The Ghana Revenue Authority (GRA) has explained that its advance ruling system is designed to give importers certainty about how their goods will be treated by Customs before their consignments are shipped to Ghana.

The system allows importers, exporters and customs brokers to apply to Customs for a binding decision on specific aspects of their goods before the importation takes place.

Speaking on Joy FM’s Super Morning Show on Wednesday, September 23, Ernest Nyarkoh, a Senior Officer at the Tema Collection, said the advance ruling programme gives traders the opportunity to obtain a decision from Customs ahead of time, instead of waiting until their goods arrive before determining how they will be treated.

“It’s a programme that allows you to come to Customs and tell Customs to issue a decision,” Mr Nyarkoh explained.

He said the decision was important because it provided certainty about the treatment of a consignment during the customs clearance process.

“If it is binding, then it means that you are certain that the decision that will issue will be the decision that will apply when you go for the process of clearance,” he said.

According to Mr Nyarkoh, this certainty allows importers to plan their transactions better, including estimating the taxes and duties they may be required to pay.

“It helps you to be able to plan very well. You can even assess your tax liability,” he said.

The system can also reduce disputes between Customs and traders because key questions concerning the treatment of goods can be resolved before the goods arrive.

What is an advance ruling?

An advance ruling is a decision issued by Customs in response to an application from a person intending to import goods.

The decision is based on information and documents provided by the applicant and becomes binding during the clearance process, provided the goods and circumstances correspond with the information on which the ruling was based.

Mr Nyarkoh said the programme currently covers two main areas: tariff classification and origin.

Tariff classification determines the specific customs code applicable to a product.

The code is important because it can be used to determine the duties and taxes applicable to imported goods.

For example, a trader importing honey can apply for an advance ruling by providing details about the product and indicating the HS code they believe applies.

Customs then examines the product information and applies the relevant rules before making its decision.

“Based on the information that you got, looking at it and applying our rules, we think that the code should be” the applicable classification, Mr Nyarkoh explained.

Once the ruling is issued, the importer can rely on the decision during the clearance process, provided the actual goods correspond with the information submitted.

The second area covered by advance ruling is the origin of goods.

Mr Nyarkoh described origin as the economic nationality of a product.

An advance ruling on origin therefore enables an importer to obtain a decision from Customs on how the origin of a product will be treated before the goods arrive.

This gives traders greater predictability when planning their import transactions.

Eligibility

The advance ruling system is open to a broad range of traders.

Mr Nyarkoh said importers, exporters, customs brokers and anyone intending to bring goods into Ghana can apply.

“An advance ruling can be applied by anybody who has the intention of exporting goods from abroad to our country,” he said.

However, the application must be made before the goods are shipped or arrive in Ghana.

“Before you ship the goods to the country or they arrive in the country, you should have sought the ruling,” Mr Nyarkoh said.

To obtain an advance ruling, the trader must submit the appropriate application form together with information and documents relating to the goods.

Mr Nyarkoh said these can include an invoice, bill, packing list and photographs of the product, where applicable.

“Customs will review the application,” he said.

After reviewing the information and applying the relevant customs rules, Customs issues the binding ruling.

The trader can then use the ruling when the goods arrive and the declaration is submitted for clearance.