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DUTY DRAWBACK

This is a refund on import duties after the importer re exports previously imported products (Same-state Drawback). It is also a refund of import duties paid on imported raw materials used in the production of finished goods and exported (Material Drawback). If both imported inputs and domestic inputs of the same, kind and quality are used to manufacture goods, which are exported, then drawback of the duty which was paid on the imported inputs is payable on the exports. It is immaterial whether the actual imported input or the domestic input of the same kind and quality was used in the exported article.

LEGAL BACKGROUND

The Duty Drawback Regime is legally backed by sections 40-42 of Customs (Management) Law of 1993, P.N.D.C. Law 330.

WHO BENEFITS FROM DUTY DRAWBACK?

Any person/firm who imports finished products and re-exports them or any manufacturer who uses imported raw materials in the manufacture of products and exports them is entitled to claim a duty drawback.

WHEN IS DRAWBACK DUE?

It is due when there is ample evidence that the goods have duly been re-exported the evidence being:

a) Either Ghana Customs export documents endorsed by Customs authorities in both the exporting and importing countries or
b) “landing certificate” from the importing country (where required).

HOW DO I CLAIM DRAWBACK?

Submit an application for claim of the drawback together with the under-listed documents for processing by the Duty Drawback Office at the Customs Headquarters:

1) Certified copies of the import documents
2) Import duty payment receipts (or certified copies)
3) Drawback Debenture Form (Form C3)
4) Statement of Composition Form (Form C2A) in case of Material drawback

HOW LONG SHALL I WAIT?

Where documents submitted are authenticated, the maximum period for processing the claim i.e. from date of submission to the time of payments, is five (5) working days.

IS THERE A TIME LIMIT FOR CLAIMS?

Duty drawback can be claimed only within twelve (12) months from the date of your first export. It is, however, advisable to put in your claim quarterly i.e. every four (4) months.

HOW FAST IS PAYMENT MADE?

The Government of Ghana has established an escrow account with the Bank of Ghana into which monies are paid for the purpose of satisfying the duty drawback needs of exporters.

WHO CAN APPLY?

1) The DIRECT EXPORTER, that is the firm or individual whose name appears on the import/export entry or declaration, is the party entitled to drawback. However, the right to drawback can be endorsed by the exporter   to a supplier.

2) An INDIRECT EXPORTER, such as an importer, manufacturer or merchant that supplied duty-paid materials for exports, can claim drawback if :

3) the exporter waives the right to drawback by endorsing the Form C.3 (The Drawback Debenture Form) and sharing the export documents; and

4) proof of delivery of duty paid goods, from the importer who paid the duties through to the direct exporter is provided.

 

 

 

 

 

 

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