IMPORTERS AND EXPORTERS ASSOCIATION OF GHANA WELCOMES GOVERNMENT BAN ON LAND TRANSIT OF SELECTED GOODS
The Importers and Exporters Association of Ghana (IEAG) warmly welcomes the directive issued by the
Honourable Minister for Finance, Cassiel Ato Forson, to the Ghana Revenue Authority through its
Customs Division of the Ghana Revenue Authority, banning the land transit of selected goods through
Ghana’s borders and requiring that such commodities be routed exclusively through the country’s
seaports.
The affected goods include cooking oil, rice, sugar, frozen products, textiles, flour, canned tomatoes,
pasta/spaghetti, and pharmaceutical products.
As an association representing the interests of legitimate importers and exporters, we consider this directive a step
in the right direction and one that has been long overdue. For several years, our members and other stakeholders
within the trading community have raised serious concerns regarding the widespread abuse of the land transit
regime by certain individuals and organized cartels.
It is an open secret within the trade and logistics ecosystem that some operators exploit the transit system as a decoy
to avoid paying the appropriate import duties. Goods declared as “transit cargo” intended for neighbouring
countries are often diverted into the Ghanaian market without the payment of the required duties and taxes. This
practice not only deprives the state of significant revenue but also creates unfair competition for compliant
businesses that go through the legitimate importation process via the seaports.
Additionally, the abuse of the transit regime has been associated with the systematic undervaluation of goods. By
misdeclaring the value, quantity, or classification of products entering the country through land borders, some
operators drastically reduce their tax obligations, thereby cheating the state and distorting market prices. This
undermines the integrity of Ghana’s customs valuation system and erodes confidence in the country’s trade
governance structures.
Routing these selected commodities through Ghana’s seaports will significantly enhance transparency and
accountability in the customs clearance process. The ports are equipped with more robust verification systems,
including advanced cargo scanning technologies, standardized valuation mechanisms, and stronger inter-agency
supervision. These measures help ensure accurate cargo declarations, proper valuation, and the full payment of
statutory duties.
The Association also welcomes the directive to recentralize the Customs Technical Services Bureau (CTSB).
Establishing a centralized one-stop valuation and intelligence hub will help improve data coordination, reduce
inconsistencies in cargo valuation, and strengthen the ability of customs authorities to detect irregularities. The
integration of intelligence tools such as the Publican AI system further strengthens the monitoring framework and
enhances the ability of authorities to track suspicious trade patterns.
While we strongly support the government’s directive, our major concern as an association is the sustainability
and consistent enforcement of such measures. History has shown that previous bans and regulatory restrictions
have sometimes failed to achieve their intended objectives due to weak enforcement and systemic lapses at the
borders. In some cases, the situation has worsened after initial enforcement phases were relaxed.
For this reason, the Importers and Exporters Association of Ghana urges government to complement
this policy with stronger border security and monitoring mechanisms. It is critical that authorities
intensify surveillance along Ghana’s land borders to prevent the smuggling of the affected goods
through unapproved routes.
Furthermore, given the growing public concern regarding the effectiveness of border enforcement, we
respectfully suggest that government consider deploying military personnel to support and supervise
border operations. Such a move would strengthen public confidence in the enforcement process and
serve as a deterrent to organized smuggling networks operating along Ghana’s borders.
We also recommend enhanced collaboration between customs authorities, national security agencies,
port operators, and the private sector to ensure strict compliance with the new directive. Continuous
monitoring, data-driven enforcement, and periodic policy reviews will be necessary to ensure that the
intended revenue protection objectives are achieved.
The Importers and Exporters Association of Ghana reiterates its commitment to supporting
government initiatives aimed at strengthening trade governance, protecting national revenue, and
promoting a fair and transparent trading environment.
We believe that when effectively implemented and sustained, this directive will help reduce revenue
leakages, restore integrity to the importation process, and create a level playing field for all legitimate
businesses operating in Ghana.
Signed
………………….
,
Executive Secretary
Tel:+233243575046