YOUR QUESTIONS ON IMPORTATION OF GENERAL GOODS ANSWERED?

Q.1    What are the requirements for one to go into import business?
Ans.     You need to do the following:

Q.2      What follows after obtaining the documents?
Ans.     While awaiting the arrival of the goods, you may submit the following
documents to an Inspection Company for a Final Classification and Valuation Report (FCVR). Back to top

Q.3.     What is a Final Classification and Valuation Report (FCVR)?
Ans.     A Final Classification and Valuation Report is a report issued by an Inspection    Company to an importer classifying the goods imported and also indicating their value.

Q.4      Is the FCVR enough to enable importer clear goods from the ports?       
Ans.     The FCVR has to be added to other documents such as the Import Declaration Form (IDF) obtained from the Ministry of Trade and Industry, the TIN and a Tax Clearance Certificate and the Customs Single Administrative Document (SAD) to begin the clearing processes.

Q.5      What are the clearing procedures?
Ans.     One can start the clearing processes with the following documents.

     Procedures:

-    Where there is no GCMS/GCNet facility, purchase and complete the
            Single Administrative Document (SAD) at the station of importation.

Q.6      Does the importation of trade tools attract import duties and taxes? I am a carpenter and I intend to import my professional tools into the country.
Ans:    The CEPS has concessions for professionals who are returning home with their professional tools. Under the law, all professional tools are free of duty.  These concessions go for all professionals including carpenters, doctors, and engineers etc. You may therefore import your carpentry tools without payment of duties and taxes.
NOTE: Other concessions granted under this dispensation cover passengers, especially those who have stayed outside the country for more than 12 months. These passenger concessions include personal effects.
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Q.7      What are removal articles?
Ans.     These include movable personal belongings or effects, domestic appliances, household provisions normally kept in stock, collectors pieces, pet animals, and also any equipment (other than agricultural, commercial or industrial plant) necessary for the exercise of the calling, trade or profession of the passenger.
NOTE:            Removal articles do not include arms, ammunitions and motor vehicles.

Q.8      Can one import weapons (arms and ammunitions) into the country during a visit?
Ans.     According to Ghanaian laws, arms and ammunitions are restricted items and can only be imported after issuance of a special permit by the Ministry of Interior.

Q.9      I intend visiting Ghana with my family this year with a portable TV set, radio and photographic materials and return with them after the visit. Will these attract duties?
Ans.     Items temporarily imported for personal use are free from payment of duty but they will have to be declared to the CEPS official on duty who will issue an appropriate form to cover their exportation.  The officer will also request payment of a deposit to secure the goods,

Q.10    My uncle wishes to go into the import of text books and educational materials. What are the taxes?
Ans. Educational materials, particularly text books, are free of duties and taxes.

Q.11    Does CEPS assess duties on goods in similar containers equally? E.g. I wish to suggest that goods in 20-footer containers should attract equal duties.
Ans:    This suggestion cannot be accepted where the contents are different. For example, importer “A” may import vehicle engines while importer “B” may go for used vehicle tires in two different containers. Since the two items are not the same, and therefore may attract different duties and taxes the CEPS cannot impose equal duties.

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Q12.    Can one import any brand of soap and machines into the country? I have purchased some medicated soaps and gambling machines to be used in the country.
Ans:   Click here for answer in PDF format

Q13.   What are the taxes on commonly imported commodities?
Ans:   Click here for answer in PDF format

QUESTIONS AND ANSWERS ON IMPORTATION OF VEHICLES

Q.1      What are the laws governing the importation of vehicles into Ghana?
Ans:    The laws governing the importation of vehicles into Ghana is the Ghana Customs, Excise and Preventive Service (CEPS) (Management Law) PNDCL 330 of 1993, Sections 46, 47, 48, 78-94, 123-192. This law is complemented by CEPS (Management) Act 1998, (Act 552), Act 565, Act 598 of 14th April, 2001, Commissioner’s Orders and other Service instructions on vehicles.

Q.2      How are vehicles categorized and identified for tax purposes?
Ans:  By the engine capacity e.g. 1.6cc, 2.0cc, 2.5cc, etc.

Q.3      How is the age of a motor vehicle calculated?
Ans:    The age of a motor vehicle imported under the law is calculated with effect from the year in which the motor vehicle was first manufactured. The age of a vehicle is a crucial determinant in valuation for duty purposes.  In arriving at the age of vehicles, CEPS uses the model year reckoning index which normally gives a round year age point e.g. 1990 or 2000 or the dealer chart matrix.

