Digital Reach

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would operate smoothly, including providing infrastructure instal-

lation and management, and training for CEPS staff.

Bridging the trade divide through digital customs

management

GCNet operates a customized electronic system for processing

trade and customs documents, recording the related duty and

tax payments. This is done using two systems: the Ghana

TradeNet and the GCMS. Through the Ghana TradeNet’s EDI

platform, users can interface with the GCMS, and send and

receive messages electronically to other users including key public

sector agencies such as MOTI, the MoF, the Bank of Ghana, CEPS,

and the private sector (shipping lines, freight forwarders, banks,

etc). The TradeNet thus provides a medium for exchanging trade

information between businesses on one hand, and government

agencies on the other, making GCNet a business-to-government,

or B2G company.

GCNet has established its own private communication

network, made up of a fibre-optic broadband link between the

GCNet office and CEPS. This is complemented by radio links,

which also cover other CEPS collection stations, plus dedicated

leased lines and points of presence in locations outside Accra.

The network links CEPS offices throughout Ghana, enabling users

to access the system easily. The development of this private

network also ensures that the system will always be up and

running, and not suffer any communication hiccups, given the

unreliable nature of the normal communication networks. In the

absence of a well-articulated national communications strategy,

this new network stands in isolation, needing no interface with

other agencies.

GCNet has worked closely with CEPS to re-engineer opera-

tional processes, including the preparation of new Customs

Procedure Codes that meet standards set by the World Customs

Organization (WCO). The Ghana Customs Tariff Book has simi-

larly been extensively reviewed and updated to ensure that it

meets standards set by the WCO’s harmonized system.

GCNet has sensitized all key stakeholders and engaged them

in consultations to ensure that the systems address their

concerns and meet their expectations. GCNet has also embarked

on an extensive training programme for CEPS staff and declar-

ants to ensure that all GCNet users are trained adequately in

the fields of the system they need. User guidelines, posters, CD-

ROMs, and a website are available at GCNet offices for registered

declarants.

The TradeNet and GCMS systems were tested at Kotoka

International Airport before a full rollout began. Traders were

moved in batches, stretching out the learning process to permit

CEPS staff to acquaint themselves with the new procedures and

to enable the training of traders and their representatives. The

first EDI declarations were lodged at Kotoka airport in October

2002 for import transactions, and the transition was completed

by December 2002. From March to June 2003, the system was

implemented at Tema Harbour, and on 14 November at Takoradi

seaport, where it started facilitating exports.

Outcomes

It is still too early to make a full assessment of the results obtained

by the Ghana TradeNet project, but several factors have emerged

to suggest some progress in trade facilitation:

Revenues are up

– Airport revenues for July to September 2003 were

nearly 40 per cent higher than during the same period in 2002.

With no real change in the activities of the Destination Inspection

Scheme (DIS) companies during this period, GCNet operations are

conservatively estimated to have added 30 per cent to the customs

revenues from airport traffic.

Clearance times are down

– There are no firm statistics regarding

clearance times before the introduction of GCNet, but traders are

unanimous that the improvements are major with respect to the

time it takes to clear goods both at the airport and at Tema

Harbour.

Community Networks are being initiated

– Work has begun on

connecting the trading community, with the result that trade

transactions are easier for traders and that government and regu-

latory agencies have access to streamlined data. Much work still

needs to be done, but the following members of the trading

community are already connected:

• The shipping lines provide electronic manifests to GCNet,

which transfers these to Ghana Ports & Harbours Authority

(GPHA)

• The Ghana Shippers Council obtains all information regard-

ing the movement of ships and airplanes, but still uses some

paper documentation

• CEPS obtains customs declarations electronically

• Banks inform CEPS electronically of payments made

• The Statistics Service is connected to receive from CEPS all

relevant trade statistics (it has not yet taken advantage of this

connection)

• The MoF is connected and can download all trade informa-

tion as well as all transactions by taxpayers identified by Tax

Identification Number

• The Value Added Tax (VAT) service accesses information on

imports made by VAT registered firms.

The clear winners of the GCNet initiative have been the traders

that benefit from faster clearance times at customs and a reduced

GCNet inauguration at Customs

Photo: SGS