Implementation of law banning importation of accident cars into Ghana suspended

The Ghana Institute of Freight Forwarders (GIFF) says the government has decided to suspend the implementation of the law banning the importation of salvaged vehicles and those older than 10 years into Ghana.

The Customs Amendment Act, 2020, which was passed by Parliament in March 2020 was supposed to take effect on November 1, 2020.

However, in a radio interview on Accra-based Citi FM on Thursday, the Tema Regional Chairman of the GIFF, Alex Asiamah, said the Customs Commander at the Tema Port announced the suspension to them.

“Just this evening [Thursday] I received information informing the general public, stakeholders and the importing public that, Customs will continue to do their normal clearance of such vehicles. So, the importers can go on with their business of importing such cars. So that’s the news at the moment. It is coming from the Ministry [of Finance], but through our sector commander, the Assistant Commander of Customs in Tema,” he said.

The Customs Amendment Act 2020 among other things, provides incentives for automobile manufacturers and assemblers registered under the Ghana Automotive Manufacturers Programme and prohibits the importation of salvaged motor vehicles and cars over 10 years of age into Ghana.

It was passed by Parliament in March 2020 and was expected to be rolled out in November 2020.

The announcement by the government to implement the said Act effective November 1, 2020, was received with much agitation by industry players including the coalition of car and spare parts dealers association of Ghana as well as freight forwarders who threatened to stage a demonstration to protest the implementation of the Act.

Mr. Alex Asiamah insisted that the law really made vehicle importers unhappy.

“You could remember that when the news came, importers or dealers in those cars were not happy about it and then it was even twisted in different directions to make it look like something odd,” he said.

He indicated that based on the suspension of the law, “for us as freight forwarders, we will continue to enjoy our business of providing such cars for our customers and when that one happens, it means we are going to continue to enjoy the service so it’s welcoming news.”

John Mahama to scrap law

Meanwhile, former President John Mahama has said his next government would scrap the law should he win the 2020 Presidential elections.

According to him, he will rather stimulate the local automotive industry at Suame magazine in Kumasi and Abossey Okai in Accra rather than collapse them.

He made the promise when the NDC launched its 2020 manifesto on Monday, September 7, 2020.