The payments are assured on government’s release of funds through the Ministry of Finance to be paid to all eligible exporters under scheme.The GRA gave the assurance in Accra last week to exporters, importers and other stakeholders in the export trade, according to reports.
The payments are to be made just days after reports said a number of local manufacturers and exporters were threatening to go to court over what they allege are deliberate delays in the payment of their tax refunds due them under the duty drawback arrangement.
Duty Drawback, which is a refund on tariff payments for the import of raw materials which are re-exported in their same form or re-exported with some level of value addition,was instituted in Ghana in 1993 with the objective of enhancing the international competitiveness of local players in the export trade. In some instances, companies can receive a customs duty drawback of up to 100 percent on imported materials that are used to produce the export product.
Data from the Ghana Chamber of Commerce and Industry (GNCCI) on 33 business showsthat government owes about GH¢ 456, 289.00 average to each company, comprising GH¢ 500.00 as the lowest and GH¢1,700,000 million as the highest amount to be refunded.Likewise, payments averagely could take between 5 months to two years, with an average payment time lag of 10 months.
The data, covering 33 businesses, showed that less than half of them – 48 percent – received the refund after going through the processes; 18 percent (about six companies) went through the process successfully, while 34 percent (less than 12) of respondents did not go through it at all.
However, the GRA has pointed fingers at the exporters and manufacturers that they are exclusively to be blamed for the outstanding refunds the Authority owed them, singling out improper documentation by the companies as the major challenge facing the scheme, which made it difficult for them to access their drawback claims.
Reports quoted GRA Chief Revenue Officer, Sheila Vigbedor, in charge of duty drawback, that the use of unapproved routes that were not on the GCNet automated systemand the desire to beat the system with shoddy documentation were major problems that the beneficiaries needed to resolve.
One important document needed for processing the drawback claims is the landing certificate, which many exporters lack, but the GRA cannot accept and process claims until such documents are duly signed and endorsed by the officers on both sides of the respective customs services.
Persons familiar with the export market say it would augur well for exporters and manufacturers, as well as other stakeholders to follow the advice of the GRAto follow proper procedure to make the process run smoothly.
The companies, particularly, importers and exporters have called for a streamlining of the duty drawback scheme so that they can have access to the much needed funds accruing under the scheme to boost their capital and thereby minimize the burden of price increments on their products else they become uncompetitive.
They lament that procedures they have to go through to access their refunds are bedeviled with extreme bureaucratic and administrative processes, frustrating them and therefore making them to give up on their claims.Moreover, the time gap between application for the refund and its payment is lengthy, thus reducing the real value of the refund.
The GNCCI has suggested that government automate the duty drawbackprocessing so that some documents can be downloaded and submitted online to facilitate compliance attainments, and has additionally, restrained members to stay calm as the payments due are addressed.
Unhappy that most companies that are due for drawback benefits do not even have any idea of the existence of this scheme, the GNCCI with Mark Badu-Aboagye as CEO, has encouraged all companies that need information on the scheme to contact any of its offices nationwide.
The duty drawback law stipulates a refund of all or part of duties used on imported goods brought into the country and processed for export. The refund is to be paid within 12 months after being applied for and it is paid on only the quantity and weight of commodities exported.
Goods that are designated for repair or construction of an aircraft, imported and placed in a free zone or duty free shop, are some of the items are all qualified for duty drawback.
Meanwhile, information indicated that exports in Ghana decreased to $2514.80 million in the first quarter of 2016 from $2558.30 million in the fourth quarter of 2015.
Quarterly exports averaged $1910.96 million from 2003 until 2016, reaching an all-time high of $4118.30 million in the first quarter of 2012 and a record low of $565.06 million in the first quarter of 2003.
Ghana’s main exports are gold, cocoa and crude oil. Others include timber products tuna, aluminum, manganese ore, diamonds and horticulture, with main exports partners being Netherlands, Burkina Faso, South Africa and United Kingdom.
###
Source: Amewuga Ablordeppey
