A forum has been organized in Koforidua by Ghana Shippers’ Authority (GSA) in partnership with Bank of Ghana for exporters in Eastern Region.
The forum held Tuesday November 28, 2023 was to address concerns of exporters in the region and also build their capacity.
The 1st Vice President of the Ghana Institute of Freight Forwarders (GIFF), Paul Kobina Mensah,took participants through the rudiments of exports with focus on insurance, negotiating favourable trade conditions(INCOTERMS) ,sales contract ,Freight negotiation, Freight charges high and how to reduce shipping charges.
Charles Darling Asiedu Sey, the Tema Branch Manager of the Ghana Shippers Authority, highlighted the critical role exports play in national development, contributing significantly to GDP, job creation, and government revenue.
Mr. Sey emphasized the importance of the National Export Development Strategy (NEDS), which aims to substantially grow non-traditional exports (NTEs) and position Ghana as a competitive export-led industrialized economy by 2029.
He stressed that (GSA) is partnering with service providers to enhance the quality of shipping services by reviewing export -related policies, simplify procedures, reduce bureaucracy, and create a more conducive environment for businesses.
Eric Kweku Hammond, Assistant Director of the Banking Department at BoG emphasized the legal obligation of exporters under the Foreign Exchange Act, 2006, Act 723, and the accompanying Letter of Commitment (LOC), for exporters to repatriate proceeds of merchandise through banks.
This repatriation is required to be 100% of the export value of all merchandise exports, excluding exporters with retention arrangements.
He said failure to comply with this requirement could result in penalties, including a fine of 5,000 penalty units (equivalent to GHS 60,000) or a prison term of up to ten years, or both.
While acknowledging challenges faced by exporters with the LOC system, Mr. Hammond assured that the BoG is open to collaboration to resolve such issues since the LOC has come to stay.
Participants raised various concerns including rising freight charges, challenges with the LOC system, high exchange rate above BoG rate being applied at the ports, bureaucracies and lack of financial and technical support from government and regulators.
Source:Mybrytfmonline.com/Obed Ansah
