Customs Explains Import Duty Calculations For Ghanaian Businesses

The Ghana Revenue Authority’s (GRA) Customs Division acknowledges the public’s frustration with import duty processes.

To improve transparency, they’re encouraging businesses to understand import duty calculations.

While acknowledging the technical aspects, Customs officials believe traders can grasp the fundamentals. On a recent maritime affairs program, Smile Agbemenu, a Chief Revenue Officer, emphasized that Ghana’s customs procedures align with international best practices and Ghanaian law.

Import Duty Rates and Classifications

• Duty rates are set by the government and fall into five categories:
  • 0% – Social goods (essential items)
  • 5% – Raw materials and capital goods
  • 10% – Intermediate goods (partially finished)
  • 20% – Finished consumer goods
  • 35% – Specific goods for economic development
• The Harmonized Commodity Description System (HS code) classifies products for duty calculations.
• Freight and insurance costs are added to the product’s value to determine the customs value.

Calculating Duty on Used Vehicles

For used cars, the home delivery value (purchase price) is adjusted based on age:

• Under 6 months: No adjustment
• 6 months to 1.5 years: Deduct 15%
• 1.5 to 2.5 years: Deduct 30%
• 2.5 to 5 years: Deduct 40%

Beyond Import Duties

Import duties are just one part of the total clearance fees paid in Ghanaian Cedis (GHC).

Verification and Appeals

Customs verifies declared values using HS codes and invoice checks. Businesses have the right to appeal customs valuations.

Meeting Revenue Targets

The GRA has a revenue target of GHC 150 billion for 2024, with Customs expected to contribute 30%. They are confident of achieving this goal.