Ghana Link set to deploy Phase 2 of ICUMS in 2022- Dep. MD
Managers of trade facilitation tool – Integrated Customs Management System (ICUMS) – Ghana Link Network Services Ltd, say they are currently working with the Ghana Revenue Authority (GRA) to commence deployment of the second phase of the ICUMS in the new year.
This norvanreports understands comes, after the two, the GRA continues to work behind the scenes with Ghana Link and its technical partner CUPIA of Korean Customs to ensure that they deploy the various modules under the second phase of the ICUMS seamlessly as they complete works on the second phase.
“We are ready, the second phase of the ICUMS is ready, but it’s the place of GRA to announce when the phase 2 is to be rolled out and so at the appropriate time the GRA will come out and the let the public know about it. So very soon you will hear about the complete roll out of the second phase,” stated the Deputy Managing Director of Ghana Link, Clyde Adjei.
Mr Adjei made the assertion at a training organized by Ghana Link for the members of the Port Journalist Network (PJN) on the Integrated Customs Management System (ICUMS)
The training was to deepen the understanding of PJN members who are mainly journalist who reports on the maritime industry and the port in general about the processes, modules and various activities that makes the ICUMS an end-to-end system.
“As we are all aware, the implementation of ICUMS attracted mixed reactions from some of our stakeholders which featured prominently in the media. This was mainly due to misinformation and lack of understanding of the yet to be rolled out ICUMS at the time.
“One year on, am sure you the media here today, have heard of the testimonies concerning the ICUMS performance and the role it has played to help ramp up revenue for the government. Even though we have been successful with the rollout of the first phase, we continue to offer training to all stakeholders, as we prepare to rollout phase two of the project.
“It is against this background that we have decided to enhance your capacity to fully appreciate and embrace the system to help in effective and responsible reporting about the ICUMS to the public,” remarked Mr Adjei.
Also speaking at the training was Team Lead of the Port Journalist Network (PJN), Elvis Darko, who stated that the economy revolves round trade which is anchored on ports and maritime operations.
He noted that the ports remain the single largest revenue generator for the country and, therefore, deserves all the needed attention. To buttress his point, he said that of the GH₵63 billion total revenue for 2020, GRA collected GH₵45 billion.
He explained that Customs alone collected GH₵12 billion of the total revenue of GH₵63 billion in 2020.
Mr Darko stressed the need for the media to make issues of the ports and maritime sectors topical to help address the challenges facing the industry to propel economic growth.
Key stakeholders within the port trade chain say import and export procedures through the country’s sea and land borders have seen a significant improvement in clearance time.
This feat according to them is attributed to the implementation of the Integrated Customs Management System (ICUMS).
According to them the pre-manifest declaration (PDM) procedures embedded in the ICUMS had provided room for importers and agents to clear cargo within a day, except in situations where they had unsatisfactory issues with the cargo examination processes.
In Ghana the introduction and implementation of the system was greeted with controversy with many calling on the government to halt its execution.
Deployed on June 1, 2020, the ICUMS currently covers some 163 Customs operational points across the country including the Elubo and Aflao borders, the Tema and Takoradi ports, as well as the Kotoka International Airport (KIA).
The pre-clearance allows importers to make necessary applications to ministries, departments and agencies (MDAs) for approval of permits on cargoes that require clearance.
It also grants an importer or agent access to create a Bill of Entry (BOE) and other such processes to enable Customs to undertake classification and valuation to determine the duties and taxes to be paid.
Phase 2 of ICUMS
Ghana Link as part of efforts in rolling out the second phase of the Integrated Customs Management System (ICUMS), will introduce the following new modules; Authorized Economic Operators, Advance Passenger Information System (APIS), Post Clearance Audit (PCA), E – Wallet, Simplified Clearance/Postal Investigations, Customs Laboratory Activities, Authorized Economic Operators, Advance Passenger Information System (APIS), Post Clearance Audit (PCA), E – Wallet, Simplified Clearance/Postal, Investigations and Customs Laboratory Activities.
The APIS when operational for instance, is expected to provide a profile of passengers coming into the country and show their risk levels so that sister agencies like the Immigration Service and the National Security will know how to deal with such persons.
