Fruit Juice May Be Next in Transit Goods Crackdown – FABAG
By Praisebell Rosemond Larbi
The Food and Beverages Association of Ghana (FABAG) has welcomed the government’s directive restricting selected transit goods from entering Ghana through land borders, but has warned that fruit juice and similar products could soon fall under the same regulatory crackdown.
The association praised the policy introduced by the Ministry of Finance Ghana and its sector minister, Cassiel Ato Forson, describing the measure as a decisive step to curb smuggling, revenue leakages and the misclassification of goods within the country’s trade system.
Under the directive, goods such as rice, sugar, flour, textiles, spaghetti and tomato paste are now required to enter Ghana only through the country’s seaports instead of land borders.
FABAG said the move represents a timely intervention to address long-standing challenges within Ghana’s import and transit trade framework.
“This decisive directive represents a bold and timely intervention aimed at addressing the persistent challenges of smuggling, revenue losses and misclassification of goods that have plagued Ghana’s trade environment for many years,” the association said in a statement.
According to FABAG, the country has over the years lost substantial revenue as some traders falsely declare goods as transit cargo intended for neighbouring countries, only for the goods to be diverted into the Ghanaian market without paying the required duties and taxes.
The association noted that such practices have created unfair competition for legitimate businesses that comply with tax regulations and import procedures.
“This practice has not only deprived the State of significant revenue but has also created an uneven playing field for legitimate manufacturers, importers and distributors who comply with Ghana’s tax and regulatory requirements,” the statement said.
FABAG explained that requiring the affected goods to enter through seaports would improve inspection, documentation and monitoring processes, thereby reducing opportunities for diversion and smuggling.
The association also called on the Ghana Revenue Authority, particularly its Ghana Customs Division, as well as other border regulatory agencies to ensure strict enforcement of the directive.
However, FABAG warned that traders may attempt to bypass the restrictions by misclassifying affected products under different categories.
For this reason, the association recommended that the government expand the directive to include fruit juices and other similar products that could potentially be used as alternative classifications to evade controls.
“There is a strong likelihood that some unscrupulous traders may attempt to circumvent the directive by deliberately misclassifying restricted products under other categories in order to evade the new controls,” the statement said.
The association stressed that expanding the directive would help close potential loopholes in the policy and ensure it achieves its objective of protecting government revenue while supporting local manufacturing and legitimate businesses.
“Over the years, the Ghanaian economy has suffered considerable losses due to smuggling activities and deliberate misclassification of goods,” FABAG noted.
“These illegal practices undermine government revenue mobilisation efforts, distort fair competition and threaten the survival of compliant businesses within the formal sector.”
FABAG described the directive as a major step toward restoring discipline, transparency and accountability within Ghana’s trade and customs systems, while calling for sustained vigilance from enforcement agencies to ensure the policy delivers its full economic benefits.
“Once again, FABAG commends the Minister for his bold leadership and calls for sustained vigilance and enforcement to ensure that the policy delivers its full benefits to the Ghanaian economy,” the statement concluded.
