Importers, exporters discuss problems

The cost of doing business remains one of the biggest disincentives to the growth of import and export businesses in the shipping industry.

Unauthorised and indiscriminate charges by some service providers such as shipping, clearing and forwarding agents as well as cumbersome cargo clearance procedures contributes to high cost of doing business at the port and borders of the country.

Also, processes involved in obtaining necessary licences and permits from statutory bodies and the delay in obtaining final classification and valuation reports from Destination Inspection Companies, as well as cost of securing adequate infrastructure, are some of the challenges.

Mr. Emmanuel Martey, the Deputy Chief Executive Officer of the Ghana Shippers Authority (GSA), said this at a seminar for importers and exporters in Takoradi.

It was on the theme “Reducing the cost of doing business at the country’s ports and boarders- the role of importers and exporters”.

He pointed out that studies carried out by the GSA estimate the yearly payment of demurrage charges by shippers, as a result of delays, at US$40million to the shipping lines and anotherGH?20million in rent charges as a result of delays in the clearance of their cargoes.

It is common knowledge that high maritime transport costs for imported goods impact the price level of the basket of consumer goods -- excessive freight rates for exports affect the trade competiveness of the country’s products in the global markets.

He said there is a need to define approaches to reduce inbound and outbound transport cost -- The cost of doing business at our ports and borders has been a subject of discussion among industry players involved in the country`s international trade.

Mr. Martey pointed out that in a liberalised and globalised economy, competitiveness underpinned by strategies in cost-reduction and efficiency in the production and delivery of goods and services is the way businesses are conducted.

“In attempting to reduce cost, service standard must be commensurate with the cost of the transaction. One of the requirements of the World Trade Organisation (WTO) is that fees and charges should not unreasonably exceed cost of services rendered, and are to be in direct connection with a specific import or exportation regime,” he said.

According to him, efforts have been made by the international trading community to devise means of ensuring that this objective is achieved, including the use of electronic means for processing import and export documents.

In this regard, he said an efficient single window system and the implementation of an electronic cargo tracking note (or advanced shipment information) are expected to curtail payment of these excessive charges which go to make the Ghanaian importer or exporter uncompetitive in the global market. Also, he stressed the need for regulatory bodies or agencies responsible for issuing of licences and permits to also provide adequate information on the services they render to shippers, especially so when there are changes in their service delivery.

“It is important to note that simplification of the clearance procedures would also go a long way in assisting shippers to clear their cargo with minimum delays,” he added.

He said the passage of Ghana Shippers Authority Regulation, 2012 (LI.2190) in its implementation empowers the Authority to negotiate with shipping service providers on charges in relation to shipment and clearance of cargo on behalf of importers and exporters of Ghana.

Also, he said, in consultation with service providers it will set minimum standards and quality of shipping services to be rendered to importers and exporters.

He explained that the Authority`s focus is not solely on the shipping service providers to make sure they perform services that meet international standards – “the Authority also receives feedback from the shipping services providers regarding the performance or attitudes of our shippers as well”.

He said studies have shown that about 40% of documents rejected by the Ghana Revenue Authority-Customs Division are as a result of errors presented on the part of the importer or exporter and/or their clearing agents.

“In line with the authority`s policy for education of our shippers to do the right things, we want emphasise the need for importers/exporters not only to present genuine documents to agencies involved in the clearance of cargo, but also employ the services of professional Customs-brokers who will make adequate clearance preparations before the arrival of consignment” he said.

He encouraged and advised shippers to take advantage of the pre-arrival processing of cargo document, as this will facilitate speedy clearance of their cargo and avoid the payment of demurrage or rent charges due to delays.