Land Ban on Transit Goods Could Boost State Revenue by Billions – FABAG

By Praisebell Rosemond Larbi

The Food and Beverages Association of Ghana (FABAG) says the government’s decision to restrict selected transit goods from entering the country through land borders could significantly increase Ghana’s revenue while protecting local industries from unfair competition.

In a statement, the association commended the Ministry of Finance and the Finance Minister, Cassiel Ato Forson, for issuing the directive that requires certain transit goods to enter Ghana only through the country’s seaports rather than via land routes.

According to FABAG, the policy represents a decisive intervention aimed at addressing long-standing challenges within Ghana’s trade and customs system.

“The Food and Beverages Association of Ghana strongly commends the Ministry of Finance and especially the Honourable Minister of Finance, Dr. Forson, for the decisive directive banning the movement of selected transit goods into Ghana by land and requiring such goods to enter the country through the nation’s seaports,” the association stated.

Tackling Smuggling and Revenue Losses

The directive affects several commonly traded products including rice, sugar, flour, textiles, spaghetti and tomato paste.

FABAG explained that the policy seeks to curb persistent abuses of the transit trade regime, which has for years been exploited by some traders to evade taxes and import duties.

According to the association, certain importers have frequently declared goods as transit cargo destined for neighbouring countries, only for such goods to be diverted into the Ghanaian market through land borders without the payment of the appropriate duties.

“For a long time, Ghana has lost substantial revenue due to the widespread abuse of the transit regime,” FABAG noted.

“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.”

Industry players believe the directive could potentially recover billions of cedis in lost revenue if properly implemented.

Improved Monitoring at Seaports

FABAG said routing the affected goods through Ghana’s seaports will significantly enhance monitoring and inspection processes.

According to the association, seaports provide stronger regulatory oversight through improved documentation procedures, cargo verification systems and coordinated customs checks.

“Requiring these goods to enter Ghana through the country’s seaports will significantly improve monitoring, inspection and documentation processes, thereby helping to reduce the risk of diversion and smuggling,” the statement explained.

The association therefore urged relevant state institutions to ensure strict enforcement of the new directive.

In particular, FABAG called on the Ghana Revenue Authority and its Customs Division, along with other border regulatory agencies, to fully enforce the directive to ensure its intended objectives are achieved.

Call to Expand List of Restricted Goods

FABAG also advised the government to consider expanding the list of goods affected by the policy to prevent potential loopholes.

The association warned that some traders may attempt to bypass the new restrictions by misclassifying goods under different product categories.

“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,” it said.