The Vehicle and Asset Dealers Union of Ghana (VADUG), has asked government to review the Customs (Amendment) Act, 2020, Act 1014, ahead of its implementation in October this year.
The Act, passed on March this year, bans the importation of second hand cars of more than ten years old, as well as salvage cars, locally referred to as ‘accident cars.
It will also lead to an increase in duties charged on specific vehicles and spare parts.
Addressing journalists on Thursday, July 16, 2020, the Executive Secretary of the Union, Joshua Opoku Agyemang, said the implementation of the Act without a second look will cause job losses for car dealers.
“The introduced Certificate of Conformance in section 61 of the Act, is ultimately schemed to discourage importation of vehicles that VADUG and other home-used car importers across the country deal in. So, as the current passed Customs Act, Section 151 stands with importation and sale of vehicles banned under the blanket term salvage, what work will home-used vehicle dealers do since we don’t import titled vehicles? And what would be the use for imported new and home used spare parts together with their stakeholders? What will be the job security or other value or employee chain like sprayers, straighteners, key programmers, auto electricians, auto air condition technicians, mechanics, etc. in Suame Magazine, Abossey Okine and Kokompe?”he quizzed.
They are the second group to protest against the Act after the Automobile Dealers Union of Ghana, which has threatened a demonstration against government.
Government launched the Ghana Automotive Development Policy, GAMDP, in August 2019 to promote the manufacture of automobiles for both the domestic market and the West African sub-region.
This is part of government’s transformational agenda to identify Vehicle Assembly and Automotive Components Manufacturing as a strategic anchor industry that will promote economic development in the country and provide incentives for auto manufacturers.
Some known car brands have already set up Assembly plants in Ghana, and have started manufacturing to meet local demand.