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WTO WORKSHOP ON WTO WORKSHOP ON TECHNICAL ASSISTANCE TECHNICAL ASSISTANCE

& CAPACITY BUILDING& CAPACITY BUILDING

DESTINATION INSPECTION SCHEME DESTINATION INSPECTION SCHEME (DIS) AS A GATEWAY OBJECTIVE FOR (DIS) AS A GATEWAY OBJECTIVE FOR CEPS MODERNISATION, COMPLIANCE CEPS MODERNISATION, COMPLIANCE

AND TRADE FACILITATION.AND TRADE FACILITATION.

Geneva 10 – 11 May, 2001Geneva 10 – 11 May, 2001

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The Government of Ghana found the need to adapt the The Government of Ghana found the need to adapt the Inspection Services of Ghana to respond to the trade Inspection Services of Ghana to respond to the trade facilitation as set out by the Gateway Programme facilitation as set out by the Gateway Programme through Customs compliance and Modernization to through Customs compliance and Modernization to enhance Revenue Improved Cargo handling and port enhance Revenue Improved Cargo handling and port management.management.

This is because the Gateway objective is This is because the Gateway objective is for Ghana to become the beacon for sub for Ghana to become the beacon for sub regional investment.regional investment.

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MEASURABLE INDICATORS TO MEET OBJECTIVESMEASURABLE INDICATORS TO MEET OBJECTIVES

3.3. Necessary training of Customs House Agents and CEPS Necessary training of Customs House Agents and CEPS officers for transfer of technology of Modern Customs officers for transfer of technology of Modern Customs procedures to enhance revenue and improve complianceprocedures to enhance revenue and improve compliance

1.1. Reduction of clearance time from ten (10) days to one (1) Reduction of clearance time from ten (10) days to one (1) day by 2003; presently efficient Customs House Agents day by 2003; presently efficient Customs House Agents (CHA) are completing clearing in 48 hours. (CHA) are completing clearing in 48 hours. 

2.2. To reduce physical examination of goods to 20% for To reduce physical examination of goods to 20% for dutiable goods and 10% for statutory free goods by 2002. dutiable goods and 10% for statutory free goods by 2002. 

These three indicators among others made it necessary to These three indicators among others made it necessary to enter into a joint venture with an inspection company to enter into a joint venture with an inspection company to

form Gateway Services Limited .form Gateway Services Limited .

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CEPS BENEFITS FROM THE DESTINATION INSPECTION SCHEMECEPS BENEFITS FROM THE DESTINATION INSPECTION SCHEME

Computerized Risk Management System (CRMS) to classify transactions by their Level of risk to revenue for processing by customs.Computerized Risk Management System (CRMS) to classify transactions by their Level of risk to revenue for processing by customs.

This is based on the information from the following parameters: This is based on the information from the following parameters:

Commodity Country of originInvoice value of the consignmentThe importer/declarantSupplierQuantity/VolumePorts or transshipment if applicableMode of transportationPackagingTariff applicable

Commodity Country of originInvoice value of the consignmentThe importer/declarantSupplierQuantity/VolumePorts or transshipment if applicableMode of transportationPackagingTariff applicable

These parameters determine whether to consider the transaction high, These parameters determine whether to consider the transaction high, medium or low risk. medium or low risk. There is a CRMS Committee which meets regularly to review these risks There is a CRMS Committee which meets regularly to review these risks profiles.profiles.

This has helped to reduce examination to 40%This has helped to reduce examination to 40%

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 Subject to full physical examination (mandatory) by CEPS.

food items

pharmaceuticals and chemicals

selected electrical goods

 Subject to full physical examination (mandatory) by CEPS.

food items

pharmaceuticals and chemicals

selected electrical goods

(i) High Risk - (Red Channel)High Risk - (Red Channel)

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Yellow CEPS: Medium risk non FCLs are to be either subjected to physical or documentary examination. The decision is at the discretion of CEPS.

Yellow CEPS: Medium risk non FCLs are to be either subjected to physical or documentary examination. The decision is at the discretion of CEPS.

(ii) Medium Risk - (Yellow channel)(ii) Medium Risk - (Yellow channel)

FCL goods are just scanned by the Scanner butdocuments covering them are checked. FCL goods are just scanned by the Scanner butdocuments covering them are checked.

