WT/TPR/S/81 Trade Policy Review
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III. TRADE POLICIES AND PRACTICES BY MEASURE
(1) INTRODUCTION
1. Ghana has continued to implement market opening measures commenced in the 1980s under
its Economic Recovery Programme.  These have further simplified and liberalized its trade regime.
Trade taxes are an important source of government revenue, accounting for almost one third of total
taxes in 1998.  Over half of this revenue was from tariffs.  However, reliance on trade taxes forgovernment revenue is expected to decline substa ntially following the introduction of a value-added
tax in late 1998.  The VAT rate was increased from 10% to 12.5% in June 2000.
2. Following the removal of the "special import tax" of 17.5% in 1999, and the lowering of the
highest tariff rate of 25%, mainly on consumer goods, to 20% in 2000, the simple average applied
MFN tariff rate was 13% in early 2000.  Ghana has a four-tier tariff structure, with rates of zero, 5%,10% and 20%.  However, the "temporary" introduction of another "special import tax" of 20% in
April 2000 on mainly consumer goods – covering 7% of tariff lines – effectively added a fifth tariff
rate of 40% and raised the average applied MFN tari ff to currently almost 15%.  Ghana applies MFN
tariffs to all trading partners, except for duty-free imports from ECOWAS members.
3. While tariffs are exclusively ad valorem , the transparency of the tariff system is undermined
by the widespread use of exemptions, often administered under poorly specified authority. These
exemptions undermine tariff protection in a non-transparent and arbitrary manner.  In 1998, some
40% of imports were exempt from payment of import duties, mainly through bonded warehouses and
free-zone enterprises.  End-use tariff concessions also apply on some goods.  Mandatory destination
inspection replaced preshipment inspection from April 2000.  Minimum import prices no longer
apply.  Ghana adopted the transaction valuation of imports, except for used vehicles, from February
2000.  Improved clearance procedures also include selective inspection targeting of high-riskconsignments.  At end-July 2000, about one third of consignments were inspected, and clearance
times had been reduced, although delays of a week were still common for some goods.
4. Apart from tariffs – of which all agricultural items and only a few manufacturing lines are
bound – imports face few formal trade barriers.  There are no import quotas, for example, and only a
small number of items are prohibited or subject to permits mainly for health and safety reasons.  TheVAT on raw foodstuffs is applied only to imported (excluding ECOWAS) produce and thus
discriminates against imports.  However, the VAT also favours imports of some VAT-exempt
products, such as bicycles and books.  Ghanaian standards are based mainly on international norms
and are being harmonized with those of ECOWAS members.  Government procurement arrangements
appear to be non-transparent and favour domestic suppliers, who have received a formal pricepreference of 12.5% since January 1999.
5. Ghana has no legislation allowing the imposition of anti-dumping, countervailing or
safeguard measures on imports.  However, the Government does monitor the impact of "unfair"
import competition on domestic industries and may take compensatory action against such products.
The recent introduction of a "special import tax" was partly a response to these concerns.
6. Remaining export restrictions cover mainly taxes on cocoa, on which the statutory marketing
board (COCOBOD) has an export monopoly – partially relaxed from 2000-01 – and prohibitions on
round logs.  Export subsidies per se  are not applied, but generous financial incentives are available to
exporters.  Scaled income tax rebates of up to 75% are provided to firms that export at least one
quarter of production.  Free-zone enterprises, which can be located outside designated enclaves,
exporting at least 70% of production receive more generous tax concessions, including a maximumGhana WT/TPR/S/81
Page 29
company income tax rate of 8% after a ten-year tax holiday, and full duty and tax exemptions on
imported inputs.  Income from non-traditional exports is also taxed at 8% instead of the normal
company tax rate of 35%.
7. Ghana provides little financial assistance to industry.  Investment incentives apply to all
investors.  These range from tax holidays for certain activities, such as agriculture, to accelerated
depreciation allowances and tariff exemptions on a range of imported machinery and equipment.
8. In the area of intellectual property protection, Ghana is making progress towards compliance
with WTO requirements.  Draft laws on all areas of the TRIPS Agreement are currently before
Parliament.  In the case of copyright, patents and trade marks, existing legislation is being amended to
bring it into line with WTO requirements, such as increasing the term of patent protection from ten to
20 years. Ghana has applied its own "banderole" system since 1992 to help control pirated musicalworks.  In other areas, new legislation has been drafted.
(2) M
EASURES DIRECTLY AFFECTING IMPORTS
(i) Registration and documentation
9. Ghana has no restrictions on the rights of individuals and entities, including foreign
companies, to import goods and services.  The main legislation governing importation is the Customs,Excise and Preventive Service Law (Management) (Duties, Rates and Other Taxes) of 1994, and the
Export and Import Act of 1995.  There are no special registration requirements for importers.  Any
entity may import goods commercially provided it is a legally registered business, partnership, body
corporate or company.  Imports may be made either by using a standard bank letter of credit or by
collection, provided prior approval is obtained from the Central Bank.
1  Clearing and forwarding
agents must be licensed by the Customs, Excise and Preventive Services (CEPS), and importers are
required to use clearing agents unless they have their own shipping divisions.
10. Documentation requirements were changed from 1 April 2000 when the Destination
Inspection Scheme replaced preshipment inspecti on.  The Import Declaration Form (IDF) is issued
automatically and remains the main document required from the importer.  It provides, for statistical
purposes only, details of the imported goods.  This form must be submitted for each inspection 21
days prior to the goods arriving in port.  The importer must provide other supporting documents,including the final invoice
2, packing list, airway bill or bill of lading, and sales contract, at least ten
days in advance of importation.3  These measures are meant to ensure that Final Classification and
Valuation Reports (FCVR) are issued before the arrival of imported goods at the port.  A FCVR is
needed to clear the goods through customs upon payment of the assessed duties.  Where inspection is
not required, a Gateway Pass is subsequently issued allowing clearance;  however, if a discrepancy is
found a Gateway Lock is placed on the goods to prevent importation.  Destination inspection services
                                                     
1 Other facilities available to finance imports include bill for collection;  pre-payment;  open account
and special credit lines, such as suppliers' credit;  fore ign loans;  and guaranteed credits administered by
Ghanaian banks.
2 Certificates of value are needed for all goods, irrespective of origin.  Importers must also supply the
actual manufacturer's invoice as well as the supplier's or exporter's invoice where they are different parties,
unless the exporter is a "stockist" or his bank has certified that the exporter's invoice accurately reflects that of
the manufacturer.
3 Documentation covering imports by air or emergency items need not comply with the 21- and ten-day
requirements.  Documents should, however, be submitted to the inspection companies on the day orders areplaced.  Faxed copies of documents ar e acceptable for processing purposes.WT/TPR/S/81 Trade Policy Review
Page 30
have been contracted to two private agencies:  Gateway Services Ltd (GSL) handles sea imports, and
GSBV is responsible for air and land imports.
11. In addition to customs documentation other requirements include providing certain import
documents to the Internal Revenue Service and the Ghana Shippers Council for sea imports.
Importers must also comply with other port procedures and documentation requirements to obtain the
goods once cleared by customs.
12. Ghana continues to use the ASYCUDA system for recording and clearing imports.4
(ii) Customs inspection and clearance
13. Before the establishment of destination inspection, all Ghanaian imports above an f.o.b. value
of US$5,000 were subject to compulsory preshipment inspection at the exporting port.  Contracts with
the four private companies providing such services were not renewed from 31 March 2000, as part ofthe Government's longer-term objective of giving  CEPS greater responsibility over customs.  The
main rationale for preshipment inspection was to guard against duty evasion through false declaration
or under-invoicing of imports.  These objectives remain central to the new destination inspection
system.  It also aims to facilitate trade by providing an efficient import verification system.
14. Destination inspection occurs in Ghana at the importing port.  Inspection is to be better
targeted at higher-risked consignments.  A computerized risk-management system enables selection
of high-risk goods based on certain features, such as the type and origin of imported goods as well as
the compliance history and reliability of the traders involved.  By determining the risk of each
consignment, CEPS expects to facilitate trade by faster clearance of low-risk goods through the Green
Channel, without inspection.  Other products are cleared through either the Yellow or Red Channel,
depending upon their assessed risk level, and may be inspected.  Container X-ray scanners have been
installed at the main seaport of Tema and at Koto ka International Airport to expedite inspections by
reducing the need to open containers.  Some major land borders, such as Elubo and Aflao, are about to
be installed with X-ray scanners.  Many goods that affect human safety and the environment,
including foodstuffs, beverages, pharmaceuticals, chemicals, electrical appliances, and second-hand
goods, have been classified as high-risk goods and are automatically subject to physical or laboratory
inspection.
5  Random inspections are to be conducted on all imports, including Green Channel goods.
The target set by CEPS was to reduce inspection rates from 100% to 70% and 50% by June and
July 2000, respectively, and to 20% for dutiable goods and to 10% for non-dutiable goods by 2001.
According to CEPS, the inspection rate had fall en to 31% by end-July 2000.  Better inspection
targeting of high-risk goods should be more effective in preventing fraudulent activities and will
facilitate trade by expediting the clearance of other imports.
15. A key price verification role has been retained in the destination inspection system, aimed at
protecting revenue collection;  this is done on the basis of transaction value at destination by customs
officers attached to the inspection companies.  Deta ils declared by the importer may be verified in the
exporting country by affiliates of the inspection ag encies checking (without physical inspection) the
                                                     
