Can you explain some of the methods which Customs uses to assess duty and taxes.

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1 SAMPLE FREQUENTLY ASKED QUESTIONS ON CUSTOMS OPERATIONS Can you explain some of the methods which Customs uses to assess duty and taxes. Customs uses the following: The Assessed Value which is issued on the Customs Classification and Valuation Report (CCVR), The National Tariff which specifies the taxes applicable to each item in the Tariff, The Rates of Duty per each tax Type Other charges as are spelt out in the Tariff Can I disagree with Values which are given by Customs Yes- one is permitted to disagree with values given by Customs What are my options if I disagree with Customs because they do not use my Invoice price to calculate the duty or if I think the duty has been wrongly calculated?. One can appeal the value to the Commissioner-General for a review. One is also permitted to go to court if not satisfied with the decision of the Commissioner-General. Stakeholders in the Port (Custom House Agents, Shipping /Airlines etc) How can I confirm that my Clearing Agent has given me the correct Bill of Duties and Taxes? You can contact GRA Customs who can retrieve the Declaration and the Payment Particulars if the goods where cleared in the automated System. However, if the goods were cleared at a Customs Office which is con connected to the Customs Goods Clearance System, you can still make a presentation to that office and the officers will retrieve the relevant documents for you. Why do I have to pay a Custom House Agent to clear my goods. Are they not employed by Customs? Custom House Agents are not Employees of GRA (Customs). They are in commercial business and also facilitate the clearance for importers and exporters of goods. That is why you have to pay them for the services they give in clearing your goods for you. I realize that I have to pay charges to different institutions at the Port Yes- The different institutions such as the Ghana Ports and Harbour Authority (GPHA), Shipping Companies (or Airline Representatives), Cargo Handling Companies charge levies for their various services. Complain Resolution-Where do I make my complain if I have a problem with any of these institutions (say GPHA or the Shipping Line)

2 All of these institutions have Client Service Units which who handle complains, provide information and generally assist person who have a challenge with some aspects of their work. Why do we have the other Security Agencies such as the Police and National Security in the Port. This does not happen in other countries or I do not see them. Penalties Customs sometimes imposes penalties for some of our activities. Can you explain why the penalties. The Laws which govern the activities of customs prohibit and categorizes them as offices with corresponding penalties.. Are there categories of customs offences?. Can I be prosecuted in court for a criminal offence if I infringe on any of the Customs Laws?. Yes, there are categories of offences. Some relate to the submission of (Wrong documents) and other when a person deliberately falsifies information or contravenes any of the Customs Laws or other national Laws which relate to Customs Operations. Yeas, you can be prosecuted in court for some of the offences for which are captured in other laws as liable to prosecution. Where do I get information on Customs Procedures and their Laws. Customs Division and the Ghana Revenue Authority under which it operates, have devised various methods for providing information on their activities and include the following: Pamphlets, The website of the Ghana Revenue Authority, Public educational campaigns, Stakeholder engagements and many others methods. Does the Ghana Customs have a WEBSITE?. Ghana Customs does not have a website of its own. As a Division of the Ghana Revenue Authority, it uses the GRA website which is Seizures and Forfeitures Customs Often use them two terms Seizure and Forfeiture What are the meaning of these terms and how and when can they be applied?. Seizure means the item has been placed under and pending investigation, the provision of additional information etc. Forfeiture Means the item has been taken over completely by the State without the option of it being returned to the owner.

3 If my vehicle which has been used to smuggle goods or carry illegal goods like Cocaine or Arms and ammunition, can it be seized together with the goods?. Yes- The Customs Act 891 (Section..) provides that conveyances (which also include vehicles ) which are used to commit an illegal act can be seized. A friend told me that it is cheaper to import vehicles from To or Ivory Coast and that the duties are lower than those from Europe and America etc. This is not true. Customs uses the same method of valuation irrespective of the country from which the vehicles are brought from. Can I import a vehicle from Togo, drive it for a few months before registering with the DVLA? No. You must first declare the vehicle to Customs and pay the duties before it is registered. In some instances, one can import a vehicle and declare it under what is called temporary Importation. But such as vehicle would require a Bond (or security against the duties and taxes) and must be re-exported within the allowable period or declared for home consumption and the taxes paid. There is a facility under the ECOWAS Community Trade Liberalization scheme under which one is allowed to import a vehicle on Temporary basis (usually three months) and exit it or apply to convert into home consumption, by which, one is prepared to pay any duties that become liable. If yes, do I have to show the Vehicle to Customs before going to the DVLA. If I don t is it an offence?. Can the vehicle be seized? Vehicles which are imported into the country must first be declared to Customs (and duties paid) before it is Registered with the DVLA. Failure to do so is an offence and the vehicle may be seized or even forfeited if found out. Customs Procedures What is a Customs Procedure? This is the procedure which prescribes how goods declared to customs should be treated. How many of them are there and what do they represent? There are many of the procedures. But these may be grouped generally under the following:

