Clearing agents happy over turn of event at the ports
Some clearing agents at the Tema Port have indicated that clearing of goods at the port has normalized following the directive from government to suspend the reversal of the benchmark values.
Earlier this month, the implementation of the benchmark value policy on selected items was met with discomfort as importers cited timing, lack of broader consultations among other issues as a challenge.
Some of the clearing agents say that their importers enjoy relief in payment of duties on certain items, adding that so far they have not encountered any challenges with regards to the declaration in making payment.
Some also added that those that payed but were prevented from clearing goods last week Friday have applied and through the government’s decision, they are now able to pay and clear their goods.
“I was able to do the payment but then it was captured, that was Friday but we did an appeal based on what the government said, that they should reverse it, so today it has been reversed and we are able to pay. There is no problem and I’m okay”
“I have not encountered any issues with regards to the declaration making payment or trying to generate a new declaration. I have not encountered any issues with that and I have not also received any complaint from a colleague agent “.
Meanwhile, Country Coordinator of CAS International, Appiah Kusi Adomako, has challenged government not to succumb to the pressures on maintaining the benchmark discount on some imported items.
President Akufo-Addo directed the suspension of the benchmark value policy for wider consultations due to opposition from the Ghana Union of Traders Association and the community of importers.
According to Mr. Adomako, the interest of local industries must be put first.
“In the long term, I think that the economy is going to benefit from a strong manufacturing sector. Take for example when the covid-19 came, if our manufacturing sector wasn’t strong, I think Ghanaians would have starved to death. Almost all the PPEs that we were using were all produced in Ghana because we had a manufacturing sector.
I think that between importation and production, I will go for production, local production and of course the long term, I think economist will say that the prices will near marginal cost. So we need to appreciate the short scheme to enjoy the long term gain as a country”.
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On January 2, 2022, the Customs Division of the Ghana Revenue Authority (GRA) issued a directive announcing the reversal of discounts on benchmark values, effective January 4. Later on, the GRA said the implementation of the directive had been deferred to January 17.
The announcement by the GRA was met with resentment by traders and other stakeholders, who described the decision by the Ghana Revenue Authority as ‘harsh’ and ‘insensitive’.
Following these concerns, President, Akufo-Addo is reported to have directed the GRA on Saturday, January 8, to pull the breaks on the implementation of the reversal of the discounts on benchmark values. According to the President, this is to deepen stakeholder engagements on the issue.
Reacting to the President’s directive, the President of GUTA indicated that his members will be open-minded during the stakeholder engagement sessions.
“The benchmark policy did not come out of emptiness. The benchmark policy came because we had a serious problem. And the problem still persists. So if you say you’re reversing the policy, are you reversing us to the old problem without bringing any mitigating factor to solve the old problem? That’s the bane of the whole discussion that we’re having now.
“That the government, acknowledging that we have a serious problem and that duty payments were extremely high, the highest in the world. And they brought the solution in the benchmark policy. So if you’re reversing it, then it is in the direction that we find a mitigating factor that will cushion the trading community,” he noted.
The Association of Ghana Industries (AGI), has fiercely rejected claims by the community of importers that the benchmark values will result in a 50% hike in goods and services.
Chief Executive Officer of the AGI, Seth Twum-Akaboah, at a press engagement argued that such claims from GUTA lacks scientific basis.
“There is an argument that this is going to lead to doubling of prices and people are are worried about it. Pre-benchmark you were selling at ¢120, post-benchmark you are selling at ¢110, the difference is ¢10. Now we say reverse it, when you reverse it where do you move from?, now you are at ¢110, you move back to 120, so if you were selling at 110 because of the benchmark, you are now going to sell at 120.
“The difference in the price should be ¢10 which has resulted from the reversal. That ¢10 as a percentage of 110 is only 9% so where lies this doubling of prices. Your prices should not go up more than 10%”, he said.
Again, newly elected president of the AGI, Dr. Ayim Darker, also spoke at that press briefing saying that Ghana’s industries are on the verge of collapsing.
According to him, only strong and viable economic policy such as the reversal on the benchmark discount can aid the competitiveness of industries.
