Government owes importers and exporters of Duty Drawbacks in excess of 400,000 Ghana Cedis over a period of two years.

An importer is entitled to a refund (percentage of the duty) on duties on imported goods where value is added and re-exported or exported unused since importation.-Duty Drawback.

The Drawback scheme was established to enhance the international competitiveness for businesses in private sector.

Though expected to provide manufactures with incentive on goods for export, implementations of the Duty Drawback is fraught with bureaucracies.

It takes two years or more for businesses to access the draw backs by the time, the money would have lost value.

To access the Duty Drawback refund, the importer must apply to the secretariat at the Ghana Revenue Authority with an original copy of the import duties.

Mark Badu-Aboagye, Chief Executive Officer of Ghana Chamber of Commerce and Industry, says the situation has deepened the uncompetitive nature of the local businesses.

“Businesses will become competitive locally and internationally because it gives them the advantage to also price their commodities at the same price as international producers”. He explained.

At a sensitization workshop with stakeholders in Kumasi, it became clear industry players were oblivious of the duty drawback scheme.

Authorities attribute the situation to setting up policies without involving the private sector and the very people directly benefiting or affected.

Sefa  Dankwa, Managing Director of Obibini Black Man Company, who didn’t know the existence of the Duty Drawback until the workshop is not convinced about the procedure.

Importers are recommending an online system where documents can be downloaded to be employed.

Majority of the importers are convinced authorities invariably don’t want to offer them the duty drawbacks as they complain about insufficient funds in an Expo account at the Bank of Ghana meant to pay duty drawbacks.

 “How can we get two original documents to transact our business and access the drawback at the same time”, an importer who pleaded anonymity quizzed.

The effects in the delay in disbursement of the drawbacks have forced several local businesses to bear huge cost which compels them to transfer it onto the customer in the form of high prices.