The Minority in Parliament has urged the Ghana Standards Authority to permanently scrap its proposed Pre-shipment Verification of Conformity requirement for imported vehicles. This policy would include a $300 verification charge, which the Minority argues would increase costs for importers and consumers. According to Michael Okyere Baafi, Ranking Member of Parliament's Trade and Industry Committee, the policy would place an additional burden on importers already facing rising costs and other challenges at the ports.
Ghana imports slightly more than 100,000 vehicles annually, with between 70% and 80% being used and overage vehicles. The proposed requirement would necessitate importers engaging an agent to verify their vehicles before shipment to Ghana and paying $300 before a certificate could be issued. This additional cost would eventually be passed on to consumers through higher vehicle prices. The Minority believes that existing mechanisms are available to determine whether vehicles entering the country are stolen, questioning the need for another verification process that would increase costs.
The Minority's call for the policy's withdrawal is based on concerns that a suspension could leave room for the requirement to be reintroduced later. Mr. Baafi emphasized that the economy is not in a good state, with people facing a lot of issues. He also noted that Ghana's vehicle assembly industry remains limited, meaning many middle-class Ghanaians continue to rely on imported vehicles. As a result, the proposed charge would come on top of import duties and other costs associated with bringing vehicles into the country.
Importers are already struggling with the cost of doing business, and the Minority questions how they would absorb another mandatory payment. Mr. Baafi cited complaints from traders, vehicle importers, and freight forwarders about taxes and levies, congestion, and the broader cost of doing business at the ports. The Minority believes that the Ghana Standards Authority should withdraw this policy immediately, rather than just suspending it.
The issue has also been linked to the New Patriotic Party's plans, with former Vice-President Dr. Mahamudu Bawumia indicating that the policy would be scrapped if the NPP returned to power. Mr. Baafi claimed that he and Dr. Bawumia recently met with representatives of the Ghana Union of Traders Association, during which Dr. Bawumia pledged to abolish the policy if elected President in 2028.
The Minority's stance on the issue is that the suspension of the policy is not enough, and they will continue to push for its permanent withdrawal. Mr. Baafi emphasized that the policy is not necessary at this time, given the current state of the economy. The Minority's concerns are shared by various stakeholders, including traders and importers, who are already facing hardships at the ports.
The Ghana Standards Authority's proposed Pre-shipment Verification of Conformity requirement for imported vehicles has sparked significant debate, with the Minority in Parliament calling for its permanent withdrawal. The policy's implementation would affect importers, consumers, and the broader economy. Key points include:
Key points
- The proposed $300 PVoC charge would increase costs for importers and consumers.
- Existing mechanisms can determine whether vehicles entering the country are stolen, making the new verification process unnecessary.
- The policy's withdrawal is crucial to prevent additional burdens on importers and consumers.
