The Bank of Ghana (BoG) has exempted informal cross-border traders from the requirement to obtain a Letter of Commitment (LOC).

In a public notice, the central bank outlined guidelines governing the use of the LOC for exports, stating that traders engaged in informal cross-border transactions are not required to secure the document.

According to the guidelines, the LOC, generated through the Integrated Customs Management System (ICUMS), is mandatory only for formal exporters who receive foreign exchange proceeds, are resident in Ghana, are licensed by relevant government agencies, and hold a valid Tax Identification Number (TIN).

The Bank explained that traders who conduct business with buyers in neighbouring countries such as Côte d’Ivoire, Togo and Burkina Faso, without registration on ICUMS or the use of formal invoices, are not required to present an LOC.

It further clarified that the LOC should not be included in documentation for such informal transactions.

The notice also cautioned freight forwarders and customs house agents against using their own credentials to generate LOCs on behalf of traders who do not qualify for the document, stressing that the practice must be eliminated.

Estimates from the Ministry of Trade and international bodies, including the International Trade Centre, indicate that Ghana earns several billion dollars annually from informal cross-border commerce.

A recent assessment suggests that the value of informal trade with neighbouring countries could exceed $3 billion each year, providing livelihoods for millions of people and ensuring the steady flow of essential goods across the sub-region.