The Transit Trade

Customs transit refers to a customs procedure under which goods are manifested for importation at an approved port in a country for removal by road, inland waters or rail to an exit point in that country for exportation to a final destination in another country.
These procedures are intended to protect the revenue of the country of transit, and to avoid the circumstances where goods intended for transit are leaked into the domestic market.
Factors Affecting Transit
? Geographical: The situation of inland countries with no sea ports renders it imperative to establish transit transactions with neighbor-ing countries with good sea ports.
? Economical: economic relevance where cost is reduced by use of sea port facility in a neighboring country instead of expensive air transportation.
? Political: good neighborliness lends itself to the establishment of a transit regime.
Customs Controls
Legal requirements:
Transit to be manifested separately and stated as such.
With a few exceptions transit goods are not subjected to prohibitions and restrictions.
Transit goods do not attract duties but may be entered for home consumption with the approval of the Commissioner.
Transit goods are only permitted at approved ports only (Tema, Takoradi, Elubo, Aflao, Paga, Gonokrom, Hamile and Kulungugu)
Security requirements
Transit bond
As security for the revenue, this is assessed by the Transit Compliance Officer and transmitted electronically to the national Guarantor (SIC).
In situations where the consignee is the country of destination, the bond requirement is dispensed with.
Electronic monitoring devices are deployed and in some isolated circumstances human escort.
Non-interference with transit goods: interference with goods in transit can be effected only with the prior consent of the nearest Customs Office.
Entry procedure
Trader executes bond in CB.12 or deposits cash as security.
Customs declaration is processed through GCNet/GCMS with the relevant CPC(80×01) Trader pays administrative fees.
Transit cargo may remain in shed for 14days rent-free.
Transit transactions are required to be completed within two(2) months.
Transit bond is discharged electronically when consignment has duly exited the exit point.

The Role of Customs
Registration of Transitors in GCMS.
Registration of transit trucks in GCMS in collaboration with Ghana Ports and Harbors Authority.
Updating of transit flag in GCMS for transitors.
Monitoring and control of movement of transit goods to prevent diversion.( by employing the Satellite Tracking System and the Mobile Patrol Team
The Role of Declarants
Indicate the exact number of sub-consignments. Lower numbers than the actual results in post-entries and needless delay.
Use only Registered Transit Trucks.
Ensure transit consignments exit the country within the stipulated period.
Transit regimes seeks to facilitate the transport of goods through customs territory without payment of duty and taxes in the countries of departure.
This is in accordance with the destination principle of taxation which states that indirect tax should only be levied in the country of consumption.
This system therefore requires an efficient monitoring and control system to ensure that benefits in the facility are not unduly abused through revenue leakages and undesirable security concerns.

185 thoughts on “The Transit Trade

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