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Contract No.: AID-624-C-13-00002-00
October 2017
This publication was produced for review by the United States Agency for International Development.
It was prepared by Abt Associates Inc. for the West Africa Trade and Investment Hub.
WEST AFRICA
TRADE AND INVESTMENT HUB
SHORT TERM TECHNICAL ASSISTANCE TRADE PROMOTION IN WEST AFRICA: JULY – SEPTEMBER 2017
Recommended Citation: West Africa Trade and Investment Hub. “Short Term Technical
Assistance, Trade Promotion in West Africa, July-September 2017.”
Prepared for West Africa Trade and Investment Hub by Jan Forest,
U.S. Customs Lawyer, September 2017.
Submitted to: Cory O’Hara, COR, Office of Trade and Investment
(+233) 30-274-1317
No. 24 Fourth Circular Rd., Cantonments
Accra, Ghana
Abt Associates Inc. 1 4550 Montgomery Avenue 1 Suite 800 North 1
Bethesda, Maryland 20814 1 T. 301.347.5000 1 F. 301.913.9061 1
www.abtassociates.com
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WEST AFRICA
TRADE AND INVESTMENT HUB
SHORT TERM TECHNICAL
ASSISTANCE TRADE PROMOTION IN WEST AFRICA: JULY – SEPTEMBER 2017
Contract No.: AID-624-C-13-00002-00
DISCLAIMER
The authors’ views expressed in this publication do not necessarily reflect the views of the United
States Agency for International Development (USAID) or the United States Government.
Trade Promotion in West Africa: July – September 2017 ii
TABLE OF CONTENTS 1. Overview................................................................................................................................. 3
2. Nigeria .................................................................................................................................... 4
2.1 Pre-Magic Training (August 1) ............................................................................................................................... 4
2.2 Customs Training...................................................................................................................................................... 4
2.3 Visa Stamp .................................................................................................................................................................. 4
3. Togo ........................................................................................................................................ 5
3.1 AGOA Forum ............................................................................................................................................................ 5
3.2 Training ....................................................................................................................................................................... 5
3.3 Visits to Companies ................................................................................................................................................. 5
3.4 Visa Stamp .................................................................................................................................................................. 5
4. Ghana ...................................................................................................................................... 6
4.1 Training ....................................................................................................................................................................... 6
4.2 Visits to Companies ................................................................................................................................................. 6
4.3 Visa Stamp .................................................................................................................................................................. 6
5. Further Work ......................................................................................................................... 7
Annex A: Terms of reference, Task Order 3 ............................................................................. 8
Annex B: Methodology, Task Order 3 ...................................................................................... 14
Annex C: Presentation to Magic Exporters (August 1) ........................................................... 18
Annex D: Agenda for Nigeria Customs Training ..................................................................... 26
Annex E: Presentation to Togo Customs Officers .................................................................. 28
Annex F: Memorandum to Global Mamas ............................................................................... 39
Annex G: Memorandum on General Drawback Procedures .................................................. 40
Annex H: Memorandum on General Procedures for Exporters ............................................ 42
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1. OVERVIEW This assignment is being performed under a master agreement between Jan Forest and the West
Africa Trade and Investment Hub (WATIH). The terms of reference and methodology are attached
(Annexes A and B). There are five tasks under Task Order 3:
1. Provide a guide on “Standard Operating Procedures” (SOP) for customs officers in West
African countries covering basic U.S. customs laws and the African Growth and Opportunity
Act (AGOA). The guide should include U.S. Customs and AGOA document requirements as
well as instructions for West African Custom Services on how to submit requests for
replacing textile visa stamps and how to update the list of signatories authorized to sign the
visa stamp.
2. Conduct a desk review of Ghana’s National AGOA Strategy. The review should include
checking the document for accuracy with respect to procedures for access to US markets,
rewriting any sections that may be incorrect, and pointing out areas that may require further
investigation.
3. Travel to Nigeria to give a presentation for Nigerian customs officers and exporters on
customs classification, present the SOP, and follow up on the visa stamp issue.
4. Travel to Togo to present the SOP to customs officers, participate in the AGOA Forum,
and visit companies.
5. Travel to Ghana to:
a. Follow up with Ghana Customs regarding Global Mamas’ drawback claim;
b. Prepare a general memorandum on steps needed to make a drawback claim;
c. Follow up with Studio 189 regarding eligibility for AGOA;
d. Follow up with Osei-Duro on registration issues; and
e. Prepare a general memorandum outlining steps for registering a company in Ghana
and for registering with Ghana Investment Promotion Centre (GIPC) and with
Ghana Export Promotion Council (GEPC).
The consultant reviewed and provided edits for Ghana’s National AGOA Strategy and drafted a
manual for customs officers in West African countries covering basic U.S. customs laws and AGOA
(Annex C). This guide includes basic U.S. customs laws and documentation requirements as well as
an explanation of other agency requirements enforced by CBP at the U.S. border (FDA, USDA, etc.)
and AGOA eligibility and document requirements. The guide also outlines steps to be followed by
West African Customs Services for submitting a request for a new or replacement textile visa stamp
and updating the list of signatories authorized to sign the visa stamp.
The consultant travelled to Nigeria, Togo and Ghana from July 30 to August 16, 2017.