4 Direct Imports Temporary Imports Temporary Admissions Re-Importation Direct Exports Temporary Exports Re-Exportation Warehousing Transit Transshipment I hear some importers do not pay some (or all duties) because of Customs Procedures they use. National Law has made provision in the customs law on the criteria for one to pay duty or not to. The criteria can be found in the Tariff. Exemptions and Concessions Please can you explain the two terms and the differences between them and why exemptions (or Concessions) are given and the persons who qualify or conditions under which they are given. Exemptions- Reliefs a person completely of the duties and taxes. One may not be granted full exemption in which case, he./she pays a proportion of the total duty is exemption. Concession- One is charged a percentage of the rate of duty which should normally apply. Concessions are usually given to Manufacturers or Investors as incentives I am told that Manufacturers enjoy Concessions. How does Customs determine who qualifies as a Manufacturer and how does Customs confirm that the goods on which the concessions were given were not diverted to another person BUT were actually used by the manufacturer who was granted the concessions. For one to be identified as a Manufacturer, for the purposes above, one needs to be registered as such with GRA and must show proof and be issued with the relevant certification, as prescribed in the relevant laws. The Paperless Project- What is it? Basically, this means that paper documents should no longer be presented and accepted for the clearance of goods at the ports.

5 This also means that all documents intended to be used for the clearing of goods at the ports should be converted into electronic (Soft) copy and submitted to the requesting agency. What are the other components of the Project? Receiving & Processing Documents- That computer Systems will be used to receive, process, transmit, store and retrieve documents. Risk Profiling of Goods-That Goods will be Profiled to give the level of Risk which will determine The type of Examination If the Risk level is Green, the goods are Released without Physical Examination But will be scanned for any other anomalies. If the Risk Level is YELLOW, the goods will be scanned. If the RISK Level is RED, the container will be Opened and the Goods Examined Physically. Payments of Duties and Charges- Importers will be able to pay their charges using electronic systems (Mobile Money, Visa Cards etc), Pay at the current ECOBANK and GCB BANK and other Banks. This has opened up the options for payments and should reduce the risk of going to Bank and the limitation of opening and *closing hours. Examination of Goods- Now the Declarant will be able to schedule the time it is convenient for him to conduct examination of his goods by indicating the date. Will the Paperless lead to Job Loss. This question needs at honest answer. First paperless is to reduce to delays, hustles and associated costs of persons who clear goods in the ports. Secondly, paperless will lead to better transparency because everybody will have a clear idea of where his processes have gotten to and whether there is a delay and by whom. Thirdly, Paperless will expose the activities which rob the state of legitimate collectable moneys which go into the wrong pockets. Fourthly, Paperless will enable our ports to compete more favorably with the others in close proximity with use (e.g. Lome and Abodjan) So the object is to ensure that only people who have legitimate business in the ports are admitted into the area. Improvements as have been envisaged and will definitely happen should lead to more jobs as

6 more business is conducted in our ports, but more importantly that government will get the needed revenue o create more jobs. What Steps have been put in place for the Project to Succeed? Installation of Computer Systems-First the computer systems of the service providers in the ports operations have been installed and appropriate software configured on them. The Systems include those at Customs (Valuation and Declaration Processing), Shipping Lines (to Submit Manifest within the time prescribed), Terminal handlers (those who keep your cargo until you are ready to clear), the Port Administrator (GPHA), the Regulatory Agencies (FDA, GSA, etc). Link up of Systems-These Computer systems have been linked up to transmit Documents and send and Receive Messages. Training-Third, appropriate Training and Sensitization have been done (and are still ongoing). Testing Testing of each Separate System and the entire process has been conducted and is still being done. System Flow Diagram A detailed chart the process flow, showing the activities and responsibilities of stakeholders have Long been designed which has been the basis for most of the preparations. Will Paperless reduce the costs of my Imports The basic answer is yes. Reduced Complexity- First it will reduce the costs arising from the multiplicity and complex activities at the ports.. Reduced Physical & Associated Costs- Second, it will reduce the costs arising from having to contact many people which comes which some form of facilitation to get your work done. Transparency- Reduced the ability of people to hide the actual price you pay as duty or for other Services. What are some of my responsibilities so I can profit from the Project? Genuine Documents-Submit genuine documents to reduce the time it takes to validate and also your risk level.

7 Early Submission- Submit your documents for Customs Valuation and Declaration Processing early enough (before the ship arrives) so you are ready to continue with the inside port activities as soon as the ship arrives. Get Information-Seek information from Customs or the appropriate agencies from their Client Service Centers if you encounter challenges. Also get information from GRA websites and that of the other agencies. Are there alternative solutions in case the system fails? Yes both the state institutions and Technical service providers have made plans for fall back in the event of system failures. Backup computer systems have been put in place and there are plans for the use of staff