Customs Division ready to take over destination inspection services Sept 1
The Commissioner General of the Ghana Revenue Authority (GRA), Mr George Blankson has called for public support as the Customs Division prepares to take over the Classification, Valuation and Risk Management functions from the Destination Inspection Companies (DICs) at the ports on September 1, 2015.
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The Customs Division has been given the green light to take full responsibility for valuation, classification and risk management services under what has been termed as a National Single Window.
The DICs, which have been providing these services in the last 15 years have been asked to handover their activities by end of August 2015 as government has decided not to renew their contracts.
This means that from September 1, 2015, the Customs Division shall begin the processing of the Customs Classification and Valuation Report (CCVR).
The CCVR shall replace the destination inspection report also known as the Final Classification and Valuation Report (FCVR) which the DICs handled.
Subsequently, according to the guidelines governing the changeover from the FCVR to the CCVR, all users comprising importers, declarants, freight forwarders, custom house brokers and individuals who wish to process their import declaration forms (IDS) have been asked to register online with Customs.
This is because issuance of all FCVR shall cease at close of work on August 31, 2015 but active and un-utilized FCVRs shall continue to be valid for 30 days ending October 2, 2015.
A new firm, West Blue Consulting and Scanning Company has been contracted to work in collaboration with the Customs Division post the exit of the DICS and there have been public outcry about the way and manner the transition was being handled with regards to the procurement processes that brought West Blue on board.
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West Blue has faced stiff opposition ever since it emerged that the Presidency had directed that the company must be given the contract to operate a national single window at the nation’s ports.
Critics and industry players have argued that West Blue had failed in Nigeria and the Nigerian government is working to kick them out of that country.
Speaking at a media briefing on Monday on the new development, Mr George Blankson noted that the GRA was aware that system changes of this national scale will not go without some “teething issues.”
“We are solidly prepared with our contingency plans to ensure a seamless and a hitch-free transition as possible.
“We call on the general public, the DICs who have supported the current activities for the last 15 years and the government to support us in this critical institutional and nation building exercise.”
West Blue Consulting and Scanning Company, GCNet, Freight Forwarders, Brokers, partner ministries and other stakeholders are to work together with the Customs Division to provide services to Ghana’s trading community under the national single window concept.
The Commissioner General said, “this new arrangement is to create a synergy that utilizes the core competences of each of the stakeholders to implement a seamless, efficient and user-friendly e-clearance regime in a National Single Winder environment.”
Post DICs
According to Commissioner, the authority has developed a “modernized environment to provide the Pre-Arrival Assessment Reporting System (PAARS) to enhance revenue mobilization, improve border security and promote trade facilitation,” as part of efforts to provide the pre-arrival clearance services after the exit of the DICs.
He explained that the PAARS will utilize pre-classification and pre-valuation mechanisms to facilitate the importation of goods into Ghana inline with World Customs Organisation (WCO) and World Trade Organisation (WTO) guidelines as well as help improve the efficiency of Customs clearance.
Mrs Esther Kwakyewa Amekudji (4th left), Senior Revenue Officer at the GRA, taking the media through the activities at the Customs Technical Service Bureau (CTSB) during a tour of the facility in Accra. Looking on are Mr George Blankson (3rd right) Commissioner General,Ghana Revenue Authority (GRA) and other officials.
Customs mandate
Mr Blankson maintained that since time immemorial Classification and Valuation functions have always remained the exclusive function of customs globally and it was for that reason that Ghana Customs has been performing those functions since 1839.
However, under the Brussels Definition of Value (BDV) valuation system, Ghana contracted companies abroad to perform Pre-Shipment Inspection (PSI) price verification aimed at verifying and ensuring that the invoice price correspond to an open market price in line with the valuation system.
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“Customs at that time often relied on the prices recommended by the PSI companies alongside the Commissioner’s value to determine the ‘actual’ customs value.”
Over time, the PSI became an outdated concept as it was found to be bureaucratic. As a result of this, the World Customs Organisation (WCO), based on the principles of the Revised Kyoto Convention (RKC), recommended the replacement of the PSI with a professional risk management system, post clearance auditing and reliable trader’s programme.
However, development countries were granted five years grace period to position themselves for adoption of the ACV by the year 2000.
As a stopgap measure, the government contracted Destination Inspection Companies (DICs), under a Public-Private Partnership (PPP) arrangement, to undertake price and quality verification at the time Customs was perceived of lacking the technical skills and logistics to perform this task. This was to enable Customs to fully prepare to undertake the classification and valuation functions within five years.
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According to the GRA, the first destination inspection contract was signed on November 12, 1999, but was to take effect from April 2000, the date the contract with the PSI was to end.
To date five DICs have been contracted through the Ministry of Trade and Industry to operate in the country.
They are Gateway Services Limited, Inspection Control Services Limited, BIVAC International Ghana Limited, Webb Fontaine and Ghana Link Network Services.
Functions of DICs
• Verification of Transaction Price under GATT/WTO Valuation regime
• Value for Customs purpose
• Customs Classification
• Import eligibility (for information)
• Capacity building for Customs
• Implementation of Risk management
• Use of X-Ray scanning containers
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The Commissioner of GRA explained that such PPP arrangements were supposed to be limited in time and purpose and were not designed to substitute DICs for Customs administrations in the performance of the latter’s statutory duties.
"Ghana has been in partnership since 2000, well beyond the prescribed WCO time limit of five years. Thus the purpose of the contract has long been served. The current extension of the DICs mandate is about to end and Customs is more than capable of carrying out these functions."
Mr Blankson insisted that over time, Customs’ attempt to resume dits core functions of classification and valuation has suffered some setbacks. The ambivalent position of government on the takeover of the DIC has frustrated Customs to resume its core functions in order to effectively play its role in national development and in line the WTO position.
Expected benefits of new system
The single window concept provides an opportunity for traders to lodge their documents, including certificates of origin, invoices, customs declarations and import/export permits at a single location (electronically) to be accessed by all regulatory and trade agencies instead of traders sending copies of the same documents to different agencies.
The facility reduces the cost and time of doing business as well as serve as a one-stop shop to ensure minimal bureaucracy.