The Bank of Ghana has rolled out new directives on documentations needed to facilitate cross border trading.
This will ensure that all freight forwards, customs house agents and cross border traders align to these new directives regarding letter of commitment process and compliance for cross border.
The Central Bank in a notice define the Letter of Commitment (LOC ) as an export document generated through the Integrated Customs Management System (ICUMS) for formal exports of merchandise commodities from Ghana.
It, however, maintained that LOC generation is mandatory only for exporters who meet all the following conditions:
- Receive proceeds in foreign exchange;
- Are residents in Ghana;
- Are registered and licensed by relevant Government Agencies;
- Possess a valid Tax Identification Number (TIN) for ICUMS access.
The Central Bank indicated that entities that do not meet the these criteria do not qualify for the generation of the LOC
Exemption
The regulator of the banking industry, however, noted that despite the directive, there are some exceptions that is traders engaged in informal cross-border transactions with buyers from neighboring countries that are not registered on ICUMS and Do not use invoicing.
It also stated that the LOC should not be included as part of required documentation for such transactions and category of persons and traders.
On Freight Forwarders Advisory , the Bank of Ghana said freight forwarders providing logistical services to cross-border traders must not use their TIN to generate Letter of Commitment for traders who do not PUBLIC qualify. It however reminded that LOC generation is strictly for exporters who meet the stated criteria.
The Central Bank also advised the Customs Division Directive Officers of the Custom Division of the Ghana Revenue Authority not to force cross-border buyers from neighboring countries to generate LOC, adding that compliance checks shall focus on ensuring proper documentation for formal exports, while facilitating legitimate cross-border trade without constraints”
The Central Bank noted that freight forwarders and customs agents should review their internal processes to ensure adherence to these guidelines.
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