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DESINATION INSPECTION AND THE ECONOMY
By Michael MARCUSS
One of the core functions of Customs world-wide is the classification of goods as they are imported from abroad into a particular country. Proper classification of imported goods is one of the most assured sources of revenue generation for governments. Such taxes and levies as Value Added Tax, import duty, National Health Insurance Levy and many others provide for the many development projects that we need and clamour for on a daily basis are collected by Customs.

Proper Classification of goods imported into a country means that the correct amounts of duties and levies would be collected to aid national development.

Inspection of goods used to be the exclusive preserve and responsibility of the Customs Excise and Preventive Services until events of modern bulk packaging and transportation known as containerization by which large quantities of goods are packed into huge containers became the order of the day, and the CEPS lacked the proper means by way of equipment for identifying and classifying goods packed and delivered in large containers into our ports.

Also of importance is the fact that pre-shipment inspection gave way to destination inspection as a result of new World Trade Organization WTO rules.

The need for properly equipped companies with specialized equipment and know-how to efficiently do the work therefore arose. The Government of Ghana since the year 2000 has engaged the services of destination inspection companies to assist with the classification of goods imported into the country for proper assessment for revenue purposes.

Gateway Services Limited was the very first company that was engaged to undertake destination inspection in the country. By 2003, other companies such as Bivac, Ghana Link and ICS had all been licensed to participate in the destination inspection business in Ghana.

Modern destination inspection is a very expensive business, requiring very expensive equipment and highly trained personnel to man them.

Among the destination inspection companies mentioned above, Ghana Link happened to have become the most well-equipped among them to date and better positioned to carry on destination inspection in Ghana.

However, because of the strategic nature of revenue mobilization in the economy of the country, it became important that government through CEPS entered the destination inspection business in order to assure government of maximum benefits in the trade.

Therefore in the year 2007, or thereabouts, the past government decided to find a means by which the government could enter the destination inspection business and also to streamline the operations. The assistance of some foreign consultants were sought who assisted the Ministry of Trade and Industries to undertake a study of the operations of the destination inspections operations as was being undertaken by the four companies listed above.

The nature of destination inspection in Ghana to date has been that the main business has been in the hands foreigners with a sprinkling of Ghanaian collaborators on the fringes, more than willing to feed on the crumbs that are thrown to them.

The study by the consultants resulted in the recommendation that CEPS should be brought into the destination inspection business. Out of the companies operating in the destination inspection business, Ghana Link was found most suitable and selected to partner government.

The reasons for this were and are still not far-fetched. For starters, Ghana Link has a superior technical and operational system in that they had two scanners stationed at the ports of Tema and Takoradi. It is interesting to note that apart from Ghana Link which had two scanners, the only other company which had a scanner was Gateway Services Limited, which despite being the oldest operator had and still has only one scanner. That is stationed at the Tema port. In Takoradi, Ghana Link provides scanning services for all the other three companies, while in Tema, it provides scanning services for Bivac and ICS.

The situation remains the same even as at today. Certainly, without the use of Ghana Link's equipment at both Tema and Takoradi, destination inspection in Ghana would have been a joke and the country would have lost billions of Cedis as a result.

Subsequently, following the recommendations of the consultants, the Ministry of Trade and Industries, CEPS and Ghana Link entered into a joint venture resulting in the creation of a new destination inspection company known and called Ghana Customs Inspection Company limited and which was to begin operations in January 2009 for an initial 8 years.

It is important to note that under this joint venture arrangement, CEPS and the ministry were not providing any monetary contribution in lieu of their total 40% shares but would be participants in the earnings of the new company.

Ghana Link was also required to provide the following additional equipment for the operations of the new company:

1. Five speed boats for CEPS patrol duties
2. Provide and install four more scanners in addition to the two it already has.

3. Link all of Ghana's major frontiers including the Kotoka International airport to its head office to facilitate easier operations.

Following the incorporation of the joint venture company- Ghana Customs Inspection Company, Ghana Link has gone ahead to begin fulfilling its obligations under the contract by importing into the country and having them installed, two of the four scanners required under the contract. These have been installed at the Airport and the Aflao border. It has also imported one of the four speed boats required under the contract which is presently at the Tema Harbour awaiting instructions from the Ministry of Trade. Continued    Source: Michael MARCUSS

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