- Are you interested in importing items into Ghana? Well, there is some information you will need before you embark on this venture. First, note that goods arriving in the country may be subject to import duty, special duty, VAT and import excise duty. Ghana import duty is assessed based on volume, weight or value of an item, and is subject to change every year. Import duty rates range from 0%, 5%, 10% and 20%, and the fees are collected by the Ghana Customs Division.
What factors influence Ghana import duty rates?
1. Classification
The category of the item being imported determines the amount of import duty to be paid. Any item that is traded internationally (i.e., imported or exported) is listed in the Harmonized Code, a customs document. Ghana currently uses this Harmonized System to classify all imports that pass through customs. Items are assigned codes and categories depending on related specified rates of import duty.
When an item is imported into Ghana, therefore, the Customs department checks the code to determine the category the item belongs to. Once the category and code are confirmed, the department then states how much import duty and other taxes are to be paid. Importers can make this process easier by checking the code beforehand and preparing the relevant payment.
2. Valuation And Import Duty Calculation
- Import duty is then calculated based on the cost, insurance and freight value of the item. The item’s value is supplied by the inspection company at the destination in Ghana after careful examination of the invoice, and other documents from the importer. To calculate the duty to be paid, you can use a Ghana import duty calculator available on the websites of Ghana shipping companies, or on Ghana trade websites.
- A Ghana import duty calculator will usually base the duty rates on the CIF (Cost Insurance Freight) of the item. To calculate the CIF of your item, add the cargo value to the FOB (shipping cost) and the Sea Freight/Transport insurance cost.
CIF = Cargo Value + FOB + Sea Freight/Transport.
- Duty is then calculated at 5%, 10%, or 20% of the CIF, depending on the HS code.
Finally, which items are exempt from import duty?
- Any items belonging to specified government privileged persons, institutions, and organizations.
- Items belonging to individuals from diplomatic missions.
- Advertising materials, e.g., trade samples requested by the importer that will be re-exported after use
- Baggage concessions and personal effects
- Aircraft parts and accessories
- Fish caught by Ghanaian owned boats, canoes, floats, and gear
- Educational, cultural and scientific materials
- Foodstuffs including raw foodstuffs and garri. Note that meat and alcoholic beverages coming in from West Africa are not exempt.
- Food and milk for infant feeding
- Machinery – apparatus and spare parts for agricultural use
The process of determining and calculating Ghana import duty is not as hard as it looks. Get a reputable shipping company to help you out, and the goods will be in your hands in no time!
