Understanding Rules of Origin Under AfCFTA: Ghana Customs Pushes For More Collaboration

Understanding Rules of Origin Under AfCFTA: Ghana Customs Pushes For More Collaboration

A Chief Revenue Officer and Acting Head of Tariff and Trade Unit at the Customs Division of the Ghana Revenue Authority (GRA), Jonathan Dabrah, has acknowledged that while Customs has a pivotal responsibility in enforcing trade regulations, its effectiveness depends largely on working hand-in-hand with private sector stakeholders.

As he emphasized the critical role that Customs plays in facilitating trade under the African Continental Free Trade Area (AfCFTA) during a discussion on the Eye on Port television program, CRO Dabrah called for stronger collaboration between the Customs Division, Customs House Brokers, and the private sector to ensure smooth implementation of the rules of origin under the agreement.

“The success of AfCFTA lies in collective efforts. We can’t achieve much if Customs works in isolation. It’s crucial that brokers, traders, and manufacturers all align with the standards and expectations under the agreement,” Mr. Dabrah stressed. 

He urged all stakeholders to engage more closely with Customs, pointing to the ongoing capacity-building efforts designed to equip brokers and other key players with the necessary skills to comply with the new trade protocols.

The discussion centered on the Rules of Origin, a key aspect of AfCFTA aimed at determining the economic nationality of goods and ensuring that only qualifying products benefit from preferential tariff treatment. According to CRO Dabrah, the rules of origin help identify products genuinely produced within AfCFTA member states, preventing goods from non-member countries from accessing the benefits of the agreement through fraudulent claims of origin.

He broke down the technicalities, emphasizing the concept of “substantial transformation,” which ensures that raw materials undergo significant changes before qualifying as originating from a specific country. Factors such as a change in tariff classification, value addition, and specific processes used in manufacturing are critical in determining origin. Dabrah highlighted examples like Ghanaian cocoa being transformed into chocolate, as illustration of how value is added to meet origin criteria.

Chief Revenue Officer Jonathan Dabrah underscored the need for customs brokers to be fully educated on these rules, as they play a key role in facilitating trade between the Customs Division and the business community. To this end, the Customs Division has intensified its training programs, ensuring that brokers are well-informed and equipped to handle the complexities of the rules of origin.

He hinted at the establishment of an AfCFTA Academy by the AfCFTA Secretariat as a significant step towards empowering customs brokers and other trade-related professionals across the continent. In Ghana, Customs officers have undergone advanced rules of origin training, with the aim of aligning them with the requirements of AfCFTA. This initiative, Dabrah said, is key to preventing potential errors in documentation and facilitating faster processing at the country’s ports and exit points.

He also highlighted the creation of a specialized Tariff and Trade Unit within the GRA, which was set up to oversee the implementation of free trade agreements, including AfCFTA. 

“Management has shown strong commitment by establishing this unit to ensure that we are adequately prepared to handle AfCFTA, alongside other trade agreements like the ECOWAS Trade Liberalisation Scheme (ETLS), the Ghana-EU Partnership Agreement, and the Ghana-UK Partnership Agreement,” Mr. Dabrah added.

In reinforcing the role of Customs in facilitating trade, Mr. Dabrah said his outfit will continue to strictly enforce the division’s risk management approach, which includes selective inspections of goods and post-clearance audits. He assured that while Customs would maintain its focus on trade facilitation, it would not compromise on the necessary controls to ensure compliance with the rules of origin. 

“Our systems are designed to detect irregularities, but at the same time, we are working to make the process smoother for compliant traders,” he said.

Mr. Dabrah praised the over 60 Ghanaian companies that have been approved to trade under AfCFTA, noting Ghana’s participation in the first guided trade under the agreement as a milestone. 

The Customs Division, as the designated competent authority, is responsible for inspecting and certifying goods manufactured in Ghana before issuing certificates of origin, ensuring that they meet AfCFTA strict standards.

The Acting Head of Tariff and Trade Unit at the Customs Division of the Ghana Revenue Authority (GRA), CRO Jonathan Dabrah stressed the importance of collaboration between customs administrations, customs brokers, and the private sector across AfCFTA member states. 

He said his outfit will continue to champion the cause for increased collaboration and continuous training of key players in order to foster a robust and thriving trade environment for Ghana and its trading partners under the agreement.