Advance ruling to give importers certainty before goods arrive – GRA

The Ghana Revenue Authority (GRA) has unveiled an advance ruling system aimed at providing importers with certainty regarding how their goods will be treated by Customs before shipment to Ghana. This program allows importers, exporters, and customs brokers to seek binding decisions on specific aspects of their products prior to their arrival in Ghana.

Senior Officer Ernest Nyarkoh of the Tema Collection explained during a segment on Joy FM’s Super Morning Show that the advance ruling system provides traders with the opportunity to obtain a decision from Customs in advance, eliminating the need to wait until goods are received before determining their treatment.

Mr. Nyarkoh emphasized that the decision issued through this system is crucial as it ensures certainty about the treatment of a consignment throughout the customs clearance process. He noted that if the ruling is binding, importers can confidently plan their transactions, including estimating taxes and duties payable. This certainty also helps reduce disputes between Customs and traders by resolving key questions about goods treatment before arrival.

An advance ruling is a Customs decision issued in response to an application from an importer. Based on information and documents provided by the applicant, the decision becomes binding if the goods and circumstances align with the information that formed the basis of the ruling. Currently, the program covers two key areas: tariff classification and the origin of goods.

Tariff classification determines the specific customs code applicable to a product, which is vital for determining applicable duties and taxes. For instance, a trader importing honey would provide details about the product and the HS code they believe applies; Customs would then examine the information and apply relevant rules to make a decision.

Once the ruling is issued, the importer can rely on it during the clearance process, provided the actual goods match the information submitted. The second area covered is the origin of goods, which refers to the economic nationality of a product. An advance ruling on origin allows an importer to obtain a decision from Customs on how the origin of a product will be treated before arrival, enhancing predictability in import planning.

Eligibility for the advance ruling system is inclusive, encompassing importers, exporters, customs brokers, and anyone intending to bring goods into Ghana. To apply, traders must submit the appropriate application form along with relevant information and documents such as invoices, bills, packing lists, and product photographs, where applicable.

Customs will then review the application, apply the relevant customs rules, and issue the binding ruling. Importers can then use this ruling when the goods are cleared upon arrival in Ghana.