Shipping review

GHANA’S AUTHORITATIVE QUARTERLY MARITIME JOURNAL

Vol. 14 No. 4

October - December, 2012

The Impact of Port Capacity and Infrastructure Limitations on the Competitiveness of the Shipper

Also in this issue An Assessment of the Impact of the Destination Inspection Scheme on Import Clearance Processing - A Decade of Implementation in Ghana The Changing Role of the Custom House Agent in the Cargo Clearance Process Trade Facilitation and Revenue Mobilisation at the Port of Ghana- Striking A Balance

Maritime Trade Review ISSN 0855-5148

Volume 14 Number 4, October - December, 2012 In this Issue

The Impact of Port Capacity and Infrastructure Limitations on the Competitiveness of the Shipper

Efficient seaports thrive on adequate provision of infrastructure, an efficient management and sound institutional and legal arrangements.

An Assessment of the Impact of the Destination Inspection Scheme on Import Clearance Processing - A Decade of Implementation in Ghana

The Destination Inspection Scheme involves, among others, the verification of all invoices presented by importers and selective inspection of import consignments at the ports of clearance.

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Also in this Issue 21

Ghana Shippers' Authority Receives International 14 Quality Crown Award

GSA Holds 8th Maritime Law Seminar for Judges

The Comite Maritime Internationale (CMI) Holds its 40th Conference in Bejing, China

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Trade Facilitation and Revenue Mobilisation at 22 the Port of Ghana- Striking A Balance

The Changing Role of the Custom House Agent in the Cargo Clearance Process

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Maritime Trade Review

To ensure for the Ghanaian Shipper, quick, safe and reliable delivery of import and export cargoes by all modes of transport at optimum cost.

To be a state - of - the art organisation that effectively manages the demand side of shipping with a view to protecting and promoting the interest of Ghanaian shippers in relation to port, ship, inland transportation problems and provision of ancillary shipping

Designed by: Logical Designs www.logicandy.com

Ghana Shippers’ Authority

Dr. Kofi Mbiah

Tel. 233-302-666915/7

Fred Asiedu - Dartey

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Advertising Executives Joseph Atta Frimpong Emma Anoff (Ms)

Printed by: Unik Image

The Impact of Port Capacity and Infrastructure Limitations on the Competitiveness of the Shipper Paper presented at the 6th National Shippers Day, 3 -4 September, 2012, at the La Palm Royal Beach Hotel

By Samuel Ntow-Kummi, Corporate Planning Manager Ghana Ports & Harbours Authority

INTRODUCTION ort capacity is not a constant value. It will vary with the changing port operating conditions, and tends to fluctuate in relation to the type, volume and timing of the demand for services. Gustaf De Monie (1980)

a country. The modern seaport is multifunctional, commercial, industrial and logistics cluster where goods are not only in transit, but also undergo some value adding processes like break bulking, packaging, sorting, manufacturing and distribution. Besides, seaports are priced locations for industries. Seaports thus form integral and critical components of A seaport may be defined as “an area of a country's production, distribution and land and water made up of such trading system. improvement and works and equipment as to permit, principally, the reception of In other words, seaports are part of a ships, their loading and unloading, the country's supply chain and their storage of goods, the receipt and efficiency is a measure of the country’s delivery of these goods by inland logistics connectivity index. That is why transport and it can also include the seaports have been described variously activities of businesses linked to sea as the “gateways” of a country's transport”. international trade and the “lungs” of a country's economy”.

By definition, a seaport must be located at the coast or must have a direct access Seaports play strategic roles in the socioto the sea. All maritime transport economic development of all nations. originate and terminate in a seaport. Even landlocked countries depend on This means all cargo transported by sea seaports for their development. must at least use a seaport twice - at the Maritime transport, of which seaports departure point or origin (port of are integral components, account for 90 loading); and the arrival point or per cent by volume and 80 per cent by destination (port of discharge). Efficient value of international merchandise maritime transport thus depends on trade. This makes international trade, a efficient seaports. major driver of socio-economic development and civilization, very At the basic level, seaports function as dependent on seaports. nodal interfaces between maritime transport and land (surface) modes of Efficient seaports thrive on adequate transport (viz. railways, roads, inland provision of infrastructure, an efficient waterways, and pipelines). The primary management and sound institutional function of a seaport is to provide fast, and legal arrangements. Where these safe and cost effective transit of goods requirements are lacking, the efficiency and passengers between the transport of a port may be compromised with modes. adverse consequences for a country's industrial and foreign trade The modern seaport is, however more performance. This paper assesses the than a node in the transport network of

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Volume 14 Number 4, October - December, 2012

impact of infrastructure and capacity limitations on port efficiency and how this in turn adversely impacts trade competitiveness. The paper also highlights efforts made by the ports of Ghana to address the capacity challenges and makes recommendations for improving port efficiency in Ghana.

PORT INFRASTRUCTURE AND CAPACITY A seaport is made up of a complex cluster of works, structures and equipment. These are the basic physical assets or infrastructure employed in the operation and functioning of the port. It is important to note that some of these infrastructure fall outside the port domain, but are essential for the efficient functioning of the port (e.g. land access links).

In general, port authorities have responsibility over the maritime access infrastructure (e.g. channels, breakwaters, navigational aids, buoys, etc.) and all elements within the harbor and approach of the port. Land access infrastructure are however generally owned and controlled by other agencies of the State or local government authorities. The World Bank groups port assets into four main categories:

A. Basic Port Infrastructure: §Maritime access channels §Port entrance §Breakwaters and other coastal protective works §Sea locks §Hinterland access and connection (roads, tunnels, bridges, rails, inland waterways)

The Impact of Port Capacity and Infrastructure

B. Port Operational Infrastructure: § Inner port channels and turning and port basins § Roads, tunnels, bridges, and locks in the port area § Quay walls, jetties, and finger piers § Aids to navigation, buoys, and beacons § Hydro and meteorological systems § Vessel traffic management system § Patrol and fire-fighting vessels § Loading Docks. § Access roads to general road infrastructure § Link to national rail infrastructure, and marshalling yards determinant of port capacity. Port § Dry docks for ship repair capacity is one of the critical factors that impact port efficiency. Port efficiency C. Port Superstructure: § Paving and surfacing impacts the competitiveness of the § Terminal lighting trade using the facilities. Port § Parking areas i nf ra st r u c t u re i s t h u s a m a j o r § Sheds, warehouses, and stacking determinant of port capacity, port areas efficiency, and port performance and § Tank farms and silos competitiveness. That is why § Offices and workshops infrastructural and capacity § Other buildings required for improvements are jointly the primary terminal operations goal of port planning.

D. § § § § §

Port Equipment: Tug boats Line handling vessels Dredging and salvage equipment Ship and shore handling equipment Cargo handling equipment (on apron and at terminal)

The availability, condition and the manner of deployment of the full range port infrastructure determine the capacity of a seaport. Port capacity is also influenced by institutional a r ra n g e m e n t s a n d o p e ra t i o n a l procedures and practices. Port capacity is defined as the maximum volume of cargo and passengers that a seaport can handle in a given period, usually one year, at a given level of service quality. It is important to note that port capacity is not a constant or deterministic in value.

It will vary with the changing port operating conditions and tends to fluctuate in relation to the type, volume and timing of the demand for services.

Port capacity is thus influenced not only by both the supply side but also the demand side.

Po r t i nf ra st r u c t u re i s a m a j o r

and alongside berths b. Dimensions and alignment of the channel, harbour entrance, locks, and berths c. Quay length and configuration of berths d. Tidal and weather conditions e.g. winds, visibility, currents, sea condition, etc. e. Operational parameters, such as port working hours, vessel characteristics (length, beam, draught), vessel arrival pattern, pilotage, towage A seaport is a complex system of and other rules regarding vessel integrated production units. The movement at the approach of the port. elements of the port production system The capacity of the Terminal Operating determine the overall capacity of the System is influenced by the following port. The port production system factors: comprises the following elements: a. Ship-to-shore cargo handling technology and efficiency a. Maritime Access and Berthing b.

Number and capacity of shore System: Capacity of access channel, equipment deployed to turning basins, and berths. b. Terminal Operating System: support each working crane Capacity of ship-shore transfer c. Average volume of cargo operations, receipt, storage and loaded or discharged per vessel delivery. call c. Gate System: Capacity of entry and d. Labour/crane productivity exit lanes. e. Working hours, work rules and d. Land Access System: Capacity of rail, operating practices at the truck, inland water way, and terminal pipeline links. f. Distance between the quay and Fig. 1 Elements of the Port Production System the storage facility g.

Yard handling and storage Cargo Cargo Flow Flow methods Sea Land Vehicles Vehicles h. Net storage area/ground slots available and average stacking The capacity of the maritime access and height berth system is dependent on various i. Customs clearance and cargo factors, including the following: delivery procedures and practices a. Water depth and other nautical Maritime Access and Berth System

Terminal System

Gate System

Land Access System

conditions in the channel, basin Volume 14 Number 4, October - December, 2012

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The Impact of Port Capacity and Infrastructure

j. Dwell time of cargoes; k. Number and capacity of equipment assigned; l. Information and Communication technology system; m. Distance from storage facility to rail/truck interchange grid.

The capacity of the Gate System is dependent on: a. Number of entry/exit lanes b. Efficiency of entry/exit control procedures c. Working hours d. Arrival and departure patterns of inland vehicles e. Application of information and communication technology.

The capacity of the land access link is determined by various factors, including the following: a. Level of congestion at the approach to the port and enroute to the hinterland; b. Facilitation procedures at border control points; c. Barriers and road blocks d. Train and truck arrivals / departure patterns; e. Rail car and road vehicle types/ capacity; f. Parking spaces at interchange grids; It is important to reckon port capacity as the aggregate of the capacity and output of the individual elements (sub-systems) of the port production system. Port capacity is ultimately a function of the aggregate output of each of the elements of the port production system.

These production elements may be dispersed geographically over different zones of the port.

legal and institutional arrangements poor labour and ship productivity, short within which the port system operates. working hours, restrictive labour practices, poor attitude and PORT INFRASTRUCTURE, CAPACITY incompetence of workers, poor pricing AND SHIPPER COMPETITIVENESS and market structure of port services, Infrastructure and capacity limitations high dwell time of cargo, poor are common features of seaports. performance of cargo handling Globally, there is a widening shortfall in equipment, sluggish cargo clearance port capacity in the face of growth in procedures and practices. port traffic. In sub-Sahara Africa, most of the seaports suffer from severe Weak Regulatory and Institutional infrastructure and capacity constraints. Arrangements political interference in There tend to be a correlation between port management, market structure and the level a country's general economic competition, influence of customs and and social infrastructure provision such destination inspection agencies, activity as roads, railways, airports, schools, of narcotic control and security telecommunication, etc. on one hand agencies, proficiency of freight and its port infrastructure on the other forwarders and other logistics service hand. providers, activity of other regulatory agencies, e.g. plant quarantine, Port infrastructure and capacity S t a n d a r d s B o a r d , Ve t e r i n a r y, constraints are the consequence of the Immigration, Port Health, etc. following: Infrastructure and capacity limitations I n a d e q u a t e P r o v i s i o n o f P o r t impact adversely on port performance Infrastructure - This refers to a shortfall and productivity. Infrastructure and in supply of port infrastructure relative capacity limitations result in poor to demand. This could result from outturn of vessel and cargo operations; defects in planning of port facilities, and these limit the integration of the inadequate funding of facilities, poor port into the global supply chain. In utilization of available facilities, and particular, it results in: poor maintenance of available facilities. i. Small and sub-standard vessels calling at the port; Poor Design and Configuration of ii. Long pre-berthing waiting time Facilities - Shallow depths of water in the and sluggish turn round of channels, entrance, basin and alongside vessels; berths, long distances between quay iii. Low cargo velocity through the and storage facilities, narrow quay ports; aprons, low lifting capacity and traction iv. Poor ship and labour productivity speed of handling equipment. v. High dwell time of cargo; vi. Congestion of port facilities Poor Operational Practices and vii. High risk of cargo damage and Performance- Bunching of vessel arrival, theft.

The performance of each sub-system depends not only on its own performance but also on the performance of other components. The performance of each sub-system is also dependent on the available infrastructure, the productive resources deployed and efficiency of the processes, procedures and operating practices within each segment of the system. Another important factor is the 4

Volume 14 Number 4, October - December, 2012

The Impact of Port Capacity and Infrastructure

infrastructure and capacity limitations are not the only factors that can adversely impact the competitiveness of shippers. The general poor condition of transport infrastructure, tariffs, transaction costs, etc. all impact shipper competitiveness in the global market place.

Lim達o and Venables (2001) estimate that poor transport infrastructure accounts for 40 percent of predicted transport costs for coastal countries and up to 60 percent for landlocked countries.

All these conditions directly and indirectly increase port users' (shippers and ship owners) costs and reduce their profit margins. Ship owners are unable to deploy bigger, modern and efficient vessels to the port. Vessels calling at the port are unable to carry full loads. They also experience long pre-berthing waiting times.

Shippers face increased uncertainty and reduced flexibility in shipment and delivery of freight to markets.

Ultimately, these conditions contribute to low logistics connectivity of a country.