4Devised by UNCTAD, the Automatic System for Customs Data (ASYCUDA) is a computerized
customs management system that covers most importation procedures, including the production of trade
statistics.
5 Other items classified as high-risk goods are:  electric cables and cords; switches; sockets; plugs;
electric pressing irons; kettles; incandescent bulbs; fluorescent tubes; dry-cell batteries; pyrotechnic products;and arms, ammunition and explosives.Ghana WT/TPR/S/81
Page 31
valuation and classification particulars.6  It is also hoped that the new procedures will provide better
checks to ensure that duties are paid.  Under the preshipment inspection system, importers often failed
to collect Clean Reports of Findings needed to clear goods, thereby suggesting that goods were
possibly being cleared without the payment of duties.  A transaction price database is also being
assembled and updated to assist CEPS to more accurately assess and verify declared values.
According to the authorities, the prices contained in  the database are used only to detect suspicious
declared values, and are not substituted by CEPS to levy import duties.
16. The minimum threshold value was removed with  the change-over to destination inspection.
This was partly due to past abuse of these limits by importers splitting shipments to avoid
preshipment inspections.  All imports, irrespective of their mode of financing, are now subject to
destination inspection, unless specifically exempted by the Minister of Trade and Industry.  Exemptgoods include gold, precious stones, works of art, live animals, foodstuffs from neighbouring African
countries, fresh or frozen fish caught in Ghanaian waters by locally owned vessels, scrap metals, and
crude oil.
17. Improved operational procedures, including greater computerization, are directed at
strengthening the effectiveness of the CEPS.  Most data collection and control functions are currentlyperformed manually.  The CEPS computer systems are being upgraded to more effectively implement
the risk-management inspection system and the transaction price database.  Similarly, CEPS is being
restructured to provide enhanced internal performance monitoring and other operational procedures.
While there had been some "teething" problems with the new inspection system, the authorities
claimed that imports are normally cleared within one to two days, and that longer delays were mainly
due to incomplete documentation submitted by importers or valuation disagreements.
7  Customs
decisions may be appealed.  Initial objections can be raised at the operational level.  A formal appealagainst valuation assessments may be lodged with the Commissioner of Customs, in which case the
importer may either clear the goods by paying the assessed duty, under protest (for subsequent refund
pending the appeal) or they can be stored by customs in bonded warehouses.  The Commissioner's
decision can be appealed to the courts;  however, this rarely occurs.  An Appeals Committee is being
established.
18. Bonded warehouses are privately run and are go verned by Part VII of the CEPS Law and
Departmental Instructions 1984.  The main bonded wa rehouse at Tema is computerized.  According
to CEPS, past problems of non-payment of duties on goods disappearing from bonded warehouses
have been largely rectified through the introduction of better inventory controls and system checks,
especially the Greater Accra CEPS Regional Office at James Town where a manual systeminadequately controlled over 200 bonded warehouses.  CEPS also now requires all importers using
bonded warehouses to apply in advance for permission;  this normally takes about five days.  The
substantial use made of bonded warehouses to clear imports compounds the difficulties of ensuring
that duties are paid on these goods.  The list of specified goods ineligible for bonded warehousing
excludes some products that are difficult to control, such as motor vehicle and machinery spares,cosmetics, clothing, confectionery, and office supplies.  Goods are not restricted to excisable
products, such as alcoholic beverages and tobacc o products, and include many consumer products.
Available data indicate that some 14% of total imports in 1998, valued at almost Cedi 1 trillion,
passed through bonded warehouses, including many duty-free goods.  Bonded goods were the single
largest category of exempt imports in 1998, accounting for 35%.
                                                     
6 The details declared by the importer are containe d in the Verification Order, which is transmitted
electronically by the inspection agencies to their affiliates in the exporting country.
7 According to the private sector, longer delays, from four to seven days, are frequent in clearing goods
at Tema seaport.WT/TPR/S/81 Trade Policy Review
Page 32
19. A recent administrative directive to reduce the time limit on warehousing of goods from two
years to one year is of uncertain legality given that the legislation has not been amended;  such
amendments are now under way.  According to  CEPS, widespread access to storage in bond is
provided to help relatively small importers of consumer goods to defer duty and VAT payments,
thereby facilitating trade.  The severity of statutory penalties for misuse of bonded goods, which can
include fines, forfeiture of goods, and revocation of warehouse licences, appear in practice to havebeen inadequate.
(iii) Tariffs and special import taxes
20. Ghana's tariff is based on the Harmonized System (HS).  While in principle Ghana adopted
the eight-digit classification, some products are disaggregated to the ten-digit level.  There are
currently approximately 5,500 tariff lines in the Ghanaian customs schedule.  The tariff schedule hasfour columns, giving the ECOWAS preferential rate, if applicable;  the MFN rate;  the value-added
tax rate;  and the "special import tax", recently applied on some goods.
21. Tariff policy is primarily the responsibility of the Ministry of Finance.  Tariffs are mainly set
during budgetary deliberations at the beginning of each calendar year.  Amended rates are contained
in legislation passed by Parliament.  The Ministry of Finance proposes rate changes in consultation
with CEPS and other relevant ministries, including Trade and Industry and Food and Agriculture, and
these are submitted to Cabinet for approval.  Tariffs may also be changed throughout the year, but this
is less likely.  The latest tariff amendments are contained in the Customs and Excise Duties and Other
Taxes (Amendment) Act of 2000.
22. The Government's policy objective is to reduce the average tariff rate gradually over the next
three years to less than 10%.  According to the Go vernment, tariff reforms are aimed at enhancing the
external competitiveness of local industry, harmonizing tariff rates with regional levels, and removingdistortions.
(a) MFN levels, structure, and escalation
23. Ghana applies the MFN duty to all non-ECOWAS countries whether or not they are WTO
Members.  Its simple average applied MFN tariff – including the special import tax – is 14.7%
(Table III.1).  This compares with 17% at the time of the last Trade Policy Review in 1992.  Theaverage applied MFN tariff rate for agricultural products, including fishing (HS chapters 1 to 24), is
20.2%, compared  with 13.8% for industrial products (HS chapters 25 to 97).
24. Ghana's tariff comprises four main MFN rates:  zero and 5%, mainly on raw materials and
capital goods;  10%, mostly on intermediary goods;  and 20% on many consumer goods.  The most
common rates are 10% and 20% (Chart III.1).  Some 13.5% of tariff lines have a zero duty.
Table III.1
Tariff indicators, 2000(Per cent)
Indicator All goods AgricultureaManufacturinga
Bound tariff linesb 14.8 100 1.1
Duty-free tariff linesc 13.5 (13.5) 6 (6) 15 (15)
Simple average applied MFN rateb 14.7 (13.2) 20.2 (17.4) 13.5 (12.2)
Simple average applied MFN ratec 14.7 (13.2) 20.2 (17.3) 13.8 (12.5)
Table III.1 (cont'd)Ghana WT/TPR/S/81
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Indicator All goods AgricultureaManufacturinga
Range of MFN applied ratesb0-279(0-279) 0-40(0-20) 0-40(0-20)
Applied MFN tariff standard deviation (dispersion)c 12.1 (9.9) 9.9 (5.8) 12.2 (10.3)
Ad valorem  duties (per cent of tariff lines) 100 100 100
Note: Figures in brackets exclude the 20% "special import tax" applied since April 2000.
a Sectoral tariff averages vary with the definition used.  The HS definition of agriculture (HS 01-24) includes fishing and fore stry,
and for manufacturing (HS 25-97) excludes food processing, beverages, and tobacco products.  While conventional, thesedefinitions do not correspond precisely to those for "agricultural" and other products negotiated in the Uruguay Round.  The
WTO Agreement on Agriculture excludes fish and fish products (HS chapter 3 and parts of chapter 16) and includes items
regarded as "agricultural" from HS chapters 29, 33, 35, 38, 41, 43, 50, 51, 52 and 53 (Annex 1 of the Agreement).  Petroleum
products (HS 2709 and 2710) are also excluded from both agricultural and manufacturing sectors.  The breakdown of tariffs by
the International Standard Industrial Classification (ISIC) attempts to clarify the distinction between the agriculture/process ed
food, beverage, and tobacco sectors by including such processing as manufactured products (as distinct from the primary
activities).
b Sectoral averages based on the WTO classification, which coincides with the definition of agriculture adopted in the Agreement
on Agriculture.
c Sectoral averages based on the HS definition.  On an ISIC basis, the average MFN tariff rate is 17.3% (16.5%) on agriculture,
including fisheries, and 14.6% (13%) on manufacturing.
Source : WTO Secretariat, based on data provided by the Ghanaian Government.
(7.5%)
(0.1%)(1.2%)(13.5%)(41.7%)
(0.1%)(35.8%)
(0.1%) (0.2%)
05001,0001,5002,0002,500
Duty free 5.0 10.0 12.5 20.0 30.0 37.5 40.0 >40.00102030405060708090100Chart III .1
Frequency distribution of MFN tariff rates, including special import tax, 2000
Number of tariff lines Per cent
Cumulative per cent
(right scale)Number of lines (% of total)
WTO Secretariat calculations, based on data provided b y the Ghanaian authorities. Source :WT/TPR/S/81 Trade Policy Review
Page 34
25. The tariff on consumer goods was lowered from 25% to 20% on 1 January 2000.8  I n
April 2000, however, a "temporary" additional "special import tax" of 20% was imposed, mainly on
consumer products, covering around 7% of tariff lines (Chart III.2).9  This effectively added a higher,
fifth, tariff rate of 40%, and raised tariffs on these products substantially above the 25% level that
applied prior to the 2000 changes.  The mean tariff rate on consumer goods inclusive of the special tax
is 23%, and is highest on average in chemicals, textiles and leather, and wood and wooden furniture.This is much higher than on capital goods (4%) and intermediate goods (13%) (Chart III.3).
26. Higher tariff rates, varying from 10% to 279%, apply only on a few refined petroleum
products.  Average duties vary slightly by stage of processing, indicating minimal tariff escalation
overall.  However, within manufacturing groups, escalation is most pronounced in textiles and leather;
chemicals;  wood and wooden furniture;  basic metals;  and food, beverages and tobacco.  At 13%,average tariffs on semi-processed products are slightly lower than for primary and fully processed
goods, which both have averages of 15% (Chart III.3).  Tariff disparities are relatively wide overall
with a standard deviation of 12 percentage points (C hart III.4).  Relative tariffs are twice as disperse
in manufacturing as in agriculture.
27. The authorities have indicated that the special import tax is being reviewed with the aim of
reducing its product coverage, but no timetable has been announced for its removal.  The removal of
this tax would improve the tariff structure by reducing average duty levels and narrowing rate
disparities.
10  Special import taxes on various consumer goods were applied frequently in Ghana
during the 1990s.  The last such special import tax of 17.5% was abolished only in March 1999.
28. Tariff duties in Ghana are exclusively ad valorem .  Ghana does not apply any seasonal duties,
tariff quotas or variable levies.
(b) MFN tariff bindings
29. Ghana increased its coverage of bindings during the Uruguay Round from zero to 15% of
tariff lines.  In agriculture, all tariffs were bound, mainly at a ceiling rate of 99%, effective in 2004.
Lower bound rates of 40% and 50% were set on a few agricultural products, to apply from 1995.11
Very few industrial tariffs – 1% of tariff lines – were bound, at ceiling rates of mainly 30% and 40%,but also at 35% and 45%.  These bindings were limited primarily to agricultural inputs, such asfertilizers, as well as tools and equipment.
                                                     
