HomeFrontPageAkyem Swedru MP challenges GSA over compulsory $200-$300 FlexiPass fees on used...

Akyem Swedru MP challenges GSA over compulsory $200-$300 FlexiPass fees on used cars

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The Ranking Member of Parliament’s Roads and Transport Select Committee and Member of Parliament for Akyem Swedru, Kennedy Osei Nyarko, has criticised the Ghana Standards Authority (GSA) over the introduction of compulsory pre-shipment inspection fees for used vehicles imported into Ghana.

Mr Osei Nyarko has described the new FlexiPass Programme as an attempt to impose additional costs on vehicle importers, arguing that the mandatory inspection charges would ultimately increase the amount importers have to pay at the ports.

His comments follow a public notice issued by the GSA announcing that all used motor vehicles destined for Ghana must undergo inspection before shipment by a GSA-approved inspection agent.

According to the GSA, the requirement is being implemented in accordance with GS 4510 and the administrative framework of the FlexiPass Programme, with inspection results and certificates issued only by approved agents recognised by the Authority.

However, the Akyem Swedru lawmaker has questioned the necessity of introducing the compulsory charges, particularly given Ghana’s long-standing practice of importing used vehicles.

“Ghana has been importing used vehicles into the country since time immemorial without any issues,” he argued, questioning why the government, through the GSA, is seeking to introduce compulsory destination inspection fees for used vehicles imported by individuals, dealers and vehicle assemblers.

The legislator contended that the fees, which range from US$200 to US$300 depending on the country of origin, would effectively increase the cost of importing used vehicles.

He argued that because the inspection is mandatory, importers would have no option but to pay the charges through the third-party companies contracted and approved by the GSA.

“These fees ($250 and $300) will automatically increase duties on these vehicles at the ports since this is a mandatory fee that has to be paid through a third-party company that has been contracted by the GSA,” he said.

Mr Osei Nyarko consequently described the FlexiPass initiative as a “disingenuous way of introducing additional fees at the ports.”

His criticism places the programme within the broader debate over the cost of importing vehicles into Ghana, particularly the cumulative financial burden faced by individuals, car dealers and businesses involved in the automotive sector.

The GSA, however, says the FlexiPass Programme is intended to ensure that used vehicles destined for Ghana meet applicable safety and conformity requirements before they are shipped.

Under the programme, all used motor vehicles intended for Ghana are required to undergo Pre-Shipment Verification of Conformity (PVoC) under GS 4510.

The Authority has approved two ISO/IEC 17020-accredited inspection bodies to conduct the inspections. These are AutoTerminal Japan (ATJ) and EAA Company Limited (EAA).

According to the GSA notice, the two inspection bodies collectively operate more than 100 inspection locations across 15 countries and five regions, covering major markets from which used vehicles are exported to Ghana.

Only inspection certificates issued by the approved agents will be recognised by the GSA under the FlexiPass Programme.

The GSA says the inspection system is based on internationally recognised standards, with both approved inspection agents accredited to ISO/IEC 17020, which requires technical competence, impartiality and independence on the part of inspection bodies.

The Authority also says vehicles will be assessed against the same GS 4510 requirements regardless of the country or inspection centre where the assessment takes place.

Another stated objective is to identify non-conforming vehicles before shipment, thereby preventing importers from incurring freight and customs-related costs on vehicles that do not meet Ghana’s requirements.

Under the process, an importer first selects one of the approved inspection agents and submits an inspection request together with the relevant vehicle and export documents.

The vehicle is then inspected at an approved centre or, where necessary, at the exporter’s premises, auction site, port terminal or other designated location through a mobile inspection service.

A vehicle that meets the requirements receives a FlexiPass inspection certificate and can be shipped to Ghana. Vehicles that fail to meet the requirements will not receive certification and, according to the GSA, will not be permitted to be exported to Ghana.

The GSA’s published fee schedule shows that the charges vary depending on the vehicle’s country of origin.

The notice lists FlexiPass fees of US$200 for vehicles from Japan, US$250 for Korea, Singapore and other Asian countries, US$250 for vehicles from China and India, and US$300 for vehicles originating from the United Arab Emirates.

Vehicles from the United Kingdom and European countries attract a US$300 inspection fee, while those from the United States and North and South America attract US$250.

The fee for vehicles from African countries is listed at US$300, while Australia, New Zealand and other countries attract a US$250 fee.

The GSA says the Ghana-specific FlexiPass charges are at or below standard global PVoC rates.

The GSA has indicated that the inspection network currently covers major vehicle-exporting markets in the Asia-Pacific region, the Middle East, Europe, the Americas and Africa.

The Authority says the approved agents have inspection centres in countries including Japan, China, South Korea, Singapore, Thailand, India, Australia, the United Arab Emirates, the United Kingdom, Belgium, Germany, the United States, Canada, Mexico and South Africa.

The inspection bodies have also committed to expanding coverage in the United States and other regions as demand increases.

While the GSA presents FlexiPass as a preventive standards and vehicle-safety mechanism designed to detect non-conforming vehicles before they reach Ghana, Mr Osei Nyarko’s concerns focus on the financial implications of making the inspection compulsory.

His argument is that the additional inspection payment becomes another mandatory cost associated with importing a used vehicle and could therefore raise the overall cost of vehicles entering the country.

The controversy is likely to fuel further discussion among vehicle dealers, importers, clearing agents and other stakeholders about whether the benefits of mandatory pre-shipment inspection justify the additional financial burden.

For Mr Osei Nyarko, the central concern is whether the new requirement represents a genuine standards and safety intervention or, as he contends, an additional charge being introduced into Ghana’s vehicle importation regime.

By 1960news.com

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