Q.4      What is a model year reckoning index?
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Ans:    The model year reckoning index vehicles are those whose ages can be determined from a letter in the 10th position in a 17 character rotation counting from the left. Such vehicles include:

For example, an Opel Vectra vehicle with the chassis number viz: WOL000087N1658971 is a 1992 model.

Q.5      Which type of vehicles have their ages falling under year of manufacture?
Ans: They are the vehicles whose age can be determined from charts based on the records of manufacturers’ batches of production. Such vehicles include:
German, Japanese and Dutch vehicles e.g. Mercedes Benz, M.A.N Diesel, Toyota, Nissan, DAF etc. These vehicles have their ages determined by reading a chart furnished by the dealers of the type of vehicle.

NOTE: The use of log sheets and seat belts alone to check or confirm the age of vehicles is not reliable. What is on log sheets are more often dates of first registration of such vehicles and not dates of manufacture.

Q.6      Are there any obligations to be met by vehicle dealers?
Ans:    Yes. Section 92 (i) of PNDCL 330 stipulates that any dealer/importer shall furnish the Commissioner of CEPS with the following information:

Q.7      Does CEPS have up to date data on vehicles?
Ans:    Yes. Data has been collected and collated on the values and ages of vehicles over the years. Manufacturers and dealers of motor vehicles have furnished CEPS with brochures, booklets and other documents which give the values and other information on the vehicles.

Q.8      Why does the Customs use the Home Delivery Value to determine the duties and taxes to be paid on a used vehicle but not the importers purchase price?
Ans:  The importer’s purchase price is accepted when the imported vehicle is new. However for Customs purposes, the value of a used vehicle is deemed to be the Home Delivery Value (HDV) depreciated as provided in Section 90 of CEPS Management Law (PNDCL 330, of 1993) plus freight  and insurance (i.e. 0.875% of C & F) to arrive at Cost, Insurance and Freight (CIF) value.
To be fair to all importers bringing in vehicles from various countries all over the world, and considering the fact that prices differ from country to country and place to place, the Customs deems the use of the HDV as the most appropriate way of determining duties and taxes to be paid on vehicles.

Q.9      What is the first purchase price?
Ans:    Section 90 (7) of the Law indicates that the “first purchase price”, means the “price at which the type of motor vehicle in question is usually sold for use when new by a dealer in the country of manufacture”. 

Q.10    Are there other obligations to be met by the vehicle importer?
Ans:    Yes. Section 92 (i) of PNDCL 330 stipulates that any dealer/importer shall furnish the Commissioner of CEPS with the following information:

Q.11   What rate of duty and taxes apply to the importation of vehicles?
Ans: All vehicles imported into the country unless specifically exempted under the PNDCL 330 or other enactment attract the following:

In addition, the various categories of vehicles attract overage penalty when they are more than ten years old.

Q.12    A friend imported a VW Passat vehicle and paid taxes far lower than what I paid on a similar vehicle I imported. When I enquired, I was told that the cubic capacity and the age of my vehicle were different from that of my friend. What has cubic capacity and the age of a vehicle got to do with the duties and taxes on a vehicle?
Ans:    CEPS uses the Home Delivery value, the Cubic Capacity (CC) and the age (where the vehicle is more than 10 years old) to compute taxes on vehicles. For detailed information on this refer to the Vehicle Importation pages.

Q.13  My vehicle was cleared on exemption from payment of duty as a diplomat. How do I dispose of it after my duty tour?
Ans.     You may apply to the Commissioner of CEPS declaring your intention to sell the vehicle.  You may attach copies of all relevant documents covering the vehicle to your application. The duties and taxes involved would be worked out for the buyer to pay.

DRAWBACK

1.   WHAT IS DUTY DRAWBACK?
 a.    This is a refund on import duties after the importer re exports previously
         imported products (Same-state    Drawback)
b.     It is also a refund of import duties paid on imported raw materials used in
        the production of finished goods and exported (Material Drawback)

 If both imported inputs and domestic inputs of the same, kind and quality are
 used to manufacture goods, which are exported, then drawback of the duty
 which was paid on the imported inputs is payable on the exports. It is immaterial
 whether the actual imported input or the domestic input of the same kind and
 quality was used in the exported article.

2.   LEGAL BACKGROUND
The Duty Drawback Regime is legally backed by sections 40-42 of CEPS (Management) Law of 1993, P.N.D.C. Law 330.

3.   WHO BENEFITS FROM DUTY DRAWBACK?
 Any person/firm who imports finished products and re-exports  
 them or any manufacturer who uses imported raw materials in the  
 manufacture of products and exports them is entitled to claim a
 duty drawback.