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2. NIGERIA 2.1 PRE-MAGIC TRAINING (AUGUST 1)
A presentation was given for exporters going to the Magic trade show in Las Vegas on U.S. customs
law and AGOA documentation (Annex D). Handouts that were provided responded to questions
about samples, country of origin marking, and apparel marking rules.
2.2 CUSTOMS TRAINING
Jan Forest, U.S. customs lawyer, and Mohamed Abou-iiana, WATIH AGOA specialist, conducted a
two-day training program for Nigerian Customs Officers at Customs National Academy in Ikeja,
Lagos (Annex E). They presented the SOP to more than 40 customs officers from across Nigeria,
explaining step-by-step procedures for compliance with U.S. customs laws and AGOA requirements.
They also described certificates of origin (non-textile), certificates of origin (textiles), and AGOA
visa stamps. In an interactive format, the customs officers interacted with the trainers on customs
documentation required for AGOA and shared their experiences with issues related to exports.
2.3 VISA STAMP
The consultant and AGOA Specialist followed up on progress made with respect to providing a new
visa stamp and a list of signatories for submission to the U.S. Government. The list of signatories had
been prepared, although the new visa stamp is yet to be produced by Nigerian Customs.1
1 Please note that at a later date, 10 stamps were made available to Nigeria Customs, but as of Oct 31, 2017, the
updated list of signatories, although prepared by Nigeria Customs, had still not been submitted to USTR via the U.S.
Embassy or USAID.
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3. TOGO 3.1 AGOA FORUM
The consultant attended the AGOA Forum on the two government days and presented at a
Department of Commerce panel discussing the World Trade Organization’s Trade Facilitation
Agreement (TFA).
3.2 TRAINING
The SOP was presented to a panel of high-level Togo customs officers (Annex F), followed by an
extensive question and answer period.
3.3 VISITS TO COMPANIES
Togo Timbers. The consultant met with Ayite Gaba, co-owner of Togo Timbers, who is producing
and harvesting teak trees with plans to manufacture furniture. During the visit, the consultant
offered classification advice concerning furniture and provided a copy of the SOP.
3.4 VISA STAMP
The approval of Togo for the textile visa was announced at the AGOA Forum. The consultant was
informed by the US Trade Representative (USTR) that Togo may begin to use the stamp at any time.
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4. GHANA 4.1 TRAINING
Unfortunately, there was insufficient time to schedule the SOP training in Ghana. The consultant met
with the training coordinator at Ghana Customs to discuss doing the training in November. The
training coordinator and consultant will work together in the meantime to prepare for the training.
4.2 VISITS TO COMPANIES
DTRT. The consultant participated in launch of the Ghana Apparel Manufacturing Expansion project
at DTRT.
Ethical Apparel Africa. The consultant met with Ethical Apparel Africa to discuss the proper
classification of dog mats and the eligibility for AGOA.
Global Mamas. The consultant assisted Global Mamas, from the U.S., with filing a drawback claim
in April. As there had been no word about the outcome, the consultant met in June with Emmanuel
O’Hene (020-812-6912), the head of drawback and AGOA at Ghana Customs, to discuss the status
of the claim. Mr. O’Hene’s assistant, Sampson (024-273-8 416), reported that while everything with
the claim had been done properly, they were missing a bank statement, which provides customs with
proof of payment of the Ghana duties on the imported raw materials. This document was then
provided by Global Mamas to Ghana Customs.
In August, the consultant met again with the drawback section at Ghana Customs. Global Mamas’
drawback claim, filed in April, had been approved and the consultant was able to deliver the check to
Global Mamas. This bodes well for the future as the company intends to file many more drawback
claims moving forward. A memorandum was prepared to respond to Global Mamas’ questions about
accounting for waste for drawback purposes (Annex G). In addition, a memorandum has been
prepared to set forth the steps required to file a drawback claim (Annex H). Several other
companies have also expressed an interest in using this program.
Osei-Duro. The consultant met with Osei-Duro’s co-owner to discuss the steps necessary for
registration in Ghana and general requirements for exporters. This information has been
incorporated in a memorandum for use by any interested exporters.
Studio 189. The Consultant met with Studio 189’s co-owner and its logistics coordinator to discuss
classification issues, eligibility for AGOA, and required customs documentation. The consultant will
follow up with the company in New York.
4.3 VISA STAMP
Ghana has completed the process of making new visa stamps and submitting updated signatures to
the U.S. Government.
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5. FURTHER WORK
1. Ghana
a. Presentation to customs officers of the SOP.
b. Meet with GIPC, GEPC and MOTI to discuss registration issues.
c. Final follow up with DTRT, Global Mamas, Studio 189 and Osei-Duro.
2. Cote d’Ivoire
a. Presentation to customs officers of the SOP.
b. Visits to companies.
c. Follow-up on visa stamp issue.
3. Benin
a. Presentation to customs officers of the SOP.
b. Visits to companies.
c. Follow-up on visa stamp issue.
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ANNEX A: TERMS OF
REFERENCE, TASK ORDER 3
Terms of Reference West Africa Trade and Investment Hub
Short Term Technical Assistance: July through September, 2017
1. Project Background
USAID/West Africa’s Mission-wide goal is the West-African led advancement of social and economic well-being. This goal is supported by several development objectives, including “broad-based economic growth and resilience advanced through West African partners.” The West Africa Trade and Investment Hub Project (the “Trade Hub”) will contribute to this development objective by achieving two critical intermediate results:
1. Improving the capacity of West Africa’s farmers and firms in targeted regional and
global value chains.