The attractiveness of the country as a d e s t i n a t i o n fo r fo r e i g n d i r e c t investment, and its ability to expand foreign trade and grow the economy are also severely diminished.

With increased competition in the global market place, shippers are under constant pressure to find new sources of competitive advantage. Shippers are therefore adopting some of the concepts in logistics and supply chain management. The logistics and supply chain management approach allow shippers to optimise end to end flow of goods in the supply chain. The logistics approach consists of determining when, where and how much of inventory should be positioned in the supply chain.

Two of the common techniques are justin-time system of delivery and efficient customer response. Just-in-time requires well-managed inventory and controlled transport and information systems geared towards the elimination

of excess stocks in the production and distribution systems. Speed (transit time),flexibility, and reliability of delivery of consignments have assumed significant importance in the shipment of consignments in this regard.

A comparison of African countries with other developing countries in Latin America and Asia shows that shippers in Africa face high costs for sea and land transport. The average maritime freight rate of Africa is estimated to be 47 per cent higher than those in other developing countries; and twice the rate in developed countries, estimated at 5.21 per cent. Those worst hit by excessive transport costs in Africa are the continent's landlocked countries.

For both primary commodities and manufactured goods, the quality of port services has critical effects on the successful adoption of the logistics and supply chain management approach.

Delays and uncertainties in delivery times result in a discount on the market T r a d e p e r f o r m a n c e a n d price for exports. competitiveness are affected by both international transport costs (costs of They also disable just-in-time deliveries moving goods between countries) and which are important for international internal transport costs (costs of moving sourcing. Delays and uncertainties in goods within a country), and by the way import delivery cause firms to maintain in which these costs affect imports as large stocks, thereby tying-up working well as exports. High transport costs for moving goods from points of production capital. to final destinations can price a country out of export markets.

Gaush and Kogan (2001) estimate that shippers in developing countries can reduce the unit cost of production by as much as 20 per cent by reducing inventory holding by half. Again, Nathan and Associates indicates that every day of delay of a consignment in the supply chain increases shippers' costs by 0.84 per cent of the value of the consignment.

In short, shippers that are constrained by the capacity of their ports to meet the requirements for speed, flexibility and reliability in freight shipment are not only losing money but also the competition.

It is important to note that port

IMPROVING PORT INFRASTRUCTURE AND CAPACITY IN GHANA The Ghana Ports and Harbours Authority, with the support of the Government of Ghana, has over the years implemented programmes aimed at addressing infrastructure and capacity constraints in the ports of Ghana. The goal of these initiatives is to improve port efficiency and reduce the cost of doing business in the ports. Key among these initiatives are the Ghana Ports Rehabilitation Project 1986 1992; and the Ghana Port Reform Project 1998 2008.

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The Impact of Port Capacity and Infrastructure

The Ghana Port Rehabilitation Project 1986 1992 - Ghana suffered severe economic down turn in the 1970s and 80s partly as a result of the global oil crisis of the 1970s, unfavourable commodity prices, political instability and bad economic policies. This situation led among other things, to the severe deterioration of the country's port facilities and decline in service quality. In 1986, the Government of Ghana, with assistance from the World Bank, initiated the Ghana Ports Rehabilitation Project as part of a national economic recovery programme. The goal of this Project was to restore the physical capacity of the ports and to strengthen the port management system.

The infrastructural facilities projects undertaken included the following: § Repair and maintenance of electric power stations and lighting systems in the ports. § Rehabilitation of broken down cargo handling equipment. § Procurement of additional cargo handling equipment, including container handlers. § Procurement of office equipment and IT systems. § Maintenance and repair of internal roads. § Redesign and expansion of the capacity of the main access road to the Port. § Development of a multipurpose terminal, with the following features: § A total quay length of 550 m housing 3 berths [Berths 10, 11 and12) – Alongside draught of 8 metres – Two u n i t s o f 4 0 to n n e multipurpose jib cranes – 15 hectares of container stacking yard – 4,500 m² transit shed – 1.3 ha on dock Container Freight Station (CFS) – 5,000 m² pre-storage/marshalling area – 280 reefer plugging points – Dry bulk handling facilities The Port Rehabilitation Project was largely successful. It succeeded in strengthening the port management by transforming it from a quasi-landlord port management system into a service port. The Project also revamped the rundown infrastructure and adapted the existing facilities to partly meet the 6

needs of containerisation.

Port. § Development of an Electronic Data The Ghana Port Reform Project 2000 Interchange (EDI) platform for the 2008 - In 1995, Ghana adopted a ports. national development blueprint called The Ghana Vision 2020 Programme. The The Ghana Port Reform Project made goal of The Ghana Vision 2020 g r e a t i m p r o v e m e n t s t o p o r t Programme was to accelerate national infrastructure and expanded the role of socio-economic development and the private sector in the management reduce the incidence of poverty. In and operation of the Ports. The Port of particular, it aimed at transforming Tema now boasts of modern dedicated Ghana into a middle income country (specialised) facilities for handling with a GDP per capital income of containers, fresh fruits, and unpacked US$1,000.00 by year 2020. The target vehicles. date for the programme was revised to It also facilitated the development of 2015 in 2001. facilities for value added activities One of the key projects implemented located at the landside of the port u n d e r T h e G h a n a V i s i o n 2 0 2 0 outside the port security perimeter Programme was The Ghana Trade and fence. Currently, there are seven distriInvestment Gateway (GHATIG) Project. parks/ICDs. These provide a range of The goals of the GHATIG Project was to value added logistics services and serve promote the growth of the country's as additional back up space for the Port. foreign trade by attracting a critical mass The features of the container terminal of export oriented investments into are as follows: G h a n a ; a n d t o e n h a n c e t h e — Quay length574m. attractiveness of Ghana as a destination — Depth of Approach Channel 12.5m for foreign direct investment. A major component of the GHATIG Project was — Depth alongside 11.5m.

The Ghana Port Reforms Project. The — Container terminal area 27.2 ha objective of the Ghana Port Reform — Terminal capacity [TEUs/Year] 550,000 Project was to accelerate development — Panamax ship-to-shore gantry and improve the efficiency of the ports cranes 3 of Ghana through a public private — Rubber Tyred Yard Gantry Cranes 4 partnership framework. The project also — Reach Stackers - 20 sought to reduce the cost of doing — Mobile Harbour Cranes - 2 business in the ports and thereby transform the ports into trade A component of the Ghana Port Reform facilitators.

Project was institutional reforms which The Ghana Port Reform Project had two main components viz. institutional reforms and infrastructural development. The infrastructural development component comprised: § Dredging the access channel and turning basin of the Port of Tema to 12 metres to enable the port receive bigger vessels. § Extension and dredging of alongside of Quay 2 of Tema Port and to develop a modern dedicated container terminal. § Developing off dock container devanning and delivery terminals (Inland Clearance Depots) in the Port of Tema. § Expanding the capacity of the access road linking the western end of the Port. § Limited capital dredging of Takoradi

Volume 14 Number 4, October - December, 2012

was aimed at expanding the role of the private sector in the management and operation of the ports. This has witnessed the licensing of 10 private stevedores and the granting of various concessions to the private sector for the management and operation of the container terminal, fruit terminal, unpacked vehicle terminal and conventional cargo terminals.

Notwithstanding the improvements in port infrastructure in recent times, the ports of Ghana still face severe infrastructure and capacity constraints.

There is inadequate berthing space in both Tema and Takoradi ports. Tema has 14 berths. Two of the berths (1 and 2) are 11.5 metres deep. Berth 3 is 10 metres deep while Berths 4 and 5 are nine metres.

The Impact of Port Capacity and Infrastructure

The seven berths on Quay 1 are all eight metres deep. The limited berthing capacity, coupled with the accelerated growth in container traffic, has brought a lot of pressure on the deep berths, resulting in long queues and waiting time of vessels. These challenges are coming to the fore in the face of steady growth in port traffic and a general increase in vessel size.

In Takoradi, there are six alongside berths; three of which are dedicated to manganese, bauxite and oil respectively.

This leaves only three berths for general use. The deepest berth is 10 metres.

There are two midstream berths (buoys) in use with depths of 10.3 metres and 11 metres respectively. All the dry bulk vessels calling at Takoradi are compelled to “lightenup”or “topup”at mid-stream.

This increases costs of handling and prolong the stay of vessels in port.

The nascent oil and gas industry has brought pressure on the available berthing and back up capacity of Takoradi. Supply and support vessels servicing off-shore oil and gas exploration and production platforms are currently competing with deep-sea vessels for berthing space. This has increased waiting time of vessels. Some of the supply and support vessels are currently using facilities at the Sekondi Naval Base.

The current operating practices and institutional arrangements in Ghana adversely impact port capacity and efficiency. There are long delays associated with cargo clearance as well as high dwell time of cargoes in the port.

The average dwell time of containers in Tema is 16 days, compared to less than five days in the ports of developed countries. These factors have resulted in severe congestion of the available container storage and delivery facilities at the ports.

The Ghana Ports and Harbours Authority, with the support of the Government, has initiated projects to modernise and expand facilities in the two ports. Studies for feasibility and detailed designs for the first phase of the Takoradi Development Project is underway.

This project is part of a programme to develop and position the Port of Takoradi as an international hub for oil and gas services. Studies are also underway to update Master Plan of Te m a . A n o t h e r s t u d y o n t h e development of a National Port Plan is nearing completion. An important aspect of this study is to identify a suitable location for the development of a third deep-sea port.

waterways should be sustained to address capacity constraints.

The opening of large numbers of containers in the port for customs examination and clearance should stop.

This practice of (opening large numbers containers in the port for customs examination) is outmoded in the age of containerization which promotes doorto-door movement of freight. As part of efforts to improve cargo clearance, CONCLUSION customs should develop a strategic plan Seaports form critical components of a for premises inspection (door-to-door country's economic infrastructure. movement).

Seaports have evolved from nodes in the international transport chain into The plan should identify all the dynamic trade and logistics platforms. infrastructure and strategies required to Efficient seaports promote trade and adopt premises inspection of containers stimulate socio-economic development as a preferred and secured way of of nations. There is a positive correlation container clearance. Importers and between port infrastructure, port exporters and their agents are called capacity and port efficiency. Adequate upon to support this initiative by honest provision of infrastructure is the and transparent documentation of foundation for adequate capacity which consignments and declaration of values. is a major factor for efficient port Customs should also improve the performance. process and frequency of auctioning of Inadequate provision of infrastructure overstayed goods. Such goods clog the constraints port capacity and spawn port and contribute to congestion and inefficient port performance. Inefficient their rapid removal and auctioning will ports cause delays in freight movement, help free up space in the port and reduce delivery flexibility and reliability; facilitate efficient port operation. and increase port users' costs. High port costs inflate the prices of import and As part of efforts to improve cargo exports and erode a country's trade clearance in Ghana's ports there should competitiveness in international be a study to audit the efficiency of cargo clearance procedures. All the stages of markets. the delivery process and delays and causes should be identified and RECOMMENDATIONS Efforts should be sustained in the quantified. The findings of this study p r o v i s i o n o f a d e q u a t e p o r t should form the basis for performance infrastructure. Port facilities should be improvement and monitoring. upgraded and modernised to cater for ongoing technological changes in The quality of human resources in the maritime and logistics sectors. The logistics sector should be improved. policy to expand the role of the private There should be vocational training and sector in the management and regular refresher courses to upgrade operation of the ports should be skills and knowledge of operatives and reviewed to encourage the private managers in the sector. Part of this effort operators to invest in critical port should aim at improving the working condition of truck drivers and driver infrastructure and superstructure. assistants. Policy should be designed to Currently, most of the private operators transform the road freight transport invest in only cargo handling equipment. sector from the informal into the formal Efforts to improve port infrastructure sector of the national economy to make should go hand-in-hand with improving it more productive and easy to regulate. inland transport infrastructure.

Investment in roads, railways and inland Volume 14 Number 4, October - December, 2012

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AN ASSESSMENT OF THE IMPACT OF THE DESTINATION INSPECTION SCHEME ON IMPORT CLEARANCE PROCESSING

- A decade of implementation in Ghana th

Paper presented at the 6 National Shippers Day, 3 -4 September, 2012, at the La Palm Royal Beach Hotel

By K. Ntim Donkoh, Deputy Chief Commercial Officer of Ministry of Trade and Industry

INTRODUCTION With the conclusion of the Uruguay Round of Negotiations in 1994, all members of WTO, including Ghana, signed an undertaking to implement the General Agreement on Tariff and Trade (GATT)/WTO Valuation Agreement (ACV) in order to secure additional benefits from International Trade.

Whereas developed countries were to start the implementation of the GATT/WTO Valuation Agreement from 1995, Developing countries, however, were given five years grace period to build capacity and start its implementation from year 2000.

Prior to the introduction of the GATT/WTO Valuation Agreement in April 2000, available records indicated that billions of Cedis were lost to the nation annually through tax evasion, over-invoicing and under invoicing.

W h i l e ove r - i nvo i c i n g wa s l e s s prevalent, under invoicing had become the order of the day.

