GSA allays GUTA’s fears on amended law

The Ghana Shippers' Authority (GSA) has explained that the amended GSA law on registration is not a licensing regime, but rather a means of identification for efficient processing.

It said the requirement had been in Ghana’s laws since 1987, and that the latest one was intended to address gaps identified in the old law to ensure global best practices.

Last July, Parliament passed the Ghana Shippers’ Authority (GSA) Bill, 2024 into law, empowering the state agency to address long-standing issues of unfair charges, lack of transparency and ineffective regulation that had plagued the blue economy.

However, the President of the Ghana Union of Traders Association (GUTA), Dr Joseph Obeng, has expressed concerns about the amended law, including lack of consultation on registration, insufficient discussion on shipment notice submission, late stakeholder involvement, unaddressed permit and license issues and the reintroduction of the Advanced Shipping Information System.

"We were not adequately consulted, and our concerns were not addressed. We fear this law may stifle businesses and increase costs", Dr Obeng stated and appealed to President Nana Addo Dankwa Akufo-Addo not to assent to the amended law until all concerns raised were addressed. 

GSA explains

Reacting to the concerns raised by GUTA, the  GSA in a statement stressed that the amended law aimed to enhance the operations of the shipping industry, not to hinder it.

“Registration only means registration, and by no stretch of the imagination should it be misconstrued as a licensing regime.

“This has been explained and discussed with the stakeholders, including GUTA. Registration of shippers is not a new introduction; it has always been in the laws of Ghana: Section 1 of L.I. 1347 (1987) and then Section 2 of L.I. 2190 (2012) provide for registration of shippers by the GSA”, the statement in part clarified.

On the issue of Advance Shipment Information System, the GSA explained that this system was not new, and that it aimed to facilitate pre-arrival clearance processes to, reduce avoidable costs.

“This is contained in L.I. 2190 (2012), which is currently in force. Under the new law also, it will be operationalised through an L.I., and GSA is currently in  consultations with stakeholders to pool inputs for the yet to be passed L.I.”.

GSA assured that the new Legislative Instrument (L.I.) would provide clarity on the provisions and align Ghana with global standards, reiterating its commitment to constructive collaboration.

It, therefore, appealed to stakeholders to remain engaged to ensure that the law enabled profitable commercial shipping business, while aligning with global standards.

Stakeholders in support

In a related development, the Association of Ghana Industries (AGI), Traders Advocacy Group Ghana (TAGG) and the Importers & Exporters Association of Ghana (IEAG) have thrown their weight behind the GSA amended law which is aimed at regulating the shipping industry.

This comes amid concerns raised by the Ghana Union of Traders Association (GUTA) and the Ghana Institute of Freight Forwarders (GIFF).

In separate statements released last Friday, the AGI, TAGG and IEAG expressed shock at the sudden concerns raised by GUTA. 

They noted that the GSA was actively engaged in consultation with all stakeholders in the shipping industry on the amended GSA Law. TAGG described GUTA's call to the President to withhold assenting to the law as unfounded.

"The GSA has demonstrated commitment to considering feedback from the business community, rejecting concerns that, the law would only serve the interests of a select few, rather than the broader trading community and Ghanaian citizens," TAGG's statement read.

The President of IEAG, Sampson Asaki Awingobit, said the law would ensure that every stakeholder in the commercial shipping value chain acted responsibly, and would therefore be held accountable.

"The law creates a more structured and regulated environment for trade, ensuring that the interests of both importers and exporters are safeguarded.

“The GSA law is a significant step towards enhancing transparency and efficiency within the shipping and logistics industry," Awingobit asserted, and acknowledged that further dialogue was needed to address practical challenges faced by importers and exporters.

He also called for clear guidelines and support from the GSA to help businesses adapt to the new regulations.

The AGI President, Dr Humphrey Ayim Darke, expressed the belief that the amended law would bring the much-needed reforms to the industry. "This law will harmonise Ghana's shipping industry with international standards, making us more competitive," he said.