Ghana Revenue Authority

ESTABLISHING A NATIONAL SINGLE WINDOW

GHANAS EXPERIENCE

Angelina Bainiah/GRA
Emmanuel Darko/GCNet

Outline of presentation

GENESIS OF GHANAS SINGLE WINDOW

GHANAs TRADE FACILITATION AGENDA

INEFFICIENT AND OUTDATED CUSTOMS PROCESSES

GOVTS ACCEPTANCE OF SINGLE WINDOW CONCEPT

SELECTION/STRUCTURE OF GHANAS SYSTEM

CAPABILITIES OF SYSTEM

SERVICES PROVIDED BY THE SYSTEM

DEPLOYMENT APPROACH

BENEFITS

CRITICAL SUCCESS FACTORS

ACCOLADES

CHALLENGES/CONSTRAINTS

WAY FORWARD

CONCLUSION

Genesis of Ghanas single window

Ghanas trade facilitation agenda (1)

Government reforms and macro economic policy

1983 - Government of Ghana reforms to propel the economy from a low

income status to a middle income status.
Mid 1990s - Expected growth rate of 8-10% needed to register a positive
impact on the standard of living of the people not achieved.
Alternate strategy to the development agenda - Vision 2020.
Vision 2020 was Governments macro economic policy and long term
development agenda to propel Ghana to achieve a balanced economy
and middle income status with improved standard of living.
Also designed to promote the flow of foreign capital and resources into
Ghana and provide infrastructure services of international quality to
investors.

Ghanas trade facilitation agenda (2)

The Ghana Trade and Investment Gateway Programme

To realize the objectives of Vision 2020, Government in 1998

instituted the Ghana Trade and Investment Gateway
Programme (GHATIG).
Programme objectives:
Make Ghana the trade and investment gateway to West
Africa ie to make Ghana the most preferred and most efficient
investment and trade destination in West Africa
To increase the participation of the private sector in the
development of the national economy.

Ghanas trade facilitation agenda (3)

THE GATEWAY PROJECT
Established in 1999 under the Ghana Trade and Investment Gateway
Programme
Primary objectives:

To attract a critical mass of export oriented investors needed to accelerate

economic development
To provide a conducive investment environment and to facilitate trade
Modernization of frontline Government Agencies (which are the first point
of contact by Investors) and to re-engineer them into trade facilitators.
The Agencies are:
Customs Division of the Ghana Revenue Authority, Ghana Ports and
Harbours Authority, Ghana Free Zones Board, Ghana Investments
Promotions Centre, Ghana Civil Aviation Authority, Environmental Protection
Agency, Ghana Immigration Service

Inefficient and outdated customs processes

In the mid 1990s, dissatisfaction by business community with inefficient and

outdated procedures and policies of Ghana Customs.
An institutional Audit conducted by Crown Agents in March 1998 revealed the
following:
Customs regulations were too complex to comply with
Clearance procedures were complex, cumbersome and time consuming resulting
in delays in entry processing
There were too many human interventions
There was too much paper work
There were high error rates in import entries submitted to Customs
The report also indicated that Customs did not have the tools, methodology or
corporate culture to deliver service in a manner consistent with the Gateway
project objectives.

Governments recommendation and acceptance of single

window concept

Need to modernize Customs in order to enable it to play its role as

a trade facilitator in addition to the traditional role of a revenue
collector and enforcer of Government regulations.
Recognition by Government of the use of IT as an enabler to make
dramatic improvements in the delivery of services and facilitation of
trade by Customs.
One of the major deliverables under the Gateway project for
Customs was therefore the implementation of an automated Customs
Management System.
Government mandated Customs to build a system that was capable
of networking the trading community and Government Agencies to
a common platform to facilitate sharing and exchange of
information and ultimately to enhance efficiencies in the operations
of the trading community. Single Window concept

Selection of trade net

PPP business model

Trade net system selected to provide a single point of entry

for submission of documents and to exchange and share data
and information amongst the trading community
Ghanas system known as GCNet/GCMS
PPP arrangement put in place to implement and manage the
system
System rolled out in 2002

Why TradeNet / GCMS

System Introduced To :
Facilitate trade and clearance of goods through Customs in a secured
manner

Enhance mobilization of trade-related revenue for Government

Minimise malpractices associated with import / export trade

Reduce transaction costs and delays Trade Operators encounter In

clearing consignments through the ports

The Ghana Community Network (GCNet) System

GCNet SYSTEM CONSISTS OF TWO (2) COMPLEMENTARY SYSTEMS

- THE TRADENet SYSTEM
TradeNet: An EDI Platform for Transmission of Electronic Messages
(CUSDECs / CUSRES) Between Trade Operators and Customs on one hand
and Other Regulatory Agencies On The Other
- THE GHANA CUSTOMS MANAGEMENT
SYSTEM (GCMS)
A Versatile Automated System for Processing Customs Declarations
Electronically (eg. Manifest Integration, Validation of Entries , Payments,
Warehousing, etc.)

