The Food and Beverages Association of Ghana (FABAG) has called on the government to extend the newly announced ban on the land transit of selected goods to include fruit juices and similar products to close potential loopholes in the policy.
According to the Association, expanding the list of restricted goods will help prevent unscrupulous traders from misclassifying products to evade the directive and continue diverting goods into the Ghanaian market through land borders.
In a statement issued on Tuesday, March 10, FABAG commended the Minister for Finance, Dr. Cassiel Ato Forson, for introducing the directive requiring certain transit goods to enter Ghana exclusively through the country’s seaports.
The Association described the move as a bold intervention aimed at tackling long-standing challenges of smuggling, revenue losses, and misclassification of goods within Ghana’s trading system.
“This decisive directive… represents a bold and timely intervention aimed at addressing the persistent challenges of smuggling, revenue losses and misclassification of goods that have plagued Ghana’s trade environment for many years,” FABAG said.
The directive affects goods such as rice, sugar, flour, textiles, spaghetti and tomato paste, which have been linked to widespread abuse of the land transit regime.
FABAG explained that the transit system has often been exploited by some traders who declare goods as cargo destined for neighbouring countries but later divert them into the Ghanaian market without paying the appropriate duties and taxes.
“This practice has not only deprived the State of significant revenue but has also created an uneven playing field for legitimate manufacturers, importers, and distributors who comply with Ghana’s tax and regulatory requirements,” the statement said.
The Association noted that routing the affected goods through Ghana’s seaports would improve monitoring, inspection and documentation processes, reducing the risk of diversion and smuggling.
However, FABAG cautioned that traders may attempt to circumvent the directive by deliberately misclassifying restricted goods under other product categories.
“Expanding the scope of the directive will therefore close potential loopholes and ensure that the intended objectives of the policy are fully realised,” the Association added.
FABAG also urged key institutions, including the Ghana Revenue Authority and the Customs Division, to ensure strict and uncompromising enforcement of the directive.
The Association said sustained vigilance will be critical to ensuring the policy protects government revenue, restores discipline in Ghana’s customs system and safeguards legitimate businesses operating in the country
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