2. Improving the business enabling environment by addressing transport constraints and
trade barriers affecting the efficiency of the region’s corridors and borders.
The Trade Hub will work through lead firms, private sector associations and regional governmental entities to help channel all partners’ efforts in ways that will address critical constraints to trade competitiveness, capture opportunities to expand trade, demonstrate West Africa’s productive potential to investors, and facilitate greater investment in the region. Its results will include both an increase in 1) regional trade in key agricultural commodities, a critical Feed the Future (FTF) indicator, and in 2) value-added global exports, a targeted indicator for the Trade Africa Initiative, which ultimately aims to increase Africa’s share of world trade.
The Trade Hub will build the capacity of several key groups of African partners—regional private sector associations and alliances, lead private enterprises and their value chains participants, the Economic Community of West African States (ECOWAS), the Economic and Monetary Union of West Africa (UEMOA), a multi-donor funded Transport and Facilitation Observatory, and Global Development Alliances with private sector companies. As the Trade Hub works with associations and regional alliances, it will help them serve as leaders in promoting reforms, attracting buyers and investors, and adopting improved practices. Eventually, the Trade Hub’s partners will act independently and take on even greater leadership roles.
The Trade Hub’s major components are:
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Regional staple foods development (livestock and grains)
Global value chain development (targeted agro-processing and manufactured consumer goods)
Finance and investment
Transport and the trade enabling environment
Capacity building
Communications
Administration and management, including grants administration
2. Context for this Assignment Jan Forest is a US-based customs lawyer with a vast network of colleagues in the field of customs and trade implementation. She has provided previous volunteer support to Global Mamas and helped clarify a number of AGOA-related questions including pushing forward on Global Mamas’ petition, and ITC Hearing, for GSP Duty-Free treatment on Chapter 42 goods – which was awarded for Sub-Saharan African countries. This kind of expertise is invaluable to many export-ready companies in West Africa. This has led the West Africa Trade and Investment Hub to establish a master agreement with Ms. Forest in order for her to continue and expand the delivery of pro bono support to a number of clients in the region and provide training on AGOA to industry private sector players and customs officials. The work described in this new task order statement supports the development of trade-promoting outputs desired during the period of July through September, 2017. The work will involve desk work in Washington as well as travel to Nigeria, Togo and Ghana over a period of approximately 24 days.
3. Prior work and Objectives
During the second quarter of 2017 (April through June), the input of the consultant and her network of advisors was required for six distinct deliverables. The six specific objectives under this Task Order were:
3.1 Support to Program in Nigeria:
The consultant conducted a training of Nigerian customs officers and participated in an export promotion meeting at the NACC on May 26 and 27. Visits to several export companies were also made.
3.2 Registration for DTRT to trade regionally:
The Ghanaian apparel manufacturer, DTRT, has a sizable stock of t-shirts that it wishes to be able to market in the West Africa region. In order to do so, it needs to be registered to export regionally within ECOWAS. The consultant determined that the ECOWAS Trade Liberalization Scheme (ETLS) is not available to goods manufactured in a free zone. Consultant advised DTRT as to steps they would need to take if they manufacture outside the free zone and want to apply for ETLS in the future.
3.3 Customs/AGOA
Expanded upon the Customs /AGOA presentation in order to present it to textile and apparel exporters in Ghana on June 22, 2017. The presentation was also expanded to include more
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information about how to comply with other agency requirements in the U.S. (FDA, USDA, CPSC, etc.) for a presentation to Ghana customs officers on June 20.
3.4 Classification
Consultant prepared materials to train customs officers and exporters on classification under the U.S. tariff schedule. The course covered all aspects of classification including the General Notes, Chapter Notes and U.S. Additional Notes found throughout the schedule as well as customs rulings on classification. This material was presented to exporters and other interested parties at the Ghana Chamber of Commerce on June 23.
3.5 Drawback
Consultant followed up with Ghana customs officials on the drawback claim filed by Global Mamas. Consultant also prepared a general memorandum describing the steps required to file a drawback claim for use by exporters more generally.
3.6 Ghana Investment Promotion Act
Consultant met with Osei-Duro and explained the steps necessary for registering with the Registrar General as well as registering with the Ghana Investment Promotion Centre (GIPC). Osei-Duro said they are not ready to register yet. Consultant will follow up on this on her next trip to Ghana.
The tasks required for this following quarter (July through September, 2017) build on the support already provided and include:
4. Tasks
4.1 Standard Operating Procedures for Customs Officers for distribution in WAfrica to Customs Agencies: Provide a guide of “Standard Operating Procedures” for Customs Agents on AGOA documentation processing so that new customs agents rotating in can understand and be informed regarding their role in the AGOA export process, in lieu of a training program which may or may not be available. This SOP should also include instructions on how to submit requests for replacement textile visa stamps, new authorized signatories, and other activities surrounding a country’s Customs activities relating to AGOA. Much of this SOP can be taken from prior work and that the consultant has done, but which should be formatted in the form of a handbook or guidance to future Customs officers (assumes 4 days, as much of this work has been done).