The APIS is also expected improve the facilitation and speed of processing low-risk passengers, lower the cost of dealing with unwanted and inadmissible persons, and support efficient and risk-based resource allocation at KIA.
Impact of ICUMS on revenue generation
Speaking to journalists at the media training was Mr Baffour Nsoah of Ghana Link who noted that the ICUMS has had major impacts on revenue generation for the country.
According to him, the impacts on revenue generation observed over the past one year period include;
- Significant increase in the level of revenue generation since June, 2020
- All customs penalties, service charges, taxes and duties are now generated with a tax bill number which is paid directly into Customs account, this has reduced leakages.
- Proper bond management system for suspense regimes. Procedures that require insurance bond or bank guarantees are captured in ICUMS to ensure revenues are secured for any suspended taxes on any cargo.
- Effective exemptions administration – Benefactor Tax Identification Number (TIN/GUIN) is registered and locked to exempted amount approved by parliament or Ministry of Finance.
ICUMS accrues to government Ghs 18.1 billion
ICUMS for the period between June 2020 to April 2021, has generated a total of Ghs 18.1 billion in revenue to the government nearly a year after its full roll-out at the nation’s land and sea borders.
The revenue generated consists of mobilized revenues from total imports, petroleum imports, the Domestic Tax Revenue Division (DTRD) of the GRA, the ESLA Plc and Non GRA revenues.
Total revenues generated from total imports and petroleum imports for the period under review amounted to Ghs 11.1 billion and Ghs 2.09 billion respectively.
Accumulated revenues from the DTRD of GRA, ESLA Plc and Non-GRA revenues amounted to Ghs 2.04 billion, Ghs 2.2 billion and Ghs 291 million respectively.
Total revenue accumulated by the ICUMS for government at the end of last year – 2020 – was Ghs 11.5 billion, with total revenues also accumulated from January to April this year – 2021 – amounted to Ghs 6.61 billion.
Comparing the year-on-year performance of Ghana Link’s ICUMS to that of the previous system manned by GCNet and West Blue, you will see that in July 2020 while the ICUMS generated over Ghs 1.1 billion, while the GCNet and West Blue put together generated duty payments of Ghs 949 million. This represents a 23% increase for the ICUMS.
Again, in August 2020 the percentage increase in revenues by the ICUMS was around 32%, generating duty payment of some Ghs 1.2 billion while the old vendors (GCNet and West Blue) raised Ghs 952 million year on year (August 2019).
In September 2020 ICUMS generated above Ghs 1.2 billion representing some 35% increase of revenue compared to the Ghs 920 million duty payments in the same period in 2019.
Still on the year-on-year comparison, November 2019 was the best performance of the old vendors as they raised a little over Ghs 1 billion but again they were out performed by the ICUMS of Ghana Link Network Services Ltd which generated some Ghs 1.2 billion representing an increase of 26% in percentage terms.
In October 2020 the ICUMS raised 35% (Ghs 1.3 billion) in revenues higher than what the GCNet and West Blue (Ghs 980 million) generated for the government. In November 2020, the ICUMS recorded a 25% increase in revenues.
As at December 12, 2020, the ICUMS had generated some Ghs 10.5 billion.
About Ghana Link
Ghana Link Network Service Ltd, is a Ghanaian owned company which was established in 2001, and initially went into the business of Destination Inspection from 2003 to 2015.
In September 2015, Ghana Link was offered the contract, to run External Price Verification Program for GRA-Customs. In 2018, it was again offered the contract to establish a Single System to aid the generation of revenue in Ghana.
ICUMS under the UNIPASS-Ghana project is the government’s decision to engage a single service provider to develop and implement an end-to-end automated customs operational and management system.
The customs division of the GRA, Other Government Agencies (OGAs), and relevant private stakeholders involved in cross-border trade are the primary users of the system.
The aim of Ghana Link is to be a single service provider, address revenue mobilization challenges, implement effective and efficient trade facilitation and customs management system that further reduces the cost of doing business, and also provide integrated and comprehensive data exchange and information sharing among internal and external users.