IEAG bemoans new exchange rates for port duties
The Importers and Exporters Association of Ghana (IEAG) has described as appealing the decision of the Customs Division of the GRA to review upwards the exchange rate for port duties.
The upward review of the exchange rate from GHS 8.29 to GHS 9.54 for import duties, the IEAG notes, will result into further increment of cost of goods and services for the Ghanaian populace.
“We as an association find this sudden adjustment by Customs as appalling, because, some freight Forwarders (clearing agents) have produced documented evidence alluding to the fact that, they had to pay about 25,000ghc extra on duties due to the abnormal increment in the exchange rate.
“Some even had to pay in the excess of 107,613ghc from an initial duty of 78,567ghc, while others had to pay a whopping 102,181.08ghc for an initial duty of 88,446.09ghc,” said the IEAG in a statement issued on Wednesday, September 28, 2022.
“With Ghanaians already feeling the brunt of the increment in prices of goods and services, it is worth noting that, there could be more hardship in the coming days if nothing is done to address the situation since Importers will equally pass on these incurring debts to the ordinary consumer,” the IEAG added.
The IEAG notes that, the new exchange rate for import duties is set to take effect from Monday, October 3, 2022.
Peruse details of press statement below:
PRESS RELEASE BY THE IMPORTERS AND EXPORTERS ASSOCIATIONOF GHANA (IEAG)
NEW EXCHANGE RATES FOR PORT DUTIES COULD WORSEN HIGH COSTS OF GOODS AND SERVICES
The Importers and Exporters Association of Ghana is saddened by a recent development at the country’s ports, which if not addressed could worsen the already hardships being witnessed with regards to Goods and Services.
It’s alarming to note that, Import duties at the country’s ports have skyrocketed at an abnormal rate, leaving Importers with huge debts due to payment of import duties.
It is worth noting that, there have been huge differences in import duties and taxes at the port in the last 72 hours due to some differences in the exchange rate pegged by the Customs Division of the Ghana Revenue Authority.
As of Tuesday the 27th of September 2022, an exchange rate of 8.2938 has been pegged at 9.5462, which will be due for adjustment on Monday the 3rd of October 2022.
We as an association find this sudden adjustment by Customs as appalling, because, some freight Forwarders (clearing agents) have produced documented evidence alluding to the fact that, they had to pay about 25,000ghc extra on duties due to the abnormal increment in the exchange rate. Some even had to pay in the excess of 107,613ghc from an initial duty of 78,567ghc, while others had to pay a whopping 102,181.08ghc for an initial duty of 88,446.09ghc.
We asked, what informed the recent upward adjustment in the exchange rate by customs, given the fact that the cost of goods and services is on the ascendancy.
With Ghanaians already feeling the brunt of the increment in prices of goods and services, it is worth noting that, there could be more hardship in the coming days if nothing is done to address the situation since Importers will equally pass on these incurring debts to the ordinary consumer.
We urge authorities to as a matter of urgency, adopt pragmatic measures to ensure these abnormal costs being incurred by Importers, freight Forwarders, and Traders are mitigated to serve the interest of the country at large.
Sgd
………………
Samson Asaki Awingobit
Executive Secretary
0243575046
