balancing clearance with compliance - evans klutse

7/31/2019 Balancing Clearance With Compliance - Evans Klutse

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Balancing Clearance with Compliance

May 16, 2012

Evans KlutseTrade Facilitation Advisor

USAID West Africa Trade Hub


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ECOWAS Intra-Trade Pales ECOWAS exports continue to be dominated by minerals, petroleum and

primary agriculture. Biggest markets are USA (35.6%) and EU (28.2%)

with China and Asia gaining.

For the period 2000 - 2007, Intra-ECOWAS trade accounted for only 9.3%

of ECOWAS total trade. Rest of Africa a scant 3.5%. This is much less than elsewhere. For example:

NAFTA 40%

Western European 63%

MERCUSOR - 20%. On average, Intra-ECOWAS exports account for only 4% of countries

GDPs.

Argument goes that a country & region cannot grow sustainably without

intra-regional trade.

In other words ECOWAS has UPSIDES.


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High Trade Costs Erode

Competitiveness Trade Hub is building statistical base on the cost of

moving goods within ECOWAS and UEMOA

Based on initial responses, leading exporters arepaying roughly 20% ofcifvalue to ship ETLS FMCG

from Accra to Lagos.

Total Cost is about $15/km, of which 55% comprises

in/formal fees for ETLS.

Transport translates to $400-600/day/truck.

Indicative time from loading to delivery is 8 days (for

400 km!).


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Whats Holding Back ECOWAS Trade ?

Non-complementarity. Differentiated goods are relatively

few.

Multiple national currencies with limited convertibility.

High costs of doing and transacting business and trade.

Limited effect of ETLS and ECOWAS Compensation Scheme.

Dominance of Informal Cross Border Trade over formaltrade.

AND, red tape, in/formal fees and delays at border

crossings.


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Opportunities Boom or Bust

Will West African companies and institutions capture

and drive the boom or fall by the wayside?

What strategies will the private sector and government

embrace? For example: Country-centric vs. Regional

Open Markets vs. Protected Markets

Economies of Scale vs. Small Scale

Middle Class vs. Bottom of Pyramid

Oligopoly vs. Competition

Primary Agriculture vs. Agribusiness

Trade Tariffs vs. Income Taxes


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The Border Information Center isa Cross-Border Partnership!

GSA,ALCO,

Trade Hub

ECOWAS, UEMOA

Customs,Immigration, BNI,

Police,

Chamber ofCommerce, TransportUnions, Private Sector,

Clearing Agents

Ministries of Tradeand Transport


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LONG ROOMGoods Value > $3000BAGGAGE HALL

Goods Value < $3000

Clearance of Imports: 2 Levels

Customs procedures at Aflao


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Importer/Exporter Obligations

at the Border

Importer, with a Clearing Agent, obtains and completes

Importation & Exportation by Overland Routes C68

Available from Loading Task Force Office of Customs Division, Ghana

Revenue Authority

Submits Declaration from Front End System (FES)

If error free, Declaration is validated for importer to pay appropriate

taxes at Ghana Commercial Bank or Ecobank Importer takes Declaration and payment receipt to Compliance Officer

Then, Examination Officer examines and releases goods before exit

If errors are detected, Importer/Agent completes a Post Entry


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Other Documents Needed for Import

FCVR

Licenses, Certificates or

Permits (for restricted goods) Packing List

Certificate of Origin

**NOTE: Depending on volume of work and type of goods,

normal clearance procedure should not take more than 1

hour


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Exports: 2 Main Types

Traditional

Non-Traditional

Examples:

-Cocoa Beans

-Logs & Lumber

-Unprocessed gold

& other minerals

-Electricity-Fresh Fish

All other goods


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Export: Traditional GoodsSupporting Documents:

1. Bank of Ghana Form FX5

2. Appropriate Licenses, Certificates & Permits

from authorizing agencies (many obtained

online)

3. Certificates of Origin

4. Packing Lists


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Export Procedure- Exporter/Agent submits a Declaration at the

Front End System (no need to pay taxes on

exports)

- Documents verified by the Compliance Officer

and routed to the Examination Officer

- Examination Officer releases goods for export

through the Exit Gate into Togo


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Customs procedures at Aflao


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Why Enforcement? Standards

- Quality

- Public Health and Safety, etc

Revenue Collection- Excise tax

- Duties, etc

Security- Illicit Trade

- Arms

- Human Trafficking, etc


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Cross border recognition- Standards?

- UEMOA, SON

- Certification?

- NAFDAC, FDB

- Documentation?- Carte dIdentit or Endorsable passport?


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Borderless Alliance Secretariat

USAID West Africa Trade Hub

Accra, Ghana

www.borderlesswa.com

www.facebook.com/borderlesswa

Evans Klutse: [email protected]
http://www.borderlesswa.com/http://www.facebook.com/borderlesswamailto:[email protected]:[email protected]://www.facebook.com/borderlesswahttp://www.borderlesswa.com/