Importers were known to have colluded with their overseas suppliers to present for customs purposes, invoice values which were considerably lower than the prices actually paid by the importers.

deliberately misclassified their goods eliminate, the opportunities for fraud, under a customs code or misdescribed fiscal evasion and price discrimination. them in order to attract a lower or zero rate of duty.

The Destination Inspection Scheme involves, among others, the verification Similarly, many importers hid behind of all invoices presented by importers the trade liberalization policy of the and selective inspection of import country to bring in goods which were consignments at the ports of clearance. shoddy or substandard and in some In order to achieve its objectives and cases unwholesome, toxic and generally facilitate trade flow, the DIS is hazardous. These goods were sold at designed on three different but rock bottom prices rendering our local integrated systems namely: manufactured goods uncompetitive in • Transaction Price Database (TPD) addition to the health risk that they • Computerized Risk Management posed.

System (CRMS) ·•Container Scanning System THE DESTINATION INSPECTION SCHEME The Transaction Price Database (TPD) A ga i n s t t h i s b a c k g r o u n d , t h e The Transaction Price Database assists transitional Destination Inspection DI companies and Customs to analyze Scheme (DIS) was introduced in April declared values of imports accurately 2000 as part of Government's strategy and timely based on transaction value to implement the ACV to ensure and appropriate tariff classification. minimum loss of revenue and to The TPD is updated automatically with enhance the operating trade regime in each transaction, thus providing the Ghana with the view to positioning the most recent price information country as the commercial and available. maritime hub of the West Africa subregion.

One significant element of the DIS is the

Specifically, the Scheme sought to facilitate trade, provide efficient verification of imports, check revenue loss to Government by ensuring that the required duties and taxes are collected I n a d d i t i o n , s o m e i m p o r t e r s and to reduce, if not completely

network of overseas offices/affiliates called Issuing Units or Centers of External Relations. The Issuing Units or Centers of External Relations help the DIS Companies in the determination of the price paid or payable for commercial imports into Ghana.

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Assessment of the Impact of the Destination Inspection

Inspection and Control Services (ICS) Limited and Webb Fontaine Ghana (WFGH) Limited. Commercial Imports from all the countries in the world have been distributed among the five inspection companies. Apart from staff at t h e i r ove rs e a s o ff i c e s , t h e companies, between them, locally employ about three hundred and twenty workers.

The DIS Companies, apart from using the expertise and experience of their price analysts and classification experts in-house, also fall on the huge expertise and experience of their Issuing Units or Centers of External Relations. These Issuing Units or Centers of External Relations between the five DIS Companies cover over 140 countries in all the continents.

The Computerized Risk Management System The Computerized Risk Management System (CRMS) is employed to determine the risk level for each consignment as to whether it can be cleared through the “green channel”, “yellow channel” or “red channel”. The CRMS thus assists Customs to properly assess the need for Customs to physically examine each and every consignment of goods imported into the country by applying a concept of selectivity of consignments based on levels of risk.

In order to ensure security and efficiency, the CRMS is updated continuously with clearance point level information and intelligence reports through reconciliation. This is to ensure that the system adapts to changing patterns of non-compliance and augments the deterrent effects of intervention. Based on risk assessment, shipments are placed into three main categories (channels): •· High Risk (Red Channel) ·•· Medium Risk (Yellow Channel) ·•· Low Risk (Green Channel) 10

The Role of Ghana Standards Authority The Ghana Standards Authority (GSA) was also requested to directly take over the responsibility for the physical inspection of high-risk goods in order to The Non-Intrusive or Container minimize the influx of shoddy or subScanning System standard imports. Currently there are The Container Scanning Systems enable about twenty broad categories of high Customs to make quick and reliable risk goods under the scheme. decisions to either detain or release a container, without devanning it to The Ghana Community Network confirm its content. This helps to reduce Services (GCNet) Limited dwell time of containers at the port and Additionally, the Ministry of Trade and assists in providing the necessary Industry on behalf of the Government security by detecting possible illegal and the Ghana Community Network importation of arms and ammunition as Service Limited (GCNET) signed an well as illegal drugs. It also provides agreement in 2000 for the latter to fully data for risk management and removes automate the Customs clearing system threat to Government revenue.

(Ghana Customs Management System) The Principles of Valuation The inspection companies apply the rules of valuation for all imported goods according to the following methods as provided in the ACV with the support of their overseas verification offices and the TPDs, in a hierarchical order:

and provide an interface between Customs and other stakeholders in the clearance process. This system replaced the ASYCUDA.

The GCNET is currently fully operational at the Airport, Tema and Takoradi Ports, and all the major Customs stations in the country. With the support of GCNet, •· Transaction value documents such as the Import •· Value based on identical goods Declaration Form (IDF) and the Final Classification and Valuation Report •· Value based on similar goods (FCVR) have been migrated from •· Value based on the deductive manual to electronic formats. These method have brought some speed in the •· Value based on the computed clearance process. method •· Value based on the fall back method IMPLEMENTATION STRUCTURE To guide the implementation of the scheme and to ensure that the Destination Inspection Companies The Government has contracted five objectives of the scheme were companies to operate the DIS. The achieved, three National Standing companies are Gateway Services Committees; the National Oversight Limited (GSL), BIVAC International Committee, the DIS Implementation Ghana Limited (BIVAC), Ghana Link C o m m i t t e e a n d t h e R e v e n u e Network Services (GLNS) Limited, Reconciliation Committee, were

Volume 14 Number 4, October - December, 2012

Assessment of the Impact of the Destination Inspection

In addition, the National Appeals Committee is to be constituted by the Hon. Minister of Trade and Industry to deal with petitions from importers /agents which are not dealt with at the level of the DICs or Customs.

Petitions Procedure With regard to importers who are dissatisfied with assessed values of goods imported by them, the following appeals procedure has been put in place for redress: 1. Importers initially send their petitions to the Inspection Companies that issued the valuation report for re-valuation.

2. If dissatisfied, the petition could be forwarded to the Commissioner of Customs for consideration.

3. If still dissatisfied, petition may be sent to the Minister for Trade and Industry who will constitute an Appeals Committee within thirty days from the date of rejection of a petition by Customs. Only petitions covering goods that have been formally cleared under protest are considered.

BENEFITS OF THE SCHEME Records available indicate that the DIS companies have operated efficiently over the years of their existence in Ghana and have enhanced revenue for the Government. In the first five years of operation, recognizable results in the area of trade facilitation, enhanced revenue for Government as well as improved cargo handling and port management, among others were achieved.

documents presented to the DIC are in order. Provision has also been made for the issuance of fast track valuation reports within a day for essential imports. Almost all the DICs have special desk for mining equipment and materials.

Training and Transfer of Know-How To develop the capacity of staff of DICs, Customs and other stakeholders the DICs are to provide training and support in the areas such as Risk Management, Risk Profiling and Cargo Selection, Customs Fraud and Documentation, Image Analysis, Valuation and Classification.

Hundreds of Customs Officers and other Public Officials have been trained both locally and abroad since the beginning of the scheme.

ports and Aflao to curb illicit and drug trade.

Export consignments are being scanned in order to flash out illegal exportation of drugs, arms and ammunitions and thereby make the ports safe.

GCNet Connectivity The extension of GCNet connectivity to all border points has simplified procedures and eliminated the p re s e n tat i o n o f fa ke p e r m i t s , exemptions and valuation reports among others in forwarding and clearing of goods.

CHALLENGES Notwithstanding the records available on the performance of the DICs which show that they have operated efficiently and effectively over the years and have enhanced revenue for government, the scheme has been faced with a couple of challenges:

In 2011, about 170 Customs officers and public officials were trained locally while 41 were trained abroad. Furthermore, each year a number of Customs Officers undertake attachment with the destination •· The rampant submission of fake inspection companies. documents by some importers/Agents to the inspection companies and Savings Interventions The savings interventions made by the Customs which, on average, is about DICs since inception have saved 70% of all invoices submitted to the Government millions of Cedis. These come inspection companies. This problem of in the form of revaluation, reclassification fake documents also brings about and scanning discrepancies. On average, forum shopping. there are about 1,200 interventions per DIC per month culminating into a total •· Delays in the issuance of Final savings of over US$4 million a month. Classification and Verification Reports Citing one DIC as an example, from 2008 (FCVRs) and frequent arbitrary increase to June 2012,, the company has made in FOB and Freight values by DICS and 167,604 interventions which saved Customs. But these are premised on the documentary inadequacies mentioned government over US$648 million. above.

Modernization of the Clearance •· Congestion at the port and scanner System area due to activities of stakeholders Ghana's trade has been revolutionalized by the use of State- of-the-Art and truckers which has become a technology introduced by the DICs. The subject of widespread discussion.

Almost 75% of all invoices presented were intervened either by valuation, t h a t i s , r e v i e w o f v a l u e s , o r DICs and GCNet have contributed reclassification or both as well as by equipment in the form of desktop scanning discrepancies. computers to Customs and other s t a ke h o l d e r s s u c h a s F r e i g h t Reduction in Clearance Time Forwarders. Non-intrusive scanning Goods can now be cleared within 3 to 5 facilities have also been installed at the days from the port in Ghana if all the

•· The CEPS Management Law which has still not been amended to reflect the WTO Valuation Agreement more than 10 years after its implementation in the country.

Volume 14 Number 4, October - December, 2012

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Assessment of the Impact of the Destination Inspection

have accrued from deteriorated goods, general goods and vehicles could be auctioned on monthly and quarterly basis respectively.

Coordination among stakeholders in the management of exemption should be improved.

The Ministry wishes to reassure that it is striving to overcome the challenges that are hindering the full realization of the effective and efficient implementation of the scheme and any other trade facilitation measures. It would be appreciated if Customs officials and other stakeholders who have active roles to play in this endeavour could cooperate with our Ministry to ensure success for the benefit of dear country.

•· The high charges imposed on co n c rete ev i d e n c e fo r m a k i n g shippers by various Service providers at recommendations for varying the tariffs CONCLUSION in respect of any particular importation. May I at this juncture implore our hard the ports. working shippers to eschew practices •· The negative activities of some To minimize the submission of fake that bring disrepute to themselves and Clearing Agents who exploit importers d o c u m e n t s t o t h e i n s p e c t i o n the country. On many occasions by inflating miscellaneous expenses companies and CEPS, the Ministry shippers have been linked with because all importers are obliged to use recommends to the Commissioner, fraudulent activities that have led to their services apart from the self Customs Division of Ghana Revenue huge revenue loss at the port. Issues of Authority, to take advantage of the under invoicing, and loss of whole declarant companies. relevant sections of the CEPS consignment, etc have occupied the •· The threat of cheap imports from Management Law (PNDC Law 330) to attention of Government. It is important the far east countries in Asia especially come out with the appropriate therefore that I use this opportunity to Commissioner's Order to adequately ask for your support in stemming such China and India sanction or prosecute importers or negative practices that disrupt planned agents who present fake or falsified development for our dear country.

•· We a k p o st c l e a ra n c e a u d i t documents or filing declarations. mechanisms of Customs and other May I also use this forum to encourage regulators in the clearance process.

The current imposition of only penalties the Ghanaian trading community to on recalcitrant importers who submit endeavour to become conversant with THE WAY FORWARD fake invoices are not deterrent enough. the legal implications of their vocation The Ministry of Trade and Industry as Customs should also ensure that and the expectations of ICT in modern one of its functions of monitoring the companies who have been suspended p o r t c l e a r a n c e o p e r a t i o n s . import and export trade with a view to from operating and those whose International trade involves risk taking, making the import-export regime more licenses have been revoked do not and those venturing into the different transparent and predictable has resurface under any disguise to operate markets of the world should utilize the established a Tariff Advisory Board with at our ports. Enforcements should necessary expertise that abounds in our support from USAID. The Board, which therefore be improved by increasing country when engaging in international will transform into an International cost of non-compliance and punitive trade contracts.

Trade Commission, will ensure that and deterrent measures tariffs are set in accordance with In conclusion, the DIS had improved national economic development Furthermore, CEPS should put in place, trade facilitation and enhanced priorities. as a matter of urgency, effective regular revenue collection. The objectives of auctioning mechanism for seized goods the scheme remain relevant and It will also provide a structured basis for to enhance revenue. To prevent achievable. The scheme had protected investigating petitions and determining pilfering and loss of revenue that would revenue losses to government and appropriate measures based on 12

Volume 14 Number 4, October - December, 2012

Ghana Shippers' Authority Receives International Quality Crown Award

L-R: Mr. Jose E. Prieto (President of BID); Dr. Kofi Mbiah (CEO, GSA); Mrs. Sylvia A. Owu (Head, Shippers Services Dept of GSA); Mr. Fred Asiedu Dartey (Head, Public Relations Dept of GSA); and Mr. Dayle L. Flickling (Vice President of BID) displaying the Award

T

he Ghana Shippers Authority (GSA) has received the prestigious International Quality Crown Award (Gold category), for its contribution to the development of the Shipping and Logistics Industry in Ghana.

The award was given during the Business Initiative Directions (B.I.D) International Quality Crown th Convention in London on the 25 November 2012.

The Authority was among other leading companies and organizations from 48 countries around the world. These awards recognize the commitment of all recipients to Quality, Leadership, Technology, Innovation and Creativity.

With this award, the GSA joins the historic group of B.I.D. Quality Award Winners around the world.

