Importers and Exporters Association said it has noticed with deep Concern calculated attempt by the Customs Division of the Ghana Revenue Authority to take undue advantage of the surge in freight charges for duty purposes.
Statement from the Association expressed worry over how Customs, have adopted a new strategy to increase value or duty paid on freights, even though the institution has not been mandated to determine the freight value for the purposes of duty, especially “in the face of agitations against the abnormal increment in freight charges”.
“The current surge in freight is not normal and this may go away as soon as the imbalance of freight containers are realigned, hence the need for Customs to exercise some caution in their new found revenue making avenue”.
The group argued that surge in the freight is already hurting trade traffic and if Customs intends to use the situation for revenue purposes, “it best be described as unfortunate”.
“The current surge in freight is not normal and this may go away as soon as the imbalance of freight containers are realigned, hence the need for Customs to exercise some caution in their new found revenue making avenue”.
The question here is, will Customs reduce same when freight begin to fall, the group asked.
Read rest of the statement below
PRESS RELEASE BY THE IMPORTERS AND EXPORTERS ASSOCIATION OF GHANA
CC: ALL MEDIA HOUSES
7TH JULY, 2P21
CUSTOMS TAKING UNDUE ADVANTAGE OF HIKES IN FREIGHT AT THE EXPENSE OF THE ORDINARY IMPORTER
We have noticed with deep Concern the calculated attempt by the Customs Division of the Ghana Revenue Authority to take undue advantage of the surge in freight charges for duty purposes.
It is worrying to note that Customs in the face of agitations against the abnormal increment in freight charges, have adopted a new strategy to increase value or duty paid on freights, even though they are not mandated to determine the freight value for the purposes of duty.
It would interest the public to know that, Freight in the carriage of cargo are subject to negotiation and also to commercial level, hence Customs cannot set a benchmark value for a freight for duty purposes.
The current surge in freight is not normal and this may go away as soon as the imbalance of freight containers are realigned, hence the need for Customs to exercise some caution in their new found revenue making avenue.
The freight surge is already hurting trade traffic and if Customs intends to use this for revenue purposes, it can best be described as unfortunate.
Other countries who are under similar circumstances, are rather assisting businesses to stay afloat and not introducing or riding on the unfortunate freight hike for generation of revenue.
The question here is, will Customs reduce same when freight begin to fall?
Because we’ve witnessed similar instances in the past where Customs refused to reduce duty value when freight saw a nose dive.
Benchmark is an out lawed practice but we have it for all the good reasons.
Between 2016 and 2018 freight rates fell drastically yet Customs did not apply the price paid or payable argument, they used the averages before the fall.
And with businesses crumpling in the face of a global pandemic, we are convinced beyond measure that Customs with their track record will continue to stay with the current freight value, even when the current freight drops, just to balance their revenue.
We want a clear assurance from Customs and also an intervention from the Trade ministry to ensure an end to the undue advantage being taken by Customs to milk the ordinary businessman/importer/Exporters, for their parochial interest of meeting their revenue target.
Signed
…………
Samson Asaki Awingobit
Executive Secretary
