CUSTOMS - LECTURE 7
Page 1: Title Page
Course: TAXATION AND FISCAL POLICY BACT 403
Academic Year: 2023/2024
Presented by: Baba Seidu, Rester Togormey, Eric Padi Nyabey
Page 2: Lecture Title
Lecture Seven: Customs HIPSA
Page 3: Outline
Learning Objectives
Introduction
Customs and Excise Taxes
Import Duties
Special Import Levy
Import Levy
African Union Levy
ECOWAS Levy
Import and Export Levy
Import Duty Exemptions
Page 4: Continued Outline
Administrative Charges
Advance Eco Levy
Excise Duties
Export Duties
Excise Tax Stamps
Environmental Tax
Airport Tax
CIF Determination
Duty Drawback
Computations
Page 5: Learning Objectives
Explain functions of Customs Division of Ghana Revenue Authority
Identify various taxes collected by Customs Division
Discuss warehousing and duty drawback
Compute duties and taxes on imported goods
Page 6: Introduction to Customs Division
Collection responsibilities: Import Duty, VAT, Getfund Levy, NHIL, Covid levy, Export Duty, Special Petroleum Tax, Vehicle Importation Tax.
Page 7: Other Functions of Customs Division
Prevents smuggling through border patrols, goods examinations, and document checks.
Part of national security to maintain territorial integrity and enforce import/export laws.
Page 8: Customs Act Overview
Duties and taxes imposed on prescribed goods imported or exported per the Harmonised System.
Page 9: Exempt Duties and Taxes
Exempt goods specified in the Harmonised System are not chargeable for duties and taxes.
Certain individuals and organizations may be exempt.
Page 10: Customs and Excise Taxes
Common External Tariff (CET) classification since 2016.
Details various duties and excise rates applicable to imports and exports.
Page 11: Import Duties
Range: 0% to 35% based on item nature.
Duties levied on CIF value plus NHIL (2.5%), GETFL (2.5%), and VAT (12.5%).
Page 12: Special Import Levy
Additional levy for certain goods on top of import duties and charges.
Page 13: African Union Import Levy
0.2% applied on eligible imports from non-AU member states for consumption within member states.
Page 14: ECOWAS Levy
0.5% levy on imports from non-ECOWAS states funding ECOWAS institutions.
Page 15: Export and Import Levy (EXIM)
0.75% EXIM levy on all imports replacing the EDAIF levy since 2017.
Page 16: Import Duty Exemptions
Special exemptions for diplomatic missions and certain industries (e.g., mining).
Page 17: Administrative Charges
Charges between 0.4% and 3.45% on imported goods.
Page 18: Advance Eco Levy
Paid by exporters of used electrical/electronic equipment and tyres, with specific rates based on HS Code.
Page 19: Export Duties
Usually no duties, except for specific goods.
Page 20: Excise Duties
Ranging from 0% to 175% of ex-factory prices for products like beer and tobacco.
Page 21: Excise Tax Stamp
Required for certain excisable goods before market entry.
Page 22: Environmental Tax
10% tax on specified plastic products.
Page 23: Airport Tax
Charge: GH¢5 for local travel; US$60–200 for foreign travel.
Page 24: Warehouse Requirements
Licensing by Commissioner-General is mandatory.
Keeper must pay required bond and fees.
Page 25: Warehouse Regulations
Revocation of a bonded warehouse license leads to duty payment within three months or relocation of goods.
Page 26: Time of Entry
Date of declaration acceptance marks entry for imported goods.
Page 27: Time of Entry for Postal Goods
Delivered goods count as entry on delivery; exported goods count as time of posting.
Page 28: Declaration Requirements
Declaration within seven working days post-goods discharge.
Page 29: Declaration Details
Must include commercial invoice details, shipping, and insurance charges.
Page 30: Required Documentation
Bill of lading, classification reports, origin certificates, import permits when necessary.
Page 31: Pre-entry Procedure
Allows declaration filing and duty payment before goods' arrival.
Page 32: Rate of Exchange
Customs value currency determined at the current rate by the Bank of Ghana.
Page 33: Duty Drawback
Refund of duties/taxes on re-exported or prescribed used goods.
Page 34: Types of Duty Drawbacks
Same State Drawback: Goods re-exported in original condition.
Page 35: Material Drawback
Goods exported after processing, refund based on actual materials used.
Page 36: Conditions for Drawback Claims
Export goods must not contravene laws; proper bond required; formal claims process needed.
Page 37: Additional Conditions
Goods must remain packaged and presented at examination points before export.
Page 38: Specifications for Exportation
Certificates may be required; routed transport for road exports to be followed.
Page 39: Examination of Goods
Revenue compliance checks for descriptions, duties, value, and exemptions.
Page 40: Non-Revenue Examination
Compliance with regulations; anti-terrorism and anti-smuggling checks.
Page 41: CIF Determination - Cost
Components of transaction value include price, brokerage, packaging, etc.
Page 42: CIF Determination - Insurance and Freight
Insurance calculated based on percentage of Costs and Freight for Air and Sea.
Page 43: Computations Example
Abigail-Diana Ltd imported 25,000 components; shipping charges detailed.
Page 44: Duty Computation Rates
Rates outlined for duty, special tax, NHIL, GETFUND, and VAT.
Page 45: Trial Question Example
Desperate Venture Ltd's import of roofing accessories; compute duties given specified rates.
Page 46: Conclusion
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