8 Tariff rates on a number of duty-free products were increased and some duties lowered in the 1998
Budget.  Increased duties include the introduction of a 5% ta riff on certain fish and tools, and raising the rate on
imported iron rods to 25%.  The tariff on solar water heaters was reduced from 25% to 10%.
9 The special import tax was applied almost exclusively to goods that were already subject to a 20%
tariff.  Goods covered included various foodstuffs, such as potatoes, grapes, apples, wheat and meslin flour,animal and vegetable oils and fats, cocoa powder and related preparations, bread and pastries, fruit andvegetable juices; as well as a wide range of other manufactured products, including beer, cosmetics, cleaningfluids, paints, varnishes, plastic articles, paper and related products, new and worn clothing, and wooden andmetal furniture.
10 Removing the 20% special import tax would lower the unweighted average MFN tariff overall to
13%; to 17% for agriculture; and to 13% for manufacturing (based on HS definitions).  Tariff dispersion asmeasured by the standard deviation would also fall to around ten percentage points.
11 Products subject to a 40% bound rate included live poultry, milk and cream, wheat, and oil cake.
Tea was bound at a rate of 50%.Ghana WT/TPR/S/81
Page 35
0102030405060708090100
02 03 04 05 07 08 11 15 18 19 20 21 22 32 33 39 43 48 58 61 62 63 67 73 83 85 87 94
Chapter                 Description
     02                      Meat and edible meat offals
     03                      Fish and crustaceans, molluscs and other aquatic invertebrates     04                      Dairy produce, birds eggs, natural honey, edible products of animal origin       05                      Products of animal origin, n.e.s.     07                      Edible vegetables and certain roots and tubers     08                      Edible fruit and nuts;  peel of citrus fruits or melons     11                      Products of the milling industry;  malt;  starches;  wheat gluten     15                      Animal or vegetable fats and oils and other cleavage products;  prepared edible fats; etc.     18                      Cocoa and cocoa preparations     19                      Preparatio ns of cereals, flour, starch or milk;  pastrycooks' products
     20                      Preparations of vegetables, fruit, nuts or other parts of plants     21                      Miscellaneous edible preparations
     22                      Beverages, spirits and vinegar
     32                      Tanning or dyeing extracts; tannins and their derivatives; inks     33                      Essential oils and resinoids; perfumery, cosmetic or toilet preparations soap     39                      Plastics and articles thereof     43                      Furskins and artificial fur; manufactures thereof     48                      Paper and paperboard; articles of paper pulp, of paper or of paperboard     58                      Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery     61                      Articles of apparel and clothing accessories, knitted or crocheted     62                      Articles of apparel and clothing accessories, not knitted or crocheted     63                      Other made up textile articles; sets; worn clothing and worn textile articles; rags     67                       Preparation and articles made of feathers or of down; artificial flowers; articles of human hair     73                       Articles of iron or steel
     83                       Miscellaneous articles of base metal
     85                       Electrical machinery and equipment and parts thereof     87                       Vehicles other than railway or tramway rolling-stock,and parts and accessories thereofHS ChapterChart III.2
Share of lines subject to special import tax by HS chapter, 2000
Per cent
Source : WTO Secretariat calculations, based on data provided b y the Ghanaian autorities. WT/TPR/S/81 Trade Policy Review
Page 36
0.080.0
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.00.05.010.015.020.025.030.035.040.045.050.0(a) By stage of processing
(b) By broad economic categoryChart III.3
Tariff averages by ISIC 2-digit category, including special import tax, 2000
Consumer goods
Intermediate goods
Capital goods
Not classified
Food, 
beverages 
and 
tobaccoFirst stage of processing
Semi processed
Fully processed
Source : WTO Secretariat calculations, based on data provided b y the Ghanaian authorities.Textile 
and 
leatherWood and 
wooden 
furniturePaper, 
printing 
and 
publishingChemicals Non-metal 
mineral 
productsBasic 
metal Other 
manufac-
turingFabricated 
metal 
products, 
machineryGhana WT/TPR/S/81
Page 37
02468101214
Total Agriculture Mining and quarrying ManufacturingSource : WTO Secretariat calculations, based on data provided b y the Ghanaian authorities.Chart III.4
Tariff disparities by ISIC sector, 2000
Per cent
(c) Other duties and taxes
30. The Government re-introduced a value-added tax of 10% on goods and services, in late 1998,
to replace the 15% sales tax.12  The rate was increased to 12.5% in June 2000.  Tax credits are allowed
for VAT paid on inputs, and exports are zero rated.  The VAT applies to both domestic and imported
products and thus taxes consumption broadly, including services, without raising the costs of
downstream processors and exporters.  The VAT is applied equally across imports:  it is levied at the
same rate on the duty-inclusive c.i.f. price;  thus, the system does not generally discriminate against
imports. The one major exception is raw foodstuffs,  which are exempt from VAT if produced in an
ECOWAS country.13  The VAT of 12.5% on imports of raw foodstuffs from other origin becomes
effectively a tariff, equivalent to a higher rate because it is levied on the tariff-inclusive import price.14
Agricultural inputs are exempt from VAT.
31. Many other products are exempt from VAT, including some fishing inputs, domestic
consumption of electricity, transportation, construction, pharmaceuticals, bicycles, books, andmachinery and equipment.  Even though these exemptions were partly designed to relieve processors
of exempt goods of the tax on their inputs, a major disadvantage is that the VAT system discriminates
against the production of exempt goods.  While the product itself is exempt from VAT whether
                                                     
12 VAT was first introduced in March 1995 at a rate of 17.5%, but was repealed after only 3.5 months.
13 This includes rice, millet, cassava, yam, guinea corn, plantain, vegetables, fruit, nuts, coffee, cocoa,
shea butter, maize, sorghum;  meat whether smoked, dried or fried;  and seafood.
14 At a tariff rate of 20%, a 12.5% VAT on imports, which is not levied on domestic goods, would be
equivalent to an additional tariff of 15%. The discriminatory VAT rate would be the same as the tariff rateequivalent only if the imported goods had a zero tariff.  The special tax on imports of 20% is not included in thebase for calculating the amount of VAT paid on imports.WT/TPR/S/81 Trade Policy Review
Page 38
imported or not, domestic producers are unable to claim tax credits for VAT paid on inputs used in
their production.  Imports are advantaged since overseas exporters generally receive such credits on
processed inputs provided the product is taxable in the country of origin.  The VAT may therefore tax
Ghanaian producers selling exempt goods at home in the same way as excise or sales taxes levied on
inputs.  While producers of certain goods, such as of pharmaceuticals15, receive relief from this
penalty as their main inputs are also declared VAT exempt, producers of other goods, such as bicyclesand books, do not.
32. Excise taxes apply to both imported and domestic tobacco products, alcoholic beverages,
bottled water, soft drinks, malt-based beverages, and petroleum products.
16  Additional taxes covering
road, energy, strategic stock, and exploration levies, apply to imported and domestic petroleum
products other than liquefied petroleum gas (LPG), wh ich is levied separately.  These charges are paid
by all users of petroleum products and therefore tax processors, including farmers, fishermen, and
exporters, as such taxes are no longer rebated.
33. A tax of 25%, introduced on luxury goods in the 1995 Budget to replace the super sales taxes,
has been abolished.
34. An inspection fee of 1% of the c.i.f. value of imports is levied by CEPS, on behalf of
inspection agencies to cover the costs of providing inspection services.  An ECOWAS customs levy
of 0.5% has also been applied to imports from non-ECOWAS members since April 2000.
(d) Tariff preferences
35. Ghana applies MFN tariffs on all imports, except on most goods from ECOWAS members,
which are duty free mainly since 1996.  This applies to a wide range of processed and unprocessed
agricultural products as well as manufactured goods.  To be eligible, imports must meet the ECOWAS
rules of origin and have at least 60% of their raw materials sourced from within the Community orhave a minimum value added of 35% of the ex-wor ks price (excluding tax).  Additional industrial
products can also be imported duty free from designated Community enterprises;  these firms must be
at least 25% owned by citizens of member States.  Many designated firms are located in Nigeria.  A
range of traditional handicrafts can also be imported duty free from ECOWAS members.
36. The share of Ghana's imports from ECOWAS members rose slightly in 1998, to almost 25%;
most come from Nigeria and Côte d'Ivoire.
(e) Concessions and exemptions
37. Ghana maintains several schemes providing tariff concessions and exemptions on certain
imports administered under, often poorly specified authority.  These concessions are used widely and
have contributed to declining tariff revenue as a share of government taxation receipts.  In 1998, tariffrevenue accounted for some 17% of tax collections.  Rationalizing the use of such exemptions could
                                                     