In nominating the Authority for this award, the Business Initiative Directions (B.I.D) considered amongst others, the GSA's commitment to quality in the generation of creative solutions to the key concerns of shippers; including efficient infrastructure, shipment information, costs/charges as well as service quality.

The Chief Executive Officer, Dr. Kofi Mbiah, in receiving the award noted that “the virtues and ideals that have been espoused in B.I.D's International 14

Quality Crown Awards are those that the Ghana Shippers' Authority is committed to”. Dr. Mbiah also indicated that “receiving the award would showcase the Authority as one that believes in and is committed to innovation, creativity, excellence in leadership to developing the new product, the new software for the benefit of the importer and exporter and thereby make that importer and exporter competitive in the global market arena”.

Maritime Excellence' a ten storey building to serve as a one stop-shop facility for all maritime trade and transport transactions including ship brokerage services, freight market and cargo insurance services etc. This project he noted had commenced.

Dr. Mbiah also emphasized on the provision of Advanced Shipment Information to shippers to facilitate preclearance processing of documentation to among others curtail the payment of The Award provides a glittering demurrage and rent charges and evidence of the international ultimately contribute to the recognition of the work of the GSA and decongestion of Ghana's ports. also provides the impetus to pursue the quality culture in its operations. It also Dr. Kofi Mbiah paid glowing tribute to strengthens the Authority's leadership the Chairman and Board of Directors of role among sister Shipper Organizations the GSA as well as the Management and within the West and Central Africa Staff, whose significant contribution has led to the achievement of this feat Region. and accordingly dedicated the Award to Highlighting some of the key them. programmes/projects of the GSA for the future, Dr. Mbiah underscored the The Authority's achievements have importance of increased employment of been rooted in a certain drive for the technology for the provision of provision of quality service to the shipper in Ghana; however, to provide dashboard solutions for shippers.

He also indicated that the Shipper further impetus to the discharge of its Complaint and Support Units, which are core mandate of promoting and c u r r e n t l y e s t a b l i s h e d i n f o u r protecting the interests of shippers in locations/entry points, would be Ghana, the Authority made a further replicated at all border posts in Ghana in commitment to publicize this Quality collaboration with the West Africa Culture with employees and clients within the framework of the QC100 Trade Hub (WATH).

Total Quality Management Model Also on the horizon is the 'House for

Volume 14 Number 4, October - December, 2012

THE COMITE MARITIME INTERNATIONALE (CMI) HOLDS ITS 40TH CONFERENCE IN BEJING, CHINA

T

he 40th Conference of the Comite Maritimé Internationale (CMI) was held in Beijing, China from the 19th to the 25th of October 2012.

The CMI was established in 1897 and is reported to be the oldest international organization in the maritime field. Even though the International Law Association (ILA) was the precursor to the CMI, the CMI still remains the earliest international organization to deal exclusively with maritime law and related commercial matters.

At its 40th meeting held in Beijing China, the CMI discussed a number of issues within the framework of the development of international maritime law.

This brief overview touches on some of the highlights of the discussions during the various sessions. It is meant to provide information on the current work of the CMI and to stimulate discussions on the emerging issues with respect to the development of international maritime law. Ghana played an active part at the 40th Conference of the CMI and delivered a paper titled : “Updating The Rules on International Carriage of Goods By Sea : The Rotterdam Rules” Other key subjects discussed at the Conference include the following: 1. Breaking the Ice: Challenges for Arctic Shipping in an Evolving Governance Environment 2. An Introduction to Cross Boarder Insolvency 3. Fair Treatment of Seafarers 4. To w a r d s a n I n t e r n a t i o n a l Instrument for Recognition of Judicial Sale of Ships Policy Aspects

5. Guidelines for Mandatory Insurances in International Conventions 6. Piracy Today An Update 7. Regulation of Offshore Activity Pollution Liability and other Aspects 8. The Rotterdam rules An Update 9. Revision of the York Antwerp Rules 10. Security Risks Arising from Sale of Ships (Completed and Under Construction) 11.Trade Financing Laws and Practices of China 12.Standby Letters of Credit in China: Law and Cases Review 13.Impact of Eastern and Western Culture an Arbitration and the Latest Developments of Arbitration in China The York Antwerp Rules This work was placed on the Agenda of the CMI in 2009 following representation made to the CMI by the International Salvage Union (ISU). The ISU expressed the view that there was the need for a review of certain aspects of the Salvage Convention 1989, noting in particular the need to replace Article 14 with a new and separate award which it has referred to as “Environmental Salvage Award”. The ISU has also called for the removal of the geographical limitation of “coastal or inland waters or adjacent thereto”.

The ISU has also raised an issue with Article 5 dealing with the role of public authorities in performing salvage. These and other requests for modification or amendments to the existing convention was the subject of discussion at the 40 th

CMI Conference.

After extensive deliberations it was decided by the meeting that the amendments put forward by the Working Group were not acceptable and should thus not be put forward for adoption.

The meeting however recommended that the Executive Council should appoint a new International Working Group on General Average with a mandate to carry out a general review of the York Antwerp Rules on General Average and to ensure that the new set of rules met the requirements of ship and cargo owners and their respective insurers.

The review was to consider amongst others the following: • Whether the York Antwerp Rules need special provisions to deal with larger multi cargo and container ships, following the example set by the 2011 revision of Lloyds Form of Salvage Agreement covering unresponsive and unrepresented cargo interests; • Whether aspects of substituted expenses need to be reviewed; • Whether more detailed provisions are required to deal with situations where the voyage is, or may be, frustrated; • Whether anticipated changes in international conventions, such as the Rotterdam Rules, will require changes to the way general average works in practice; and finally, whether new developments, such as special insurances covering c a rg o ' s G e n e r a l Av e r a g e liabilities, can be assisted by changes in the York Antwerp

Volume 14 Number 4, October - December, 2012

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Comite Maritime Internationale 40th Conference

Insert, Dr. Kofi Mbiah, delivering his presentation at the conference in Bejing

A cross-section of participants at the conference

Draft Instrument on Recognition of Foreign Judicial Sale of Ships.

On the Judicial Sale of Ships, the session received the second draft instrument and prepared a revised document which was referred to as the Beijing Draft Instrument on the Recognition of Foreign Judicial Sales of Ships.

After a further review of the Beijing Draft the session concluded as follows: i. That the Beijing Draft is a substantially improved document ii. That the International Working Group should circularize a Commentary on the Beijing Draft to all National Maritime Associations within six weeks after the end of the conference iii. Any National Maritime Law Associations (NMLA's) wishing to make written comments shall do so within three months after receiving the Commentary. iv. Before the next CMI Assembly, the International Working Group will prepare a Final Beijing Draft Instrument and forward it to the Executive Council so that appropriate steps can be taken to finalize it for the next Assembly meeting in 2013.

The Rotterdam Rules The Conference also took opportunity to provide an update on the efforts being made by the CMI towards and early ratification of the Rotterdam Rules.

The session discussed the Rotterdam 16

Rules and noted the efforts of various countries towards the ratification and adoption of the Convention on the International Carriage of Goods Wholly or Partly by Sea (The Rotterdam Rules).

International Instrument, it would be necessary for the major players in the international oil industry including the oil companies themselves and their drilling contractors, as well as coastal states to be adequately sensitized on the It noted that Spain and Togo had ratified merits of such an international the Convention but have not opted in for instrument and to get their support. the Jurisdiction and Arbitration provisions. The session also noted that The CMI therefore concluded that the t h e E c o n o m i c a n d M o n e t a r y extent of the areas of work involved in Community of Central African States the development of a new international (CEMAC) have incorporated most of instrument should be well defined. It the Rotterdam Rules Provisions in their also noted that it will be necessary to Community Code adopted on the 22nd of make appropriate contacts with the July 2012. These countries include major players in the oil industry and Cameroon, Congo, Gabon, Equatorial with coastal states through the relevant Guinea, the Central African Republic National Maritime Law Associations with a view to ascertaining the level of and Chad. support for such an international It was also noted that various countries instrument. have set in motion the processes towards ratification of the Rotterdam CONCLUSION Rules. The session also highlighted the The CMI continues to be a key driver for various sensitization seminars held the development of international under the auspices of the CMI, in maritime law instruments. Its role in Cameroon, Mauritius, and Cote d' Ivoire bringing to the fore emerging issues that and stressed that there was the need for in relation to the practical applications more of such seminars to shed more of international maritime instruments light on the dark patches of the cannot be overemphasized. At the 40th Rotterdam Rules.

Conference the CMI demonstrated again its capacity to tap into the body of Regulation of Offshore Activity knowledge of various National Pollution Liability and other Aspects Maritime Law Associations all over the In a discussion on Offshore Activity it World towards achieving its objectives. was noted that it would be useful for the CMI to continue with its work on The subjects discussed at the 40th possible International Convention on Conference in Beijing are indeed Compensation for Damage caused by germane to the quest to bring various offshore Hydrocarbon Leaks. instruments developed by the international maritime community It was however noted that in view of the abreast with the current changes and lack of appetite within the International developments in an industry as dynamic Maritime Organisation to pursue an as the maritime transport industry.

Volume 14 Number 4, October - December, 2012

The Changing Role of the Custom House Agent In the Cargo Clearance Process

Paper presented at the 6th National Shippers Day, 3 -4 September, 2012, at the La Palm Royal Beach Hotel By Dan K. Asomaning, President, CUBAG

INTRODUCTION

and Excise (now the Commissioner) has the legal mandate to licence and regulate consider it a great honour and a th the operations of the Custom House pleasure to be associated with the 6 Agent.

National Shippers Day celebration., I am particularly excited about the MANDATE opportunity to interact and share ideas The Custom House Agent is mandated; with most of the key stakeholders at this • To ensure the highest standard of important forum. efficiency, quality service delivery and

I

My task today is to make a presentation to this august gathering on the topic: “The Changing Role of the Custom House Agent in the Cargo Clearance Process”.

The operations of the Custom House Agent are mostly dependent on the operational structures and administrative procedures of other stakeholders. Our operational independence is very limited.

The increasing globalization of world trade, and its attendant heightening of competition among countries require that, stakeholders provide services that would render the Ghanaian entrepreneur competitive. There is, therefore, the urgent need for stakeholders to put in place simplified procedures and formalities, to reduce time and cost of clearing goods for trade facilitation.

THE CHANGING ROLE Electronic Declaration To improve upon the orthodox method, the first electronic method called the Automated System of Customs Data (ASYCUDA) was introduced.

The method used a single document called Single Administrative Document (SAD) for observance of regulatory measures to almost all customs transactions or enhance the administration of Indirect regimes. Although the system was better Taxation. than the orthodox method, it also had its own problems.

• To disseminate information and policies issued or introduced by The Government in its quest to achieve the government, stakeholders or other objectives of the Gateway Programme, in authorized institutions on customs, order to make the Ghanaian Entrepreneur shipping, transport, international trade competitive, as well as, attracting foreign and commerce activities. investment, had sought to institute reforms in the process and procedures • To protect clients from exploitation in used by Customs, and other related all forms, and from all quarters, and acts as agencies. Principally, the objective is to a specialized consultant; sometimes by accelerate export led growth, and remove special request, pre-finances a client for constraints to trade development and the clearing of goods from the port or facilitation. bonded warehouses.

The Ghana Community Network (GCNet) The Business of Custom House Agent was therefore established in the last The Custom House Agent prepares, signs, quarter of the year 2002, as an innovative and presents documents with respect to the import and export of goods. This was solution to facilitate a fast and effective done manually (called the 'orthodox processing of customs related operations.

Background: Before 1978, the business of cargo method') clearing, was not legally regulated. The For Customs purpose, this entails:business was undertaken by Shipping • Preparation and submission of an Companies/Agencies, Importers or their assessment of the goods in a agents without any formal training or prescribed form, number, manner and recognition. at the prescribed place.

In 1978, the Custom House Agents • Attachment of prescribed supporting (Licensing) Decree, S.M.C.D. 188 was documents, for example, invoices, enacted; the same year, the Custom packing list, specification, bill of lading House Agents (Licensing) Regulations were made to give full legal backing to the • Payment of all duties, taxes, levies, fees, and all other charges where business of Custom House Agent. The applicable.

Custom House Agent operates under the • Acceptance and signature by the Ministry of Finance and Economic proper officer (customs) on the Planning, and the Comptroller of Customs prescribed form of entry.

This necessitated the migration of Declarants from the Automated System of Customs Data (ASYCUDA) to Ghana Community Network (GCNet). The GCNet system is composed of a fully integrated customs software, connected over a network to the various parties interacting with Customs in the process of Ghana's imports and exports.

The Custom House Agent compulsorily has to be electronic compliant to be able to transact business with Customs and other institutions involved in customs clearance and related activities through the GCNet.

Volume 14 Number 4, October - December, 2012

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Role of the Custom House Agent

Destination Inspection and FCVR The law requires that, all commercial imports shall be subject to destination inspection for the purpose of ensuring that quality, quantity, price and other specifications of imported goods are in conformity with the particulars on the Import Declaration Form (IDF), Invoice and any other document relevant to the goods.

