The Ghana Revenue Authority (GRA) has introduced an advance ruling system to provide importers with certainty about how their goods will be treated by Customs before their consignments are shipped to Ghana. This system allows importers, exporters, and customs brokers to apply for a binding decision on specific aspects of their goods before importation takes place. The GRA aims to give traders greater predictability when planning their import transactions.
According to Ernest Nyarkoh, a Senior Officer at the Tema Collection, the advance ruling programme gives traders the opportunity to obtain a decision from Customs ahead of time. This decision provides certainty about the treatment of a consignment during the customs clearance process. The binding decision means that traders can be certain that the decision issued will be the decision that will apply when they go for the process of clearance.
The advance ruling system covers two main areas: tariff classification and origin. Tariff classification determines the specific customs code applicable to a product, which can be used to determine the duties and taxes applicable to imported goods. For instance, a trader importing honey can apply for an advance ruling by providing details about the product and indicating the HS code they believe applies.
The second area covered by advance ruling is the origin of goods, described as the economic nationality of a product. An advance ruling on origin enables an importer to obtain a decision from Customs on how the origin of a product will be treated before the goods arrive. This gives traders greater predictability when planning their import transactions and allows them to plan their transactions better, including estimating the taxes and duties they may be required to pay.
The advance ruling system is open to a broad range of traders, including importers, exporters, customs brokers, and anyone intending to bring goods into Ghana. To obtain an advance ruling, the trader must submit the appropriate application form together with information and documents relating to the goods, such as an invoice, bill, packing list, and photographs of the product.
After reviewing the information and applying the relevant customs rules, Customs issues the binding ruling. The trader can then use the ruling when the goods arrive and the declaration is submitted for clearance. This system can also reduce disputes between Customs and traders because key questions concerning the treatment of goods can be resolved before the goods arrive.
The GRA encourages traders to apply for advance rulings before shipping goods to Ghana to ensure certainty and compliance with customs regulations. By providing certainty about the treatment of goods, the advance ruling system aims to facilitate trade and improve revenue mobilisation.
Key points
- The GRA's advance ruling system provides certainty about the treatment of goods before they arrive in Ghana.
- The system covers tariff classification and origin of goods.
- The advance ruling system is open to importers, exporters, customs brokers, and anyone intending to bring goods into Ghana.