15 In June 2000, the scope of the VAT exemption on "essential drugs" was expanded to include all
drugs defined under Chapter 30 of the Harmonized System and also 34 active ingredients that have noalternative besides the production of these drugs.
16 Current excise rates are:  140% on tobacco produc ts;  50% on alcoholic beverages;  20% on water
and carbonated beverages; 5% on malt-based beverages; and rates range from 11% to 27% on petroleum
products.  Technically, under current legislation, excise duties can be applied only to domestically produced
goods, but an excise component is included in the tariff applied to imported excisable products.  Thus, the tariffrate will overstate the degree of protection afforded Gh anaian producers of such goods by the extent of the
excise duty applied to domestic products.  Where the tari ff rate equals the excise duty, tariff protection will
effectively be zero.Ghana WT/TPR/S/81
Page 39
improve efficiency by making the tariff structure more transparent and removing many of the rate
anomalies generated by the current system of exemptions.  Concessions on capital goods and other
inputs contribute to tariff escalation and widen disparities in effective protection for producers,
especially of final products that are protected by the highest tariff protection of 40%.17  Limiting the
use of concessions would also improve fiscal balances, thereby helping to finance overall tariff and
tax reforms.
38. Data on the extent and relative importance of various exemption schemes is incomplete.
Available data for 1998 indicate that some 40% of im ports were exempt.  Just over half of these were
exemptions under the Third Schedule of the Customs and Excise Act, and the rest were exempt
imports cleared through bonded warehouses and free zones.  Because of the widespread use of
exemptions, the implicit tariff rate (tariff revenue divided by value of imports) is well below thesimple average rate.  In 1997 and 1998, for example, the implicit rate of 7% was only about half the
simple average in those years.  Considerable scope therefore exists for improving tax revenue by
reducing the scope of exemptions.
18
39. Third Schedule exemptions accounted for some 24% of imports in 1998.  Part A exemptions
include imports by the Volta Aluminum Company for use in the aluminum smelter at Tema as well asin its mines, and by the Volta River Authority.  Part B exemptions include imports of advertising
matter;  West African raw foodstuffs and fish caught by Ghanaian-owned vessels;  agricultural
machinery, equipment, and chemicals; fishing floats and gear approved by the Commissioner; jute
bags imported by COCOBOD;  and packing materials bearing a company logo used in exports.  Many
of these exemptions, although initiated by other ministries, such as Food and Agriculture and
Employment and Health, are subject to approval by the Ministry of Finance.  In 1998, over 5% of
imports were exempted from duties under such letters.  The Minerals Commission is also a substantialimporter of exempt goods, importing some 7% of imports in 1998.
19  Since cocoa, most minerals, and
almost all the production by Volta Aluminum Co mpany is exported, some of these concessions
benefit mainly exports.
40. Concessional, usually zero, tariffs are also provided as incentives to foreign firms investing in
Ghana that are registered with the Ghana Investme nt Promotion Centre.  In 1998, some 2% of imports
were exempt under these provisions.  These concessions cover mainly duty-free importation of
machinery, equipment and parts thereof classified in Chapters 82, 84 and 85 of the Tariff.  Certain
hotels, restaurants, and local film and electronic-media operators can import additional equipment,
such as televisions and furnishings, under Chapter 98B of the Customs Tariff.20  Firms may also apply
to the Centre for duty-free import of other plant and machinery not exempt under these arrangements.Moreover, the Centre can negotiate additional specific incentive packages to promote strategic or
major investments, subject to the approval of the President of Ghana.
41. The Commissioner of CEPS also has legislative authority to grant concessionary rates,
usually zero, on inputs for specified end-uses im ported by approved manufacturers (Chapter 98A of
the Customs Tariff:  "Goods Admissible at Concessionary Rates When Imported by Manufacturers
                                                     
17 Tariff exemptions reduce the effective protection provided producers of exempt goods while
increasing it to users of the exempt inputs.
18 Ministry of Trade and Industry (undated).  This study stated that "…what needs to be done is to
narrow the spread of the present tariff structure [and] lower the rates to achieve a uniform tariff regime.  This
process will boost revenue, encourage compliance and reduce [the] tax burden" (p.8).
19 Under the Minerals Commission Law of 1986, the Minerals Commission is exempt from the
payment of taxes and duties as approved in writing by the Secretary of Finance (Section (18)).
20 Chapter 98B is headed "Goods Admissible at Concessionary Duty Rates When Imported by
Enterprises under the Ghana Investment Promotion Centre Act of 1994".WT/TPR/S/81 Trade Policy Review
Page 40
Approved by the Commissioner").   Eligible goods include materials used in the manufacture of
agricultural implements and machinery, machetes, fishing nets, pharmaceuticals, plastic pipes and
tubes, mosquito nets and coils, bicycles, iron rods, corrugated building sheets, and nails.21  T h e s e
concessions are commonly used by manufacturers despite frequently involving additional delays of up
to seven days in clearing imports.22
42. The rationale for these concessions is unclear.23  Most of the eligible goods are not of a dual
use nature and are consumed as inputs not final goods, and could therefore be replaced by a zero
tariff.24  Moreover, for those few products where the concessionary rate is not zero, it is equal to the
actual applied tariff of 10%.  The criteria and procedures for administering these end-use tariff
concessions, including the selection of eligible products and end-users, are also unclear.  A few
concessions would appear to be necessary to maintain the competitiveness of domestic producers ofgoods that can be imported at zero tariff rates under other concessional arrangements.  For example,
Chapter 98 allows duty-free importation of all raw materials used to manufacture fishing nets, which
themselves can be imported as fishing gear at zero duty under the Third Schedule.
25  S o m e
beneficiaries of Chapter 98 concessions, such as bicycle manufacturers, are also penalized by the
VAT system.  However, the net impact of these arrangements on producers of VAT-exempt goods isunknown since the penalty incurred, the amount of VAT paid on inputs for which no tax credit is
received on domestic sales, is unrelated to the savings in tariff duties on imported inputs.
43. It is also unclear how the interests of Ghanaian (or potential) producers of such inputs are
taken into account.  While end-use arrangements benefit the users of eligible inputs, they discriminate
against the domestic production of these inputs.  Moreover, such arrangements are themselves
discriminatory in that they can introduce varying input prices among manufacturers of different
products.  While manufacturers of plastic pipes and tubes, for example, can import plastic duty free,other manufacturers importing the same input to produce other goods are required to pay the full
tariff, unless the same concession is extended to their use.  Thus, these arrangements undermine the
transparency of the tariff structure and can distort resource allocation by providing "tailor-made"
protection.  They can be a major source of discretion in customs administration.
44. The Government is taking steps to rationalize th e use of these exemptions.  According to the
authorities, all exemptions have required parliamentary approval since 1992.  This was re-emphasized
in the 2000 Budget, when the Government also ann ounced that it would review the system of duty
exemptions.  It immediately removed such co ncessions for non-government organizations.
45. The largest single source of duty exemptions continues to be bonded warehouse imports
(section (ii) above).  In addition, "free-zone" enterprises are important users of exempt imports(section (3)(vi)).  Exporters are also entitled to full drawback of duties paid on imported inputs used to
                                                     
21 Imports of unmanufactured tobacco, materials for the manufacture of evaporated milk, and certain
packaging materials by approved manufacturers receive a concessionary tariff rate of 10%.
22 The importer must apply in writing to the Commissioner of CEPS for approval on each consignment,
and application can only be made once the imported goods have arrived.
23 COCOBOD benefits from two tariff concessions:  duty-free imports of jute bags, under Part A of the
Third Schedule;  and plastic granules under Chapter 98.
24 This would ensure that all importers using the pr oduct would receive the same zero tariff rate and
eliminate the need for special customs processing, which delays clearance.
25 Other examples are agricultural chemicals and pesticides; materials imported for the manufacture of
machetes;  and materials of base metal for the manufacture of agricultural implements and machinery.Ghana WT/TPR/S/81
Page 41
manufacture exports.  However, the system administered by CEPS is apparently not working well;
the scheme is said to be cumbersome and there are often major delays in receiving duty refunds.26
(iv) Customs valuation
46. Tariffs are levied on the c.i.f. (cost, insurance, and freight) value of imports.  Ghana converted
to the transaction valuation of imports in accordance with the WTO Customs Valuation Agreement
from 1 February 2000.27  The authorities saw the replacement of mandatory preshipment inspection
with destination inspection in April 2000 as an integral part of Ghana's implementation of its WTO
commitments.  Some initial problems had occurred in implementing transaction valuation, including
substantial fraudulent under-invoicing.  The authorities have indicated that Commissioner's valuation,
based on minimum import prices, has been discontinued.  The relevant customs legislation is
currently being processed.  Ghana is a member of the World Customs Organization.
47. Special valuation arrangements continue to apply for imported second-hand motor vehicles.
Import values are assessed using set nominal depreciation rates.  The new purchase price is used for
vehicles less than six months old.  The value for older cars up to 1.5 years, allowing for depreciation
on new car price, is 85%;  from 1.5 to 2.5 years, 75%;  and from 2.5 to 5 years, 60%.  Imported
vehicles between five and ten years of age will be valued at 50% of the new purchase price.
(v) Import prohibitions, quantitative restrictions, and licensing
48. Ghana maintains few import restrictions.  Those applied are mainly to protect human health
and national security, such as restrictions on imports of obscene articles, dangerous weapons,
contaminated food or infected animal carcasses, and raw coffee imported overland.  Some products
are conditionally prohibited and require a licence to be imported.  The Ministry of Finance must
license imports of rough or uncut diamonds.  Imports of evaporated or condensed milk of fat content
below 8% or 26% for dried milk or powder, excluding clearly identified skimmed milk, must also belicensed.  Brandy, rum, and whisky must be certified as being stored in wood for at least three years
prior to importation.  Imports of parrots are prohibited.
49. Special permits are required to import products such as drugs (issued by the Ministry of
Health);  chemicals (Environmental Protection Council Certificate);  meat products (Veterinary
Services Department);  arms and ammunition (Ministry of Interior);  explosives for mining (Ministryof Interior);  gaming and gambling machines (Ministry of Interior);  and telecommunications
equipment (National Frequency and Registration Board).
50. Imports of motor vehicles, including trucks, lorries, and buses, older than ten years were
banned in the 2000 Budget.  Previously, imported over-age motor vehicles were subject to a penalty
tariff of 20% for cars more than five years old;  20% from five to ten years old; and 50% for carsolder than ten years.
51. Only drugs, cosmetics and other chemical substances that are registered with the Food and
Drugs Board can be imported, and then only if supported by a quality assurance certificate issued by
the competent authority in the exporting country.
                                                     