4.2 Review of Ghana’s National AGOA Strategy
This desk review involves checking Ghana’s AGOA Strategy for accuracy with respect to procedures for access to US markets, rewriting sections that may be incorrect, or pointing out areas that may require further investigation (up to 4 days).
The following entail trips to the region on a schedule to be determined (approximately 20 days)
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4.3 Nigeria
a) Second trip to Nigeria to do a presentation for Nigerian customs officers and exporters on customs classification and to follow up on the visa stamp issue.
b) Presentation to Customs officers and introduction to senior customs officials of the SOP prepared above, for their use in their rotation trainings for customs agents.
4.4 Togo
a) Presentation to customs officers of the SOP prepared above, as per the Nigeria introduction
b) Visit companies and participate in AGOA Forum.
4.5 Ghana
a) Presentation to customs officers of the SOP prepared above as per the Nigeria introduction.
b) Follow up with Ghana Customs regarding Global Mamas’ drawback claim.
c) Prepare a general memorandum on steps needed to make a drawback claim.
d) Follow up with Studio 189 (Abrima and Kofi) regarding AGOA claims.
e) Follow up with Osei-Duro on registration issues.
f) Prepare a general memorandum outlining steps for registering a company in Ghana and for registering with Ghana Investment Promotion Centre (GIPC) and with Ghana Export Promotion Council (GEPC).
5. Expected Results and Deliverables
The expected results and deliverables include:
a. Standard Operating Procedures Manual/Guidebook for Customs Agents regarding AGOA
documentation, their role, “how-tos” and other pertinent information (stamps, signatory
designations and approval requests to USTR, etc.)
b. Proposed improvements/edits/corrections to Ghana’s AGOA strategy
c. Increase Trade Hub service delivery in Nigeria
d. DTRT able to export in the West Africa region
e. Expanded slide-deck of reference material for exporting under AGOA
f. Training materials on product classification
g. Clarification on steps to secure duty drawbacks, especially with respect to electronic filing.
h. Analysis of the Ghana Investment Promotion Act
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6. Methodology
Items #4.1 and #4.2 are desktop studies to be developed in the U.S. without travel being required.
Items #4.3 to #4.5 will involve liaising with stakeholder companies to understand their experience,
and establishing a dialogue with the customs and revenue authorities in Nigeria, Ghana and Togo, as
needed. The consultant will liaise closely with the Trade Hub staff and keep them abreast of
progress at every stage of the assignment.
7. Estimated Level of Effort
The number of days for this effort is variable, with some advance work taking place in the US. The
consultant’s time is factored at a pro bono rate of $0 for the desktop studies in the U.S. (6 -8 days),
and at a rate of $650 thereafter (17 days). Approximately 19 days are expected to take place in West
Africa (Nigeria, Togo and Ghana). This task order covers accommodations in all three countries as
well as any administrative and logistic support required during the completion of the assignment.
The consultant will be in West Africa from July 30 – August 17, 2017.
8. Deliverable Schedule
Deliverable Estimated Completion Date (Estimated LOE)
Criteria for Acceptance of the Deliverable Items of Service
Preparation of a Standard Operating Procedure Manual for Customs Agents regarding AGOA Documentation and other guiding activities
By July 29, 2017 (for introduction during trip to WAfrica to the 3 countries)
(20%) (4 days, pro bono)
Draft document of the SOP in a form that can be shared with Customs Officials in trainings and replicated for them, and able to go on their website if they have one for internal training use.
a) Report setting out the methodology for each task and a schedule for completion;
b) Draft of SOPs (“General Operating Procedures for AGOA”) prepared for West Africa countries
Comments on Ghana’s AGOA Strategy
July 17, 2017
(20%) (4 days, pro bono)
Marked up copy (in Word) of Ghana’s AGOA Strategy with suggested re-wording for inaccurate statements
Mid-term deliverables August 31, 2017 (50%) (17 days paid; 19 days per diem)
a) Delivery of training in Nigeria, follow up on visa stamp issue and visits to companies.
b) Presentation to customs officers in Togo,
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9. Reporting Relationship
The consultant keeps the Project Director informed of progress under this task order. While in
country the consultant reports to the Chief of Party and liaises with technical staff involved in
apparel and AGOA as needed.
10. Period of Performance
The period of performance for this Scope of work is July 10 through September 15, 2017.
Source: Jan Forest
visits to companies and participation in AGOA Forum.
c) Follow up in Ghana on drawback issue, AGOA issues and registration issues.
d) Prepare a general memo outlining steps needed for filing a drawback claim.
e) Prepare a general memo outlining steps needed for registration of an exporter in Ghana.
Final deliverable under task order #3
September 15, 2017
(10%) (2 days, pro bono)
a) Report describing work completed in Nigeria, Ghana and Togo.
b) SOPs finalized for distribution in West Africa.
Total 100%
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ANNEX B: METHODOLOGY,
TASK ORDER 3 METHODOLOGY
SHORT-TERM TECHNICAL ASSISTANCE (JUNE – SEPTEMBER 2017)
WEST AFRICA TRADE AND INVESTMENT HUB
This project is being carried out pursuant to a master agreement between the West Africa Trade
and Investment Hub and Jan Forest designed to provide assistance in the area of trade promotion.
