GHANA Country Profile

Customs Administration

Business Corruption

A fairly high percentage of companies surveyed by the World Bank & IFC Enterprise Surveys 2007 report that corruption occurs in relation to obtaining import licences. Business executives surveyed by the World Economic Forum Global Competitiveness Report 2009-2010 indicate that the burden of customs procedures in Ghana are quite cumbersome and constitute a competitive disadvantage. Delays in customs procedures create opportunities for officials to request unofficial payments. However, smuggling operations in Ghana are supposedly on the decline in many areas due to a comprehensive campaign by the police and the Customs, Excise and Preventive Service (CEPS). Ghana News Agency stated in 2007 that drivers report that vehicles are increasingly seized by customs, which makes smuggling a risky activity. Some drivers also claim that they are required to pay unofficial fines to security personnel on their routes to get their vehicles released. Nevertheless, according to Armah 2008, for many, the risks of smuggling goods in and out of Ghana continue to outweigh the transportation and transaction costs that legal trade entails. Moreover, according to Global Integrity 2008, corruption reportedly remains commonplace in the CEPS and the institution has come to be known as a 'gold mine' for most of its staff. CEPS officials in border areas reportedly accept bribes from goods smugglers to permit them to avoid the official excise duties related to import and export. Customs activities at the Free Trade Zone at Tema have also led to much criticism.

Frequency

The World Bank & IFC: Doing Business 2010:
- A standard export shipment of goods requires 6 documents and takes 19 days at a cost of USD 1,013 per container.

- A standard import shipment of goods requires 7 documents and takes 29 days at a cost of USD 1,203 per container.

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business executives give the efficiency of customs procedures (formalities regulating the entry and exit of merchandise) in Ghana a score of 3.4 on a 7-point scale (1 being 'extremely inefficient' and 7 'extremely efficient').

Transparency International: Bribe Payers Index 2008:
- Surveyed Business executives perceived customs to be one of the most corrupt among a number of institutions and assigned it a score of 4.1 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').

The World Bank & IFC: Enterprise Surveys 2007:
- 38.8% of companies report that they expect to give gifts in order to obtain an import licence.