Customs Officers
interfaced to GCMS

Trading
Community
Interfaced
to TradeNet

Shipping Lines
Interfaced to
TradeNet

Premier Towers

TradeNet
Server

CEPS HQ

GCMS Server

All other Agencies

Interfaced to TradeNet:
MOTI
MoF
Statistical Service
VAT
BOG

Banks
interfaced
To GCMS

Before GCNet-Shuttling from one agency to another

Clearing
Agents
Shipping Agent

Port Authority

Ministries,
Departments
and
Agencies

Insurance
Companies

Destination
Inspection
Companies

Customs

Banks
Freight
Stations

Vehicle
Licensing
Authority

What is GCNet doing?-Networking all parties to a common

platform to facilitate sharing and exchange of information

Capabilities of the system

Allows 24 hrs. / 7 days Submission of Declarations and documents

Provides a single platform for processing trade-related documentation
Provides platform for centralized verification of entries
Provides a risk management module for profiling consignments into risk
categories
Provides systematic monitoring of consignment movements
Facilitates post clearance audit to account for consignments / Proper closure of
transactions
Processes all Customs regimes
Provides Real Time statistics and revenue reconciliation
Provides Real Time Reporting on trade statistics
Provides audit trail facility to monitor officer performance
Capacity to audit transactions promptly
Transparent and predictable processes, less bureaucracy

Services provided by single window

Processing of Manifest and distribution

Processing of FCVRs and distribution
Issuance and distribution of Permits and Exemption Certificates by Regulatory
bodies
Valuation Assurance Module
Electronic tracking of goods in transit
Electronic Valuation of Used vehicles
Processing of Declarations and distribution
Standard Declaration
Head load Declaration
Access to statistics by various Stakeholders using data mining tools
Customs Release and Electronic Delivery Order
Allows freight terminals and shipping lines to receive Customs electronic
declaration advising them of cargo due for examination.

Allows shipping lines to send instructions to freight terminals

advising them that cargo can be released

Current system users

Customs
Port Authority
Shipping Lines (87)
Custom House Agents (771)
Commercial Banks
Freight Terminals
Airport Freight Handling Operator
Central Bank
Oil Marketing Companies
Driver and Vehicle Licensing Authority
Shippers Authority
Bonded warehouses
Ministries, Departments and Agencies (28)

Phased deployment approach

First deployed in November 2002 at Kotoka International

Airport and Customs headquarters.
Tema port, James Town in Accra, Aflao border town and
Takoradi port in 2003.
Now deployed in all 10 regions of the country
The above stations process about 98% of total declarations.
Over the years, modules have been enhanced
New modules have been added
Ministries, Departments and Agencies (MDA) system deployed
in 2006

Enhancements

New Modules added and enhancements made since initial roll

out in 2002 to respond to requests from users and changes in
the business environment
- Vehicle valuation module
- Temporary vehicle importation
- Transit etc
Technological upgrade of GCMS1, a DOS based system to
GCMS2 a windows based system on April 6th 2009.
Upgrade of MDA application to a new MDA Portal in
October 2009.
-Off line FES application system was replaced by a web
based system with new features like ability to process on line
payments, introduction of risk engine, incorporation of UCR
and ability to process scanned supporting documents etc.

Benefits

Benefits have been substantial in terms of increase in Government revenue

and reduction in clearance times. In the first year, import revenue grew by
almost 50%. In subsequent years there has been an average growth of
23%. This has been possible through plugging of sources of revenue
leakage, and transparency of operations.
Faster clearance times through speed of processes and elimination of
unnecessary Paperwork and human interventions.
At KIA, consignments cleared in 1 day, as against a pre-GCNet
situation of 2-3 days
1-3 days clearance time at Tema as against a pre-GCNet average of
2-3 weeks
In Takoradi, consignments cleared in 1 day, as against a pre-GCNet
situation of 2 days
Portrays a professional image of Customs
Improved staff working conditions through upgraded infrastructure

Critical Success Factors

Well defined goals and strategies

A balanced selection of complementary partners with unique strengths
and effective Project champions who had absolute conviction that
project could work
Political support and commitment - Strong support was provided by
Government through the Gateway oversight committee which was
chaired by the Vice President of the Republic of Ghana.
Management support and commitment -A performance contract was
signed between the management of Customs and the Gateway
Oversight Committee. This contract made provision for sanctions against
the management of Customs for failure to achieve the said goals.
Regular and extensive sensitisation and consultations with stakeholders in
the form of meetings, workshops and open fora.
A sustainable self financing arrangement in the Public Private
Partnership approach.
Development of network infrastructure to obviate relatively weak
national infrastructure.

Accolades

Well acknowledged at home, by the World Bank, and

the WCO. Presentations have been made at several
WCO fora in Brussels, Senegal, Morocco etc
It has also become a reference in the region.
The private-public sector partnership that was
adopted has become a model for e-governance
projects in Ghana.

CHALLENGES/CONSTRAINTS

Overcoming the human factor, institutional, attitudinal and infrastructural

constraints required for a successful change management
Ensuring high level of compliance among Trade Operators and Declarants
Overcoming seeming reluctance of some Regulatory Agencies to interface
with System to enhance trade facilitation
Absence of complementary electronic systems for internal operations of
Government and other trade-related Agencies (eg. Port Cargo
Management System, etc.)
Addressing infrastructural constraints especially at land borders and remote
sites

WAY FORWARD

Deploy all functionalities of the new MDA portal (on line

payment for MDAs, Coordinated Risk Management etc)
Full deployment of Ghana Integrated Cargo Clearing System
(GICCS).
Implementation of second phase of Unique Consignment
Reference project to facilitate data exchange with other
Customs administrations
Strengthen collaboration with Neighbouring Countries Customs
Administrations for improved transit control processes/Connect
with other national systems (International Single Window)
Continuous Sensitization / Education of Officers and Trade
Operators

Conclusion

The GCNet/GCMS system has substantially transformed and

modernized Customs procedures and processes, resulting in
increased revenue collection, reduction in clearance times and
greater compliance by stakeholders.
It has also facilitated trade and investment promotion in
Ghana.
Development of a single window is a gradual and long term
process involving several initiatives and organizational
rearrangements.
It is possible to roll-out a complex system, with the right
capabilities and approaches.

Thank You