The Head of Exports at the Ghana Chamber of Commerce (GCC), Charles Arthur Ntiri, says 40% of the goods being exported under the Africa Continental Free Trade Area (AfCFTA) must be locally produced. According to Ntiri, anything short of this requirement would be deemed as fraud.
He was speaking at the media seminar on shipping and logistics organised by the Shippers’ Authority under the theme: “Contemporary trends and development in Ghana’s shipping and logistics industry,” held in Accra last Thursday.
Mr. Ntiri explained that the manipulation of the manufacturing or production process to change the origin of goods by making minor modifications or minimal processing in a different way to claim preferential treatment based on the altered origin was fraud.
“The volume that should be substantial; it must be more than 40%. We have a way of calculating the value added, and when it is above 40%, you qualify, but when it is not, you become part of fraud,” he emphasised.
He contended that implications could also result in revenue losses, unfair competition as well as attraction of legal consequences. According to him, the originality of products under the AfCTA was very paramount, and urged the public to abstain from ‘origin fraud’ practices such as false documentation, transhipment and tariff engineering.
So far, the GCC has approved 98 applications under AfCFTA for 55 registered companies, and these registrations are renewed every two years.
He said the GCC approves a certificate per a consignment, but had not recorded any attempts by traders to short-change the system. Mr. Ntiri facilitated the seminar on the topic ‘Certification of Origin under the AfCFTA’, which is to check proof of origin, tariff determination, and compliance with the trade agreement.
The inter-continental trade agreement provides an incentive of 6% year-on-year discount on port charges for Pan-African goods. Businesses hoping to take advantage of AfCFTA were urged to visit the GCC website and register.
Gertrude Adwoa Ohene-Asiemin treated the topic: “Payment of marine cargo insurance locally – Benefits to the shipper and Ghanaian economy.”
She urged shippers to insure their consignments locally and that the cost was determined by the value of goods, risk and destination.
Mrs. Ohene-Asiemin called for marine and aviation insurance databases that would interface with the Integrated Customs System (ICUMS) to track and authenticate all local insurance certificates presented.
Furthermore, she said all procedures concerning claims of administration premium payments and ratings should be in accordance with the National Insurance Commission (NIC) directives.
Frank Ankomah, Head of Freight & Logistics at the Ghana Standards Authority (GSA), underscored the Authority’s role in negotiating rates and how they impact on the shipping and logistics industry.
He said while the GSA was limited in terms of charge negotiation between shippers, the handling of port and shipping line, the authority’s role was still critical.
Mr Ankumah said the GSA steps in to negotiate all charges including administration fee, cargo truck transportation and demurrage. The GSA also negotiates charges to determine applicable rate, continuity of service, and protect the shipper against extortion.
The negotiated rates are reviewed every two year in consultation with the Committee of Freight Forwarders’ Association (CoFFA), Air Cargo Handlers, Ghana Ports and Harbour Authority and Joint Association of Port Transport Union.
Benonita Bismarck, Chief Executive Officer (CEO) of GSA, said the media seminar is in furtherance of public education, particularly shippers.This was to help the shippers to understand contemporary trends and development in the country, as operational efficiency is one of the matrices of the Authority.
