Importation of second-hand cars rises

Importation of second-hand cars is on the rise over fears that the Customs Amendment Act, 2020, will be implemented in 2021, if the New Patriotic Party government is voted back into power.

This was disclosed by the Automobile Dealers Union of Ghana.

Speaking to Citi Business News, the General Secretary of the Automobile Dealers Union, Clifford Ansu, said in order not to be caught unawares, second-hand car dealers are ramping up the importation of vehicles that would be banned from entering Ghana under the Amended Act.

“People fear that when the implementation starts they can no longer bring some cars. So whatever they have now they try to bring them in. But that obviously can’t end your situation, because after you bring the cars in 2020, you will still have to import cars in 2021 and beyond. If you go to the ports CEPS will confirm to you that the number has gone up.”

Parliament passed the Customs (Amendment) Bill, 2020 that bans the importation of accident and salvaged motor vehicles into the country.

The Customs Amendment Act stipulates among other things the provision of incentives for automotive manufacturers and assemblers who are registered under the Ghana Automotive Manufacturing Development Program, as well as the prohibition of the importation of salvaged vehicles and cars over 10 years old into Ghana.

The Act amended the Customs Act, 2015 (Act 891).

The banned vehicles comprise wrecked, destroyed or physically damaged by collision, fire, water or other occurrences as well as specified motor vehicles that are over 10 years old.

Although the law was to be implemented on November 1, 2020, government suspended the implementation date.

Garage operators in the country subsequently called on government to totally scrap the act.

They argue that, should government go ahead with the implementation, they will lose their livelihoods.

source citibusinessnews

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