Manufacturers request timely duty refunds

The Ghana Chamber of Commerce and Industry (GCCI) has asked the Ghana Revenue Authority to streamline the processes involved in the release of duty drawbacks to its members in the business of manufacturing and exports as delays could erode the intended purposes of the scheme.

The chamber, at a stakeholders’ forum on duty drawback in Accra, argued that the delay in the release of the money reduces the profit of businesses in the manufacturing sector and denies exporters of their working capital.

Duty drawback allows businesses to get back duties spent on the importation of inputs that were used in the production of goods for export.

It is enshrined in international trade systems including those of the World Trade Organisation (WTO) as trade incentives for the purposes of export competitiveness in practicing economies while promoting the productivity of companies that produce for export.

President of the chamber, Nana (Dr) Appiagyei Dankawoso I, said at a stakeholders’ forum on duty drawback for members, that the situation is compounding the problems facing industries on the back on the general harsh economic conditions.

He said: “We are in the times where businesses—particularly those in the manufacturing and exports sector—are in dire need of respites to improve productivity and competitiveness.

“That is why we want the process for duty drawbacks to be streamlined for timely payments; as it stands, the delays in accessing the money could erode the intended benefits of the scheme.”

This, he said, will help to curtail the abysmal performance of the manufacturing sector to boost forex earnings to cushion economic growth.

Government is currently on a five-year National Export Strategy to diversify export and increase the export base to move export revenue from US$1.5 billion to US$5 billion.

But, according to the Nana Dankawoso I, achieving that target will require government to be effective and proficient with policy incentives that are geared towards boosting the manufacturing sector, one of which is being the duty drawback scheme.

“For the country to achieve its target for non-traditional exports to increase export earning, government must help by operating incentives that are due businesses.

The one-day event was organised with support from the Business Advocacy and Support Fund (BUSAC) and brought together members of the chamber and sister institutions like the Ghana Institute of Freight Forwarders (GIFF), the Association of Ghana Industries (AGI) to engage the Ghana Revenue Authority (GRA) and Ministry of Trade and Industry (MOTI) on the issue of duty drawbacks.