The Management of the Ghana Revenue Authority (GRA) has denied claims by the Ghana–Cote d’Ivoire Rice Importers Association that Ghana’s Customs Excise and Preventive Service has raised by 100 percent the import duty on rice imported from Cote d’Ivoire, leading to a rise in the price of rice on the Ghanaian market.
“The GRA categorically asserts that no increase in duty rates has occurred since the introduction of 20 percent import duties on selected imports including rice in January 2010. What has rather occurred in recent times is the review of the value which rice importers present at the Western frontiers,” a statement issued by the GRA on Thursday November 11, 2010 and signed by Annie Anipa, team leader of the Public Affairs & Communication Team at the GRA said.
The statement said following the introduction of a new Valuation Assurance Module, “Customs… discovered that importers of rice from Cote d’Ivoire who mostly buy from a particular company in Cote d’Ivoire declare US$130.00 as the value per metric tonne. Incidentally, the same company which also happens to operate in Ghana, quotes US$300.00 per metric tonne when it imports rice through Tema port. This even falls short of the national average unit value of U$523 declared for rice imports per metric tonne this year.
“Hence all that Customs has done is to apply prevailing world market price to rice imports from Cote d’Ivoire, that is, US$0.97 per kilo for high quality brands, and US$0.42 per kilo on broken rice. These new measures only align values for rice imported through the overland frontiers with values applied to price at the sea ports. This does not only establish equity but also levels the playing field for importers of rice irrespective of the point of entry”, the statement said.
Below is the full statement
GHANA REVENUE AUTHORITY
PRESS RELEASE
RICE IMPORTS AT THE WESTERN FRONTIER
The Management of the Ghana Revenue Authority (GRA) has noted in the media, a recent statement by the Ghana–Cote d’Ivoire Rice Importers Association that claims among several issues that Customs had raised by 100 percent the import duty on rice imported from Cote d’Ivoire. This situation they claim has affected the duty they now pay and subsequently the price of rice on the market.
The GRA categorically asserts that no increase in duty rates has occurred since the introduction of 20 percent import duties on selected imports including rice in January 2010. What has rather occurred in recent times is the review of the value which rice importers present at the Western frontiers.
Customs following the introduction of a new Valuation Assurance Module has discovered that importers of rice from Cote d’Ivoire who mostly buy from a particular Company in Cote d’Ivoire declare US$130.00 as the value per metric tonne. Incidentally, the same company which also happens to operate in Ghana, quotes US$300.00 per metric tonne when it imports rice through Tema port. This even falls short of the national average unit value of U$523 declared for rice imports per metric tonne this year.
Hence all that Customs has done is to apply prevailing world market price to rice imports from Cote d’Ivoire, that is, US$0.97 per kilo for high quality brands, and US$0.42 per kilo on broken rice. These new measures only align values for rice imported through the overland frontiers with values applied to price at the sea ports. This does not only establish equity but also levels the playing field for importers of rice irrespective of the point of entry.
It is apparent therefore that there is no substance whatsoever to the claim that the new values introduced at the overland entry points are meant to strengthen the commercial interest of the large scale rice importers. Regarding the claim that large scale importers are allowed to take rice stored in bonded warehouses for sale before coming back to pay the required customs duty, we wish to assure importers and the general public that our laws and procedures do not permit this and anybody who attempts to condone this will be severely punished.
It is worth emphasizing that declaration of false values for imports (including rice) at any point of entry, be it sea port, airport or overland, is a customs offence that cannot be condoned.
Whilst the GRA is committed to impartial and transparent application of tax laws and therefore cannot compromise on the application of correct values, it will continue to keep its doors open to all its stakeholders and actively engage with them to address any issues that impinge negatively on tax compliance. In this regard we wish to assure the Rice Importers Association of the readiness of GRA to dialogue with them to address issues affecting their trade particularly at the various points of importation in a concerted effort aimed at facilitating international trade and national revenue mobilization.
Source: ANNIE ANIPA, TEAM LEADER, PUBLIC AFFAIRS & COMMUNICATION TEAM