The Ghana Shippers’ Authority (GSA) has held discussions with the Shippers’ Councils of Burkina Faso, Mali, and Niger to address key issues affecting international and transit trade. The meeting which was held on Thursday 16th May 2024, at the Shippers’ House in Accra focused on the need to review the Memoranda of Understanding (MoUs) between the GSA and the three Shippers’ Councils to make them potent for the management of the challenges that currently face transit traders.
The Chief Executive Officer (CEO) of GSA, Kwesi Baffour Sarpong emphasized the necessity of enhanced MoUs, especially with respect to improved data sharing, citing the increasing security issues along the transit trade corridors.
The President of Transit Shippers of Landlocked Countries, Ibrahim Souley raised concern about the rising sale of transit goods under the Uncleared Cargo List (UCL). By law, imported motor vehicles and general goods must be cleared within 60 and 21 days, respectively, or be forfeited to the state and auctioned by the Customs Division of the Ghana Revenue Authority (GRA). They advocated for a special dispensation for transit goods due to their destination-specific nature, a concern the GSA noted for redress.
Mr. Baffour Sarpong also highlighted the ongoing revision of the GSA’s establishment law, urging input from the Shippers’ Councils as Ghana positions itself as a trade hub with rail links to its landlocked neighbours.
The President of Transit Shippers of Landlocked Countries, Ibrahim Souley, appealed for the removal of VAT, COVID, and Education levies on transit transactions. Mr. Baffour Sarpong reiterated that, by international convention, transit shipments should be tax-exempt. Regrettably, despite a position paper submitted to the GRA in 2015, recommendations from a World Bank team, as well as GRA’s own research, no action has been taken. GSA has however not relented in its persistence to follow up till tangible results are achieved.
The discussions also covered the numerous police and customs checkpoints and instances of extortion along the transit corridors. Mr. Sarpong underscored GSA’s collaboration with the Police Administration to address the issues. He stated that, in a recent directive from Ghana Police Administration, the Inspector General of Police (IGP), Mr. George Akufo Dampare ordered the cessation of inspection of transit trucks. He added that, through collaboration with the Police, nationwide sensitization programs for officers of the service will continue to enhance the quality of the experience transit traders.
Other issues discussed included the standardization of exchange rates by Shipping Lines, the need to increase “free time” for goods in transit, and also address the arbitrary application of Customs’ escort regime, and the auction of goods in transit.
To expedite the resolution of the issues raised, GSA proposed that, the bilateral Technical Committees of the Council should be reconstituted and charged to meet regularly.
The meeting underscored the mutual benefits of transit trade for Ghana and its landlocked neighbours, and called for reciprocal commitments to ensure smoother and more efficient trade operations.