26 According to the private sector, delays of more than four months are common in obtaining refunds,
and some claims are never received.
27 Ghana notified to the WTO that it would be invoki ng the Special Provisions Available to Developing
Country Members to delay the application of the Agreement, on 3 November 1999 (WTO DocumentG/VAL/2/Rev.9).WT/TPR/S/81 Trade Policy Review
Page 42
52. Commercial sale and importation of unapproved seeds is prohibited, and can only be made by
a registered commercial seed producer or importer (Seeds (Certification and Standards) Decree of
1992 and The Seeds Act of 1995).  The Minister of Food and Agriculture is responsible for approving
seeds and registering sellers, including importers, based on advice from the National Seed Committee
(Seeds (Certification and Standards) Regulations of 1973).
(vi) Anti-dumping, countervailing, and safeguard measures
53. Ghana does not currently have any national legislation on anti-dumping, countervailing, and
safeguard measures.
54. The authorities indicated that the recent introduction of a special import tax on some products
was partly designed to counter unfair trading practices of foreign exporters selling at prices assessed
to be unrealistically low prices by CEPS, which were causing injury to domestic producers.28
However, these arrangements allowing the use of special import taxes to provide anti-dumping or
other relief are not public and allow no formal appeal procedures.
55. The Ministry of Trade and Industry monitors world markets and the impact of imports on
domestic competing industries so that compensatory measures can be taken to ensure that foreign
goods compete fairly.29  The National Economic Forum of 1997 also recommended that anti-dumping
measures were needed to protect local industry.30
(vii) Standards and other technical requirements
(a) Standards, testing, and certification
56. The Ghana Standards Board is mainly responsible for standardization matters.31  I t  s e t s
standards and conducts quality assurance and conformity testing for both imports and exports.  The
Board is mainly government funded, but also receives fees from its quality assurance and testing
activities.  It is a member of the International Organization for Standardization (ISO), the AfricanRegional Organization for Standardization, and the International Organization for Legal Metrology.
The Board provides laboratory and inspection services for CEPS, mainly on meat, poultry, beverages,
and engineering products.
57. Ghana primarily adopts international standards, especially ISO or Codex norms.  A Technical
Committee first examines international standards.  These are generally applied unless foundinadequate;  there have been few cases of this to date.  Where no international norms exist, standards
from other countries are usually used; historically from Britain but increasingly from the EU or
South Africa. Ghana has adopted its own standards in only a small number of cases, such as for
cassava chips.  Ghana currently has about 46,500 standards, of which about 18,000 are ISO norms.
Some 2,700 international and foreign standards, on basic engineering design and manufacturing, were
                                                     
28 The special import tax was also applied to "reduce pressure on the country's critical foreign exchange
position".
29 Government of Ghana (1998) .
30 National Planning and Development Commission (1997).
31 The Board has been notified to the WTO as the contact point (point of enquiry) for issues related to
the Agreement on Technical Barriers to Trade and for the Agreement on the Application of Sanitary andPhytosanitary Measures.Ghana WT/TPR/S/81
Page 43
adopted in 1999.  Ghana is in the process of adopting some IEC standards.  All Ghanaian standards
are mandatory.32  The Government's objective is to replace these with voluntary standards.
58. Ghanaian standards do not discriminate against imports:  the same standards apply to imports
and domestic goods.  Importers and domestic manufacturers must register with the Board.  All locally
manufactured goods must bear the Ghana Standards Certification Mark issued by the Board to
licensed suppliers.  Conformity tests from accredited foreign testing agencies are generally accepted.Ghana has a Mutual Recognition Agreement with Japan on food exports and has recently been
accredited with the EU for testing fish exports to the European market.  Ghana is involved in fast-
tracking standards harmonization among ECOWAS members and is currently working on this with
the Standards Board of Nigeria.  As part of this fast-track approach, Ghana also has mutual
recognition agreements with other ECOWAS members whereby it recognizes the conformity tests ofnational agencies.  The Ghana Standards Board is also collaborating with the Ministry of Lands and
Forestry to develop quality standards for managing Ghana's forests.
59. The Board also inspects exports of certain Ghanaian goods to ensure that standards required
by overseas markets are met:  it issued 1,737 health certificates on exports in 1999, of which 1,686
were on fish exports to the EU.
33  New standards and quality requirements are being extended to non-
traditional products to help promote exports to major markets.  COCOBOD is responsible for all
quality inspection, grading, and certification of cocoa exports.
60. Quality assurance is provided through factory inspections and accreditation.  ISO 9000
specifications have been adopted in Ghana since 1998.
61. Product certificates, which are legally valid for one year, are issued to accredited firms.  The
Board monitors firms every six months.  It also protects consumers' health and safety by conducting
laboratory tests on imported and domestic goods, such as drugs, cosmetics, drinks, householdproducts, building materials, and foodstuffs.  It is required by legislation to provide quality certificates
for registration of locally manufactured drugs, cosmetics or other chemical substances by the Food
and Drugs Board, established under the Food and Drugs Law of 1992.
34  T h e  G o v e r n m e n t  i s
concerned that some imports may be of insufficient standard or quality, and pose risks to consumers.
For this reason, the Board is to become increasingly  involved in the destination inspection of imports.
Ghana has no strong consumer association and does not have product liability legislation to safeguard
consumers.
62. The Board has also set limits on the fat content of beef, pork, mutton, and poultry to protect
human health.  These are applied uniformly to imported and domestic meat.  The maximum fat
content levels by weight are 25% for beef, 42% for pork, 35% for mutton, and 15% for poultry.
63. Other Board activities include forensic tests for medical institutions and law enforcement
agencies.  It is also responsible for metrology inspection, verification, and calibration to validate
measuring and weighing instruments for trade and industry.
                                                     
32 Standards include specifications on building materials, food and agricultural products, industrial and
household products, electrical goods, pharmaceuticals, and quality management.
33 Ghana Standards Board (1999).
34 Legislation requires the Food and Drugs Board to cooperate with the Ghana Standards Board to
ensure adequate and effective standards for food and drugs.WT/TPR/S/81 Trade Policy Review
Page 44
(b) Sanitary and phytosanitary arrangements
64. SPS measures in Ghana are primarily the responsibi lity of the Directorates of Plant Protection
and Regulatory Service, and Veterinary Service of the Ministry of Food and Agriculture.  The
Prevention and Control of Plant Pests and Diseases Act of 1965 is to be replaced by the Plant
Quarantine Act, which has been drafted.  There are no distinctions made between imported and
domestic products.  Ghana's quarantine regulations are based on the FAO or the Inter-AfricanPhytosanitary Council.
65. Importation of designated plants and plant products requires a phytosanitary certificate from
an authorized body of the exporting country and an import permit issued by the Plant Protection and
Regulatory Service.  Prohibited imports include soil; bud wood of cocoa (unless imported through a
non-cocoa-producing third country, such as Britain); and all plants infected by pests and diseases.These include rice from locations known to have kernel smut, tungro and mottle viruses;  plants from
countries with cocoa witchbroom disease;  and all coconuts in husk from various countries.  Ghana
recognizes phytosanitary certificates issued in accordance with the requirements of the International
Plant Protection Convention.  The Plant Protection and Regulatory Service issues phytosanitary
certificates on exports required by importing countries.  Goods must be inspected within 14 days ofbeing exported.  It also has statutory responsibilities over plant pest and disease management,
pesticide regulation and control, and inspection and certification.
66. Regulations controlling pests and diseases apply to all agricultural produce, including fruit
and vegetables.  These include for example, spotted wilt for pineapples;  scab and bacterial leaf spot
for mangoes;  fruit spot for pears;  and grey mould for lettuces.
67. The Veterinary Services Directorate conducts animal quarantine.  Current arrangements, since
1 June 1997, apply to imported products of meat and dairying, live animals, such as cattle, sheep,goats and pigs, as well as veterinary vaccines, drugs, and equipment.  Imports require a permit issued
by the Veterinary Services Directorate and must have a veterinary health certificate from the
exporting country.  This should certify that the animals were free from infectious disease;  fit for
human consumption;  slaughtered in approved abattoirs;  and free from radioactive contaminants.  The
International Office of Epizootics (OIE) provides weekly reports on livestock and poultry diseasesworldwide to member countries, including Ghana.
68. Ghana maintains a ban on imports of pigs and pork from the West African sub-region because
of the recent outbreak of swine fever disease.
(c) Marking, labelling, and packaging
69. Ghana's regulations on labelling, marking and packaging of specified products are contained
in the 1992 Ghana Standards Board (Food, Drugs and Other Goods) General Labelling Rules.
Imported and domestic food and drugs must bear English markings identifying such attributes as the
type of product, the country of origin, producer's or importer's name, the ingredients or components,
net weight, instructions on use, and the expiration date for perishable foods.  These food-labelling
requirements are consistent with those of the General Codex Standard on Food Labelling.  Similarlabelling is required on a range of other specified products, including electrical goods, such as
televisions, air-conditioners, lamps and household appliances, as well as cement, batteries, paints,
pesticides, detergents, poultry feed, toiletries, and cosmetics.
70. Fines are levied  on suppliers of improperly labelled products.  Products are also confiscated
unless tested and approved by the Ghana Standards Board, in which case suppliers have 28 days toGhana WT/TPR/S/81
Page 45
re-label the goods as required for sale.  The Board has taken steps to increase inspections to reduce
food items from being sold with expired "use by" dates.
(viii) Government procurement
71. The state-owned Ghana Supply Company Ltd is the centralized agency handling government
procurement in Ghana.  However, authority for public procurement rests with the Finance Minister
(Financial Administration Regulations of 1979).  The Minister has increasingly issued directivesenabling goods to be procured directly, thereby decentralizing government procurement.
Consequently, the Company accounts for only about 5% of total government procurement (amounting
to US$7.4 million in 1999).  The rest is procured directly by the ministries and state-owned entities,
which have substantial autonomy over their procurement.  They are not required to follow the
Company's criteria on procurement, such as requiring competitive bidding on contracts aboveCedi 1 billion and using open tendering procedures, including providing access by foreign tenderers.
Since no manual exists to codify the rules on government procurement, such arrangements are likely
to vary significantly between ministries.  Procurement by individual entities is not audited externally.
Avenues for appeal against procurement decisions appear limited, especially against contracts let by
ministries and state-owned enterprises.
72. Since January 1999, local firms have received a 12.5% price preference over foreign
suppliers.  Contractors are also required to use 40% local materials where available.  However, there
is no reliable information on how individual entities apply these preference margins for local
suppliers;  larger preferences may be possible in some instances.  The Government is committed to
public procurement of locally manufactured goods.  It recently issued directives to ensure that this
occurred as much as practicable.  The Government is also implementing a system whereby
public-sector organizations are to purchase "made-in Ghana" goods to support local industry and topromote quality production.
35
73. Ghana is not member of, nor observer to, the Plurilateral Agreement on Government
Procurement.  The Government is considering introducing codified rules on public procurement,
which will be administered by a central body.
(ix) State trading
74. According to the authorities, no state-owne d or other company directly holds an import
monopoly or has exclusive privileges.  The import monopoly on crude oil by the Ghana National
Petroleum Corporation was removed in April 1996.
(x) Local-content requirements
75. According to authorities, Ghana has no local-content arrangements.
(3) MEASURES DIRECTLY AFFECTING EXPORTS
(i) Registration and documentation
76. There are no specific requirements for exporters of non-traditional goods;  registration with
the Ghana Export Promotion Council is no longer ne cessary.  Non-traditional exports are subject to
completion of an export form on exportation:  this became a legal requirement, largely for statistical
                                                     