The introduction of Destination Inspection placed a new (remote) responsibility on the Custom House Agent by the assembling and presentation of all documents relevant to valuation and classification of imported goods to the inspection company.

Such a role is capital intensive and access to funds from banks to facilitate such a The Custom House Agent is reposed with venture is needed. Unfortunately the bank the duty of insisting that, the importer procedures are so repugnant, only a few submits genuine documents, and Custom House Agents qualify. Any therefore, it is unprofessional for the arrangement by the Ministry to provide Agent to condone and connive with the the Agent (who wants to enter into this i m p o r t e r t o s u b m i t f ra u d u l e n t venture) with loan facilities, that attract documents. It is also illegal for an Agent lesser interest will be most welcome. to alter documents submitted by an Scanning and Computerized Risk importer, even if it is with the consent of Management System the importer.

For the purpose of convenience and facilitation, the system allows the Paperless Transaction scanning of homogeneous goods only.

The conversion of trade documents from paper to electronic format, and the With the view that, some customs fraud introduction of messaging system to shall be perpetrated, consignments are facilitate communication between allocated scientifically to an intervention Customs and its stakeholders, have been level. Three clearance levels are provided conceived to eliminate many of the by the Destination Inspection Companies. problems of the current cargo clearance (DICs). which is process. It is most welcome. indicated on the Final Classification and The total cooperation of the Custom Valuation Report (FCVR).

House Agent is fundamental to the success of the project. • High Risk refers to consignments with the highest form of risk and therefore, The project has added a new role to the physical examination shall obviously be operations of the Custom House Agent the intervention level or option which requires that declarants know how to create and implement the Unique • Medium Risk Cargo is directed to the Consignment Reference (UCR) which Cargo Scanner for non-intrusive eventually becomes mandatory for all verification of the contents of the Customs Procedure Codes ( CPCs) containers.

Warehousing and Haulage The increase in the quantum of imports and export of non-traditional goods demands that, the Custom House Agent adds other roles like the operation of bonded warehouses and cargo haulage to help decongest the port.

18

Cargo Scanner are indiscriminately evacuated to the Inland Clearance Depots.

Containers to be scanned are re-directed to the Cargo Scanners through the port.

Thus, on occasions of port congestion the ICDs are stopped from loading containers directed to the Cargo Scanners until the congestion is eased.

This disrupts flow of work of the Custom House Agent, and adds to the cost of doing business at the port, because all this while the Inland Clearing Depots charge rent, container detention fee and all other incidentals.

Port Operations In contemporary times, ports have become a factor of production, and are t h e r e fo r e c r i t i c a l t o e f f i c i e n c y, competitiveness and rational allocation and utilization of resources. Ports play a far reaching role in the lives of the people.

Pertinently, port operations which are s l o w, a n t i q u a t e d a n d r i fe w i t h inefficiencies and bureaucratic bottlenecks constitute a major setback for importers and exporters; and in the process blunt the efficiency and effectiveness of the Custom House Agent and the competitiveness of businesses.

The Custom House Agent can only play a meaningful role in an environment where port management has dependable skills, competencies, supported by adequacy and quality of infrastructure which is harnessed by efficient and reliable Inland (Container) Clearance Depots I nfo r m at i o n a n d C o m m u n i cat i o n Technology.

(ICDs) Containers whether or not directed to the • Low Risk Consignment is normally released without any form of intervention, however random samples may be selected for physical examination.

Volume 14 Number 4, October - December, 2012

Role of the Custom House Agent

Shipping Companies The work of the Shipping Companies impacts on the role of the Custom House Agent. The prompt preparation of bills and debit notes with fast release of Delivery Orders (D/Os), (manual or electronic) shall minimise delay in the clearing process, and reduce the cost of doing business; in relation to payment of heavy rent and Container Detention Fee (CDF).

CHALLENGES • General bureaucracy and cumbersome procedures.

• Lack of coordination among port operators and other stakeholders • Proximity disadvantage - Custom House Agent dealing with many stakeholders, located at different places of 'unfriendly' distances over one transaction.

• Too much paperwork and even with the introduction of the electronic system, some stakeholders are not connected to the Ghana Community Network (GCNet) ·• Re-direction of containers from the Inland (Container) Clearing Depots through the port to the Cargo Scanners to be scanned. ·• Inadequate handling equipment and other port facilities.

• Port Congestion.

• Intrusive inspection (physical examination) of goods • Rejection of Destination Inspection Companies' (DICs) values by Customs, which results in reassessment. ·• I nte r fe re n c e s a n d s e e m i n g l y unnecessary interventions by some Security Agents in the clearance process. ·• I n h o s p i ta b l e s u s p e n s i o n a n d revocation of Custom House Agent Licence ·• Custom House Agents permitting their Licences to be used by unlicensed persons, popularly referred to as “Stamping”.

•

• •

•

•

•

•

•

•

•

•

Training of personnel to acquire good time management skills to increase productivity.

Full collaboration and coordination of activities among stakeholders.

Simplification of procedures and formalities to remove bottlenecks and eliminate cumbersome procedures.

Creating a Central Clearing Point (CCP) for the processing of documents and release of cargo.

All stakeholders in the industry are to be fully connected to the GCNet within a 'period of no distant time' Strengthening the Customs Consultative Committee to make it sustainable The Ghana Revenue Authority to appreciate the immense contribution of the Custom House Agent in Revenue collection.

A grave concern for most traders is the application of weekly Rate of Exchange in the calculation of duty.

Their preference is a quarterly Rate of Exchange. This is to be considered for discussion at the open forum.

Setting up Toll-Free Lines by Customs and Ghana Ports and Harbours Authority (GPHA).

In order to become a trade facilitator, Customs must try to overcome the challenge of striking a balance between Revenue mobilization and Trade facilitation.

Ghana Ports and Harbours Authority (GPHA) to consider the reintroduction of the Port Advisory Committee (PAC); and strengthen it to make it effective.

The Custom House Agent (related) Associations to seriously caution their members to strongly desist from “Stamping”

Companies (DICs), in the processing of Final Classification and Valuation Report (FCVR), which have removed some obstacles, and improved the processing time of FCVRs. The Training Programmes organised by some of the Destination Inspection Companies for Institutions and Stakeholders in the Shipping, Clearing and Forwarding Industry is commendable It is not my intention to single out any Inspection Company, however the immense contribution of Ghana Link Inspection Company, in the collection and protection of revenue merits special commendation.

The Ghana Shippers Authority has over the years instituted various programmes including training, seminars, talks and lectures for the general trading public, stakeholders and institutions in the shipping, clearing and forwarding industry.

Generally, their high level of concern for shippers is commendable.

CONCLUSION It is an undeniable fact that, Custom House Agents of all levels and standards, need to increase their efficiency and capacity.

Professional training programmes and short courses should be orgnised periodically to enhance their professional experience.

There should be a campaign to instill the habit of voluntary tax compliance among both members and clients; and ensure · total cooperation between the Custom House Agents and other stakeholders.

The business of shipping, clearing and SUGGESTIONS forwarding has been given a new facelift.

• The need for re-orientation of the The new Custom House Agent is therefore, attitude of the personnel in the Commendation. d ete r m i n e d t h ro u g h t h e c u r re nt shipping, clearing and forwarding Some reforms have been observed in the modernization programme to improve industry. operations of the Destination Inspection quality service delivery to clients and all Volume 14 Number 4, October - December, 2012

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HEAD OFFICE GLOBAL TOWER BUILDING Behind Meridian Engen Filling Station, Tema 3rd Floor Room 01 P. O. Box 2181, Tema Community One Ghana (West Africa) Tel. 233-(0)303-215597/214787/214148 Fax: 233-(0)303-200740/214787 Mob. 233-(0)24-4636977/4379846/4031693 E-mail:globalcargogh@ghana.com globalcargogh@gmail.com Website: www.globalcargogh.com

ACCRA BRANCH AIRPORT BASE Opposite Multi Choice (DSTV) Tel. 233-(0)302-774262 769749 769759 Fax: 233-(0)302-774255 Mob:233-(0)24-4682342/4486689 E-mail:globalcargo@dsl.com

TAKORADI BRANCH HARBOUR HIGH STREET Adjacent Fan Milk Depot Tel/Fax:233(0)3120-23096 Mob:233-(0)24-4379846 / 4636977 E-mail:desmond_gccltkd@yahoo.com

GSA Holds Eighth

Maritime Law Seminar for Judges

T

he Ghana Shippers' Authority in collaboration with the Judicial Training Institute has organized the eighth in the series of annual Maritime Law Seminars at the Coconut Grove Regency Hotel on 11th and 12th October, 2012. It was to broaden the knowledge of Judges of the Superior Courts of Ghana on current developments in international maritime law.

In a welcome address, the Chief Executive Officer of the Authority, Dr. Kofi Mbiah said increased cargo volumes passing through the ports had now reached the 20 million mark and that expansion in the various fields of commercial endeavour will monumentally task the judiciary in the coming years. According to him, the new oil fields, the gas development, the challenges of maritime boundary delimitation, piracy and maritime security will open up new fields of legal and judicial enterprise with its attendant legal challenges that the judges will have to respond to. “Being prepared now, not later, will be key to a high quality of justice delivery” Dr Mbiah hinted.

Dr. Mbiah averred that as Judges position themselves to meet the challenges, it will be imperative to broaden the judicial h o r i zo n . H e s a i d J u d g e s m u s t increasingly advise on settlement of disputes through alternative dispute resolution methods including conciliation, mediation and arbitration, not to mention out of court settlements.

In his address, the Honorable Ebo Barton-Odra, Deputy Minister of Justice and Deputy Attorney General u n d e rs c o re d t h e n e e d fo r t h e establishment of specialized courts to adjudicate Admiralty and Oil and Gas related cases to ensure swift and efficient delivery of justice for persons whom the profession enjoins Judges to serve irrespective of the risks. According to him, the creation of these additional courts would be entirely dependent on the expertise of Judges.

Honorable Ebo Barton-Odra noted that his Ministry is of the strong conviction that Alternative Dispute Resolution (ADR) offers a quicker alternative to the protracted and rather expensive and

Her Ladyship, the Chief Justice of Ghana, Justice Georgina Wood, delivering the Keynote Address

acrimonious processes of a full scale court trial. He said it is gratifying to note that Her Ladyship the Chief Justice echoes these sentiments and has worked assiduously over the years to educate the public to take full advantage of the Alternative Dispute Resolution Act, 2010.

cases as well as other trade related transactions fairly, impartially and in a more fashion when they are laid before them for adjudication. According to her, it is only by this that we enhance investor confidence in jurisdiction and make Ghana a safe and secure haven for investment.

The Minister of Transport, Hon. Alhaji The topics that were presented and Collins Dauda, in his address said the discussed at the seminar were: significant contribution of the Transport • Dealing with Maritime Security sector, particularly, the maritime subThreats: The International Legal sector to economic growth and Framework - by Dr. Kofi Mbiah, Chief development is very crucial for Ghana as a Executive, Ghana Shippers' Authority developing nation. According to him, over • Understanding the Operations of the past decade the country had Maritime Liens in Ghana - by Mr. witnessed a tremendous growth in this Godwin Djokoto, Lecturer, Faculty of sub-sector in both cargo throughput and Law University of Ghana, Legon. infrastructure expansion, which is • Exploitation of Ghana's Oil and Gas overwhelming particularly in the past Resources: Some Legal Issues - by three and half years.

Mr. Kojo Bentsi- Enchill, Legal Practitioner Bentsi-Enchill, Letsa & The Transport Minister said the rapid Ankomah growth of the country's trade had • Maritime Zones of Coastal States: brought in its wake a strong realization L e g i s l a t i v e a n d E n fo rc e m e n t that current infrastructure cannot sustain Jurisdiction under UNCLOS - by Prof. the growth and that there is the need for P. K. Mukherjee, World Maritime expansion of the infrastructure at the two University, Malmo, Sweden Ports of Tema and Takoradi.

• Understanding the Concept of Warranties in Insurance - by Mr. In her keynote address, Her Ladyship, the A l exa n d e r G a d d i e l B u a b e n g , Chief Justice of Ghana, Justice Georgina Consultant for Maritime Legislation, Wood said with the sustained efforts of IMO the Ghana Shippers' Authority, coupled • The International Legal Regime for with the Judicial Training Institute's Transportation of Goods by Road - by continuing legal education, Ghana has Mr. Justice Yao Morkporkpor and continues to build the requisite Amegashie, Chief Executive, DVLA judicial capacity that will imbue our Justices with the needed expert knowledge and skills to determine such Volume 14 Number 4, October - December, 2012

21

Trade Facilitation and Revenue Mobilisation at the Port of Ghana-Striking a Balance Paper presented at the 6th National Shippers Day, 3 -4 September, 2012, at the La Palm Royal Beach Hotel

By Akwasi Yankyera, Deputy Commissioner of Operations, Customs Division of Ghana Revenue Authority

T

he responsibilities of Customs worldwide continue to evolve.

Each country fashions out the role of Customs to suit its needs, operating environment, national priorities and perhaps its cultural heritage.