This assistance will be provided using pro bono support as well as 19 days of paid support on the
part of Ms. Forest and several Washington, DC law firms.
OBJECTIVES
During the third quarter of 2017, the input of the consultant and her network of advisors is required
for the following objectives:
4.1 Review of Ghana’s National AGOA Strategy: This desk review involves
checking Ghana’s AGOA Strategy for accuracy with respect to procedures for
access to US markets, rewriting sections that may be incorrect, or pointing out
areas that may require further investigation (up to 4 days).
4.2 Standard Operating Procedures for Customs Officers for distribution in
West Africa to Customs Agencies: Provide a guide of “Standard Operating
Procedures” for Customs Agents on AGOA documentation processing so that new
customs agents rotating in can understand and be informed regarding their role in
the AGOA export process, in lieu of a training program which may or may not be
available. This SOP should also include instructions on how to submit requests for
replacement textile visa stamps, new authorized signatories, and other activities
surrounding a country’s Customs activities relating to AGOA. Much of this SOP can
be taken from prior work done by the consultant has done (assumes 4 days, as
much of this work has already been done).
4.3 Nigeria
a) Second trip to Nigeria to do a presentation for Nigerian customs officers
and exporters on customs classification and to follow up on the visa stamp
issue.
b) Presentation to Customs officers and introduction to senior customs
officials of the SOP prepared above, for their use in their rotation trainings
for customs agents.
4.4 Togo
a) Presentation to customs officers of the SOP prepared above, as per the
Nigeria introduction.
15
b) Visit companies and participate in AGOA Forum.
4.5 Ghana
a) Presentation to customs officers of the SOP prepared above as per the
Nigeria introduction.
b) Follow up with Ghana Customs regarding Global Mamas’ drawback claim.
c) Prepare a general memorandum on steps needed to make a drawback claim.
d) Follow up with Studio 189 (Abrima and Kofi) regarding AGOA claims.
e) Follow up with Osei-Duro on registration issues.
f) Prepare a general memorandum outlining steps for registering a company in
Ghana and for registering with Ghana Investment Promotion Centre (GIPC)
and with Ghana Export Promotion Council (GEPC).
Expected Results and Deliverables
The expected results and deliverables include:
a. Proposed improvements/edits/corrections to Ghana’s AGOA strategy
Standard Operating Procedures Manual/Guidebook for Customs Agents regarding AGOA
documentation, their role, “how-tos” and other pertinent information (stamps, signatory
designations and approval requests to USTR, etc.) This is available on the Trade Hub’s website at:
https://www.watradehub.com/wp-content/uploads/2017/08/Standard-Operating-Procedures-for-
Customs-Officials-for-AGOA_08132017_EN.pdf
b.
c. Increase Trade Hub service delivery in Nigeria
d. DTRT able to export in the West Africa region
e. Expanded slide-deck of reference material for exporting under AGOA
f. Training materials on product classification
g. Clarification on steps to secure duty drawbacks, especially with respect to electronic filing.
h. Analysis of the Ghana Investment Promotion Act
METHODOLOGY
Items #4.1 and #4.2 are desktop studies to be developed in the U.S. without travel being required.
Items #4.3 to #4.5 will involve liaising with stakeholder companies to understand their experience,
and establishing a dialogue with the customs and revenue authorities in Nigeria, Ghana and Togo, as
needed. The consultant will liaise closely with the Trade Hub staff and keep them abreast of
progress at every stage of the assignment.
Task 4.1:
Review Ghana’s AGOA Strategy and provide comments as track changes.
Task 4.2:
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Prepare manual of U.S. Customs laws and Standard Operating Procedures (SOP) for AGOA for
distribution to customs officers in West Africa. The SOP should also include instructions on how to
submit requests for replacement textile visa stamps, adding new authorized signatories, and other
activities surrounding a country’s Customs activities relating to AGOA.
Task 4.3:
Prepare presentation for customs officers and exporters on customs classification and present to
officers in Nigeria. Follow up on visa stamp issue in Nigeria. Present SOP to customs officers and
senior customs officials.
Task 4.4:
Presentation to customs officers of the SOP, attendance and presentation at the AGOA Forum, and
meet with companies in Togo.
Task 4.5:
Present SOP to Ghana customs officers; follow up with Ghana Customs regarding Global Mamas’
drawback claim; meet with Ghana Customs and prepare a general memorandum on steps needed to
make a drawback claim; follow up with Studio 189 regarding AGOA claims and correct entries
already filed; follow up with Osei-Duro on registration issues and prepare a general memorandum
outlining steps for registering a company in Ghana and for registering with Ghana Investment
Promotion Centre (GIPC) and with Ghana Export Promotion Council (GEPC).
SCHEDULE FOR DELIVERABLES
Deliverable 1 – July 17, 2017
Marked up copy (in Word) of Ghana’s AGOA Strategy with suggested re-wording for inaccurate
statements.
Deliverable 2 - July 29, 2017
a) Report setting out methodology for each task and a schedule for completion; and
b) Draft of SOPs (“General Operating Procedures for AGOA”) prepared for West
African countries.