35 Government of Ghana (2000a).WT/TPR/S/81 Trade Policy Review
Page 46
purposes, in September 1995.  Non-traditional exports cover all goods and services other than cocoa
beans;  lumber and logs;  unprocessed gold and other minerals;  and electricity.
77. However, exporters of traditional products are subject to foreign exchange surrender
requirements administered by the Bank of Ghana.  For each export transaction they must provide a
bank-approved exchange control form (A2 form ).  Except for the overland export of logs36, such
forms are valid for three months, but may be renewed once by the same bank for a further threemonths.  These surrender requirements apply only to cocoa and gold;  they no longer apply to lumber.
Currently about 98% of export receipts from cocoa beans must be surrendered, allowing 2% retention.
For gold, the retention limit is set by agreement between the Government and the companies;  on
average, 25-30% is surrendered.
78. Exporters of non-traditional goods can hold up to 100% of export receipts in offshore foreign
currency accounts to buy imported inputs and meet other allowable business expenses (i.e. capital
imports and debt service obligations).
(ii) Export taxes
79. Traditional exports are taxed while non-traditional products are exempt.  The tax is mainly
applied to cocoa, but exports of gold, bauxite, mang anese, and certain processed timber are also taxed
at 6% of the f.o.b. value.  An export tax is also levied on aviation jet fuel.
80. The tax on cocoa exports is collected as a 100% profit tax on COCOBOD.  The Government
taxes cocoa farmers by setting growers' prices well below world levels, and collecting as revenue
COCOBOD's inflated profits.  Its total cocoa receipts,  after expenses – including payments to growers
– accrue to the Government.  However, unlike a conventional export duty, this arrangement taxes both
exports and domestic sales, although the tax falls mostly on exports since these account for 80% of
cocoa receipts.  Farmers are taxed whether the cocoa beans are exported or sold at home.  Thus,unlike conventional export taxes, the tax does not distort production patterns by encouraging domestic
processing of cocoa products.
37  However, farmers bear the tax, assuming, as the empirical evidence
suggests, that Ghana has insufficient market power to be able to pass it on to foreign consumers
through higher world cocoa prices (Box III.1).  Although undergoing reform, Ghana's heavy taxation
of cocoa has severely affected the industry and the economy generally (Chapter IV(2)(iii)).
81. The implicit tax rate on cocoa production is being reduced below the rates in the 1970s and
1980s (around 45%), when Ghanaian farmers received only 40-50% of the international cocoa price.38
Government policy is to reduce the tax by raising growers' returns to over 60% the world price.Cocoa export tax receipts have also fallen in recent years due to the collapse in international cocoa
prices.  In 1998, cocoa tax receipts amounted to Ce di 401 billion, equivalent to about 15% of the
Government's total tax collections;  they are expected to fall in 1999 and 2000 to Cedi 254 billion and
Cedi 160 billion, respectively.
39
                                                     
36 These are valid for one month and cannot be renewed.
37 Export taxes depress the domestic price of the product by diverting sales on to the home market.
This penalizes the producer of these products.  Downstream processors benefit since they can purchase the
primary product at prices below world levels, akin to an implicit input subsidy.  Where the subsidy is large,
these arrangements can end up distorting resource allocation by generating processed exports that rely on long-term government assistance.
38 Bulir (1998).
39 Government of Ghana (2000a).Ghana WT/TPR/S/81
Page 47
Box III.1:  The incidence of cocoa export taxes
Whether the incidence of an export tax is borne by the domestic producer or the foreign consumer depends
on the supply situation of the country and demand conditions for the product in the world market.  If acountry is "small", i.e. its exports of a particular commodity represent a minor share of world supply, it willhave no influence on world price, that is, the country will be a price taker on international markets.  Anyreduction in export volumes caused by the export tax will not raise the export price.  In this case, the
domestic producers of the taxed commodity will bear the full incidence of the export tax, and are unable to
pass on the tax to foreign consumers via increased prices.
Ghana would appear to be a price taker for its cocoa exports.  Experience from other countries using export
taxes demonstrates that even where such terms of trade benefits are thought to be important, they can bedifficult to capture in practice.  This is especially true in the longer term, when world demand for any
particular commodity is likely to be more elastic du e to greater product and country substitution.  Thus,
export taxes on cocoa have not raised export returns in  Ghana.  Rather, it has penalized the cocoa industry
and misallocated resources away from a (relatively efficient) activity.
Source: WTO Secretariat.
(iii) Export prohibitions, controls, and licensing
82. Ghana maintains few export restrictions.  The main restriction is on exports of round or
unprocessed logs.  In the late 1980s, the export of 18 species of logs was banned, and in 1995 log
exports were suspended outright.  Government policy has been to replace export taxes on logs
progressively with prohibitions, to encourage downs tream processing of timber products and to help
preserve forests.  The efficacy of using export prohibitions to achieve such economic objectives aswell as to meet environmental concerns is, however, questionable (Chapter IV(2)(iii)).  Exports of
parrots, as well as raw rattan cane and bamboo are also prohibited.
83. Export permits are required for wildlife, timber products, precious minerals, fish, and
antiques.
(iv) State trading
84. COCOBOD has monopoly rights over the export  of cocoa beans grown in Ghana under
special marketing and taxation arrangements (Chapter IV(2)(iii)).  Recent guidelines released by the
Government propose the partial liberalization of cocoa bean exports from October 2000.  Gold and
diamonds mined by small-scale miners (working claims of less than ten hectares) must be marketed
and exported by the Precious Minerals Marketing Corporation and Miramex Co. Ltd.
85. Ghana has not notified any state-trading enterprise to the WTO as having monopoly rights
over exports.
(v) Export assistance
86. According to the authorities, Ghana does not provide direct subsidies to assist exports of
goods or services.
87. Nevertheless, Ghana assists exporting companies by providing concessional income tax rates.
Non-traditional exporters are taxed at a company tax rate of 8%, instead of the standard rate of 35%,
regardless of export performance.  Moreover, another scheme still provides direct export incentivesWT/TPR/S/81 Trade Policy Review
Page 48
through company income tax rebates to all exporters, according to export performance.40  The rebate
is available to manufacturers exporting at least 5% of their production.  It increases with the share of
production exported.  The maximum company tax rebate of 75% – corresponding to a tax rate of 8% –
is granted to manufacturers exporting more than one quarter of their production.  Agricultural and
manufacturing products attract different rebates41;  exports of services are ineligible.  This scheme
appears to overlap with the general tax concession granted to non-traditional exporters, and thereforewould seem largely redundant, except for traditional exporters.
88. Although the tax rebate is applied to income from all sources and not just exports, the scheme
provides a substantial financial incentive for firms to increase their exports.  These tax savings
provide substantial incentives for manufacturers to raise export shares to cross over into higher rebate
brackets.  When export shares rise above 25% the incentive for additional exports disappears.
89. Such concessional income tax schemes assist manufacturers in the same way as government
subsidies by allowing them to reduce their income tax payments.  These "tax expenditures" financed
from forgone revenue can, however, be potentially costly to the economy.  They undermine the
transparency and efficiency of the tax system, and are likely to contribute to the Government's
budgetary problems.  Providing such export incentives may also go against the Government'sliberalization objectives and could establish exporting activities that are dependent on long-term
government support.
(vi) Free-trade zones
90. Legislation for establishing free-trade zones was passed in 1995, aimed at promoting
economic development (The Free Zone Act and related regulations).  The Ghana Free Zone
Programme is seen as an integral part of attracting foreign investment under the Government's
Gateway to West Africa Project.  It involves deregulation of ports and airline transportation and theestablishment of export-processing zones.  Three zones have been designated:  at Tema, Sekondi, and
Fumesua.  A number of difficulties have slowed their development, including securing title to
designated land and obtaining adequate supplies of utility services, such as electricity, water, and
communications.  No zone is yet operational, but Tema is expected to commence in 2001.  These
zones are being developed and run privately by licensed operators, and a number of large projects areanticipated to come on stream.  The largest so far is for the construction of an oil refinery at Sekondi,
by a U.S. company, at a cost of US$2.7 billion.
91. Enterprises can be designated as free-zone firms without physically locating in a free-zone
enclave.  Investors may choose to operate outside an enclave as a single factory enterprise.  There are
currently 64 of these companies registered, of which about 46 are operational.  Licensed enterprisesare mainly engaged in the production of wood and furniture products:  metal fabrication;  garments;
food processing, including salt and cocoa;  cosmet ics;  plastic products;  and pharmaceuticals.  In
1998, production from licensed enterprises amounted to US$158.5 million, of which exports
amounted to US$145.4 million (ex-factory values).
42  Most exports of eligible firms did not exceed
US$5 million;  exceptions included the Pioneer Food Cannery (exports of US$70 million) and WestAfrican Mills (US$52 million).  Ca pital invested in free-zone projects at end of 1998 amounted to
US$117.2 million.
                                                     
