10% discount on Vehicles, 30% others: New discounts on import values announced

The Government of Ghana has expanded the coverage of discounts on imports thus ‘Benchmark values’ to cover various items.

Per the review, vehicles will enjoy a ten percent(10%) discount instead of the existing thirty percent(30%) discount.

Also, all other goods will enjoy a Thirty percent(30%) discount instead of the prevailing fifty(50%) discount.

A statement signed by Deputy Commissioner in Charge of Operations at the GRA, Joseph Adu-Kyei, indicates that the implementation of this new policy commenced on Tuesday, March 1, 2022, by the Customs Division of the Ghana Revenue Authority(GRA).

It urged ICUMS to ensure the discount rate management screen is ready for take-off without consequential delays.

The statement further issued some guidelines for strict compliance in aid of the implementation;

1. Thirty percent(30%) discount shall be applied on FOB values; be it transaction values, identical, similar values, or benchmark values for some selected commodities being applied as a risk tool. Home Delivery Values(HDVs) are to be discounted by 10% for all used vehicles before the appropriate depreciation based on the age is applied.

2. All pre-manifest declarations processed and paid even when the goods have not arrived shall not be affected by the new discount policy.

3. All new Bills of Entry as of March 1, 2022, shall be processed with the new discount rates

4. The criteria for the implementation of the Discount reversal provision in ICUMS is based on validation of the Bill of Entry(BOE) and Tax bill payment date per Section 48 of Customs ACT 891 of 2015.

5. Therefore, any BOE that has been processed and validated for the tax bill to be paid before the effective date, BOE will not be affected by the new discount rates.

6. Where the BOE tax bill has been paid before the effective date, and there is a post entry on the BOE without any change of revenue, the BOE will not be affected. The BOE will keep the same status, in respect of the discount, as it was at the time the initial tax bill was paid.

7. Where there is post entry with a change in revenue, then the COR shall be affected by the new discount rates.

8. Any consignment for which the BOE tax has not been paid before the effective date will be affected to put in a post entry to reflect the new discount rates.

9. If a consignment has been landed in the country long before the effective date, but the BOE tax bill has not been paid before the effective date, such consignments will be affected by the new discount rates.

The GRA has, therefore, urged all officers to be guided accordingly to make the reversal policy a success.