In Ghana, the Customs perform many functions. The main ones are; · The Facilitation and Security of International Trade · The Collection and Protection of Tax Revenue on imports · Safeguarding the health of the citizenry in collaboration with related agencies · Helping to safeguard the security of the nation · Ensuring that imported goods meet set standards · Collection of Trade data for statistical and regulatory purposes and for policy formulation · Protection of Intellectual Property Rights · Providing Industry the protection enshrined in the tariff schedule

and revenue collection and to provide increased security to the global trading system.

The fiscal dependency by Government on Customs revenue is great and will significantly remain so for some time.

Traders expect uniformity, predictability, transparency and efficiency in their dealings with Customs. The uniformity of Customs operations is important and the speedy release of goods is crucial to support the competitiveness of traders

· · · · · ·

Automation and Electronic Data Interchange(EDI) Port efficiency Logistics and transport services regulation and competitiveness Transit Transport Security issues

From the Customs perspective the objective of the trade facilitation has been to remove constraints in the import and export of goods whilst enhancing compliance and reducing the cost of doing business. Indeed trade Facilitation Trade facilitation should be integral to the work of Trade Facilitation could be defined as a Customs comprehensive and integrated approach to reducing the complexity and costs of Customs are required to facilitate trade the trade transaction process, and while maintaining effective control on ensuring that all these activities can take the movement of goods across national place in an efficient, transparent and borders. However, too much control p r e d i c t a b l e m a n n e r b a s e d o n from Customs as well as from the other internationally accepted norms, relevant and perhaps competent agencies will result in increase in cost to standard and best practices. traders and will rather serve as incentive In effect it refers to the simplification, to traders to circumvent formal harmonization, use of new technologies procedures while lax control will result in In International Trade Customs plays a and other measures to address high level of non-compliance such that critical role not only in providing p r o c e d u r a l a n d a d m i n i s t r a t i v e the stated Customs objectives will not be expedited clearing processes but also in impediments to trade met implementing effective controls that secure revenue, ensure compliance with The main areas of focus in the facilitation As part of its strategic policy Customs aim national laws and ensure security and of trade at the ports may be categorized at optimizing improvement in trade underprotection of society. facilitation for legitimate traders leading · Infrastructure investment to increased voluntary compliance and · Customs modernization, Customs control and administer the integrity which should result in increased procedures and environment international movements of goods and · Streamlining of documentary revenue collection at a lower cost. In this are in a unique position to effectively requirements and information connection a raft of reforms and contribute to socio economic measures, underlined by partnership flows developments through trade facilitation with other stakeholders, Business and 22

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Trade Facilitation and Revenue Mobilisation

the Private sector, has been initiated towards the achievement of these objectives. These reforms would be actively implemented and modified where necessary to achieve the set objectives.

Customs modernization is to bring the activities of the Division in line with modern Customs practices with particular reference to - The Revised Kyoto Convention - The SAFE Framework of Standards - The Revised Arusha Declaration The Revised Kyoto Convention provides International Commerce with the predictability and efficiency that modern trade requires. The Convention elaborates several key governing principles, the main ones being: § Transparency and predictability of Customs actions; § Standardization and simplification of the goods declaration and supporting documents; § Simplified procedures for authorized persons; § Maximum use of information technology; § Minimum necessary control to ensure compliance with regulations; § Use of risk management and audit based controls; § Coordinated interventions with other border agencies; § Partnership with the trade.

USE OF RISK MANAGEMENT AND AUDIT BASED CONTROLS Risk Management promotes the effective linkage and use of scarce resources based on priorities to achieve maximum efficiency

The preservation of the integrity of data in the Customs Management System is quite crucial for the generation of accurate and reliable reports, risk and economic analysis as well as, provide a veritable audit trail. These requirements necessitate putting in post entries to correct mistakes and amendments which contribute to appreciable delays.

Control and facilitation are not mutually exclusive goals. On the contrary they are mutually reinforcing objectives and it is possible to achieve optimal levels of GOLD CARD SCHEME In the effort to reward and promote both. voluntary compliance and facilitate Basic risk management has always been trade the Gold Card Scheme was fundamental to Customs operations but i n t r o d u c e d . G o l d C a r d B e a r e r in recent times the increasing Companies, which are selected, based complexity, speed, and volumes of on their risk levels and other criteria international trade balanced against the have their goods cleared at the ports expectation of traders for faster without examination unless the clearance of goods and the congestion at consignments are randomly selected for the port has brought up the need to examination. Initially only fifty lessen controls on the less risky companies enjoyed this concession but consignments and focus on those the list has been increased to one hundred and fifty. The number of deemed to pose the greatest risk. companies will be increased as The implementation of the Agreement on compliant levels increase. It is envisaged Customs Valuation (ACV) and the that based on continuous consultations, expedited release of goods require an partnership with, and the commitment effective ex-post control especially post of the private sector the Gold Card clearance audit to check frauds and other scheme could be remodeled and acts of revenue leakage. The effective enhanced to form the beginning of the implementation of such a control measure WCO led Authorized Economic Operator would require the keeping of relevant and Scheme. correct documentation by the trader

CORRECT, RELEVANT AND ACCURATE DOCUMENTATION Incorrect input of data, misdescription and the non availability of required annexed documents, permits and exemption letters greatly contribute to delays in the While these principles generally form an clearan ce o f o th er wise simp le integral part of our operations the consignments. following derived areas will be quite relevant for purposes of trade facilitation and revenue mobilization:-

NON INTRUSIVE CARGO INSPECTION The World Customs Organization (WCO) in its Framework of Standards to secure the supply chain and assist in establishing and developing structures that facilitate legitimate trade without causing delays and bottlenecks in the movement of goods recommend the use on non intrusive detection equipment (inspection).

§Use of Risk Management and Audit Based Controls §Correct, Relevant and Accurate Documentation §Inspection / verification of GoodsGold Card Scheme-Non Intrusive Inspection §Valuation Of Goods§Processing Of Transit Consignments §Enforcement Of Trade Compliance §Trade Facilitation and Consultation

Major Gen. Carl Modey, Commissioner, Customs Div. of GRA receiving a donation of Laptops from Mr. Emmanuel Darko, Deputy General Manager, GCNet in support of Trade Facilitation Volume 14 Number 4, October - December, 2012

23

Trade Facilitation and Revenue Mobilisation

The use of Non Intrusive Inspection in support of Customs operations at the Tema Port is of strategic importance in addressing supply chain facilitation against the background of growing volumes in trade and the limited resources available The use of this technology is also envisaged to address the equally important issues of trade security and terrorism, accurate revenue collection, concealment of drugs, public health and safety Serious concerns have however been raised on the adequacy, operational effectiveness and overall efficiency of the scanning operations at the port.

The provision of additional scanners preferably re-locatable or mobile scanners as an immediate measure due to space constraints at the main port and/or the deployment of another fixed scanner with a high enough resolution / specification depending on the type but capable of differentiating between organic and inorganic items are recommended.

The additional scanners may be sited outside the main port to address the congestion due to the traffic from the inland freight terminals of containers taken back to the port for scanning.

MEASURES TAKEN Heterogeneous goods:- There will be no scanning of non reefer containers containing heterogeneous goods except if the scanning is for a special purpose or directed.

Reefer Containers:-Frozen food items whether homogeneous or heterogeneous shall continue to be scanned except those covered by the Original copies of both the Health and Country of Origin Certificates.

The containers in the latter category shall be physically examined.

Verification:-The confirmation of description and quantities after the scanning shall continue to be done at the examination platforms at the scanner sites.

Where anomalies have been detected which require the unstuffing of the 24

goods for extensive examination these by DICs shall be done at the examination Substitution of values by Customs platform if there is space.

The effective implementation of the Where there is no space the container Agreement on Customs Valuation (ACV) shall be escorted to the State Warehouse requires the availability of information on prices with the following primary premises for the examination objectives:P re m i s e s exa m i n at i o n s h a l l b e conducted for discrepant reefer • The elimination of reasonable containers and in exceptional cases for doubt on the accuracy of declared scanned containers containing delicate values. items (e.g. glassware).The costs • To derive the import value using the associated with such examination shall alternate valuation methods in a be borne by the importer hierarchical order where the declared value is deemed For the avoidance of doubt all unacceptable. verifications are to be done once with • Verifiable sources of data for risk the participation of all the relevant assessment and post clearance agencies audit.

PAPERLESS CLEARANCE OF GOODS As part of measures to improve on the Customs has therefore introduced i. a V a l u a t i o n A s s u r a n c e operational efficiency and effectiveness Programme to address the of the clearance process GRA Customs problem of serious has initiated a project to implement a discrepancies in the values for Paperless transaction module in the some identified commodities Ghana Customs Management System (GCMS).

II. Electronic submission and The main objectives are:validation of FCVRs in the § to reduce the use of hard copy Customs Management System (Paper) in the clearance process § optimize the use of the system by all • The Valuation module in GCMS stakeholders provides for a structured database § minimize interaction between of validated reference values for Traders and Customs officials selected commodities. § generally provide the electronic environment and tools to facilitate • The use of the Valuation Database shall be mandatory for selected HS and promote a more convenient Codes that have been carefully and faster clearance of goods chosen based on their risk levels.

It is envisaged that this process if well • For such HS Codes, Compliance implemented with the buy- in of Officer shall be required to use stakeholders will reduce delays and comparable Valuation information in enhance the faster processing and the Valuation Database in GCMS to release of compliant consign form an opinion on the acceptance or otherwise of the declared value VALUATION ISSUES • The validation has been introduced The valuation of goods is still one of the to address some malpractices and major causes of delay in the clearance of fraudulent acts in the issuance and goods at the ports manipulation of values on FCVRs. The main issues involved may be • The Final Classification and Valuation summarized as follows:Report (FCVR) validation ensures Late submission of documentation to the t h a t i n fo r m a t i o n e n te re d i n Destination Inspection Companies declarations match those on the eSubmission of fake documents Delays in FCVRs submitted by the Destination processing of the Final Classification and Inspection Companies.

Valuation Reports (FCVRs) • The Management System will not Accept Values Lower than those on Manipulation of values on FCVRs the FCVR Challenge/petitions against high values

Volume 14 Number 4, October - December, 2012

Trade Facilitation and Revenue Mobilisation

regulations.

• Imposition of penalties commensurate with the offences • Blocking/ Suspension in (CMS) of officers, declarants and traders • Reward for compliant traders- Gold card Scheme-

Importers are therefore advised to submit correct documentation and genuine invoices.

In cases of seemingly unfair valuation, Customs may allow clearance on permit with payment based on an agreed Customs value and an additional deposit to protect the potential revenue involved pending investigation and resolution to reduce cost to importers.

large amounts of commercial and transportation information that is critical to effective risk analysis and targeting.

LOGISTICS SUPPLY CHAIN It must be recognized that there are many players in the logistics service supply chain with Customs being only one of them. They are: · Shippers — Carriers-Shipping line — Cargo Handlers — Terminal operators — Freight stations — Freight Forwarders/Custom House Agents — Regulatory Agencies — Destination Inspection Companies — Financial Institutions — Customs — Security Agencies — Trucking Companies

Customs has moved from a culture of 'telling' to' consulting'. There is in place a Joint Customs Consultative Committees comprising almost all identified stakeholders. Their experiences and insights will serve as TRANSIT CONSIGNMENTS valuable inputs in the formulation of Transit goods are transported through policies and dissemination of Any delay or bottleneck by any of the the country from one customs office and information. stakeholders becomes a constraint, which exit through another without the payment of import duties and other It is expected that the various increase the clearance time and / or taxes normally due on imports. stakeholders will buy into the vision contribute to the cost of doing business at and use the Committee as a platform the port Goods in transit and for re-export can be to promote effective and pro-active Some of the easily identified effects of delays leaked into the domestic markets trade facilitation. in the Supply Chain are:without the payment of import duties — High demurrage -Shipping and domestic consumption taxes. What Information is vital in Trade Lines/Agents is more, their diversion could circumvent Facilitation. The development of a — High rents- Terminal operators rules relating to prohibited and customs to business communication — Increased Transport costs restricted goods platform and the institutionalization — Congestion in the Port of regular meetings are clearly — Disruption in and supply schedules This category of goods does not directly mutually beneficial in enhancing manufacturers/importers contribute to revenue however their trade facilitation. These structures levels of risk indicate the requirement of will be expanded to include all high level of customs control contrary to stakeholders involved in the import, CONCLUSION For Customs to effectively manage the some perception export and transit of goods. sometimes apparently contradictory mandates and objectives the support and Customs will continue with efforts to partnership of stakeholders is critical address the inherent malfeasance, fraud A C T I V E P R O M O T I O N O F and associated delays in en-routing these VOLUNTARY COMPLIANCE Customs is committed to constructive consignments.

It is an objective of the Division to engagement and partnership with create a level playing field.

JOINT CUSTOMS CONSULTATIVE The over arching strategy will stakeholders towards facilitating trade, reducing clearance times and reducing the COMMITTEE (JCCC) continue to be the promotion of cost of doing business at the ports without While Customs interacts with the global voluntary compliance. Towards this sacrificing control. supply chain at importation, at end Customs has been pursuing a exportation, in transit, or in a free zone policy of: The easiest way to go backwards is to stand the private sector controls and manages · Consistent, objective and still.