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CEPS is to select 5% randomly for physical examination. CEPS is to select 5% randomly for physical examination. However, irrespective of the results of the CRMS Risk However, irrespective of the results of the CRMS Risk assessment results, a transaction may be referred for assessment results, a transaction may be referred for physical examination if some specific information obtained physical examination if some specific information obtained by CEPS requires so.by CEPS requires so.

(iii)(iii) Green Low Risk TransactionsGreen Low Risk Transactions

On the other hand on no account shall a transaction On the other hand on no account shall a transaction assessed as High Risk be treated otherwise, unless assessed as High Risk be treated otherwise, unless randomly selected for examination.randomly selected for examination.

The CRMS, therefore, enables CEPS to check only those The CRMS, therefore, enables CEPS to check only those transactions that need to be followed thoroughly and transactions that need to be followed thoroughly and thereby improve revenue collection at the same time, and thereby improve revenue collection at the same time, and facilitate clearance by allowing low risk goods to be cleared facilitate clearance by allowing low risk goods to be cleared without hindrance. A facility to strengthen the effectiveness without hindrance. A facility to strengthen the effectiveness of the system is the Post Clearance Verification adopted by of the system is the Post Clearance Verification adopted by CEPSCEPS.

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THE WTO VALUATION AGREEMENT & THE THE WTO VALUATION AGREEMENT & THE TRANSACTION PRICE DATABASE (TPD)TRANSACTION PRICE DATABASE (TPD)

The adoption of the WTO Valuation Agreement required The adoption of the WTO Valuation Agreement required technology and necessary network to access sources for technology and necessary network to access sources for valuation information for individual transaction. the TPD has valuation information for individual transaction. the TPD has been able to help in this regard. The use of Price Reference is been able to help in this regard. The use of Price Reference is very essential in the implementation of WTO valuation. CEPS very essential in the implementation of WTO valuation. CEPS adopted the WTO Valuation just about the time of the adopted the WTO Valuation just about the time of the introduction of the Destination Inspection Scheme (DIS). introduction of the Destination Inspection Scheme (DIS). Fortunately, the aspect of the DIS deals with the verification of Fortunately, the aspect of the DIS deals with the verification of values submitted by importers is based on the WTO Valuation values submitted by importers is based on the WTO Valuation Concept.Concept.

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Presently, the Destination Inspection Scheme (DIS) is working with CEPS officers who are experienced in Classification and Valuation.

Notwithstanding the values presented by these officers and GSL, these are considered only an opinion which CEPS is not bound to accept if the available information does not support the value. The final ruling on what should be the value for tax purposes still rests with CEPS. 

Presently, the Destination Inspection Scheme (DIS) is working with CEPS officers who are experienced in Classification and Valuation.

Notwithstanding the values presented by these officers and GSL, these are considered only an opinion which CEPS is not bound to accept if the available information does not support the value. The final ruling on what should be the value for tax purposes still rests with CEPS. 

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Name of Commodity Source of supply Unit price, freight Importer Date of transaction

Name of Commodity Source of supply Unit price, freight Importer Date of transaction

GSL provides to CEPS computerized records of all transactionsthey have processed with details required in the exercise of verifying values for tax purposes - The Transaction Price Database which as already is the opinion provided to CEPS.

GSL provides to CEPS computerized records of all transactionsthey have processed with details required in the exercise of verifying values for tax purposes - The Transaction Price Database which as already is the opinion provided to CEPS.

These are:These are:

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So far discrepancies detected from scanning has enhanced revenue.

Its limitation is not detecting exact sizes, material the commodity is made of, and quality, is offset by the Computerized Risk Management System, where the importers' profile helps determine picking at random some containers for physical examination.

So far discrepancies detected from scanning has enhanced revenue.

Its limitation is not detecting exact sizes, material the commodity is made of, and quality, is offset by the Computerized Risk Management System, where the importers' profile helps determine picking at random some containers for physical examination.

3. The X'RAY SCANNERThe X'RAY SCANNER

For Scanning Full Container Loads (FCL) of homogeneous goods. This is supported by the CRMS.For Scanning Full Container Loads (FCL) of homogeneous goods. This is supported by the CRMS.