40 The corporate tax rebate scheme was already in place at the time of the previous Trade Policy
Review of Ghana (GATT, 1992, Vol. I).
41 Firms engaged in agricultural production that ex port between 5% and 15% of output receive a tax
rebate of 40%; for exports from 15% to 25% the reba te is 60%.  The corresponding rebate rates for other
manufacturers are 30% and 50%.
42 Ghana Free Zones Board (1998).Ghana WT/TPR/S/81
Page 49
92. Free-zone firms receive a range of generous concessions, including exemption from all import
duties, excise taxes, and other direct and indirect taxes, charges, and levies on inputs used in
production.  In addition, firms are exempt from income tax for ten years, and pay a maximum
company income tax rate of 8% thereafter.  A ccording to the authorities, these incentives were
designed mainly to match similar concessions provided by neighbouring countries.  The main
requirement to become a designated free-zone enterprise is to export a minimum of 70% ofproduction.  The legislation permits a firm to sell up to 30% of production domestically.  Domestic
sales in principle attract normal taxes and duties.  While other criteria apply, including minimum
employment levels for Ghanaians and local conten t to the maximum extent possible, the free-zone
system effectively is similar to a general export  incentives scheme.  Although the income tax
concessions apply to all profits, including from domestic sales, they provide substantial incentives forfirms to export 70% of output.  Thus, when combined with other concessional income tax schemes for
exporters (see above), Ghana provides generous export incentives.
43
93. Exempt imports by free-zone enterprises have increased.  In 1998, some 13% of total imports,
equivalent to 6% of exempt imports, went to such enterprises.  Such incentives suffer from the same
general drawbacks inherent in the income tax rebate scheme for exporters (see section (v) above).They also discriminate against non-exporting producers that sell domestically and therefore do not
benefit from the income tax concessions.  The domestic sales limit of 30% for free-zone enterprises
seems generous, especially in light of the substantial income tax benefits applied.  These
disadvantages are compounded by the extent to which this limit, and the payment of VAT and tariffs
on domestic sales, is effectively enforced.  Poor enforcement of these arrangements could further
undermine not only the tariff protection afforded domestic industries, in a non-transparent and
potentially distorting manner, but also result in non-payment of VAT and other duties on imports.Monitoring and control systems for free zones are reportedly weak, and substantial sale leakages to
the domestic market are thought to occur.  The Government is concerned about this aspect and is
endeavouring to stop such leakages.
44
(vii) Export promotion and finance
94. The Government funds export promotion activities undertaken by the Ghana Export
Promotion Council.  The Council assists exporters by identifying potential overseas markets and by
advising exporters on product development, costing, and pricing.  The Council publishes, for
example, minimum export prices for various goods as a guide to exporters.  It also participates in
trade fairs and works with the Government in rationalizing export procedures and formulating export
policies.  Part of the Council's funding is provided by external agencies and bilateral donors.
95. It funds a variety of schemes to promote exports, including an Export School to enhance
knowledge and skills of exporters.  The Export Production Village Programme, for example, helps
small rural producers in dealings with exporters,  assists with sourcing of inputs, and provides
extension services.  Products covered include agricultural produce, handicrafts, and manufactured
goods such as salt.45  The Council also participates in various other activities, such as the Agricultural
Diversification Project, aimed at expanding non-cocoa tree and horticultural exports;  and the task
                                                     
43 The tax benefits for free-zone enterprises exceed those available under alternative schemes.
Although the long-term company tax rate of 8% is the same, income of free-zone enterprises is exempt from taxfor ten years.  In addition, duty exemptions cover imported inputs whereas other exporters (apart from exporters
like COCOBOD and the Volta Aluminum Company, which receive specific duty concessions) must rely on the
less effective drawback scheme for refunds of duties paid on imported inputs.
44 Government of Ghana (2000a).
45 Other products to have benefited from the programme include fruit, vegetables, spices, various tree
crops, shrimps, batik handicrafts, rattan furniture, jewellery, wooden items, and processed cashew nuts.WT/TPR/S/81 Trade Policy Review
Page 50
force on Problems Affecting Production and Export of Non-traditional Exports, which looked
primarily at pineapple exports.  Other projects include the export of cassava chips at Sefwi Wiawso,
fish smoking and processing at Sekondi, and bl ack pepper at Aboadze Juaboso Bia and Sefwi
Wiawso.
96. External donors have also directly funded a number of projects designed to facilitate
non-traditional exports.  These include the Trade and Investment Reform Programme and the GhanaTrade and Investment Gateway Project.
97. The Export Finance Company provides loans to non-traditional exporters as well as export
credit guarantees and insurance.  However, the Company has only limited financial resources and is
still recovering from losses incurred in the early 1990s due to poor loan performances.  Restructuring
of the company is expected to be completed by December 2000, and fresh capital is to be injected toassist the company in becoming a leading provider of finance for the non-traditional export sector.
The Private Enterprise and Export Development project was established in 1993, by the World Bank,
to promote non-traditional exports by refinancing and guaranteeing exports and assisting commercial
banks in providing credit to small exporters.  The project set up an export credit refinance and
guarantee facility at the Bank of Ghana to assist exporters to obtain short-term finance fromparticipating financial institutions.  The project was completed in March 1998.  The Bank continues to
extend such credit through the banking system, and the Prudential Bank, started in 1996, provides
short-term loans of up to one year to small exporters of handicrafts, garments, and agricultural
produce.  Exporters must have a firm export order and loans are limited to 60% of the value of sales.
The Export Development and Investment Fund was also established recently to guarantee the
provision of short-, medium- and long-te rm investment finance for exporters.
(4) M
EASURES AFFECTING PRODUCTION AND TRADE
(i) Investment incentives
98. The Ghana Investment Promotion Centre Act of  1994 eliminated investment screening and
prior approval for investment incentives.  In addition to tariff and VAT exemptions on imported
machinery and equipment (section (2)(iii)(e))), income tax concessions are granted, mainly benefiting
agricultural production.  Income from cocoa is exempt from tax, and tax holidays of ten years apply toincome from tree crops (coffee, oil palm, sheabutter, rubber, and coconut) and cattle grazing, and of
five years for cash crops and poultry farming.  Fishing income also receives a tax holiday of
five years.  Accelerated depreciation provisions apply to all sectors, but efforts are under way to
replace these with standard capital allowances.
(ii) Credit arrangements
99. The Business Assistance Fund, administered by the Ministry of Trade and Industry, is a credit
scheme set up in 1994 to provide finance to distressed but potentially viable enterprises.  The Fund
was capitalized to a value of Cedi 10 billion.  Loan recovery under the scheme has been
disappointingly low.  It is presently around 20% and as a result no new loans are being approved;  the
emphasis is now on loan recovery.  The Ministry also runs an Industrial Clusters Programme forSmall-scale Enterprises to promote production of textile and garments, wood products, food and
beverages, and packaging.
100. The National Board for Small-Scale Industries provides credit to small-scale entrepreneurs
through various schemes, such as the Revolving Loan Fund Scheme and the Small and Micro
Enterprises Promotion Fund PAMSCAD credit line.  Loans totalling Cedi 267 million were made to
775 entrepreneurs in 1999.Ghana WT/TPR/S/81
Page 51
101. Improving access to rural credit is an important component of the Government's Accelerated
Agricultural Growth and Development Strategy.  The government-owned Agricultural Development
Bank (ADB) is the main supplier of rural finance;  in 1997 it accounted for some three quarters of
bank finance to the rural sector.  The ADB runs several finance schemes, including the Inventory
Credit Scheme to fund mainly fish and maize in ventories, and the Nucleus Outgrowers Scheme for
crops, such as cotton.  Over half of its agricultural loans in 1998 were in industrial crops (cotton,groundnuts, oil palm, and soybean) as well as cocoa production and marketing.
102. Requirements for commercial banks to grant at least 20% of their loans to the agriculture
sector at concessional rates were removed in 1990.  Rural banks receive a tax holiday for ten years
and their company income tax rate was reduced from 35% to 8% in 1998.
(iii) State enterprises and privatization
103. The Government continues to privatize state-owned enterprises through the activities of the
Divestiture Implementation Committee, set up under  legislation passed in 1993.  From 1993-99, about
133 enterprises were divested, including manufacturing operations, such as the production of textiles
and matches.  Total divestiture receipts over this period amounted to Cedi 280 billion.  However, most
divestments occurred before 1997, when important state enterprises were privatized.  These includedAshanti Goldfields (at US$462.4 million);  various state-owned banks (US$65.2 million) and 30% of
Ghana Telecom (US$38 million).
46  A number of privatizations were implemented through flotation
on the Ghana Stock Exchange, which commenced operations in 1992.47  The Government has retained
minority ownership in some 30 privatized enterpri ses.  Examples include Ashanti Goldfields (20%
government equity), Tema Food Complex Corporation or GAFCO (25%), GNTC Bottling Company
(29%) and Tema Steel Works (40%).
104. Divested enterprises are selected by the Government.  All divestments made by the
Committee must be approved by the President's Office.  The privatization process slowed between
1997 and 1999.  Out of well over 300 state-owned enterprises that initially existed some 250 have
been privatized; however, many of the larger and more sensitive enterprises remain state owned.  The
Government has attempted to accelerate the divestiture programme, with plans to privatize some 80
enterprises, over 1999 and 2000, covering mainly transport, energy, and banking.  Divestiture receiptsprojected over these two years were Cedi 250 bi llion.  By end June 2000, receipts had amounted to
Cedi 173 billion.  The Government's latest timetable of privatization runs until end 2003;  it includes
four fully owned large and strategic enterprises as well as fifteen medium-sized enterprises
(Table III.2).  Major delays have occurred in priva tizing many of these in the past, such as the Tema
Oil Refinery, the Ghana Oil Company, and the Ghana Commercial Bank.  Outside banking, the onlylarge and strategic enterprise privatized so far has been the 30% divestiture of Ghana Telecom, in1996.
105. The divestiture process is open to foreign investors, who currently hold some 10% of
ownership of firms divested by the Committee.  While no joint-venture requirements apply,preference is given for local participation of at least 25%.  Moreover, where bids are equal, Ghanaians
receive preference.  Deferred payment arrangements, normally for up to three years, may be
negotiated.  A substantial level of arrears exists in privatization payments, some more than three years
                                                     
