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MOTI, DICs in talks to check revenue leakages
 
Posted on: 04-Jun-2013         Source: thebftonline.com
 
 
 
The Ministry of Trade and Industry (MOTI) is currently in talks with the five Destination Inspection Companies (DICs) involved in trade facilitation to adopt new measures to block potential sources of revenue leakages to Government.

“Government is introducing new measures to strengthen the management and supervisory role of the Ministry to ensure that DICs perform to their maximum capacities, and we are able to tighten all potential sources of revenue leakages to maximise import revenue mobilisation by Customs,” said the Deputy Trade Minister, Nii Lante Vanderpuye, in a speech read on his behalf at a maritime seminar in Accra.

Mr. Vanderpuye said recognisable results have been achieved by the operations of DICs in the country, as records over the last 10 years confirm that about 70 percent of questionable invoices presented to them have been detected and importers have subsequently been required to provide the right valuation.

“Through the scheme, the know-how of Customs officers and other stakeholders has been upgraded, cargo clearance has been modernised, and the proliferation of fake and illicit drugs reduced -- while making significant revenue interventions averaging over US$648million a year.

“But the scheme has been faced with a couple of challenges such as delays in the issuance of Final Classification and Valuation Reports (FCVRs), which ultimately lead to congestion at the ports and, in some instances, an arbitrary increase in freight values,” he said.

He said the introduction of the DI scheme has contributed significantly to the country’s import revenue generation capacity, hence the need for a review to address some challenges in its operations.

He said the need for these reforms stems from the Ministry’s quest to augment the efficient operations of the DICs, in terms of enhanced revenue for Government and its desire to ensure speedy clearance at the ports -- with the view to reducing cost of doing business, which is the thrust of the DI scheme.

The Trade Ministry keeps carrying out trade facilitation reforms due to the numerous benefits it presents by way of trade stimulation, attraction of foreign direct investments and reductions in incentives for smuggling and corruption -- to the ultimate gain of Government, the private sector and consumers.

The Destination Inspection scheme replaced the Pre-Shipment Inspection (PSI) regime in April 2000 -- to help facilitate trade; enhance the collection of taxes and charges related to trade; protect the domestic market from shoddy and sub-standard goods; and develop local capacity in the achievement and realisation of the first three objectives through training and technology transfer.

The five destination inspection companies operating the DI scheme are Gateway Services Limited, Ghana Link Network Services, BIVAC, Webb Fontaine and Inspection and Control Services (ICS).