The law banning the importation of salvaged and used cars older than ten years will come into force in October this year.

The Customs (Amendment) Bill, 2020 which was opposed by the Minority and vehicle dealers across the country was later passed into law by Parliament in March 2020.

President Nana Addo Dankwa Akufo-Addo also assented to the Act on April 30, 2020.

According to section 154 (5) of the Act, the prohibitions will come into force six months after the Act is assented to by the President.

“The prohibition against the importation of salvaged motor vehicles into the country under paragraph (b) of subsection (1) of section 58 shall come into force, six months after the date of the coming into force of this Act,” the said section of the Act reads.

The Act also notes that “the Minister [of Finance], in consultation with the Minister of Trade, may, by Legislative Instrument, specify the date on which a motor vehicle over ten years shall not be imported into the country. The date specified under subsection (3) shall not be earlier than six months after the first vehicle has been assembled under the Ghana Automotive Manufacturing Development Programme.”

Among other issues, the Act also notes that, “The date specified under subsection(1) shall not be earlier than six months after the new motor vehicles manufactured under the Ghana Automotive Manufacturing Development Programme are made available.

Also, arrangements have been made for the motor vehicles to be sold in accordance with the investment plans of the automotive manufacturers and assemblers registered under the Ghana Automotive Manufacturing Development Programme.

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.

A report by Parliament’s Joint Committees on Finance, Trade and Industry and Tourism earlier noted that Cabinet had approved the Ghana Automotive Development Policy, in which various incentives had been provided for automotive manufacturers and assemblers registered under the GAMDP.

It indicated that the committee was informed that the review in policy, as contained in the then Bill, would lead to an estimated revenue loss of approximately GH¢802.25 million for the first three years.

Amid the fears over job losses and a potential revenue drop by GHS802 over the next three years, the government said it has plans to make second-hand car dealers distributors of the cars assembled in Ghana by international automobile firms.

Source: modernghana.com