Ghana presently classifies products using the Harmonized System (HS) Customs Code. Tariffs are variable and based on value (ad valorem), weight, or volume (specific). The majority of items are subject to import tariffs, Value Added Tax (VAT), and a few other fees and penalties unless they are completely exempt from customs duties. The cost of the item, including shipping and insurance, is used to determine the import duty. On CIF plus duty, the VAT and other fees are calculated.
Are you considering bringing goods into Ghana? You will need to know a few things before starting this project, though. First, be aware that import duty, special duty, VAT, and import excise charges may apply to products entering the nation. Import taxes in Ghana are calculated depending on an item’s volume, weight, or value and are subject to change each year. The Ghana Customs Division is responsible for collecting import duty fees, which have rates of 0%, 5%, 10%, and 20%.
What elements affect the rates of Ghana’s import duties?
Classification
The amount of import duty that must be paid depends on the type of item being imported. The Harmonized Code, a customs document, contains a list of every item that is traded internationally (i.e., imported or exported). Ghana presently classifies all imports that pass through customs using the Harmonized System. Depending on the associated stated rates of import duty, items are assigned codes and categories.
Therefore, the Customs agency checks the code to establish the category the item belongs to when it is brought into Ghana. The department then specifies the amount of import duty and other taxes that must be paid after the category and code have been verified. Importers can streamline the procedure by validating the code in advance and setting up the necessary funds.
Valuation and import duty calculation
Following that, import duty is computed using the item’s price, insurance value, and freight value. After carefully reviewing the invoice and other paperwork from the importer, the inspection business at the destination in Ghana provides the item’s worth. You can use a Ghana import duty calculator found on the websites of Ghana shipping companies or Ghana trade websites to determine the amount of duty that must be paid. The CIF (Cost Insurance Freight) of the goods is typically the basis on which a Ghana import duty calculator bases the duty rates. Add the cargo value to the FOB (shipping cost) and the cost of the sea freight/transport insurance to determine the CIF of your item. Cargo Value + FOB + Sea Freight/Transport Equals CIF. The percentage of the CIF that constitutes the duty is then established at either five, ten, or twenty percent, depending on the HS code.
Items exempted from import duty
- Any objects owned by designated privileged government individuals, institutions, and organizations.
- Personal effects of members of diplomatic missions.
- Promotional items, such as trade samples that the importer requested and will be exported again after use.
- Concessions for luggage and personal items
- Accessories and parts for aircraft
- Fish collected using boats, canoes, floats, and equipment owned by Ghanaians
- Resources for science, culture, and education
- Foods, including garri and raw foods.
- Keep in mind that imports of meat and alcoholic beverages from West Africa are not exempt.
- Food and milk for feeding infants
- Equipment, devices, and replacement parts for use in agriculture
The procedure and calculation of Ghana’s import tariff are not nearly as difficult as they may appear at first glance. If you enlist the assistance of a dependable shipping firm, you won’t have to wait long until the items are in your possession.
