MR. WALLACE AKONDOR: Commissioner Customs Division-Ghana Revenue Authority.

MR. WALLACE AKONDOR: Commissioner

Customs Division-Ghana Revenue Authority

Fairness and efficiency Increasing trade volumes versus Compliance Low valuation compliance Common valuation offences in Ghana Some Commodities and associated offences Trade mis-invoicing in Ghana Ensuring fairness and efficiency in valuation Resolution of valuation disputes Strategies and skills International Collaboration

Fairness is one of the canons of taxation The tax system should strike a balance between the interest of the taxpayer and that of tax authorities

Efficient revenue collection by Customs is

a way of maximizing revenue collection at minimal cost.

Increasing trade volumes and the requirement for speedy processing and facilitation.

Compliance levels are low

Need for Risk Management to ensure efficient resource allocation

Developing countries depend largely on Customs duties and taxes as the major practical source of revenue to finance government spending.

However, Customs administrations in these countries are confronted with low valuation compliance and prevalence of falsified trade documents.

Part of the Valuation function is undertaken by DIC’s [ In Ghana there are five such Companies]

Submission of falsified invoices and other trade documents has often led to the following offences relating to some identified commodities:

Mis-invoicing Wrong origin of goods Misdescription Misclassification

Commodity Under-invoicing

Wrong Origin

Mis-description

Wrong HS code

Rice * *

Sugar * * *

Frozen chicken

* * *

Tomato paste

*

Ethyl alcohol

* * * *

Pasta *

Fruit juices * * *

Gross Illicit flows = $14.39bn (2002-2011)

Average of $1.44bn per annum

Constitutes 6.6% of GDP

Significant adverse impact on the fiscal balance over the period

Source: Global Financial Integrity Report May 2014

WTO Agreement on Customs Valuation (ACV) offers fair, uniform and neutral valuation.

The complexity of Customs valuation resulting from the application of the ACV and strict legal requirements calls for new strategies and specific skills to handle valuation issues.

Fairness in valuation will result in increasing levels of compliance, coupled with a risk management system would yield efficient revenue collection.

At the level of DIC’s ◦ Initial disputes are referred to DIC’s as a first

recourse.

Internal mechanism to address appeals and disputes unresolved at the DIC level.◦ Structured ◦ To ensure speedy resolution

• Existence of a Valuation Technical Team.

• Close collaboration between Valuation, PCA and Risk Management.

• Constant capacity building of Customs officers in the application of WCO tools.

• Constant engagement with Stakeholders (Stakeholder Engagement Strategy developed through WCO assistance)

• Preparation underway to takeover outsourced valuation function from the five Destination Inspection Companies (DICs) very soon.

Customs-to-Customs◦ Mutual Administrative Assistance (MoU: Burkina

Faso, Cote d’Ivoire)

Bilateral/Multilateral Agreements◦ South Africa, Netherlands (in progress)