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Importers & Exporters Association Endorses Government Ban on Land Transit of Selected Goods

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The Importers and Exporters Association of Ghana (IEAG) has welcomed the government’s decision to ban the land transit of selected goods through Ghana’s borders, describing the directive as a long‑overdue intervention that will help restore integrity to the country’s trade system. The directive, issued by Finance Minister Dr. Cassiel Ato Forson to the Ghana Revenue Authority and its Customs Division, requires that commodities such as cooking oil, rice, sugar, frozen foods, textiles, flour, canned tomatoes, pasta, and pharmaceutical products be routed exclusively through Ghana’s seaports.

According to the Association, the measure addresses years of persistent abuse of the land transit regime by individuals and organized cartels who have exploited the system to evade import duties. Goods declared as transit cargo destined for neighboring countries are frequently diverted into the Ghanaian market without the payment of statutory duties and taxes. This practice, the IEAG notes, has deprived the state of significant revenue while creating unfair competition for compliant businesses that follow legitimate importation procedures through the seaports.

The Association further highlights that the transit regime has long been associated with undervaluation and misclassification of goods. By misdeclaring value, quantity, or product type, some operators drastically reduce their tax obligations, undermining the credibility of Ghana’s customs valuation system and distorting market prices. The IEAG believes that routing these commodities through the seaports, where verification systems are more advanced and supervision is stronger, will enhance transparency, ensure accurate declarations, and improve revenue collection.

The IEAG also supports the government’s decision to recentralize the Customs Technical Services Bureau (CTSB), describing it as a critical step toward improving valuation consistency and intelligence coordination. The establishment of a centralized valuation hub, supported by tools such as the Publican AI system, is expected to strengthen the ability of customs authorities to detect irregularities and track suspicious trade patterns.

Despite its strong endorsement, the Association expresses concern about the sustainability of the directive. It recalls that previous bans and restrictions have failed to achieve their intended impact due to weak enforcement and lapses along the borders. In some instances, the situation worsened once initial enforcement efforts were relaxed. To avoid repeating past failures, the IEAG urges government to reinforce the policy with stronger border security and intensified surveillance along land borders, particularly unapproved routes used by smuggling networks.

Given growing public concern about border enforcement, the Association recommends that government consider deploying military personnel to support and supervise operations at the borders. Such a move, it argues, would strengthen public confidence, deter organized smuggling groups, and reinforce discipline within the enforcement chain.

The IEAG further calls for enhanced collaboration among customs authorities, national security agencies, port operators, and private sector stakeholders to ensure strict compliance with the directive. Continuous monitoring, data‑driven enforcement, and periodic policy reviews, it says, will be essential to achieving the intended revenue protection outcomes.

Reaffirming its commitment to supporting government efforts to strengthen trade governance, protect national revenue, and promote fair competition, the Importers and Exporters Association of Ghana believes the directive, if effectively implemented and sustained, will reduce revenue leakages, restore integrity to the importation process, and create a level playing field for legitimate businesses across the country.

Signed
Samson Asaki Awingobit
Executive Secretary

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