timber products, precious minerals and live plants. The government-owned Ghana Cocoa Marketing Board (COCOBOD) monopolizes the exportation of cocoa beans. Prohibited exports include items specified by law, narcotics, parrots, and Ghanaian currency in excess of 5,000 cedis (approximately $2). Agencies to which one must apply for permits and certificates to export various items are:
Antiques: Ghana Museums & Monuments Board Head Office, Barnes Road C/O P.O. Box M.40 Accra Tel: 233-21-221633/221635/222401 Precious Minerals: Precious Minerals Marketing Corp. (PMMC) P.O. Box 108 Accra Tel: 233-21-773368 Wildlife: Department of Game & Wildlife P.O. Box M.239 Accra Tel: 233-21-664654/666129 Fax: 233-21-666476 Live Plants: Ministry of Agriculture Plant/Animal Quarantine Dept. Box M.37 Accra Tel: 233-21-665421 Fax: 233-21-665363 Dangerous Weapons: Ministry of Interior P.O. Box M.42 Accra Tel: 233-21-665421/665198 Fax: 233-21-6674505. Import Documentation
An Import Declaration Form must cover most classes of goods imported into the country. In order to clear the goods through customs, the importer must complete a designated Customs Entry form and present a bill of lading from the foreign exporter, a commercial invoice, an Import Declaration Form (IDF), Bank of Ghana form (A1) and Pre-Shipment Inspection (PSI) Certificate. Other documents required are income tax certificate, Shipper's Notification Form and a packing list.
6. Temporary Entry
The laws of Ghana provide for the entry of certain goods conditionally relieved from payment of import duties and taxes. Such goods must be imported for a specific purpose and must be intended for re-export within three months, in the original condition of entry, or after having undergone further processing or repair. If goods brought into Ghana under temporary entry permit are to be sold, the Customs Excise and Preventive Service (CEPS) must be notified and appropriate taxes settled in full before the sale. For trade show materials, CEPS insists that goods and samples be re-exported within three months of their entry.
7. Labeling, Marking Requirements
The GOG continues to enforce a product-labeling law of general applicability, which took effect in 1992. By law, imports in virtually all categories (notable exceptions include petroleum and fish) must clearly identify the goods shipped (in English), the ingredients or components, the point of origin, and establish a date of expiration for perishables. Improperly identified food and drugs are held for testing by the Ghana Standards Board (GSB) where approved goods are released upon payment of a fine and unapproved goods are confiscated for disposal.
8. Prohibited Imports
Import prohibitions include: narcotics, mercuric medicated soap, toxic waste, contaminated goods, foreign cigarettes without a warning notice, foreign soil, counterfeit notes and coins of any country, and any goods prohibited by local law.
9. Standards
The Ghana Standards Board (GSB) is the authority responsible for developing and promulgating standards as well as ensuring the quality of goods imported into Ghana. The GSB has promulgated approximately 160 Ghanaian standards and adopted over 300 foreign standards for certification purposes. These standards cover a wide range of products. Both manufacturers and importers are required to register with the GSB.
The GSB has not yet adopted the ISO 9000 for Ghana. The GSB has embarked on educational programs to prepare local businesses for adoption of the ISO 9000 in order to make them more competitive. There is a special emphasis on inputs for non-traditional exports. Some multi-national private sector companies have already adopted the ISO 9000 series.
Ghana uses 220V, 50 cycles for electricity and the metric system of measurement. Operating standards usually follow the British or European norm.
10. Free Trade Zones/Warehouses
A Ghana Free Zone Board (GFZB) was established under the Free Zone Act 504 in May, 1996. The Free Zone consists of a parcel of land near the Tema steelworks in the Greater Accra Region and two other sites located at Mpintsin and Ashiem, near Takoradi. The seaports of Tema and Takoradi, Kotoka International Airport and all lands related to these areas also fall under the Free Zone Program. The law also permits the establishment of single factory zones outside or within the areas mentioned above. Under the law, a company qualifies to be a free zone company if it exports more than 70 percent of its products. Among the incentives for free zone companies are a ten-year corporate tax holiday and zero duty on its imports.
To make it easy for a potential Free Zone developer to acquire the various licenses and permits to operate, the Ghana Free Zones Board provides a "one-stop approval service" to assist in the completion of all formalities. To further facilitate operations in the zones, nationals of OECD countries, Canada, East Asian countries and the Republic of South Africa do not require entry visas to Ghana. However, all foreign employees of businesses established under the program will require work and residence permits.
Contact address for the Secretariat is as follows:
Ghana Free Zones Board Ministry of Trade & Industry Annex P.O. Box M.47 Accra - Ghana Tel: 233-21-780532/3/4/5/7 Fax: 233-21-780536 E-mail: freezone@africaonline.com.gh Contact Person: Mr. George Aboagye - Executive Secretary
Most large Ghanaian banks as well as a number of private sector companies and individuals own bonded warehouses.
11. Membership in Free Trade Arrangements
Ghana is a member of the World Trade Organization (WTO) and is a signatory to the Lomé Convention, a trade and aid agreement between the European Union and 46 of Europe's former colonies and dependencies in Africa, the Caribbean and the Pacific (the ACP group). Lomé arrangements guarantee duty free entry into EU member states for a number of commodities and products produced in ACP countries. Ghana is also a member of ECOWAS, the Economic Community of West African States. ECOWAS, which groups both Anglophone and Francophone states of the region, has as its goal a customs union, which is to lead eventually to a full common market and the free movement of labor. Original ECOWAS arrangements called for full tariff exemptions for companies which are at least 25 percent owned by citizens of member states, and exemptions for goods which are at least 40 percent manufactured within ECOWAS. Implementation of ECOWAS initiatives has been slow.
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[end of document] Note* International Copyright, United States Government, 1999 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U.S. Copyright Law, Title17, United States Code.
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