This is the time to hold hands as the global supply chain from end to end. deterrent/punitive strategic partners for a better Ghana. measures taken a g a i n s t The private sector is also the custodian of breaches of customs laws and Volume 14 Number 4, October - December, 2012

25

Maritime Trade Review July - September, 2012 INTRODUCTION For the third quarter of 2012, total trade (in Volume) at the sea ports of Ghana amounted to over 4.60 million tons. Of this, total import was 3.61 million

tons or 77% of the total volume of trade while total export amounted to over 1.0 million tons or 25% of the total volume of trade.

Table 1 Summary of Maritime Trade Review, July -September, 2012 Import

Export

Total

%share of Port

542,753

725,834

1,268,587

27

Tema

3,068,113

352,010

3,420,123

73

Total

3,610,866

1,077,844

4,688,710

%share

77

23

Transit

152,035

16,309

Takoradi

168,344

4

Total cargo volume at the port of Tema was over 3.42 million tons (73% of total volume of trade through the two sea ports) while the Takoradi port handled 1.26 million tons.

Total transit cargo (import and export) for the period was 4% (168,345 tons) of the total volume of trade at the two sea ports. Table 1 above and Fig 1 below give a summary view of the maritime trade situation for the review period.

JULY-SEPTEMBER 2010 AND 2011 Table 2 below compared the performance of the maritime trade in the review period of July to September 2012 to the performance in the same period in 2011. Total throughput for the review period increased by 9% from 4.3 million tons in 2011 to 4.6 million tons in 2012.

This increase was a reflection of the 11% and 1.7% increases in the import and export tonnages for the review period. Total transit tonnage however decreased by 30% during the review period. In the

port of Tema, total throughput increased by 1.2% from 3.30 million tons in 2011 to 3.42 million tons in 2012.

The import and export tonnages through the port of Tema reflected the increase in the throughput by 4.9 and (22.3%) over the figures of the previous year.

Total transit cargoes passing through the port of Tema decreased by 29.7%.

Table 2 Maritime Trade of Ghana In Tons(July-September) 2011&2012 Tema 2011

2012

Import

2,925,433

3,068,113

Export

453,323

Total Transit 26

Takoradi %Diff

Total

2011

2012

4.9

318,013

542,753

352,010

-22.3

606,170

3,378,756

3,420,123

1.2

239,461

168,345

-29.7

Volume 14 Number 4, October - December, 2012

% Diff

2011

2012

%Diff

70.7

3,243,446

3,610,866

11.3

725,834

19.7

1,059,493

1,077,844

1.7

924,183

1,268,587

37.3

4,302,939

4,688,710

9.0

1,011

0

100.0

240,472

168,344

-30.0

Maritime Trade of Ghana, 2012

The port of Takoradi on the other hand saw a 37% increase from the 924,183 tons recorded for the 2011 period to 1.26 million tons during the review period.

This increase was the result of a 70% increase in the total import tonnage handled at the port of Takoradi

during the review period. Export tonnage through the port of Takoradi for the review period also saw a 19.7% increase over the 2011 tonnage. There was no transit export recorded for the port of Takoradi during the review period.

TYPES OF TRADE Table 3 Maritime Trade By Type in Tons, July -September, 2011 &2012 Tema

Takoradi

Total

2011

2012

%Diff

2011

2012

%Diff

2011

2012

%Diff

1,618,511

1,597,358

-1.3

75,248

88,413

17.5

1,693,759

1,685,771

-0.5

Dry Bulk

715,565

691,295

-3.4

194,835

392,156

101.3

910,400

1,083,451

19.0

Liq. Bulk

591,357

779,460

31.8

47,930

62,184

29.7

639,287

841,644

31.7

2,925,433

3,068,113

4.9

318,013

542,753

70.7

3,243,446

3,610,866

11.3

Liner

414,705

322,058

-22.3

118,680

110,178

-7.2

533,385

432,236

-19.0

Dry Bulk

20,089

18,787

-6.5

487,490

615,656

26.3

507,579

634,443

25.0

Liq. Bulk

18,529

11,165

-39.7

0

0

0

18,529

11,165

-39.7

453,323

352,010

-22.3

606,170

725,834

19.7

1,059,493

1,077,844

1.7

Import Liner

Total Export

Total

From Table 3 above it can be seen that the maritime trade was grouped into the liner, dry bulk and liquid bulk trades. On the import side, total liner trade amounted to over 1.69 million tons for the review period. This was 0.5% less than what was recorded for the same period in 2011.

The dry bulk trade for the review period was 19% more than the tonnage recorded for the same period of 2011 while the liquid bulk trade saw a 31.7% increase from the 2011 period tonnage during the review period. Fig. 2 below gives a pictorial view of the import trade types.

The export trade during the review period recorded a decrease of 19% in the liner tonnage from 533,385 tons in the 2011 period to 432,236 tons in 2012. The dry bulk export trade recorded an increase of 25% during the review period. The liquid bulk export trade showed significant decrease during the review period, moving from 18,529 tons in the 2011 period to 11,165 tons in 2012. This was a decrease of 30% over the 2011 tonnage. Fig. 3 below gives details of the export trade types.

Volume 14 Number 4, October - December, 2012

27

Maritime Trade of Ghana, 2012

DIRECTION OF THE MARITIME TRADE OF GHANA Ghana trades with various countries of the world.

These countries are grouped into seven trading ranges as the United Kingdom (UK), the North

Continent (NC), the Mediterranean Europe (ME), the North America (NA), the Far East (FE), the Africa (AF) and the Others (OH) ranges.

Table 4 Direction of Maritime Import Trade of Ghana in Tons(July -September, 2012) Liner Dry bulk Liq. Bulk Total % range

UK 45,691 0 54,949 100,640 3

NC 198,974 224,506 260,448 683,928 19

ME 277,753 278,865 9,939 566,557 16

NA 92,286 122,565 0 214,851 6

The Import Trade For the review period, majority of import into Ghana came from the Far East range amounting to 1.22 million tons. This was 33% of total import for the 3rd quarter of 2012. The North Continent range contributed the next highest tonnage of 683,928 tons or 19% of total import.

FE 796,249 390,976 5,043 1,192,268 33

AF 138,133 27,650 393,214 558,997 15

OH 136,685 38,889 118,051 293,625 8

TOTAL 1,685,771 1,083,451 841,644 3,610,866 100

the North America and the United Kingdom ranges followed in that order with 6% and 3% respectively.

This is depicted in Table 4 above and Fig. 4 below.

This was followed by the Mediterranean Europe with 566,557 tons or 16% of total import. The African range followed next with 15% of the total imports into Ghana .The Others range, made up of countries of South America, Australia, Jamaica, Lebanon, New Zealand, etc, came next with 8% of the total import.,

The Import Items Major import items in the liner trade for the review period include pharmaceuticals and medical supplies (13,693 tons), lubricating oil (18,115 tons) and processed food and beverages (166,127 tons). In the dry bulk trade, major import items include alumina (10,373 tons), fertilizer (72,289 tons), cement (165,000 tons) and clinker (629,258 tons). The major liquid bulk import items were petroleum product (563,421 tons) and chemicals (166,605 tons).

Liner Dry bulk Liq. Bulk Total % range

28

The Export Trade Table 5 and Fig. 5 below gives an indication of the direction of the maritime export trade for the review period. About 40% of the export trade amounting to 429,386 tons was shipped to the Far East range. The North Continent range received 28% (298,644 tons) followed by Mediterranean Europe range with 188,360 tons or 17%., the Others, Africa and the North America ranges followed with 6%, 3% and 3% respectively. The United Kingdom range had the least of 3% for the period.

Table 5 Direction of Maritime Export Trade of Ghana in Tons(July-September, 2012) UK NC ME NA FE AF OH 18,234 113,308 21,810 37,591 187,762 28,897 24,634 1000 185,336 166,550 0 241,624 3,183 36,750 9,152 0 0 0 0 2,013 0 28,386 298,644 188,360 37,591 429,386 34,093 61,384 3 28 17 3 40 3 6

Volume 14 Number 4, October - December, 2012

TOTAL 432,236 634,443 11,165 1,077,844 100

Maritime Trade of Ghana, 2012

The Export Items The major liner export items for the review period include cashew nuts which contributed 24,566 tons of the total liner export trade and cocoa beans (81,794 tons). Cocoa products amounted to 44,230 tons, metal scraps 31,297 tons, timber logs 49,045 tons and sawn timber 75,463 tons.

In the dry bulk export trade, major export items were manganese (395,186 tons), bauxite (211,107 tons) and sheanuts about (17,750 tons). The liquid bulk items were mostly petroleum products amounting to 9,152 tons and other liquid bulks 2,013 tons.

THE TRANSIT TRADE Table 6 Summary of Maritime Transit Trade Through the Seaports of Ghana in Tons ,2012 Import

Tema Export

Takoradi Import Export

Total

Import

Total Export

Total

-

-

-

0

0

0

-

-

-

348

335

683

0

0

0

348

335

683

95,940

8,950

104,890

0

0

0

95,940

8,950

104,890

Total

Country/Year Algeria Benin Burkina Faso Cameroun

-

-

-

0

0

0

-

-

-

Chad

-

198

198

0

0

0

-

198

198

Gabon

-

-

-

0

0

0

-

-

-

Gambia

-

-

-

0

0

0

-

-

-

Guinea

-

-

-

0

0

0

-

-

-

882

105

987

0

0

0

882

105

987

Mali

14,196

742

14,938

0

0

0

14,196

742

14,938

Niger

16,957

1,169

18,126

0

0

0

16,957

1,169

18,126

Nigeria

9,448

103

9,551

0

0

0

9,448

103

9,551

Others

26

4,568

4,594

0

0

0

26

4,568

4,594

Senegal

240

-

240

0

0

0

240

-

240

Togo

13,998

139

14,137

0

0

0

13,998

139

14,137

Total

152,035

16,309

168,344

0

0

0

152,035

16,309

168,344

Ivory Coast

Table 6 above gives an idea of the transit trade during the review period. A total of 168,344 tons was recorded for the transit trade (export and import). This was 19% less than what was recorded in 2011 for the same period. In table 1 above, the transit export tonnage recorded for the period amounted 16,309 tons of the total transit trade while transit import amounted to 152,035 tons.

Major countries whose transit trade passed through the sea ports of Ghana include Burkina Faso which recorded the highest share of the total transit trade amounting to 104,890 tons or over 92%. This was followed by Niger with 18,126 tons. The others were Togo with 14,137 tons, Nigeria with 9,551 tons and Mali with 14,938 tons.

Volume 14 Number 4, October - December, 2012

29

Maritime Trade of Ghana, 2012

PERFORMANCE OF THE SHIPPING AGENTS Fifty-five (55) shipping agencies handled the total Trade of over 4.68 million tons for the review period as is shown in Table 7 below.

Thirty-one(31) shipping agencies handled the liner trade.

The highest performer was Maersk Gh. Ltd with 385,767 tons which amounted to over 18.21% of the total trade for the period. This was followed by MSC Gh. Ltd which handled 283,632 tons or over 13.39% of total trade. The next was Hullblyth with 214,835 tons amounting over 10.14% of the total trade. Other participants with good performances in the maritime trade for the period include Delmas Shipping (6.64%), Scanship Gh Ltd (6.63%), ISAG Gh. Ltd (6.23%), PIL Gh. Ltd (6.63%) and Supermaritime Gh. Ltd (3.74%). There were other participants whose activities ranged from 0.01% to 2.48%.

In the dry bulk trade there were 14 participants.

Hullyblyth Gh. Ltd handled the highest tonnage of

605,613 tons which was over 35.25% of total trade.

Supermaritime Gh. Ltd came next with a tonnage of 457,613 tons amounting to over 26.64% of the total trade. Other major performers include Global Cargo & Commodities (9.72%), MICRO Shipping Gh. Ltd (12.29%), DAMCO Shipping Gh. Ltd (4.15%), Map Shipping Gh. Ltd (3.82%) and others with percentages ranging from 0.92 to 1.41.

The liquid bulk trade had 10 shipping agencies to handle the over 852,810 tons of cargo. Inchcape Shipping Services recorded the highest tonnage of 235,487 or 27.61% of the total trade. Bulk Shipping Services recorded the second highest tonnage of 208,198 tons (24.41%) Daddo Maritime followed with 159,313 tons or 18.68% of the total trade. Sea &Shore handled the 4th highest tonnage of 157,056 tons (18.42%). The rest of the agencies in this trade handled between 0.73% and 1.12%.

GHANA SHIPPERS' AUTHORITY Table 7 PERFORMANCE OF SHIPPING AGENTS IN GHANA'S SEABORNE TRADE - July - Sept. 2012 IMPORT AND EXPORT IMPORT

EXPORT

TOTAL

%SHARE

LINER A & J SHIPPING SERVICES ANDIPEX CO. LTD ANTRAK GH. LTD

0

3,427

0.16

8,316 52,818

0 5,869

8,316 58,687

0.39 2.77

CONSOLIDATED SHIPPING AG.

231

0

231

0.01

DELMAS SHIPP. GH. CMA CGM.

