Car dealers to hit the street over ban of overage and accident cars

The Automobile Dealers Union of Ghana has threatened to demonstrate if government fails to amend aspects of the Customs (Amendment) Act, 2020.

The said Customs (Amendment) Act bans the importation of second-hand cars of more than ten years old, and salvage cars, locally referred to as ‘accident cars’.

General Secretary of the Automobile Dealers’ Union of Ghana, Clifford Ansu, stated that government’s decision to proceed with the amendment will render members of the Association jobless in the short to medium term, the Citi Business News reports.

“We have given government a 2-week ultimatum to commit to reviewing the Customs (Amendment) Act, 2020. If they don’t listen we will hit the streets and hold massive demonstrations even as Covid-19 rages on, because if we don’t come out and demonstrate our displeasure on this matter and it continues, a lot of people are going to be affected and our businesses are going to collapse.”

Government says the Customs (Amendment) Bill, 2020, which bans the importation of second-hand cars of more than ten years old, as well as salvage cars, will take effect from October, this year.

The Bill, which was opposed by the Minority and vehicle dealers across the country was later passed into law by Parliament and approved by President Akufo-Addo on April 30, 2020.

Background

The government launched the Ghana Automotive Development Policy, GAMDP, in August 2019 to promote the manufacture of automobiles for both the domestic market and the West African sub-region.

In August 2019, Toyota and Suzuki became the latest companies to formally commit to setting up car assembling plants in Ghana.

This was after Volkswagen, Nissan, and Sinotruk also major automobile companies expressed an interest in Ghana.

Volkswagen was supposed to start its operation in the first quarter of 2020, Toyota in August 2020, Suzuki before the end of 2020, Nissan in the second quarter of 2020, while discussions pertaining to the operations of Renault, Kia, and Hyundai are ongoing.