4.   WHEN IS DRAWBACK DUE?
 It is due when there is ample evidence that the goods have duly 
 been re-exported the evidence being:
 a.   Either Ghana Customs export documents endorsed by Customs authorities
      in both the exporting and importing countries or
  b.   A “landing certificate” from the importing country (where required).

5.   HOW DO I CLAIM DRAWBACK?
Submit an application for claim of the drawback together with the under-listed documents for processing by the Duty Drawback Office at the CEPS Headquarters:
a. Certified copies of the import documents
b. Import duty payment receipts (or certified copies)
c. Drawback Debenture Form (Form C3)
d. Statement of Composition Form (Form C2A) in case of
     Material drawback      

6.   HOW LONG SHALL I WAIT?
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Where documents submitted are authenticated, the maximum period for processing the claim i.e. from date of submission to the time of payments, is five (5) working days.

7.   IS THERE A TIME LIMIT FOR CLAIMS?
Duty drawback can be claimed only within twelve (12) months from the date of your first export. It is, however, advisable to put in your claim quarterly i.e. every four (4) months.

8.  HOW FAST IS PAYMENT MADE?
 The Government of Ghana has established an escrow account with the Bank of Ghana into which monies are paid for the purpose of satisfying the duty drawback needs of exporters.

9. WHO CAN APPLY?             
      (a) The DIRECT EXPORTER, that is the firm or individual whose 
           name appears on the import/export entry or declaration, is the 
           party entitled to drawback. However, the right to drawback can 
           be endorsed by the exporter to a supplier.
      (b) An INDIRECT EXPORTER, such as an importer, manufacturer or 
           merchant that supplied duty-paid materials for exports, can 
           claim drawback if:
                (i)  the exporter waives the right to drawback by endorsing   
                      the Form C.3 (The Drawback Debenture Form) and   
                      sharing the export documents; and
                (ii)  proof of delivery of duty paid goods, from the importer 
                      who paid the duties through to the direct exporter is provided.

1. WHAT IS DUTY DRAWBACK?

a. This is a refund on import duties after the importer re exports previously imported products (Same-state Drawback)
b. It is also a refund of import duties paid on imported raw materials used in the production of finished goods and exported (Material Drawback)
If both imported inputs and domestic inputs of the same, kind and quality are used to manufacture goods, which are exported, then drawback of the duty which was paid on the imported inputs is payable on the exports. It is immaterial whether the actual imported input or the domestic input of the same kind and quality was used in the exported article.

2. LEGAL BACKGROUND

The Duty Drawback Regime is legally backed by sections 40-42 of CEPS (Management) Law of 1993, P.N.D.C. Law 330.

3. WHO BENEFITS FROM DUTY DRAWBACK?

Any person/firm who imports finished products and re-exports them or any manufacturer who uses imported raw materials in the manufacture of products and exports them is entitled to claim a duty drawback.

4. WHEN IS DRAWBACK DUE?

It is due when there is ample evidence that the goods have duly been re-exported the evidence being:
a. Either Ghana Customs export documents endorsed by Customs authorities
in both the exporting and importing countries or
b. A “landing certificate” from the importing country (where required).

5. HOW DO I CLAIM DRAWBACK?
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Submit an application for claim of the drawback together with the under-listed documents for processing by the Duty Drawback Office at the CEPS Headquarters:
a. Certified copies of the import documents
b. Import duty payment receipts (or certified copies)
c. Drawback Debenture Form (Form C3)
d. Statement of Composition Form (Form C2A) in case of Material drawback

6. HOW LONG SHALL I WAIT?

Where documents submitted are authenticated, the maximum period for processing the claim i.e. from date of submission to the time of payments, is five (5) working days.

7. IS THERE A TIME LIMIT FOR CLAIMS?

Duty drawback can be claimed only within twelve (12) months from the date of your first export. It is, however, advisable to put in your claim quarterly i.e. every four (4) months.

8. HOW FAST IS PAYMENT MADE?

The Government of Ghana has established an escrow account with the Bank of Ghana into which monies are paid for the purpose of satisfying the duty drawback needs of exporters.

9.WHO CAN APPLY?

(a) The DIRECT EXPORTER, that is the firm or individual whose name appears on the import/export entry or declaration, is the party entitled to drawback. However, the right to drawback can be endorsed by the exporter to a supplier.
(b) An INDIRECT EXPORTER, such as an importer, manufacturer or merchant that supplied duty-paid materials for exports, can claim drawback if :
(i) the exporter waives the right to drawback by endorsing the Form C.3 (The Drawback Debenture Form) and sharing the export documents; and
(ii) proof of delivery of duty paid goods, from the importer who paid the duties through to the direct exporter is provided

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