Freight forwarders call for clarity and fairness in auction regime
The freight forwarding fraternity in Ghana has called on Customs to reveal the standard operating procedures (SOPs) reserved for its auction regime at the ports of Ghana.
The Customs Division of the Ghana Revenue Authority has also been urged to implement these SOPs in indiscriminate fashion to ensure fairness within the auction regime.
These remarks were made on Eye on Port by the Chairman of the Ghana Institute of Freight Forwarders (GIFF), Tema, Forwarder Johnny Mantey, and the Acting President of the Customs House Agents, Ghana (CUBAG) Nana Fredua Agyemang Ofori-Atta while evaluating the Customs Auction Regime.
The Chairman of the Tema Chapter of GIFF, Forwarder Johnny Mantey said customs auction are currently a rarity.
He said, “anytime goods are gazetted, 70% of those goods are allocated to the confiscation and assets committee, and the 30% is left for the Ministry of Finance and the Commissioner General’s office. Within that 30%, whatever is left is approved for auction.”
“There are situations were importers are able to pay duty at the last end and because of the delay in raising revenue to pay the said duty, their attracted rent fees, so after paying the duty and while looking for the mopping up funds to clear the rent that has acrued, before they realize, their containers are found at one of the terminals half empty and carting things out,” the Acting President of CUBAG, Nana Fredua Agyemang Ofori Atta, cited.
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According to the executives of GIFF and CUBAG, the processes for the customs auction at the ports have become one that appear to be shrouded in secrecy, breeding confusion among importers.
“We feel there is a cabal that is operating within the port space when it comes to auctions and allocations and that is where we have a problem. Reefers especially, before you know it has been allocated to somebody below the import duty. The rates we hear people are buying for the allocated goods, are way below the import duty. So, we ask, if government is ready to drop the rate to that extent, why do they not give it to the importer who labored to buy the item, and the freight? Because the first option should go to that person,” Mr. Ofori-Atta lamented.
Mr. Johnny Mantey added that, “this cabal has to banned from coming to the port. They come in and declare they are from national security and others. We later find out they are not even national security.”
According to the GIFF executive, such syndicates are derailing efforts that have been put in place to ensure efficiency and fairness within the treatment of uncleared cargo at the ports.
Taking his turn on the subject, a former Commissioner of Customs, Wallace Akondor explained that the dynamic arrangements for abandoned goods at the ports, reflect government’s prerogative to redeem the revenue inherent in such cargoes.
He emphasized that goods left for auction or allocation per the law, is an indication of abandonment of cargo, and fundamentally, a customs offense.
The Former Commissioner however entreated importers to comply with the stipulated period for clearance of goods in order to avoid the complications that come with the auction process.
Mr. Akondor said “in most jurisdictions in advanced countries, if you do not comply, they take it out of the port and crash your car. The port is the most expensive peace of land in any jurisdiction, so you cannot afford to use the port as your warehouse or a garage. Before you import, please seek the information available on the laws, and get all the requirements ready before you begin the process.”
