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in Vaultz Business

Customs ever-increasing freight charges, unacceptable- GUTA

Maynard Championby Maynard Champion
July 7, 2021
Reading Time: 3 mins read
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President of the Ghana Union of Traders’ Association (GUTA), Dr. Joseph Obeng, has urged the Association of Ghana Industries (AGI) to take advantage of the high cost of imported goods in the market by ensuring Made-In-Ghana goods offers competitive prices.

President of the Ghana Union Traders Association (GUTA), Dr Joseph Obeng.

The Ghana Union of Traders Association (GUTA) has described as unacceptable the decision of Customs to implement freight charges in their duty inputs. According to GUTA, government must intervene and have a relook at their charges.

Contained in a statement, the Association expressed concern over the rise in port charges instituted at the port. It explained that, the upsurge in prices of global merchandises, impacting freight charges will trickle down to an increase in prices of goods in the market.

“It has come to the notice of the Ghana Union of Traders Association that Customs is going to adopt the ever-increasing freight charges into their duty calculations. This is unacceptable and we want government to note that world commodities prices have gone up astronomically. Freight charges have gone up and other factors have also contributed in making prices of goods go up to the extent that the consuming public are beginning to feel the impact and are no longer able to cope with prices”.

Following this, the Association further maintained that it finds unacceptable the new shipping freight charges by the Customs Division of the GRA. This is because, they reckon “otherwise it is going to worsen our plight.”

“There is this public discourse as to how prices of goods can be maintained. This intention by Customs will not help in this direction and it is our hope that government take a strong look at this.”

Stakeholders call for reduction of port charges

Earlier this month the Ghana Institute of Freight Forwarders (GIFF), bemoaned the high port charges comparison to other countries.

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The President of GIFF, Mr Edward Akrong cited administrative fees, exchange rate differentials, among others as charges which spirals into high cost of business transaction.

He further explained that these charges piles cost on business in a country that is heavily dependent on imports.

Additionally, he noted that the actions of shipping lines contradict the law. This, he explains, puts agencies such as the Ghana Shippers Authority in a hard place.

Other stakeholders in the past, including GUTA have cast their doubts on the increasing shipping charges, describing it as a state of emergency.

They further cited inappropriate fees and charges borne by importers, additional charges for use of online payments, coded invoices among others, as charges which are detrimental to the business community.

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In January this year, the Ghana Exports Promotion Authority (GEPA) hinted of some arrangements to be made to give relief to importers.

The Deputy CEO of GEPA, Samuel Dentu, explained that even though government has no grasp on the business dealings of these international shipping lines, negotiations are the best resort.

“We have had lots of meetings with organizations in the freighting business to ensure that the goods of traders don’t get stuck offshore. GEPA does not have the authority to slash down prices. Meanwhile, we are in talks with the freight companies to be a middle organization that brings both parties together to ensure an affordable price for traders”.

Read Also: 11-year-old boy earns university degree while preparing for masters

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