Deliverable 3 – August 31, 2017
a) Delivery of training in Nigeria, follow up on visa stamp issue and visits to companies.
b) Presentation to customs officers in Togo, visits to companies and participation in
AGOA Forum.
c) Follow up in Ghana on drawback issue, AGOA issues and registration issues.
d) Prepare a general memo outlining steps needed for filing a drawback claim.
17
e) Prepare a general memo outlining steps needed for registration of an exporter in
Ghana.
Deliverable 4 – September 15, 2017
a) Report describing work completed in Nigeria, Ghana and Togo.
b) SOPs finalized for distribution in West Africa.
Source: Jan Forest
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ANNEX C: PRESENTATION TO MAGIC
EXPORTERS (AUGUST 1)
19
20
21
22
23
24
25
Source: Jan Forest
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ANNEX D: AGENDA FOR
NIGERIA CUSTOMS TRAINING
Draft agenda
Thursday Aug 3rd , 2017
Timetable Action Responsible
08h30-09h00 Registration of participants
09h00-010h00 Opening :
- Prayers
- Welcome address from the Commander of the
training College, Comptroller Tukura
- Introduction by the Training Coordinator, Comptroller Dr. Shoboiki
- Coordinator Outlines Training Program and Introduces Facilitators
- Introduction of Comptroller General of Customs, Colonel Hamid Ali (rtd)
- Speech of Commissionner General of Customs - Introduction of West Africa Trade and Investment
Hub, Dr. Mohamed Abou iiana - Group Photograph
010h00-10h30 Tea Break
010h30-11h30 AGOA: Overview and Benefits Dr. Mohamed Abou
iiana, AGOA
Specialist
11h30-1h00 Basic of US Customs Laws Jan Forest, US
Customs Lawyer
1h00-1h30 Q&A
Customs Procedures and Documentation for AGOA export
3, 4 August, 2017
Lagos, Nigeria
27
1h30-2h30 Lunch
2h30-3h00 Networking
3h00-3h30 Closing Remarks
3h30 End of Day 1
Friday, Aug 4th, 2017
Timetable Action Responsible
09h00-10h00 AGOA Success Stories and Challenges Dr. Mohamed Abou
iiana, AGOA
Specialist
10h00-10h30 Tea Break
10h30-12h30 - Exporting Agriculture Goods to the US
- Exporting Textiles and Apparel to the Us under
AGOA
- Documentation and the Role of Nigerian Customs
Jan Forest, US
customs Lawyer
12h30-1h00 Lunch Break
2h00-2h15 Closing Remarks
2h30-3h30 Visit to MMIA Command
3h30 End of Second day
Source: Jan Forest
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ANNEX E: PRESENTATION TO TOGO
CUSTOMS OFFICERS
29
30
31
32
33
34
35
36
37
38
Source: Jan Forest
39
ANNEX F: MEMORANDUM TO
GLOBAL MAMAS
TO: Global Mamas
FROM: Jan Forest
DATE: August 30, 2017
SUBJECT: Accounting for Waste and Scraps in Drawback Claims
You asked whether it might be possible to add a margin of error to account for the overage you
use in making your wearing apparel for export to the U.S. when calculating drawback claims.
You will be importing fabric and paying Ghana customs duties. You asked whether an allowance
can be made for fabric that is wasted due to fabric rejects and scraps that remain after cutting. I
believe you said you might make other items from some of these scraps.
I was informed by Ghana Customs when I was in Accra in August that all waste must be
accounted for properly and either exported or destroyed. This means that duties paid with respect
to the waste and scraps cannot be claimed on a drawback claim for the exported wearing apparel.
This is also true in the U.S. The drawback claim for the apparel should only claim a refund of
duties for the amount of fabric actually contained in those articles. However, if you make other
articles from the scrap fabric and these articles are exported from Ghana, you should be able to
claim drawback for the duties paid on the portion of the fabric used to make those articles. You
will have to account for the amount of fabric used in making these other articles and be able to
trace it back to the imported fabric in the same way you need to do this for the wearing apparel.
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ANNEX G: MEMORANDUM ON
GENERAL DRAWBACK
PROCEDURES Filing a Drawback Claim in Ghana
Ghana law provides for drawback in section 106 of the Customs Act, 2015 (Act 891) and in sections
163 – 170 of the Customs Regulations, 2016 (L.I. 2248). Section 106 of the Customs Act defines
drawback as a refund of all or part of the duties paid on imported goods that are exported or used in a
manner or for a prescribed purpose. The Commissioner-General may pay a drawback of duty for goods
that are imported and subsequently exported in the same condition as when the goods were imported or
for imported goods that are used for the manufacture of goods in Ghana that are subsequently exported. A
drawback claim must be filed within twelve months of the date of exportation of the imported goods. The
Commissioner-General must pay a drawback claim within twelve months after the claim is verified.
The amount of drawback paid will be based on the amount of duty paid at the time of importation of the
raw materials. A drawback of ninety-five percent of the duties paid will be granted so long as the goods
are exported and are identified with the goods on the import entry.
