Customs (Amendment) Act, 2020 (Act 1014)
ARRANGEMENT OF SECTIONS
- 1. Section 55 of Act 891 amended
- 2. Section 58 of Act 891 amended
- 3. Section 61 of Act 891 amended
- 4. Section 15 I of Act 891 amended
- 5 . Section 154 inserted
- 6. First Schedule to Act 891 amended
- 7. Third Schedule to Act 891 amended
LONG TITLE
AN ACT to amend the Customs Act, 2015 (Act 891) to provide incentives for automotive manufacturers and assemblers registered under the Ghana Automotive Manufacturing Development Programme, provide import exemptions for the security agencies and officers of the security agencies and for related matters.
DATE OF ASSENT
30th April, 2020.
ACT
1. Section 55 of Act 891 amended
The Customs Act, 2015 (Act 891) referred to in this Act as the principal enactment is amended in section 55 by the addition after subsection (2), of
- "(3) The Minister shall grant t o an automotive manufacturer or assembler registered under the Ghana Automotive Manufacturing Development Programme a rebate of the import duty on fully built units imported from the original manufacturer of the fully built units.
- (4) The rebate granted under subsection (3) shall be based on a multiplier of the assessed customs value of a semi-knocked down kit or a completely knocked down kit.
- (5) For a semi-knocked down assembly, the rebate on fully built units derived from a semi-knocked down kit is the assessed customs value of one complete kit.
- (6) For an enhanced semi-knocked down assembly and a completely knocked down manufacture, the rebate on fully built units derived from a semi-knocked down kit or completely knocked down kit is the assessed customs value of the two complete kits.
- (7) The rebate granted under subsection (3) is subject to a first review during or after the third year of the Ghana Automotive Manufacturing Development Programme.
- (8) For the purpose of this section,
- (a) "completely knocked down manufacture" means the process of assembling a completely knocked down kit into a fully built motor vehicle;
- (b) "enhanced semi-knocked down assembly" means the process of assembling an enhanced semi-knocked down kit into a fully built motor vehicle that may contain local components;
- (c) "fully built units" mean completely built motor vehicles under the Ghana Automotive Manufacturing Development Programme; and
- (d) "semi-knocked down assembly" means the process of assembling a semi-knocked down kit into a fully built motor vehicle.".
2. Section 58 of Act 891 amended
The principal enactment is amended in section 58 by the substitution for subsection (1), of
- "(1) A person shall not import into the country
- (a) a right-hand steering motor vehicle without the approval of the Minister;
- (b) a salvaged motor vehicle; or
- (c) the following motor vehicles over ten years of age subject to subsections (3) and (4) of section 154:
- (i) motor cars and other motor vehicles principally designed for the transport of persons, other than those under HS heading 87.02, including station wagons and racing cars with HS heading 87.03; and
- (ii) motor vehicles not exceeding 5 tonnes for the transport of goods with HS heading 87.04.".
3. Section 61 of Act 891 amended
The principal enactment is amended in section 61
- (a) by the addition after paragraph (d) of subsection (1), of
- "(e) homologation documentation or certificate of conformance; and"
- (b) by the addition after subsection (2), of
- "(3) For the purpose of this section,
- (a) "homologation documentation" means a certification document provided by the Standards Authority in respect of a new motor vehicle; and
- (b) "certificate of conformance" means a certification document provided by the Standards Authority in respect of a used motor vehicle.".
- "(3) For the purpose of this section,
4. Section 151 of Act 891 amended
The principal enactment is amended in section 151
- (a) by the insertion after the definition for Commissioner-General, of
- "completely knocked down kit" includes the
- (a) parts or components of a motor vehicle imported or locally manufactured to be assembled locally into a fully built unit;
- (b) floor panel, body sides and roof panel of a motor vehicle that are supplied separately and assembled locally; and
- (c) body shell and all other parts of a motor vehicle that are welded, fitted, electronically coated and painted locally;";
- "completely knocked down kit" includes the
- (b) by the insertion after the definition for "electronic signature", of
- "enhanced semi-knocked down kit" includes
- (a) a partially assembled vehicle that is shipped in a kit form for assembly in the destination country;
- (b) the floor panel, body sides and roof panel of a motor vehicle tha.t are not knocked down but shipped as a whole; and
- (c) the imported vehicle cabin or vehicle body that is not trimmed;";
- "enhanced semi-knocked down kit" includes
- (c) by the insertion after the definition for "restricted goods", of
- "salvaged motor vehicle" means a motor vehicle which
- (a) has been wrecked, destroyed or physically damaged by collision, fire, water or any other occurrence; and
- (h) does not have a clean title;"; and
- "salvaged motor vehicle" means a motor vehicle which
- (d) by the insertion after the definition for "selling commission", of
- "semi-knocked down kit" includes
- (a) a partially assembled vehicle that is shipped in a kit form for assembly in the destination country;
- (b) the floor panel, body sides and roof panels that are not knocked down but shipped as a whole; and
- (c) the imported vehicle cabin or vehicle body that is partially trimmed.".
- "semi-knocked down kit" includes
5. Section 154 inserted
The principal enactment is amended by the addition after section 153, of
- "154. Commencement
- (1) The Minister may, by legislative instrument, specify the date on which the import duty imposed on motor vehicles indicated under HS headings 87.03 to 87.04 of Chapter 87 of section XVII of the First Schedule shall come into force.
