Customs Amendment Act won’t affect business operations – Spare Parts Dealers’ Co-Chairman

Co-Chairman of the Abossey Okai Spare Parts Dealers Association, Clement Boateng, has kicked against claims that the implementation of the Customs (Amendment) Act, 2020, Act 1014 will affect the business operations of spare parts dealers in the country.

His remark follows claims from various stakeholders within the industry that certain aspects of the Customs (Amendment) Act, 2020 that bans the importation of used cars older than 10 years, and salvaged vehicles also known as accident cars may result in loss of jobs.

Speaking to Citi Business News, he appealed to government to conduct more education and sensitization programs on the law as it will be a job-creating avenue for many people.

“Well, I don’t see the way it is going to affect our business because the fact that they have put the restriction at ten years, does not mean that we cannot bring cars into the country. Even, regarding the second-hand spare parts, we still can bring them with the new ones. Also, the managers of the assembly plants will have to employ about 70% of locals. This will bring employment.”

“So, we are well with the policy because every country is now gearing up for industrialization and Ghana cannot be static. Regarding the ten-year policy, some of our neighbours are doing the same. In Cote d’Ivoire, salon cars and buses have a maximum of five and seven years respectively. So, I don’t see the reason why if Ghana has pegged it at ten years, some of our brothers should be worried,” he said.

Following the passage of the Customs Amendment Bill, 2020, many stakeholders such as some vehicle importers have threatened to demonstrate against it because they anticipate job losses.

The Minority in Parliament also called for the withdrawal of the Bill because of the financial implications and the potential loss of jobs associated with its implementation.

Ban on importation of ‘accident’ and 10-yr old used cars starts in Oct. 2020

Parliament in March this year, passed the Customs (Amendment) Bill, which the President later assented on April 30.

However, government says the ban will take effect from October 2020.

Background

The government as part of its transformational agenda identified 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.

It thus 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.

So far, Volkswagen, Nissan and Sinotruk, Toyota and Suzuki have expressed interest in establishing their plants in Ghana.

Already, German car maker, Volkswagen, has unveiled its first locally assembled cars, following the establishment of the VW Assembly Plant in Ghana. The four locally assembled models include Passat, Tiguan Highline Plus, Teramont and the Amarok.