By: Esther Aidoo
The Food and Beverages Association of Ghana has welcomed the directive by Finance Minister Cassiel Ato Forson banning the land transit of selected imported goods into the country and requiring them to enter through Ghana’s seaports. The association says the move will help curb smuggling, protect government revenue and create a fair trading environment for legitimate businesses.
According to the Food and Beverages Association of Ghana (FABAG), Ghana has for years lost substantial revenue due to abuse of the transit trade regime. Some traders reportedly declare goods as cargo meant for neighbouring countries but later divert them into the Ghanaian market through land borders without paying the required duties and taxes.
The Chairman of FABAG, Rev. John Awuni, says stronger enforcement and policy reforms are necessary to protect businesses and ensure stability within the country’s trade environment.
FABAG is also calling on the government to consider extending the restriction to other products such as fruit juices to prevent traders from misclassifying goods to bypass the new controls.
This decisive directive, which affects transit goods such as rice, sugar, flour, textiles, spaghetti and tomato paste, represents a bold and timely intervention aimed at addressing the persistent challenges of smuggling, revenue losses and misclassification of goods that have plagued Ghana’s trade environment for many years.
The Food and Beverages Association of Ghana (FABAG) believes that this policy decision demonstrates the government’s commitment to strengthening trade regulation, safeguarding government revenue, and protecting legitimate businesses operating within the country.
For a long time, Ghana has lost substantial revenue due to the widespread abuse of the transit regime. Unscrupulous traders according to the association, have taken advantage of the system by declaring goods as transit goods cargo destined for neighboring countries, only for such goods to be illegally diverted into the Ghanaian market through land borders without the payment of the appropriate duties and taxes.
This practice according to FABAG has not only deprived the State of significant revenue but has also created an uneven playing field for legitimate manufacturers, importers, and distributors who comply with Ghana’s tax and regulatory requirements. FABAG noted that requiring these goods to enter Ghana through the country’s seaports will significantly improve monitoring, inspection, and documentation processes, thereby helping to reduce the risk of diversion and smuggling.
The Food and Beverages Association of Ghana therefore strongly urges all relevant state institutions, particularly the Ghana Revenue, the Ghana Customs Division, and other border regulatory agencies, to ensure strict and uncompromising enforcement of this directive. FABAG further advised the government to consider extending the directive to cover additional goods, including fruit juices and other similar products.
FABAG noted that there is a strong likelihood that some unscrupulous traders may attempt to circumvent the directive by deliberately misclassifying restricted products under other categories in order to evade the new controls.Expanding the scope of the directive will therefore close potential loopholes and of ensure that the intended objectives of the policy are fully realised.
The statement said over the years, the Ghanaian economy has suffered considerable losses due to smuggling activities and deliberate misclassification of goods. These illegal practices undermine government’s revenue mobilization efforts, distort fair competition, and threaten the survival of compliant businesses within the formal sector.
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