The Bank of Ghana (BoG) has reviewed rules covering advance payments for imports of goods and services to the country.

This was contained in a statement published by the central bank to regulate the sector. 

The review will take effect from July 1, 2024.

The BoG said the decision was taken as part of measures to clarify the procedures that govern Advance Payments for imports.

“The Bank of Ghana hereby announces for the information of banks and the General Public, amendments to the rules on advance payments for imports”, it said. .

The central bank stated that the documentation required to effect Advance Payments are a Customer instruction or request, a valid Import Declaration Form (IDF) and a Pro forma or Commercial Invoice outlining the details of the transaction.

In addition, the documentation must include an Undertaking by the importer to submit clearing documents within a period not exceeding 90 days from payment of invoice for general merchandise or finished goods.

“For capital goods such as plant, machinery and equipment with long manufacture periods, the period shall be 180 days which can be extended with prior approval from the Head, Financial Markets Department, Bank of Ghana”, the statement said.

Finally the central bank stated that the documentation must have a Sales Contract or Supplier Agreement detailing payment terms and schedules.

“With effect from 1st July 2024, the maximum amount permitted using Advance Payment option for imports has been increased from US$50,000.00 to US$200,000.00 per transaction, per importer. This notice supersedes all prior notices on Advance Payment transfers”, the statement ended.

The Bank of Ghana (BoG) has made changes to rules covering advance payments for imports of goods and services to the country.

This was contained in a statement published by the central bank to regulate the sector. 

The changes to the rules covering imports will take effect from July 1, 2024.

The BoG said the decision was taken as part of measures to clarify the procedures that govern Advance Payments for imports,

“The Bank of Ghana hereby announces for the information of banks and the General Public, amendments to the rules on advance payments for imports”, it said. .

The central bank stated that the documentation required to effect Advance Payments are a Customer instruction or request, a valid Import Declaration Form (IDF) and a Pro forma or Commercial Invoice outlining the details of the transaction.

In addition, the documentation must include an Undertaking by the importer to submit clearing documents within a period not exceeding 90 days from payment of invoice for general merchandise or finished goods.

“For capital goods such as plant, machinery and equipment with long manufacture periods, the period shall be 180 days which can be extended with prior approval from the Head, Financial Markets Department, Bank of Ghana”, the statement said.

Finally the central bank stated that the documentation must have a Sales Contract or Supplier Agreement detailing payment terms and schedules.

“With effect from 1st July 2024, the maximum amount permitted using Advance Payment option for imports has been increased from US$50,000.00 to US$200,000.00 per transaction, per importer. This notice supersedes all prior notices on Advance Payment transfers”, the statement ended.