- (2) The date specified under subsection (1) shall not be earlier than six months after
- (a) the new motor vehicles manufactured under the Ghana Automotive Manufacturing Development Programme are made available; and
- (b) arrangements have been made for the motor vehicles to be sold in accordance with the investment plans of the automotive manufacturers and assemblers registered under the Ghana Automotive Manufacturing Development Programme.
- (3) The Minister, in consultation with the Minister responsible for Trade may, by legislative instrument, specify the date on which a motor vehicle over ten years of age shall not be imported into the country.
- (4) The date specified under subsection (3) shall not be earlier than six months after the first vehicle has been assembled under the Ghana Automotive Manufacturing Development Programme.
- (5) The prohibition against the importation of salvaged motor vehicles into the country under paragraph (b) of subsection (1) of section 58 shall come into force, six months after the date of the coming into force of this Act."
6. First Schedule to Act 891 amended
The principal enactment is amended
- (a) in Chapter 87 of section XVII of the First Schedule by the substitution for the stated import duty in the fifth column of 35% for the commodity description in the third column
in relation to the heading in the first column of:
Heading
(1)Commodity Description
(3)Import Duty
(5)87.03 Motor cars and other motor vehicles principally designed for the transport of persons (other than those under heading 87.02), including station wagons and racing cars 35 87.04 Motor vehicles not exceeding 5 tonnes for the transport of goods 35
- (b) in Part A of Chapter 98 of the First Schedule by the substitution for tariff number, commodity description and import duty rate for heading 98.11 of:
(1)
HEADING(2)
TARIFF NO.(3) COMMODITY DESCRIPTION
(3)(4)
RATE OF DUTY98.11 Motor vehicles and bicycles 9811.10.00.00 Component parts for automotive assembly:
semi-knocked down, enhanced semi-knocked down, completely knocked down and original equipment components for the automotive manufacturers and assemblers registered by the Commissioner-General under the Ghana, Automotive Manufacturing Development Programme.0% 9811.11.00.00 Materials for the manufacture or assembly of bicycles and other cycles (including delivery tricycles) not motorised. 0%
7. Third Schedule to Act 891 amended
The principal enactment is amended
- (a) in Part A of the Third Schedule by the addition after tariff number 3AF.10, of a new row as follows:
Tariff No.
(1)Privileged Persons, Organisations and Institutions
(2)Import Duty
(3)VAT
(4)3AF.11 Security Agencies:
(a) arms, ammunition, uniforms, accoutrements and equipment including vehicles and musical instruments certified by the Minister responsible for Defence or the Minister responsible for the Interior and approved by the Minister responsible for Finance to be imported by the security agencies for the use of the security agencies or in cooperation with other States for
:(i) defending the territorial integrity of the State; or
:(ii) participating in international peace keeping.
(b) parts, components or sub-assemblies of an item specified in paragraph (a) to be imported for incorporation in or fitting into that item.
(c) parts, components or sub-assemblies of an item specified in paragraph (a) for the repair, refurbishment or maintenance of that item.
(d) goods imported for training or testing of an item specified in paragraph (a).
(f) articles, arms, ammunition, uniforms, accoutrements, and equipment including vehicles donated
:(i) by a foreign Government,
:(ii) by an international organisation, or
:(iii) under a Technical Cooperation Agreement
for the use of the security agencies.
:(f) goods that are imported by an officer of the security agencies returning to the country to resume residence after participating in international peace keeping or an exchange programme.0% Exempt
- (b) in Part B of the Third Schedule by the addition after tariff number 3BF.63, of a new row as follows:
Tariff No.
(1)Privileged Persons, Organisations and Institutions
(2)Import Duty
(3)VAT
(4)3BF.64 Machinery, plant, equipment and parts:
Machinery, plant, equipment, replacement parts for equipment and kits for production trials imported by the automotive manufacturers or assemblers registered under the Ghana Automotive Development Programme and
(a) recommended by the Minister responsible for Trade; and
(b) approved by the Minister.Exempt
- (c) by the insertion after Part C (ITO of the Third Schedule, of
- "For the purpose of
- (a) paragraph (1) of tariff number 3AF.11, "goods" mean goods
- (i) acquired by an officer of the security agencies for personal use or household use,
- (ii) owned, possessed and used by an officer of the security agencies abroad for at least six months before the return of that officer to the country, and
- (iii) accompanying an officer of the security agencies at the time of return of that officer to the country
- but does not include goods imported by that officer for sale or otherwise disposed of within twelve months from the date of importation;
- (b) tariff number 3AF.11, "security agencies" include
- (i) the Ghana Armed Forces;
- (ii) the National Security;
- (iii) the Bureau of National Investigation;
- (iv) the Ghana Police Service;
- (v) the Ghana Prisons Service;
- (vi) the Ghana National Fire Service;
- (vii) the Ghana Immigration Service; and
- (viii) the Customs Division of the Ghana Revenue Authority; and
- (c) tariff number 3BF.64, "kits" mean the knocked down components for the manufacture of automobiles."
- (a) paragraph (1) of tariff number 3AF.11, "goods" mean goods
- "For the purpose of