101,774

38,851

140,625

6.64

DOLPHIN SHIPPING SERV. LTD FACULTY LOGISTICS

16,524 8,026

1,894 0

18,418 8,026

0.87 0.38

FAIRPOINT BUSINESS SYS. GLOBAL CARGO & COMMODITIES

3,503 17,350

0 0

3,503 17,350

0.17 0.82

GMT SHIPPING GH. LTD

67,536

0

67,536

3.19

GRIMALDI GH. LTD

64,563

9,577

74,140

3.50

HULL BLYTH GH. LTD INCHACAPE SHIPP. SERV.

152,855 10,743

61,980 1,545

214,835 12,288

10.14 0.58

ISAG GH. LTD KHUDA SERVICES

75,867 1,453

56,040 0

131,907 1,453

6.23 0.07

5,660

1,509

7,169

0.34

300,800

84,967

385,767

18.21

MAP SHIPPING MARITIME AGENCIES

2,154 309

773 0

2,927 309

0.14 0.01

MAXITIDE VENTURES MOL GH. LTD

3,036 61,692

0 14,131

3,036 75,823

0.14 3.58

238,441

45,191

283,632

13.39

MACRO SHIPPING GH. LTD MAERSK GH. LTD

MSCA GH. LTD

32

3,427

Volume 14 Number 4, October - December, 2012

Maritime Trade of Ghana, 2012

PANALPINA GH. LTD

16,728

1,748

18,476

0.87

110,766

29,585

140,351

6.63

7,897

0

7,897

0.37

77,818

18,734

96,552

4.56

120,818

19,504

140,322

6.63

SDV GH. LTD

43,491

13,157

56,648

2.67

SEATRANS LTD

52,540

0

52,540

2.48

6,541

0

6,541

0.31

52,089

27,182

79,271

3.74

1,685,766

432,237

2,118,003

45.17

0

6,478

6,478

0.38

71,298

0

71,298

4.15

0

1,215

1,215

0.07

9,328

0

9,328

0.54

GLOBAL CARGO & COMMODITIES

167,048

0

167,048

9.72

HULL BLYTH GH. LTD MACRO SHIPPING GH. LTD

605,613 0

0 211,107

605,613 211,107

35.25 12.29

0

1,000

1,000

0.06

65,690

65,690

1,207

0 0

1,207

3.82 0.07

SCANSHIP GH. LTD

23,173

12,785

35,958

2.09

SEVENLOG GH. LTD

74,696

0

74,696

4.35

SILVER MARITIME SUPERMARITIME GH. LTD

9,644 55,755

0 401,858

9,644 457,613

0.56 26.64

1,083,452

634,443

1,717,895

36.64

BULKSHIP & TRADE

208,198

0

208,198

24.41

DADDO MARITIME

150,161

9,152

159,313

18.68

9,550

0

9,550

1.12

235,487

0

235,487

27.61

MACRO SHIPPING GH. LTD

6,250

0

6,250

0.73

OIL MARINE AGENCY

9,552

0

9,552

1.12

SCANSHIP GH. LTD SEA & SHORE

10,502 157,056

2,013 0

12,515 157,056

1.47 18.42

SEVENLOG GH. LTD

19,139

0

19,139

2.24

SUPERMARITIME GH. LTD

35,750

0

35,750

4.19

841,645

11,165

852,810

18.19

3,610,863

1,077,845

4,688,708

100.00

PIL GH. LTD PORTS MARINE LTD SAFMARINE SCANSHIP GH. LTD

SHARAF SHIPPING AGENCY SUPERMARITIME GH. LTD SUB TOTAL DRY BULK ANTRAK GH. LTD DAMCO LOGISTICS DELMAS SHIPP. GH. CMA CGM GETMA GH. LTD

MAERSK GH. LTD MAP SHIPPING GH. LTD PORTS MARINE

SUB-TOTAL LIQUID BULK

HULLBLYTH GH. LTD INCHCAPE SHIPPING SERVICE

SUB-TOTAL GRAND TOTAL

Volume 14 Number 4, October - December, 2012 33

Maritime Trade of Ghana, 2012

PERFORMANCE OF SHIPPING LINES A total of 100 shipping lines and charterers participated in the seaborne trade of Ghana for the third quarter of 2012 as can be seen in Table 8 below.

The dry bulk trade saw 18 shipping lines and operators participating. High performers include I.M.T with 590,601 tons (34.38%), H C Trading with 607,962 tons (35.39%), Others with 165,695 tons (9.65%), Dangote with 135,000 tons (7.86%). The remaining participants carried between 0.07% and 1.18%.

The liner trade saw 58 shipping companies and operators loading and unloading cargo at the sea ports of Ghana. The highest performer was Maersk Line which handled over 386,045 tons of liner cargo amounting to almost 18.23% of the total trade for the period.

Twenty-four(24) shipping lines participated in the liquid bulk trade for the period. The highest operators were fuel trade with 170,835 tons (20.03%), Sahara with 157,056 tons (18.42%), Breadbox with 131,893 tons (15.47%), Sage petroleum with 60,774 tons (7.13%) and VIHAMA/Chase Energy with 44,566 tons (5.23%). Other participants carried between 0.30% and 4.32%.

Mediterranean Shipping Co with 283,632 tons (13.39%), Safmarine with 96,274 tons (4.55%), Others with (4.95%), CMA CGM (4.11%), Grimaldi Lines (4.32%), Gold Star Line (4.05%), Hanjin Shipping (4.35%). The share of the rest was between 0.01% and 1.48%.

GHANA SHIPPERS' AUTHORITY Table 8 PERFORMANCE OF SHIPPING LINES IN GHANA'S SEABORNE TRADE- July - Sept. 2012 VOLUME OF TRADE (IN METRIC TONNES) SHIPPING LINE/ CHARTERER LINER 'K' LINE ADOM MBROSO COLDSTORE AFRICA EXPRESS LINE AFRITRAMP BREAD BOX SHIPPING CARGILL INC. CARPENTERIA IND. CCB-LA COMPAGNIE CHINA OCEAN SHIPPING CHINA SHIPPING CMA CGM CONSHIP LINES CONTI GMT CSAV DELMAS EAGLE WEST AFRICA SERV. ED & F MAN ENI S.P.A. RAFFINERIA EUKOR CAR CARRIER EURO AFRICA EURO TRADING EVERGREEN SHIPP. LINE GLOVIS CO. LTD GOLD STAR LINE GRIMALDI LINES HANJIN SHIPPING HAPAG-LLOYD

34

Volume 14 Number 4, October - December, 2012

IMPORT

11,776 1,543 12,916 11,028 0 1,225 76 4,325 48,302 16,125 60,600 231 51,423 95 41,174 6,645 26,064 5,243 7,197 4,583 1,453 43,364 6,446 36,863 68,486 71,513 22,348

EXPORT

3,808 0 4,948 1,238 911 0 0 0 12,016 1,748 26,458 0 0 0 12,393 19,168 0 0 0 3,842 0 13,157 0 48,925 9,856 20,540 17,285

TOTAL

15,584 1,543 17,864 12,266 911 1,225 76 4,325 60,318 17,873 87,058 231 51,423 95 53,567 25,813 26,064 5,243 7,197 8,425 1,453 56,521 6,446 85,788 78,342 92,053 39,633

%SHARE

0.74 0.84 0.58 0.06 0.00 0.20 2.85 0.84 4.11 0.01 2.43 0.00 2.53 1.22 1.23 0.25 0.34 0.40 0.07 2.67 0.30 4.05 3.70 4.35 1.87

Maritime Trade of Ghana, 2012

HC TRADING HOEGH AUTO LINES HUAL LINES IMT J. MARR (SEAFOODS) LTD LD COMMODITIES MAERSK LINE MEDITERRANEAN SHIPP. CO MENTOR SHIPPING MESSINA LINES MITSUI O.S.K. LINES NILEDUTCH NIPPON YUSEN KAISHA NMT LINES NORDANA LINES OTHER PACIFIC INTL. LINES PARLEVLIET & VAN DER PLAS PARTIES RAGTIME NAVIGATION INC. SAFMARINE SALLAUM LINES SEABOARD OVERSEAS GROUP THORESEN SHIPPING UAL UNITED ARAB SHIPP. CO WE2(SEAFOODS) CO. LTD WEST COAST WILHELMSEN SHIPS SERV. ZIM LINE SUB TOTAL DRY BULK AFRICA EXPRESS LINE AFRITRAMP BAY PHOENIX SHIPP. CO. BREADBOX CMA CGM COMPANHIA DE INVESTMENTO DANGOTE EURO AFRICA GRIMALDI LINES HC TRADING IMT MAERSK LINE OCEANCREST TRANSPORT INC OTHER SEA INVESTMENT LINES TAIWAN CEMENT CORP. INC. YARA GH. LTD YARA ITALIA SPA SUB TOTAL LIQUID BULK AFRICA EXPRESS LINE

1,951 1,880 8,487 21,878 16,872 2,154 301,078 238,441 233 12,509 61,692 5,066 19,480 7,897 3,104 99,175 110,766 0 13,715 17,350 77,540 480 0 33,000 5,660 33,921 3,427 1,960 764 24,244 1,685,768

0 0 0 20,347 0 0 84,967 45,191 0 1,647 14,131 3,066 2,945 0 39 5,685 29,585 1,894 0 0 18,734 0 0 0 598 0 0 0 0 7,115 432,237

1,951 1,880 8,487 42,225 16,872 2,154 386,045 283,632 233 14,156 75,823 8,132 22,425 7,897 3,143 104,860 140,351 1,894 13,715 17,350 96,274 480 0 33,000 6,258 33,921 3,427 1,960 764 31,359 2,118,005

0.09 0.09 0.40 1.99 0.80 0.10 18.23 13.39 0.01 0.67 3.58 0.38 1.06 0.37 0.15 4.95 6.63 0.09 0.65 0.82 4.55 0.02 0.00 1.56 0.30 1.60 0.16 0.09 0.04 1.48 45.17

74,696 0 2,048 1,207 0 0 135,000 0 9,644 590,601 0 0 48,498 153,377 8,180 30,000 20,300 9,900 1,083,451

0 6,478 0 0 1,215 1,513 0 3,957 0 0 607,962 1,000 0 12,318 0 0 0 0 634,443

74,696 6,478 2,048 1,207 1,215 1,513 135,000 3,957 9,644 590,601 607,962 1,000 48,498 165,695 8,180 30,000 20,300 9,900 1,717,894

4.35 0.38 0.12 0.07 0.09 7.86 0.23 0.56 34.38 35.39 0.06 2.82 9.65 0.48 1.75 1.18 0.58 36.64

19,139

0

19,139

2.24

Volume 14 Number 4, October - December, 2012

35

Maritime Trade of Ghana, 2012

BREADBOX CHASE PETROLEUM CIRRUS EURO AFRICA FUEL TRADE G.O.P.D.C. GEOGAS TRADING GLENCORE ENERGY IMT KEM ONE MURCO PETROLEUM LTD OTHER PG WILMAR LTD SAGE PETROLEUM SAHARA SHELL INT. TRADING SPLIETHORFF SPRINGFIELD TOTAL GHANA VIHAMA ENERGY/CHASE VIHAMA ENERGY/SPRINGFIELD VITOL VOLTA RIVER AUTHORITY SUB-TOTAL GRAND TOTAL

6,250 131,893 30,961 10,502 170,835 5,043 8,000 22,438 18,243 2,100 20,084 8,341 0 60,774 157,056 6,925 2,550 32,167 2,487 44,566 36,878 34,865 9,550 841,647

0 0 0 0 0 0 0 0 0 0 0 9,152 2,013 0 0 0 0 0 0 0 0 0 0 11,165

6,250 131,893 30,961 10,502 170,835 5,043 8,000 22,438 18,243 2,100 20,084 17,493 2,013 60,774 157,056 6,925 2,550 32,167 2,487 44,566 36,878 34,865 9,550 852,812

0.73 15.47 3.63 1.23 20.03 0.59 0.94 2.63 2.14 0.25 2.36 2.05 0.24 7.13 18.42 0.81 0.30 3.77 0.29 5.23 4.32 4.09 1.12 18.19

3,610,866

1,077,845

4,688,711

100

GHANA PORTS AND HARBOURS AUTHORITY 1. In Consultation and Agreement with the principal stakeholders in the Port of Tema, including Customs Div. of GRA, Ship Owners & Agents Association (SOAAG) and the Security Services, with the objective of decongesting the port, it is hereby announced that the Port of Tema will continue to receive and deliver cargo on Saturdays from 8am to 5pm if Shippers, Clearing & Forwarding Agents are available.

2. In addition, all containers that are scanned by 4pm each day of the week from Monday to Saturday will be processed for clearance once there is no discrepancy. In all such cases, Agents must be present to be served to avoid rent and penalty charges.

3. Accordingly, GPHA invites all Shippers, Clearing and Forwarding Agents who ordinarily do not work on Saturdays to take advantage of this opportunity to serve their clients clear their cargo from the Port of Tema to avoid additional demurrage and rent cost.

GPHA expresses its gratitude to all its customers and state bodies for their cooperation it this regard. Further measures in this direction may be announced in due course.

Thank you for giving us the opportunity to serve you better.

Ghana Ports: Providing efficient port facilities and quality service to Port users.

36

Volume 14 Number 4, October - December, 2012