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Business News of Friday, 17 July 2009

Source: GNA

Roundtable discussion on timber trade procedures

Takoradi, July 17, GNA - Mr Alhassan Attah, Executive Director of the Timber Industry Development Division (TIDD), has said the division would introduce Forest Law Enforcement, Governance and Trade (FLEGT) license by December 2010 as part of export documentation particularly for export of wood products to the European Union.

He was speaking at a meeting on timber trade procedures for officials of export regulatory agencies including the Ghana Ports and Harbours Authority (GHAPOHA) and the Custom, Excise and Preventive Service (CEPS). The meeting formed part of the TIDD's programme to sustain the existing collaboration between export regulatory agencies in the timber trade. Mr Attah said the FLEGT would be issued after it has been established that the wood products being exported were exploited lawfully to check illegal logging especially in forest reserves. TIDD inspection and documentation processes would also be integrated into the requirements of collaborating agencies particularly the CEPS for imported timber products. Mr Henry Coleman appealed to regulatory agencies to work with TIDD to address challenges facing the timber export sector. The challenges include avoidance of TIDD Export Permit by timber exporters and shippers, inspection and handling of concealed or containerized timber products at loading point, transit and exit point, overland exports along the country's borders, inspection and handling of imported timber and wood products and pre and post shipment monitoring. Mr Coleman said the TIDD is mandated by law to fashion out export documentation processes and shipment procedures in respect of timber exports.

He said this was being done by taking cognizance of existing government policy directives relating to the trade and in performing this role, TIDD also collaborates with other relevant agencies like CEPS and GPHA.

Mr Coleman said current wood products exported from Ghana included sawn timber, lumber, boules, plywood, veneer, mouldings, profile boards, flooring, furniture parts, sleepers, poles and pegs. He said apart from Teak and Gmelina logs, there is generally a ban on the export of logs from the natural forests. Companies that can export timber and timber products must be limited liability companies registered with the Register General's office and with the TIDD.

Mr Ibrahim Baba Ahmed, a Manager of TIDD in charge of Grading and Inspection, said Ghana started importating commercial timber products like pine poles, raw curls, sliced or rotary veneers, logs and sawn timber of various species for further processing in 1998 and is still on-going.

Mr Ahmed said government encouraged importation of timber products to reduce pressure on the forest, create employment, to keep the timber industry running, to solve the problem of excess capacity in the system and to avoid relocation of industries outside the country. He said government also instituted a waiver on import levy for logs and sawn lumber meant for further processing in the country. Mr Ahmed said challenges facing timber importation included the inability of importers to submit documents to TIDD for inspection and wrong application of the harmonized codes.

This leads to misnaming, misclassification of timber products to avoid paying appropriate taxes, difficulty in securing import statistics for decision-making and difficulty in accessing timber in containers. He said TIDD inspection certificate should be a requisite before approval is given for release of imported wood products and GPHA and CEPS should assist TIDD to conduct inspection whenever request is made after accessing information on the GCNET. Mr Ahmed said the TIDD would be in the position to provide technical assistance on products not covered by government waiver on imported timber products so as to increase revenue generation for government. 17 July 09