Ghana's Parliamentary Minority has called for the immediate withdrawal of a proposed $300 vehicle verification fee by the Ghana Standards Authority (GSA). The Minority argues that the fee, part of the GSA's Pre-shipment Verification of Conformity (PVoC) requirement, would disproportionately affect the country's economy and citizens. With over 100,000 vehicles imported annually, mostly used and overage vehicles, the Minority claims the fee would lead to higher vehicle prices.
The proposed fee involves importers engaging an agent to verify their vehicle before shipment and paying $300 for a conformity certificate. According to Michael Okyere Baafi, Ranking Member of Parliament's Trade and Industry Committee, this cost would add to existing import duties and port-related expenses, ultimately burdening consumers. Baafi questions the necessity of the charge, citing existing mechanisms to check for stolen vehicles.
The GSA had earlier suspended the policy's implementation, but the Minority insists that a suspension is insufficient and leaves room for the requirement to return later. Baafi argues that the GSA should withdraw the policy entirely, rather than pausing it. This move follows the GSA's enforcement of new used-car import standards effective October 1, which included restrictions on pre-2010 models and salvage vehicles.
The Minority's stance is linked to the New Patriotic Party's plans, with former Vice-President Mahamudu Bawumia indicating that the policy would be abolished if the NPP returns to power in the 2028 elections. Baafi stated that traders, importers, and freight forwarders already face hardships due to taxes, levies, and port congestion, and that adding the PVoC charge would exacerbate these issues.
Ghana's limited vehicle assembly capacity means many middle-class Ghanaians rely on imports, leaving them vulnerable to cost increases. The Minority intends to continue pressing for the policy's full withdrawal. PVoC inspection programs verify goods' compliance with a country's standards before shipment, and the Ghana Standards Authority is responsible for setting and enforcing technical standards on imported goods.
The GSA has not publicly responded to the Minority's renewed call for withdrawal, and no date has been set for a decision on the policy's future. The issue remains a point of contention, with the Minority pushing for the policy's complete scrapping. The proposed charge has sparked debate about its potential impact on Ghana's economy and citizens.
The situation highlights the challenges faced by Ghana's automotive sector and the need for effective policies that balance regulatory requirements with economic realities. The Minority's call for the policy's withdrawal reflects concerns about the potential consequences for Ghanaian consumers and the broader economy.
Key points
- The Minority party in Ghana's parliament demands the withdrawal of the $300 vehicle verification fee.
- The proposed fee is part of the Ghana Standards Authority's Pre-shipment Verification of Conformity requirement.
- The policy's impact is expected to be significant, given that 70-80% of Ghana's 100,000 annual vehicle imports are used and overage vehicles.