The documents required include certified copies of the import documents, including the bill of
lading; import duty payment receipts; drawback debenture form (Form C3); container and sealed
number; a statement of composition form (Form C2A) and export documents. The Ghana
Government must pay the duty drawback to exporters through an escrow account established with
the Bank of Ghana. Refunds are administered via a check drawn on the CEPS Refund Reserve
Account (Escrow Account controlled by Bank of Ghana) with the following signatories:
Commissioner General of Ghana Revenue Authority (GRA) or representative; Minister of Finance
or representative; and Executive Secretary or representative of GRA. In the past there have been
significant delays in making drawback payments. A separate fund for refunds was established in July
2016 and there are reports that refunds are now being made more quickly. In addition, CEPS is working
on trying to make the process electronic.
Records must be kept to provide an audit trail from importation of the raw material through the
manufacturing process to the finished goods inventory and, finally, to exportation of the finished goods.
These include: evidence of importation and receipt of imported merchandise; evidence of use of the
imported merchandise in manufacture or production; and evidence of exportation or destruction under
Customs supervision of the finished articles.
Import documents, including the import declaration form and bill of lading can serve as the evidence of
importation. Evidence of payment of Ghana customs duties can be proven through bank statements.
Evidence of manufacture or production is shown by inventory records or receiving and shipping
documents. In Ghana, this purpose is accomplished through the Statement of Composition (C. 2A).
Proof of exportation can be through a paper trail tracing the goods from finished goods to the vessel
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taking them out of the country. In Ghana, this is the export declaration, the Drawback Debenture form
(C.3) and the export bill of lading.
Documents required to file a drawback claim in Ghana:
1. Import Declaration Form (IDF) (import of raw materials into Ghana);
2. Import bill of lading;
3. Proof of payment of Ghana duties on imported raw materials;
4. Statement of Composition (Ghana Form C.2A) (sample copy attached);
5. Export Declaration (export of manufactured goods to U.S.);
6. Drawback Debenture (Ghana Form C-3) (sample copy attached); and
7. Air waybill (export of goods to U.S.).
Jan Forest
Customs and International Trade Attorney/Consultant
J. Forest Consulting
5604 Chevy Chase Parkway, NW
Washington, DC 20015
Phone: (202) 841-1060
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ANNEX H: MEMORANDUM ON
GENERAL PROCEDURES FOR
EXPORTERS Memorandum on general procedures for exporters.
Setting up an Exporting Company in Ghana I. Registering with the Registrar General’s Department
All enterprises in Ghana are required to register with the Registrar General’s Department in
accordance with the Companies Act, 1963 (Act 179). A. Registering as a for-profit company in Ghana
The option for registering a for-profit company in Ghana with limited liability is to register as a company limited by shares. The requirements for forming a company limited by shares in Ghana
are as follows:
1. Purchase a set of Limited Liability Forms from the Registrar General’s Department for 10
cedis.
2. Deliver to the Registry a copy of the proposed regulations of the company, including –
a. The name of the company with “Limited” as the last word;
b. The nature of the business;
c. That the company has the power of a natural person to conduct business;
d. The number of shares;
e. The names of the first directors2 of the company;
f. That the powers of the directors are limited; and
g. A statement that the liability of members is limited.
3. Registrar will register the regulations.
4. File a declaration and a consent letter from a qualified auditor.
5. Pay a fee of 230 cedi and a 0.5% stamp duty on stated capital3.
6. Registrar issues a certificate of incorporation and a certificate to commence business.
7. Allow 5 working days.
8. Annual renewal is 50 cedi.
2 A company in Ghana is required to have a minimum of two directors. Both may be non-Ghanaian, but at least one must be
resident in Ghana unless the company is registered as an external company. The company must also have a company
secretary to keep records and an auditor who has agreed to act for the company.
3 Ghana has minimum capital requirements for a company limited by shares. There are no restrictions on non-residents
owning shares in Ghana.
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The requirements for registering as an external company are as follows:
1. The company must register with the Registrar of Companies.
2. The company must provide establishment documents from its country of origin.
3. The address and principal place of business in the country of incorporation must be
provided as well as the address and principal place of business in Ghana.
4. The company must provide a local manager and a process agent.
B. Registering as a non-profit company in Ghana
A non-profit company in Ghana is referred to as a Company Limited by Guarantee. This
provides limited liability for the members, but such a company generally cannot engage in
trading. There are some exceptions for situations where all of the income and proceeds are
applied to the charitable purpose of the company, but the primary purpose cannot be to make
a profit.
Under U.S. law covering non-profit companies (generally covered under section 501(c) (3) of the Internal Revenue Code) there are four main activities that can jeopardize the organization’s
tax-exempt status:
1. Activity that results in private benefit or inurement;
2. Lobbying activity, if it is a substantial part of the organization’s overall activities;
3. Political campaign activity; and
4. Unrelated business activity that is substantial in comparison to the exempt
activities.
The fourth of these is most relevant here. In determining whether a business activity is an
unrelated business activity, U.S. law looks at whether the activity is substantially related to the
charitable purpose for which the organization was set up. If so, the activity may be exempt, even if it is a trade or business. However, if an exempt organization carries on a trade or
business that is unrelated to its exempt purpose it will be taxed on its income from that trade
or business. The business is not considered substantially related to the exempt purpose if it
does not contribute importantly to that purpose beyond the provision of funds. For example,
selling of products that result from the performance of an exempt function is not an unrelated
business subject to tax where the product is sold in the condition it is in at the time the exempt
function is completed, but if the product is used in further business activity beyond what is
necessary to dispose of it as is, it may be considered an unrelated business activity. Any
exploitation of the product of the exempt activity beyond that needed to contribute
importantly to the exempt purpose can result in the activity being considered a taxable
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unrelated business activity. An example of a related business activity that would not be taxed is
the sale of products made by residents of a halfway house where the production of the product
contributes importantly to the exempt purpose and the profits are applied to operating costs
for the facility. Similarly, where students of an exempt vocational school make articles as part of
their regular course of training, the sale of those articles will not be treated as an unrelated
taxable business activity.
