Presidential Initiative At Risk

Unfair competition by edible oil importers who under-invoice with intent to pay less customs duty, could have a negative effect on the President?s Special Initiative on Palm Oil. Instead of encouraging local producers to promote local palm oil production and processing, cheap imports would discourage them and go against the government?s intention of creating wealth for the Ghanaian farmer.

Importers of vegetable oil have reportedly been evading import duties on the commodity through under-invoicing FOB prices.

Between 2001 and 2002 and about the first quarter of 2003, GSL records indicated that there was a total import of about US$5.3 million.

Average edible oil imports by 230 companies and individuals was about US$2.4 million per annum for years 2001, 2002 and the first quarter of 2003.

The bulk of the imports came from Europe and Asia notably France, Netherlands, Singapore and Malaysia. Meanwhile, a company director has recommended that the government takes immediate steps to create a level playing field for local manufacturers to compete.

He requested the government to move to recover all taxes due the nation from the importers by reassessing custom duties payable. ''Gateway Services Limited should update their FOB prices in line with world market prices. This could be obtained by asking for quotes from time to time from foreign manufacturers. By so doing, duties and taxes would be assessed on prevailing world market prices'', the businessman said.