By Jibril Abdul Mumuni
Accra, Dec. 26, GNA – The Bank of Ghana has exempted informal cross-border traders from the requirement to obtain a Letter of Commitment (LOC).
In a public notice, the Bank outlined guidelines on the use of the LOC for exports, stating that traders engaged in informal cross-border transactions are not required to secure the document.
The guidelines indicated that the LOC, generated through the Integrated Customs Management System (ICUMS), is mandatory only for formal exporters who receive foreign exchange proceeds, are resident in Ghana, are licensed by relevant government agencies, and hold a valid Tax Identification Number.
It explained that traders conducting business with buyers from neighbouring countries such as Côte d’Ivoire, Togo, and Burkina Faso, without registration on ICUMS or the use of formal invoices, are not required to present the LOC.
The Bank stated that the LOC should not be included in documentation for such informal transactions.
The notice also advised freight forwarders and customs house agents, cautioning them against using their own credentials to generate LOCs on behalf of traders who do not qualify for the document. It said this practice must be eliminated.
Estimates from the Ministry of Trade and international bodies, including the International Trade Centre, suggest Ghana earns several billion dollars annually from informal cross-border commerce.
A recent assessment indicated that the value of informal trade with neighbouring countries could exceed three billion dollars each year, providing livelihoods for millions and ensuring the flow of essential goods across the region.
GNA
Edited by Kenneth Sackey