Global Mamas is an example of a company that is properly registered as a company limited by
guarantee because all profits go back into the company to serve its charitable purposes.
The recommended steps for setting up a non-profit in Ghana include: 1. Developing a vision and mission;
2. Developing goals and objectives;
3. Setting up a Board of Directors;
4. Drafting a Constitution; and
5. Registering in Ghana.
The Constitution generally should include: 1. The official name of the organization;
2. The mission and goals of the organization;
3. The registered office;
4. The program areas;
5. The requirements for members, including qualifications and length of membership;
6. The size of the board and responsibilities;
7. The structure of board meetings;
8. The structure for committees;
9. The executive positions;
10. How the organization is funded;
11. How funds are applied; and
12. The procedure for amending the constitution.
II. Registering with the Department of Social Welfare (non-profits only)
Registering a Company Limited by Guarantee in Ghana is a two-step process, including registration with the Registrar General’s Department and registration with the Department of
Social Welfare.4
To qualify for registration with the Department of Social Welfare as a non-profit, the company:
1. Must be voluntary, independent and not for profit;
2. Must be working to improve circumstances and prospects of disadvantaged people who are
unable to realize their potential or achieve their full rights in society;
4 Since the enactment of the Ghana Investment Promotion Centre Act, 2013 (Act 865), it appears that a non-profit must also
register with the GIPC.
45
3. Must operate within the confines of the framework of National Development Policy and
Fundamental Liberties in the Laws of Ghana;
4. Must not be used to shield private for profit enterprise(s);
5. Must state their objectives clearly and concisely;
6. Must state the manner in which they are governed, in a constitution or by law or
memorandum according to the law under The Companies Code, Act 179 of 1963;
7. Must provide a general account of the organization’s work method, activities and scope;
8. Must provide a statement of sources of income and fields of expenditure;
9. Must be managed and controlled by their members; and
10. Must submit annual reports by March of every year to the Department of Social Welfare.
To register with the Department of Social Welfare as a non-profit requires the submission of:
1. The Certificate of Incorporation and the Certificate to Commence Business;
2. An application letter to the Director on company letterhead;
3. A copy of the Constitution;
4. A non-profit profile form;
5. A social investigation report;
6. A recommendation letter from the municipality where the company is located;
7. A company profile (brochure); and
8. 3 copies of an endorsement letter from the regional office of Social Welfare.
Companies Limited by Guarantee are required to renew their status every year by submitting
to the Department of Social Welfare the following:
1. An annual report;
2. A second financial report;
3. A renewal form; and
4. A renewal fee of 5 cedi.
III. Registering with GIPC
An enterprise with foreign participation must register with the Ghana Investment Promotion
Centre (GIPC) (www.gipc.org.gh) after incorporation or registration and before commencing
operations. Registration must be renewed every two years. This requirement was put in place
through section 24 of the Ghana Investment Promotion Centre Act, 2013 (Act 865). Certain
activities, listed in section 27 of the Act are reserved for Ghanaians.5All other activities may be
performed by enterprises with foreign participation (section 28). The capital requirements in
section 28 for foreign owners are very high, but section 29 provides an exemption from the
minimum capital requirement for enterprises set up solely for export trading and
5 Activities reserved for Ghanaian include: sales in a market, hawking and selling from a stall; taxi or car hire services;
operating a beauty salon or barber shop; printing scratch cards for telecommunication services; production of exercise
books and basic stationery; retail sale of finished pharmaceutical products; production and sale of sachet water; and all pool
betting business and lotteries with the exception of football pool.
46
manufacturing. Section 28 also includes a requirement to employ at least 20 Ghanaians. It is not
clear whether the exemption in section 29 applies to this requirement as well.
IV. Registering with GEPC
There is no clear requirement to register with the Ghana Export Promotion Council (GEPC),
but it may be very advantageous to do so. The GEPC is an autonomous body set up in 1969
under the aegis of the Ministry of Trade and Industry to promote non-traditional exports from
Ghana.6 The GEPC provides numerous services for exporters, including identifying products and markets for export, organizing trade fairs and market missions, providing advisory services
to exporters and providing information about export incentive programs. The GEPC also
maintains the Export Ghana Trade Information Portal (www.gepcghana.com) providing a great
source for useful information.
V. Other Organization Contacts
Ministry of Trade and Industry www.moti-ghana.com
Ghana National Chamber of Commerce and Industry [email protected]
Federation of Associations of Ghanaian Exporters www.ghana-exporters.org
Association of Ghana Industries www.agi.org.gh
Jan Forest
Customs and International Trade Attorney/Consultant
J. Forest Consulting
5604 Chevy Chase Parkway, NW
Washington, DC 20015
Phone: (202) 841-1060
6 Traditional exports from Ghana are cocoa, gold and timber.