46 Other enterprises privatized included Tema Food Complex Corporation, Ghana Oil Palm
Development Corporation, GIHOC Bottling, Ghana National Manganese Company, Golden Tulip Hotel, WestAfrican Mills, Tema Steel Company, and Ghana Rubber Estates Ltd.
47 These included Ashanti Goldfields Company, Aluworks Company, Ghana Aluminium Company,
Ghana Commercial Bank, and the Social Security Bank.WT/TPR/S/81 Trade Policy Review
Page 52
old:  almost half of the payments from 1998 to end June 2000 are outstanding, mainly owed by
domestic investors.
Table III.2
Privatization timetable until 2003
Enterprises to be privatized
Large and strategic
State Insurance Company
State Housing Company
Mim Trading Company
Electricity Company of Ghana
Medium sized state-owned enterprises
Ghana Publishing Corporation – Takoradi Press
Ghana National Procurement Agency
Ghana Reinsurance Company
GNTC Commercial properties
Volta Lake Transport Company
Tema Oil Refinery
City Express Services
Omnibus Service Authority
GHASEL Asutsuare and Komenda
Ghana National Petroleum Corporation (non-core assets)
Pomadze Poultry Enterprises Limited
Ghana Commercial Bank
GIHOC Distilleries
Benso Oil Palm Plantation
Ghana Consolidated Diamonds
Joint ventures
Ghana Sanyo Company Limited
Western Veneer and Lumber Limited
Small sized state-owned enterprises
GIHOC Footwear
GIHOC Fibre Products
Atebubu Commercial Farms
Source: Government of Ghana.
(iv) Competition policy
106. Efforts are under way to put in place legislation on competition.  A draft bill is currently
undergoing legislative procedures.  The objective of the legislation is to ensure fair competition in the
market.
(v) Assistance to research and development
107. The Ministry of Environment, Science and Technology is responsible for policy issues
relating to science and technology.  The Council for Scientific and Industrial Research (CSIR) is a
statutory organization responsible for coordinating scientific and industrial research.  It has 13
research institutes and centres under its control and covers both agricultural and manufacturing
research, such as crops, livestock, soil and land use, forestry, food processing, and transportation.Legislation was passed in 1996 to increase the commercial activities of the Council.  It is required toGhana WT/TPR/S/81
Page 53
generate at least 30% of its operational budget by the year 2002.  Other organizations under the
Ministry involved in technology development and transfer are:  the Ghana Atomic Energy
Commission (GAEC),  the Ghana Regional Appropriate Technology Industrial Service Foundation
(GRATIS), the Development and Application of Intermediate Technology (DAPIT), and the Rural
Enterprise Project (REP).
108. The National Agricultural Research Project (NARP) commenced in 1991 with donor
assistance.  Its objectives were to rehabilitate research activities, improve research management and
facilitate research-extension farmer linkages.  To achieve these objectives, the NARP's main
components were research management development, human resource development, rehabilitation of
facilities, and financial support. Unlike previous research projects, the NARP supported research into
all major crops, animals, and other areas, such as fisheries, agro-forestry and soils.  Funds releasedunder the programme from 1996-98 totalled Cedi 5.1 billion, of which leguminous crops, livestock
and root and tuber crops received the highest support, of 9% each, while cotton had the lowest share,
at 2.3%.  The implementation period of two years for these projects was too short to make any
meaningful impact.  A Research Grant Scheme was also established to finance agricultural research at
universities.  The NARP project closed in March 1999 and cost US$29.5 million, of which theGovernment contributed US$5.7 million.  A new donor-funded scheme, the Agricultural Services
Investment Programme (ASIP), is being implemented;  this also has a research component.  It is
hoped that the ASIP will be able to build upon the gains made under the NARP.
109. Some individual research and extension funds have also been in operation.  For example, the
Ghana Grains Development Board was formed in 1979 to provide research and extension services for
maize production.  Studies have shown that such funding has generated very high economic returns.
The Cocoa Research Institute of Ghana conducts most cocoa research, funded by a growers' levy.  Italso provides extension services to cocoa farmers,  but these are being merged with those provided by
the Ministry of Food and Agriculture.
(vi) Protection of intellectual property rights
110. Ghana is undertaking changes in its intellectual property legislation aimed at meeting its
commitments under the TRIPS Agreement.  It is a member of the World Intellectual PropertyOrganization and a founding member of the Af rican Regional Industrial Property Organization.
Ghana joined the Paris Convention in 1996, and the Patent Co-operation Treaty in February 1997.
111. A new copyright law to replace the 1985 Copyright Act has been approved by the
Government and is expected to be passed into law soon.  Ghana is a member of the Universal
Copyright Convention, and the new legislation is claimed by officials to be consistent with the BerneCopyright Convention and TRIPS.  The Copyright Office administers copyright protection.  Ghana
implemented the "Banderole" system of identifyin g genuine musical works in 1992 to control pirated
products.  Only those carrying this adhesive authentication label can be sold legally in Ghana.
According to officials, this system has successfully controlled piracy of musical works;  piracy rates
have fallen from 90% to about 10% for local works and 25% for foreign works.  Many copyrightdisputes are settled by arbitration with the Copyright Administrator acting as arbitrator.  If
unsuccessful, legislation also enables right holders to invoke court action to protect their intellectual
property, and to seek damages and seizure of offending material.  Copyright infringement is also a
criminal offence subject to imprisonment and/or fines.  Penalties are to be increased substantially
under the new legislation, including imprisonment of up to five years.
112. A Monitoring Team, comprising police, offici als from the Copyright Office, and members of
the Ghanaian Copyright Society, monitors compliance of copyright legislation.  Its functions are to beWT/TPR/S/81 Trade Policy Review
Page 54
expanded under the new law.  Customs currently detains all imported pre-recorded musical works
until cleared by the Copyright Office.  These enforcement functions have been incorporated and
strengthened in the proposed legislation.  The new legislation will expressly protect computer
software.  However, although not mentioned in the current legislation, it is covered as literary work,
and Copyright officers are collaborating with the private sector to control pirated software.
113. Patent protection exists under the Patent Law of 1992.  This provides for a patent protection
term of ten years with two renewable periods of five  years each.  In order to comply with TRIPS, the
legislation is being amended to extend this term to  20 years.  Other TRIPS commitments that require
amendments to Ghana's legislation include extending patent protection to protect inventions in all
fields of technology; providing such protection irrespective of whether products are imported or
locally produced; the compulsory licensing of rights  by government without the holder's authorization
on grounds of public interest; and for reversing the burden of proof on infringements of process
patents.48 Although it specifically allows for injunctions, damages or other remedies available under
the general law of civil procedures, and for criminal sanctions for intentional infringement of patents,
it does not, according to WIPO, meet the special requirements on enforcement covering border
measures.  As a result of the shortcomings, an amendment bill, which is before Parliament forpromulgation, is aimed at conforming with the TRIPS Agreement.
114. Ghana's current legislation does not protect geographical indications, layout designs
(topographies) of integrated circuits, plant varieties, or protection against unfair competition.
Legislation covering these areas has been prepared to conform with the TRIPS Agreement and is
currently before Parliament for promulgation.
115. Ghana does not have an independent industrial design law, thus its protection for industrial
designs is limited.  All designs registered in the U.K. are automatically protected under the UnitedKingdom Designs (Protection) Ordinance of 1928.  The Textile Designs (Registration) Decree of
1973 also establishes a registration system and protects such designs for five years, renewable for two
consecutive periods of five years.  A new draft bi ll on industrial design, which conforms with the
TRIPS Agreement, is before Parliament.
116. Trade marks on goods are currently protected under the TradeMarks Act of 1995.  This
already provides for registration of marks for seven years, renewable for periods of 14 years.  Ghana
currently has approximately 31,000 registered trade marks.  However, according to WIPO, the
legislation has some shortcomings in several respects.
49  These include the non-protection of
trade marks for services (service marks);  the exclusive rights conferred on registered owners to
protect against the use of identical or similar marks;  treatment of well-known marks50;  and ensuring
that marks can only be removed from the registry following at least three years of non-uninterrupted
use by the owner.51  The TradeMarks Act does not provide for criminal procedures against wilful
counterfeiting of trade marks.  However, the Merchandise Marks Act of 1964 does provide protection
against the use of fraudulent trade marks by making it an offence to forge or falsely apply another
mark that is likely to deceive.  It also author izes CEPS to request documentation from the importer,
upon representations from the registered owner;  and when Customs is satisfied that the trade mark is
fake, to detain or seize the offending goods.  In view of these shortcomings, a new Trade Mark
                                                     
48 WIPO (1995).
49 WIPO (1995).
50 Existing legislation allows for only defensive procedures to be taken by registered owners of well-
known marks.
51 While existing legislation allows for removal of procedures after five years of uninterrupted non-use,
they can also be removed at any time if there is no bona fide  intention of using it.Ghana WT/TPR/S/81
Page 55
Amendment Bill has been submitted to Parliament for promulgation, aimed at conformity with the
requirements of the TRIPS Agreement.
117. Protection of industrial property is the responsibility of the Registrar General's Department.
Ghana has notified to the WTO as the contact point under the TRIPS Agreement, the Registrar
General for patents and the Copyright Administrator for copyright protection.52
                                                     
52 WTO Document IP/N/3/Rev.4, dated 22 June 2000.