Carbonatix Pre-Player Loader

Audio By Carbonatix

The Minority in Parliament has called on the Ghana Standards Authority (GSA) to permanently scrap its proposed Pre-shipment Verification of Conformity (PVoC) requirement for imported vehicles, arguing that the policy would increase costs for importers and consumers.

Michael Okyere Baafi, Ranking Member of Parliament’s Trade and Industry Committee, said the decision to suspend implementation of the policy was not enough and urged the GSA to withdraw it completely.

Speaking to the media on Thursday, October 8, Mr Baafi said Ghana imports slightly more than 100,000 vehicles annually, with between 70% and 80% being used and overage vehicles.

He said the proposed requirement, which includes a reported US$300 verification charge, would place an additional burden on importers already facing rising costs and other challenges at the ports.

“Ghana imports a little over 100,000 vehicles every year. Seventy to 80 per cent of these imported vehicles are overage and used vehicles,” he said.

According to Mr Baafi, importers would have to engage an agent to verify their vehicles before shipment to Ghana and pay US$300 before a certificate could be issued.

He said the additional cost would eventually be passed on to consumers through higher vehicle prices.

Minority wants permanent withdrawal

Mr Baafi said the GSA should scrap the policy rather than suspend it, arguing that a suspension could leave room for the requirement to be reintroduced later.

“We think that the Ghana Standards Authority should withdraw this policy immediately, not get suspension. It's not enough,” he said.

He maintained that existing mechanisms were available to determine whether vehicles entering the country were stolen and questioned the need for another verification process that would increase costs.

“It's a policy that is completely not necessary at this time. The economy is not too good. You know that people are going through a lot of issues,” he said.

Concern over vehicle prices

Mr Baafi said the proposed charge would come on top of import duties and other costs associated with bringing vehicles into the country.

He noted that Ghana's vehicle assembly industry remained limited, meaning many middle-class Ghanaians continued to rely on imported vehicles.

“We are bound to still go for imported vehicles,” he said.

He questioned how importers already struggling with the cost of doing business would absorb another mandatory payment.

“Where are they going to get money to even pay import duties when they come?” he asked.

Mr Baafi also cited complaints from traders, vehicle importers and freight forwarders about taxes and levies, congestion and the broader cost of doing business at the ports.

“Traders are complaining. Importers and freight forwarders are complaining of hardship at the port, unnecessary taxes and levies, and congestion at the port. You are going to add up this,” he said.

Bawumia pledge

Mr Baafi also linked the issue to the New Patriotic Party's plans, saying former Vice-President Dr Mahamudu Bawumia had indicated that the policy would be scrapped if the NPP returned to power.

He said he and Dr Bawumia recently met representatives of the Ghana Union of Traders Association (GUTA), during which he claimed Dr Bawumia pledged to abolish the policy if elected President in 2028.

Mr Baafi said the Minority would continue to push for the PVoC requirement to be permanently withdrawn.

“The suspension is not enough,” he said. “They should scrap it.”

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.