THE GRAPHIC BUSINESS has learnt that some traders are abusing the import exemptions granted them under the Economic Community of West Africa States (ECOWAS) Common External Tariff (CET) programme by rebagging imports from Asia and tendering them in as West African produce to be able to escape payment of duties
The move allows the importers to unduly enjoy some tax exemptions under the CET regime.
Ghana News Headlines
For latest news in Ghana, visit Graphic Online news headlines page Ghana news page
The CET is to ensure that the same tariff
Although the CET was adapted to offer special protection measures aimed at addressing any trade imbalances across the sub-region, the paper understands that some traders are abusing the protocols under the programme.
The President of the Ghana Union of Traders Association (GUTA), Dr Joseph Obeng, told the paper that such practices were short-changing Ghanaian importers.
“They repackage Asian products in their countries and ship them here as though they had manufactured them in an ECOWAS member state to enjoy tax exemptions,” he said.
He added that the practice was giving undue advantage to foreigners over local importers.
In the past, due to the tariff differences within the ECOWAS member states, importers preferred trading in West African countries where tariffs were lower instead of their original home country.
The CET was supposed to check such practices and among other things encourage the trade in goods manufactured in the sub-region.
Abuse across board
An expert in the maritime industry, Dr Kofi Mbiah, in a separate interview, said the practice was having a negative effect on the value
He told the GRAPHIC BUSINESS on August 18, this year, that Nigerian officials were also complaining about similar abuse under the programme which was
Dr Kofi Mbiah — Maritime Expert
“The Nigerians are also complaining and as a
However, at a meeting with GUTA in June this year, a Deputy Minister of Finance, Mr Kwaku Kwarteng, assured traders in the country that the government was working on reviewing tax exemptions it had granted under the programme to ensure fairness.
With the review, some exemptions granted importers would be substituted with other ones that were more suitable.
The review, he said, had become the best option as the government had “almost exhausted” the tax exemption quota.
“We did something for our friends at Abossey Okai and the spare parts; we have done something for raw materials and for production of medicine.
“The policy guidance we have from the government is that we take a second look at the range of exemptions that we have granted under the CET and to see which ones we can begin to switch,” he said.
The ECOWAS CET was implemented to provide better trade policy across the sub-region.
This includes applying special protection measures aimed at addressing any trade imbalances across the member states thereby providing a real boost to the manufacturing sector and trading in general.
The CET was also aimed at ensuring transparent customs procedures, reducing border delays and facilitating intra-regional trade.
The decision to have a Common External Tariff was taken at an extraordinary meeting of Conference of Heads of State and Government of the ECOWAS held in Dakar, Senegal, on October 25, 2013.