Shippers’ Authority Bill: Importers and Exporters Opposes Delay in Presidential Assent
The Importers & Exporters Association of Ghana (IEAG) has rejected calls from certain stakeholders in the commercial shipping industry urging President Nana Akufo-Addo to delay signing the Ghana Shippers’ Authority Law 2024. The IEAG has labeled these calls as baseless.
In an interview, the President of IEAG, Sampson Asaki Awingobit, emphasized that the new law ensures accountability and responsible conduct among all stakeholders in the commercial shipping value chain.
According to the Association, the law creates a more organized and regulated environment for trade, safeguarding the interests of both importers and exporters.
The Ghana Union of Traders Association (GUTA) and the Ghana Institute of Freight Forwarders (GIFF) have expressed concerns about certain sections of the law and have requested the President to hold off on signing it until further discussions can take place.
However, the IEAG maintains that the new law is a crucial step toward enhancing transparency and efficiency in Ghana’s shipping and logistics industry. While recognizing the importance of continued dialogue, the IEAG insists that the law should be signed without delay.
“I am aware that with the new law, the Board of the Shippers’ Authority now includes representatives from the AGI, the Chamber of Commerce, and the Ghana Union of Traders. They have also agreed to establish ad-hoc committees comprising stakeholders and the Shippers’ Authority to draft the legislative instrument (LI) that will properly regulate and implement the Act.
“We are still waiting for the Ghana Shippers’ Authority to invite us to form this ad-hoc committee. Therefore, I was surprised to see my colleagues issuing a statement calling for the President not to assent to the bill. I believe that the current Ghana Shippers’ Authority Act is designed to support the business community, particularly shippers, importers, and exporters. The Shippers’ Authority has shown a willingness to listen to us, and I am confident that the door remains open for further engagement,” Awingobit remarked.
The IEAG has also called for clear guidelines and support from the Ghana Shippers’ Authority (GSA) to help businesses adapt to the new regulations, ensuring that the law facilitates smoother and more efficient operations within Ghana’s trade sector rather than becoming a barrier.
“In my view, this Act is necessary to streamline the operations of shippers, especially carriers who have been exploiting importers by imposing excessive fees and charges.
“Sometimes, when an importer pays port charges but cannot cover the additional fees imposed by the carrier, the carrier will hold the cargo, even after higher authorities have intervened. Now that the Shippers’ Authority has an Act to regulate this industry, I am fully prepared to engage, and I know that others share this commitment,” he added.
Objective
The Bill aims to address the issue of unfair and excessive charges burdening traders who use Ghana’s sea and airports, as well as land borders, to ply their international trade.
The passage of the Bill, presented by the Ministry of Transport, follows concerns over the country’s international transit trade, lack of legal framework, and need to protect shippers from unfair treatment by multinational shipping service providers.
Regulation
It is anticipated that the passage of the Bill would ensure effective regulation of the shipping and logistics sector, guaranteeing fair pricing and charges for all stakeholders.
It would also empower the GSA to control fees at the ports and borders and promote the participation of local firms in the sector.
The new law is further expected to enhance transparency, accountability, and invariably, drive improved revenue generation, and collection for national socio-economic growth.
The new law will now empower the Ghana Shippers’ Authority to better adapt to emerging trends and complexities within the shipping and logistics industry, protect the interests of shippers and service providers, and improve its regulatory oversight of commercial shipping in the entire industry”, he noted.
It would also enable a more effective regulation of transit trade, thereby balancing the interests of shippers and service providers for enhanced efficiency and competitiveness in international trade.
Background
The Ghana Shippers’ Authority was established in 1974 by the Ghana Shippers’ Authority Act, 1974 (NRCD 254) to organize shippers and equip them with bargaining power.
However, the Act had not undergone significant reviews in 50 years, making it unresponsive to industry transformations. The Authority has been spearheading transit trade development since 1987, but the legal framework to regulate transit trade and ensure maximum benefits for Ghana is nonexistent.
Justification
The Ministry of Transport is of the view that the exorbitant charges by service providers hinder business growth and contribute to price hikes. The lack of legislation empowering the GSA to regulate port charges worsens this issue.
The Ministry emphasizes the need to amend existing legislation to enhance the GSA’s mandate and capacity to regulate and standardize shipping charges.
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Source: By Felix Nyaaba // ExpressNewsGhana.com
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