1 WTO WORKSHOP ON TECHNICAL ASSISTANCE & CAPACITY BUILDING DESTINATION INSPECTION SCHEME (DIS) AS A GATEWAY OBJECTIVE FOR CEPS MODERNISATION, COMPLIANCE AND TRADE FACILITATION.

2 The Government of Ghana found the need to adapt the Inspection Services of Ghana to respond to the trade facilitation as set out by the Gateway Programme through Customs compliance and Modernization to enhance Revenue Improved Cargo handling and port management. This is because the Gateway objective is for Ghana to become the beacon for sub regional investment.

3 MEASURABLE INDICATORS TO MEET OBJECTIVES 3.Necessary training of Customs House Agents and CEPS officers for transfer of technology of Modern Customs procedures to enhance revenue and improve compliance 1.Reduction of clearance time from ten (10) days to one (1) day by 2003; presently efficient Customs House Agents (CHA) are completing clearing in 48 hours. (CHA) are completing clearing in 48 hours. 2.To reduce physical examination of goods to 20% for dutiable goods and 10% for statutory free goods by To reduce physical examination of goods to 20% for dutiable goods and 10% for statutory free goods by These three indicators among others made it necessary to enter into a joint venture with an inspection company to form Gateway Services Limited.

4 CEPS BENEFITS FROM THE DESTINATION INSPECTION SCHEME Computerized Risk Management System (CRMS) to classify transactions by their Level of risk to revenue for processing by customs. This is based on the information from the following parameters: Commodity Country of origin Invoice value of the consignment The importer/declarant Supplier Quantity/Volume Ports or transshipment if applicable Mode of transportation Packaging Tariff applicable Commodity Country of origin Invoice value of the consignment The importer/declarant Supplier Quantity/Volume Ports or transshipment if applicable Mode of transportation Packaging Tariff applicable These parameters determine whether to consider the transaction high, medium or low risk. These parameters determine whether to consider the transaction high, medium or low risk. There is a CRMS Committee which meets regularly to review these risks profiles. This has helped to reduce examination to 40%

5 Subject to full physical examination (mandatory) by CEPS. food items pharmaceuticals and chemicals selected electrical goods Subject to full physical examination (mandatory) by CEPS. food items pharmaceuticals and chemicals selected electrical goods High Risk - (Red Channel) (i)High Risk - (Red Channel)

6 Yellow CEPS: Medium risk non FCLs are to be either subjected to physical or documentary examination. The decision is at the discretion of CEPS. Yellow CEPS: Medium risk non FCLs are to be either subjected to physical or documentary examination. The decision is at the discretion of CEPS. (ii) Medium Risk - (Yellow channel) FCL goods are just scanned by the Scanner but documents covering them are checked. FCL goods are just scanned by the Scanner but documents covering them are checked.

7 CEPS is to select 5% randomly for physical examination. However, irrespective of the results of the CRMS Risk assessment results, a transaction may be referred for physical examination if some specific information obtained by CEPS requires so. (iii)Green Low Risk Transactions On the other hand on no account shall a transaction assessed as High Risk be treated otherwise, unless randomly selected for examination. The CRMS, therefore, enables CEPS to check only those transactions that need to be followed thoroughly and thereby improve revenue collection at the same time, and facilitate clearance by allowing low risk goods to be cleared without hindrance. A facility to strengthen the effectiveness of the system is the Post Clearance Verification adopted by CEPS The CRMS, therefore, enables CEPS to check only those transactions that need to be followed thoroughly and thereby improve revenue collection at the same time, and facilitate clearance by allowing low risk goods to be cleared without hindrance. A facility to strengthen the effectiveness of the system is the Post Clearance Verification adopted by CEPS.

8 THE WTO VALUATION AGREEMENT & THE TRANSACTION PRICE DATABASE (TPD) The adoption of the WTO Valuation Agreement required technology and necessary network to access sources for valuation information for individual transaction. the TPD has been able to help in this regard. The use of Price Reference is very essential in the implementation of WTO valuation. CEPS adopted the WTO Valuation just about the time of the introduction of the Destination Inspection Scheme (DIS). Fortunately, the aspect of the DIS deals with the verification of values submitted by importers is based on the WTO Valuation Concept.

9 Presently, the Destination Inspection Scheme (DIS) is working with CEPS officers who are experienced in Classification and Valuation. Notwithstanding the values presented by these officers and GSL, these are considered only an opinion which CEPS is not bound to accept if the available information does not support the value. The final ruling on what should be the value for tax purposes still rests with CEPS. Presently, the Destination Inspection Scheme (DIS) is working with CEPS officers who are experienced in Classification and Valuation. Notwithstanding the values presented by these officers and GSL, these are considered only an opinion which CEPS is not bound to accept if the available information does not support the value. The final ruling on what should be the value for tax purposes still rests with CEPS.

10 Name of Commodity Source of supply Unit price, freight Importer Date of transaction Name of Commodity Source of supply Unit price, freight Importer Date of transaction GSL provides to CEPS computerized records of all transactions they have processed with details required in the exercise of verifying values for tax purposes - The Transaction Price Database which as already is the opinion provided to CEPS. GSL provides to CEPS computerized records of all transactions they have processed with details required in the exercise of verifying values for tax purposes - The Transaction Price Database which as already is the opinion provided to CEPS. These are:

11 So far discrepancies detected from scanning has enhanced revenue. Its limitation is not detecting exact sizes, material the commodity is made of, and quality, is offset by the Computerized Risk Management System, where the importers' profile helps determine picking at random some containers for physical examination. So far discrepancies detected from scanning has enhanced revenue. Its limitation is not detecting exact sizes, material the commodity is made of, and quality, is offset by the Computerized Risk Management System, where the importers' profile helps determine picking at random some containers for physical examination. The X'RAY SCANNER 3. The X'RAY SCANNER For Scanning Full Container Loads (FCL) of homogeneous goods. This is supported by the CRMS.