The Ghana Shippers’ Authority (GSA) has addressed several concerns raised by the Ghana Union of Traders Association (GUTA) regarding certain provisions in the newly passed GSA law, which is awaiting the president’s assent.
A key issue highlighted by GUTA is the registration of shippers and shipping service providers, which GUTA strongly opposes.
In response, the GSA clarified that registration should not be confused with licensing, as GUTA has interpreted.
“Registration simply means registration and should not be misconstrued as a licensing regime. This has been clearly explained and discussed with stakeholders, including GUTA. The registration of shippers is not a new concept; it has always been part of Ghana’s laws: Section 1 of L.I. 1347 (1987) and Section 2 of L.I. 2190 (2012) mandated the registration of shippers by the GSA,” the Authority stated.
Below is the full response of GSA to GUTA
RE: TRADERS WOULD NOT ACCEPT ANY IMPORT LICENSING OR PERMIT REGIME
Ghana Shippers’ Authority (GSA) has received news of some concerns raised by the Ghana Union of Traders Association (GUTA) with respect to sections of the recently passed Ghana Shippers’ Authority law, which they perceive may impact the commercial business sector adversely. As stated in paragraph 6 of the GUTA Statement, GSA committed to continuing the discussions it initiated from Tuesday 30th July 2024 with stakeholders including GUTA, on the law, soon as it was passed by Parliament on Monday 29th July 2024, to ensure that the Legislative Instrument (L.I.) which will operationalize the law will take cognizance of any concerns that may jeopardize its enabling intent; and GSA hereby reaffirms its commitment to doing so. However, for the sake of educating the general public on the specific issues raised by GUTA, the GSA explains as follows:
1.GUTA: “The issue of registration of shippers and shipping service providers were not discussed with us to make our input as stakeholders in the shipping industry.”
GSA response: a) Registration only means registration, and by no stretch of imagination should it be construed as a licensing regime. This has been explained and discussed with the stakeholders including GUTA. Registration of shippers is not a new introduction; it has always been in the laws of Ghana: Section 1 of L.I. 1347 (1987) and then Section 2 of L.I. 2190 (2012) provided for registration of shippers by the GSA.
2. GUTA: Submission of notice of shipment was also not discussed with stakeholders for their input
GSA response: a) Submission of notice of shipment has also always been in our laws: Section 8 of L.I. 1347 (1987), and then in Section 12 of L.I. 2190 (2012) provide for Shipment Notification by shippers. We also believe that where goods are legally shipped, submission of Shipment notification must not evoke any fear.
3. GUTA: The final draft was issued to stakeholders only after Parliament had approved the Bill.
GSA response:
a) This statement suggests a lack of understanding of the parliamentary process on the passage of Bills, and unfortunately implies an attempt to overreach Parliament in the performance of its constitutional duty. We would like to assure the business community and the public that, stakeholders, including GUTA were amply engaged; and GSA has been in continuous engagement with stakeholders since the law was passed as stated above in the preamble to this statement. Our doors remain open to such collaborative approach to dealing with any issues that affect the mutual good of Ghanaians.
4. GUTA: Issues raised on the suspension of registration, renewal of certificate of registration, cancellation of registration and outright rejection, which are only related to permits and licenses to operate as importers have not been resolved with stakeholders. GSA response: a) Again, we state that the concerns raised in this paragraph are a continuation of the issues raised under paragraph 1 of the GUTA Statement. We wish to reiterate that, registration is necessary for identification, and speed in the processing of shipments, and should therefore not be equated to a licensing regime. It is in the absolute interest of shippers, as time is of utmost essence in their operations.
5. GUTA: The Advance Shipment Information System that had been resisted and withdrawn by the Government in the past is now being reintroduced in the Act. Our position on that has not changed. Moreover, this information sought by the GSA is of no relevance to their operation.
GSA response:
a) The Advance Shipment Notification (ASN) is not new; it is contained in L.I. 2190 (2012), which is currently in force. Under the new law also, it will be operationalized through an L.I., and GSA is currently in ongoing consultations with stakeholders to pool inputs for the yet to be passed L.I. b) We further affirm that, the intention for that ASN is to help shippers in their pre-arrival clearance processes at the ports, to enable the speed required to forestall avoidable costs such as demurrage.
6. GUTA: “For these reasons, the GSA had agreed to our concerns and promised that as the Act has already been passed by Parliament, they would use Legislative Instruments (LIs) to correct any defect or anomaly in the operationalization of the Act. However, our consultations suggest that L.Is cannot override an Act, hence our call on the President of the Republic no to assent to the Act until all issues raised are resolved.”
GSA response:
a) We hereby state that, the assurances we gave on the concerns shared by stakeholders so far have been unfortunately misunderstood. Once again, we reiterate that, the new L.I which will operationalize the law will provide better clarity on the provisions that seem inhibitive to the carrying on of profitable commercial shipping business in Ghana. Every effort is being made to ensure that, Ghana remains well aligned to global standards of shipping and is thus a competitive route for international trade.
b) GSA further reiterates its stance, that it remains open to constructive collaboration and engagement with all stakeholders and interested parties within the commercial shipping sector, as we continue to confer on shaping the sector into a fit-for-purpose engine of socio-economic growth for the common good of traders as well as the general citizenry of Ghana. To the general public, GSA hereby assures that the law is an enabler rather than an inhibitor to profitable commercial shipping business, as has rightly been espoused by GUTA since it was passed. GSA therefore reaffirms its commitment to ensuring that this overarching goal of the law is not compromised, and appeals to all stakeholders to remain at the table of discussion, as inputs into the expected L.I. are pooled for the attention of the relevant law drafters and makers.